advice on buying first timeshare

[hotwired]

(this post is duplicate but I was asked to post it here vs. the introductions)

Greetings!
My name is Ken LaVoie -- My wife Deb and I endured a pretty pleasant 50 minute spiel today, -- we were strong and united enough to say no, but we also felt, after talking to a couple of friends, that htere might indeed be some benefits to owning, at a reasonable price, as well as being a member of RCI.

We did leave today with 4 free round trip airline tickets (with restrictions of course), $50 home depot card, $300 grocery gift certificate and $100 "fun cash" to spend on any vacation booked using the 4 airline tickets. What we got, that might've been the MOST valuable was a crash course in how it all works, how it all comes together.

I'm going to regurgitate them all here in shorthand, and maybe you can let me know if I'm on the right track and maybe give some feedback on how best to approach the secondary market?

1. Okay, so you buy your points (or week) -- all resorts are graded by 4 basic things -- location, time of year, number of people that it will sleep, quality of resort (0-5 star). You buy "points" and these 4 criteria are assessed together to determine how many "points" each week sells for, or is worth. For our particular spiel we were offered 21,000 points for $10,900 financed at 15.9% (ouch!). This assumed a "4 sleeper" unit with annual maintenance of $295. A 40,000 point would be $395 per year. In addition, if you want to swap, there is a $138 fee to RCI to do so.

2. What is different about THESE new ones is that you can break up your week. So you can take 4 days in one place, 3 days in another. from what I can see, this is the ONLY difference between buying at a "spiel" and buying on the secondary market.

3. By being a member of RCI, you get to choose special deals from the "last call" inventory of unused weeks. These are available ONLY 0-45 days in advance, and cost the LESSER of 9,000 points or the lowest number of points that the resort charges -- so if the Palms Resort in Orlando is 21,000 points for a 2 BR in January, you still only pay 9,000 points. There is also a cash price alternative, usually $200-$300. So you can just pay that and STILL have all your points for another vacation.

4. On a side note, We live in rural Maine, 90 minutes from coast, and one advantage that I can see in owning locally is that if you want to take a cruise or another vacation that you cannot use your points for, you still have a "cheap" local vacation you can take any time at the coast of Maine -- just gas and groceries.

5. Are there any other fees, like for being member of RCI?

6. How does typical time share stack up agains DVC?

7. What is the typical fee increases? Maintenance and swap?

8. What is the difference between "points" and "weeks" -- ie, some timeshares, although you are DEEDED a specific week, you really buy "points" -- whereas some ts' simply deed a week with no point value ... is this simply a "verbiage" issue ??

Thanks VERY much! I hope to be an owner SOON!

[aliikai2]

Originally Posted by hotwired

(this post is duplicate but I was asked to post it here vs. the introductions)

Greetings!
My name is Ken LaVoie -- My wife Deb and I endured a pretty pleasant 50 minute spiel today, -- we were strong and united enough to say no, but we also felt, after talking to a couple of friends, that htere might indeed be some benefits to owning, at a reasonable price, as well as being a member of RCI.

We did leave today with 4 free round trip airline tickets (with restrictions of course), $50 home depot card, $300 grocery gift certificate and $100 "fun cash" to spend on any vacation booked using the 4 airline tickets. What we got, that might've been the MOST valuable was a crash course in how it all works, how it all comes together.

I'm going to regurgitate them all here in shorthand, and maybe you can let me know if I'm on the right track and maybe give some feedback on how best to approach the secondary market?

1. Okay, so you buy your points (or week) -- all resorts are graded by 4 basic things -- location, time of year, number of people that it will sleep, quality of resort (0-5 star). You buy "points" and these 4 criteria are assessed together to determine how many "points" each week sells for, or is worth. For our particular spiel we were offered 21,000 points for $10,900 financed at 15.9% (ouch!). This assumed a "4 sleeper" unit with annual maintenance of $295. A 40,000 point would be $395 per year. In addition, if you want to swap, there is a $138 fee to RCI to do so.

Points are points in RCI, these prices are very high as in the resale market a 21k ownership can be had for under $1500. You need to do a lot of reading here and Timeshare Users Group - The first and largest online community of timeshare owners providing timeshare resort reviews, timeshare ratings, FREE timeshare advice and FREE Timeshare Classified ads! regarding RCI points and points in general. I would never recommend owning such a small package, it won't get you anywhere for more a part of a week during off season.

