Why not just rent rather than buy

[1950bing]

I beleive you have answered your own ?

[BoardGirl]

Originally Posted by 1950bing

To me a stay at a B&B is much more private. There are usually 3 to 4 couples to get to know and at the end you have made new friends. That seems better than having hundreds of people to deal with. Plus, there is no one constantly wanting me to take a tour for hours at a time and loading up the phone with messages of stuff that I don't care about.. At B&B there are usually no loud kids that are all sticky.
When I'm off the last thing I want to do is to cook. I like trying the local taste and having everything fixed for me.
I don't understand the " pretend to be sorry " part but as you said,
" to each his own."
Give me a good B&B anyday. ( No maint.fee to pay )

The pretend to be sorry part? That I don't want to get to know anybody!

I'm selfish with my vacation time and generally want to do what I want to do and not have to spend time with those 3 or 4 couples or the hosts, or be pressured to join the activities they have planned.

I don't end up dealing with hundreds of people at a timeshare, and in fact enjoy being anonymous.

I'm ok with maint fee for private accomodations and sleeping late, even if that means missing community breakfast. I like cooking and vacation is when I have the time to do it right.

We all like what we like! Luckily, everyone can find a vacation that suits them.


ps: I'm not a fan of loud sticky kids, either.

[BoardGirl]

Originally Posted by docdvm

So why should I buy instead of rent? Is it worth it?

If you look at only the financials, probably not, especially if the only resorts in consideration are the high-end, pricey, Marriotts.

For me, vacation quality, locations, amenities, having a plan over a year in advance, etc., make it worth it. Has it been worth it financially? Well, no, because we probably would not have taken vacations, and certainly not in such fine accomodations or exotic locations. We'd be camping, most likely, or bunking on couches of relatives. More likely, staying home to paint the house or clean out the garage. Is that better? No. Would that save money? Yes.

If I could go back in time would I undo our first purchase? NO WAY. I'm a healthier, happier person now that I've recovered from workaholism.

[wackymother]

Originally Posted by docdvm

In an attempt to understand the costs of ownership to renting I believe it best to compare apples to apples. So let's say I rent a a 1 bedroom TS in Hilton Head for February and let's say 2 weeks. I believe the Marriott is a nice place and would sell the 2 weeks for over $20000.00 with, I believe MF over $1000.00 if you add in memberships (II) , etc. On the rental market I could likely get the TS for let's say $2500.00 which I believe is reasonable, No?

If I invest the $20000.00 for a 6 % return then I would generate $1200.00 albeit taxable income. I also avoid the management fee of $1000.00. Therefore is it worth tying myself into a contract for the rest of my life for a saving of a couple of 100 $$ at most. I also believe that I could rent the TS for less than $2500 in February so there goes the financial benefit.

From what we read on TS sales absolutely everyone suggests that the cardinal rule is to buy resale. Why? Because owners are taking a beating on resale letting their TS go so 20-50% off developer's prices. Why do you think that your resale will be worth more? Do you feel that 35 year old resorts will command higher prices? Do you think the special assessments when the resorts need refurbishing won't drive prices down? Add the fact that you will have no choice but to pay as that is your obligation.

So why should I buy instead of rent? Is it worth it?

NO! I honestly don't think timesharing makes a lot of sense for you. For me, with a big family and limited vacation time, yes, it does make sense. But for you, no, I'm not seeing it.

[docdvm]

I guess I am not alone in considering renting over buying. Another similar discussion:

Buying timeshares (even resale) - Buying, Renting, and Selling Timeshares Discussion Forum - RedWeek.com

[ladycody]

No...it probably doesnt make sense for you....but as someone else mentioned...for me...with a family of 4...it works. The properties you're looking at are pricier (albeit they hold value better than most) and the dues are higher than I would pay.

In addition you mention special assesments...which was one of my biggest fears when looking at TS's. It's one of the reasons I liked WM.

Look at a traditional TS development that has 12,000 owners and has a major problem requiring $25,000,000 worth of repairs...it would result in over $2000 Special Assesment per owner.

With WorldMark...we could rebuild the entire Seaside resort (I figured about 90 million) for about $350 per owner without even touching our reserve funds. For WM owners to receive an assessment as large as the one above ($2000 at a typical ts)...we'd have to plow through our reserve funds and still have $500,000,000 in damages. I liked that particular feature...having seen people who have a 5 year $1200 assesments and $3000one time assesments for their resorts.

Again...I also believe that my ownership costs will not increase as rapidly as inflation in the hospitality industry. Hotel rooms and rentals have, in my experience and on average, doubled about every 10 years. I could be wrong....but my belief is that by the time my mf's have doubled...retail rates would have doubled about twice...so my $1500 (figure slightly more than double) would now be getting me the retail equivalent (even if just getting one week of vacation) of about $4000.

Alot of people scoff at that...but the reality is that when I was a kid, people's minds would have been blown if they could see what would be charged for that same little motel (no great shakes) in our little town (not exactly a destination location) 30 years down the road.

So I guess I'm hedgin' a bet (not sure that's exactly the right term)...but I'm covering my bases and I think it'll work out.

Regardless...I, who never traveled, now travels more than I thought I ever could and stay in places I never could have/would have. I'm good with owning. You need to do what works for you.

[samiam]

I believe, if you like staying in up-scale, as opposed to economy, accommodations, timeshares are the most economical choice in the long run.

Sam