2. What is different about THESE new ones is that you can break up your week. So you can take 4 days in one place, 3 days in another. from what I can see, this is the ONLY difference between buying at a "spiel" and buying on the secondary market.

Wrong, again points are points in RCI

3. By being a member of RCI, you get to choose special deals from the "last call" inventory of unused weeks. These are available ONLY 0-45 days in advance, and cost the LESSER of 9,000 points or the lowest number of points that the resort charges -- so if the Palms Resort in Orlando is 21,000 points for a 2 BR in January, you still only pay 9,000 points. There is also a cash price alternative, usually $200-$300. So you can just pay that and STILL have all your points for another vacation.

If the Palms resort is a weeks resort, then this could happen, if it is a points resort, it will always cost you whatever the points chart says, then trying to find a lot of prime weeks available for last minute bargains, just doesn't normally happen.

4. On a side note, We live in rural Maine, 90 minutes from coast, and one advantage that I can see in owning locally is that if you want to take a cruise or another vacation that you cannot use your points for, you still have a "cheap" local vacation you can take any time at the coast of Maine -- just gas and groceries.

No, unless you book your home resort week during your preferred period, you pay possible more points than you received, this is normally at 11 months in advance.

5. Are there any other fees, like for being member of RCI?

Yes, $199 per year to join, $99 per year to continue plus trade fees, etc

6. How does typical time share stack up agains DVC?

Disney Vacation Club is a timeshare, so I guess I don't understand your question.

7. What is the typical fee increases? Maintenance and swap?

They is nothing typical in the world of timeshare, each group/resort is it's own company.

8. What is the difference between "points" and "weeks" -- ie, some timeshares, although you are DEEDED a specific week, you really buy "points" -- whereas some ts' simply deed a week with no point value ... is this simply a "verbiage" issue ??

Here again, you really need to read, read, read, there are weeks only resorts, weeks resorts that sold some RCI points( so you can't trade there for a week as a points owner
There are very few points only resorts were you don't receive any type of deed, at least not in the RCI program.

Thanks VERY much! I hope to be an owner SOON!

fwiw,
Greg

[BocaBum99]

You have barely scratched the surface of what you need to know to make a purchase. The best thing to do at this point is to post here what you care about in vacationing. RCI Points may not even be the right timeshare system for you.

Did you like the specific resort you visited? Or, did you like the flexibility in the product? Where do you typically like to travel? How often per year?

Once you give us this information, several of us will provide recommendations on which resort or resort groups you should consider. Then, you can either find one on your own or work with a reputable broker of that resort system to help you out.

Jim

[hotwired]

Thanks for your responses.

For aliikai2

1. I get it now, after researching a bit more -- you can either have a "weeks based" or "points" -- and they're not interchangeable, though I did find a website (TUG) -- who's owner will send info about a "trick" to exhange one for the other (I'm sure I'm all wet here, but just regurgitating!)

2. For the "local" question, I'd assumed if I buy a TS at "Boothbay Harbor Resort" for week 33, then I don't have to worry if I want to USE week 33, it's just if I want to stay at a different time that I may pay more, correct?

3. My question about DVC assumed that it was different, somehow, than the typical TS -- I think they last 50 years vs. forever as far as time goes. Are DVCs tradeable in RCI, though? That would seem like a benefit. I've heard some good feedback from people who've bought NEW DVCs, so maybe a DVC resale is a good "newbie" starting place?

4. For BocaBum99 -- We are a family of 3 - My wife, myself (early 40s) and 7 year old daughter. Been to Disney twice, doing a cruise this winter. Want to go to NYC soon, as well as "finish" the Orlando area (Sea world, etc.) and probably at least ONE MORE trip to Disney. On the horizon is Washington DC, when our daughter is teenager, London, Paris, etc. Grand Canyon. We vacation 1-2 weeks per year, and own a camper and do some of that during warmer months. My logic says "buy a TS here on the coast so that if we are doing a vacation that we cannot use our TS points or week for, at leasat we can have a "cheap" vacation on our own beautiful coast, 90 minutes away." -- I've heard though, that a better strategy might be to buy a "hot" week -- Orlando/RED -- which will give better trading power.

We will be "retiring" when our little one graduates (10 years) -- and will then travel to every place we've ever heard of -- Thailand, a few places in Central and South America, etc. China, Viet Nam, Cambodia, Africa ... We plan to be very mobile.

Thanks in advance for your advice. I've been researching now for ONE DAY and my head is spinning!

Ken
Winslow, Maine

[philsfan]

Originally Posted by hotwired

Thanks for your responses.

For aliikai2

1. I get it now, after researching a bit more -- you can either have a "weeks based" or "points" -- and they're not interchangeable, though I did find a website (TUG) -- who's owner will send info about a "trick" to exhange one for the other (I'm sure I'm all wet here, but just regurgitating!)

I think the 'trick' is probably what RCI calls 'Points for Deposit'. That means that if you own points and you also own a weeks unit, you might be able to deposit your weeks unit for points.

Originally Posted by hotwired

2. For the "local" question, I'd assumed if I buy a TS at "Boothbay Harbor Resort" for week 33, then I don't have to worry if I want to USE week 33, it's just if I want to stay at a different time that I may pay more, correct?

If you buy points, you have to take action at a specific time to use your week at your points resort. If you don't, they will assume you want the points associated with your unit instead.

Originally Posted by hotwired

3. My question about DVC assumed that it was different, somehow, than the typical TS -- I think they last 50 years vs. forever as far as time goes. Are DVCs tradeable in RCI, though? That would seem like a benefit. I've heard some good feedback from people who've bought NEW DVCs, so maybe a DVC resale is a good "newbie" starting place?

You are talking about RTU or Right to Use where there is a specific expiration date. DVC is not the only RTU timeshare, there are many in Mexico and the Caribbean. DVC's are available for exchange in RCI since early this year.

Originally Posted by hotwired

My logic says "buy a TS here on the coast so that if we are doing a vacation that we cannot use our TS points or week for, at leasat we can have a "cheap" vacation on our own beautiful coast, 90 minutes away." -- I've heard though, that a better strategy might be to buy a "hot" week -- Orlando/RED -- which will give better trading power.

Orlando/Red is normally not a "hot" trading timeshare location. I can't speak for the DVC's but Orlando is generally overbuilt and timeshares there are not the best traders.

[EAM]

DVC "Ownership Interests" have expiration dates. As I recall, BCV, BWV, VWL, OKW, VB, and HHI all expire Jan 31, 2042 (unless extended) and Saratoga Springs expires Jan 31, 2054. I don't know when AKL, BLT, etc. expire. I don't think anyone really knows what will happen at the expiration date, but you should not count on a DVC being available to you after the expiration date.

As of 2009, DVC trades in RCI. In the past, DVC traded in II.

[rikkis_playpen]

Animal Kingdom deeded leasehold expires 1/31/2057.
Bay Lake Tower at the Contemporary deeded leasehold expires 1/31/2060.
Extended Old Key West expire 1/31/2057.

[rmitchell]

Remember that you may be stuck with only going to the place you buy and it's forever. Buy where you want to go to every year. Your children may also be stuck going there forever after you die by rules of the contract. Timeshares are a lot like nail fungus. They're hard to get rid of.

[philsfan]

Originally Posted by rmitchell

Remember that you may be stuck with only going to the place you buy and it's forever.

If that happens, you bought the wrong thing and/or all 6 or so exchange companies went out of business.

Originally Posted by rmitchell

Buy where you want to go to every year.

I have never stayed in a timeshare that I own and I am very happy with what I own.

Originally Posted by rmitchell

Timeshares are a lot like nail fungus. They're hard to get rid of.

Never had nail fungus but it's a fact, they are difficult to move.

[MaryH]

hotwired,

It sounds as if you have not thought about what you want in detail and researched enough to commit any money right now. The same timeshare can have very difficult prices depending on how you bought it - from developer or resale or auction. Also it is likely a timeshare is not an investment and you might loss money on it so you need to factor that into you cost vs renting.

From some of the things you said, several areas / TS that might be worth you to investigate:

1. RCI 3 year point lease - see add on top. I looked into it a little but ended up buying into Hyatt program which I have stayed at for Key West and Carmel Highland and love the flexibility of their points.

2. HGVC - I don't like it as much since it is primarily Orlando, Las Vegas and Hawaii which are all overbuilt. But ownership in HGVC allow you to get open season within HGVC and trade externally and they do have a NYC City clubs but it would be very expansive.

3. Royal Holiday Club (RHC) - it has its detraction and issues but it is one of hte better ones if you want to get into Europe

I would suggest that you do some more research and if you and your wife are good at saying no, try to look into some of the owner referral links since that may allow you to access a vacation at a reduced rate and you can check the resort / program out. Alternatively, try to rent from owners of program / timeshare you are interested in to get your feed wet.