Can Someone Educate Me On Timeshares & If This Is A Bad Deal.

We looked at one in Hawaii just to get discounted tickets to some excursions and to satisfy my curiosity. Pretty high pressure sales techniques used and they tried to make us feel guilty when we said no. They also acted like it was a federal violation to purchase one the following day of the presentation. For some reason everything had to be done when we were there.

I found that the exact same deal they were pushing for $35K could be bought from people wanting to sell theirs for $5K when I googled it. I wouldn't recommend them. There are other annual fees you also pay.

so even as good as it sounds $37k is just awful then? You guys are all under $10k in your experiences?

Time share=money pit

My mother & my aunt both had timeshares (Hilton connection one, other in Florida), but both took losses to get out from them and hated the fees that just went up almost every other year. My suggestion is to not buy,

Its not about condo prices, im not looking to spend that much money. I have a vacation condo in miami but the problem is summer time, miami is in its slow season and its really muggy and nasty with lots of rain and potential for a hurricane. So we can go down there whenever. Its just our friends ran this by us today and were thinking maybe we split it and go so $18500 a piece + bills for a 2 bedroom apt for 3 straight weeks + another flex week. I've never been to this particular ritz carlton but been to aspen a few times, but having been in a few ritz hotels, i imagine its probably a great place.

As for condo fees, what are typically fees on a timeshare, my friend put in a call and didnt get someone he was going to try again tomorrow, but my condo in miami the fees go up every year as well, so thats not an issue for me.

My issue was around the topic of what is my equity really in the event this hotel suddenly shuts down or goes into foreclosure, am I out $37,000? Then are timeshares easy to re-sell, apparently from a few responses the answer is no. Then finally how timeshare fees work and what I should be looking for as well as is there potential 1 time assessments or how are repairs handled should someone else damage the room, etc

I had a friend who sold Ritz Carlton timeshare in Kauai. I think the project never got off the ground properly though. Anyway, as best as I can answer your questions:

$37k is really cheap if that's straight from the developer and not a resale. If it's resale you may not get all the benefits. You'll have to ask. If your plan is to just go every year, then no need for extra benefits.

The HOA dues will likely be about $1k per week so you're looking at $4k a year minimum. You have to compare vs what you would pay booking as a hotel/condo through Ritz and I guarantee you're not staying at a Ritz for $1k a week if you pay rental. Especially being you're staying in a 2BR and a Ritz hotel room costs an easy $400+ a night minimum. I think it always comes down to if you're going to actually go every year and use it. If you would go anyway then it's worth it.

It is likely fee simple but again, you'll have to check so yes, you own it forever and those HOA dues go on and on. And they will guarantee increase.
I don't think you can lose your 1/12 ownership since you'll own it fee simple (if it is). You may not have a Ritz, it could be a St Regis like you mentioned but obviously it's high class to be a Ritz so likely some shite company wouldn't take over if it did ever go to sale. I guess if it got completely shut down you may have an issue but I don't know how they could keep you out. You own 1/12.

If you can go to Aspen every year for 2-4 weeks and your friends can too then it could be a good deal if that's the type of accommodations you guys want. I would be cautious about doing this with someone else though. What if they get tight on money and don't feel like paying $2k+ a year for dues?

If you really love the idea of having somewhere that you can always go for a vacation, buy a second property and do the upkeep yourself.

A big problem with timeshares (or fractional ownership of anything really) is that if you don’t control the property, then someone else will, and in the case of timeshares it’s the management company that sold you the timeshare. By buying into this arrangement you’re basically financing their investment into developing the property and maintaining it. It’s like an HOA gone mad. Don't like the maid service at your own home? Just switch maids. Don't like it at the timeshare? Suck it. What are you going to do, call a meeting of a bunch of the other owners of “your” unit, or just roll with the inflated prices of the management company? Bend over and take it like man.

Oh, and since you don't actually own the place yourself you can't make any changes at all to the unit. So over time your nice new timeshare starts looking dated and a bit shabby.

Like I said, if you really love the idea of having a second home, get a second home and do the upkeep yourself.

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Hey, Dave, I'd like those 12% a year guarantees, please

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Yeah, I'm guessing Dave must have been basing those 12% rates on how much stocks were recovering when he wrote that article in 2009. For a financial guru, I'm surprised he didn't use a more realistic rate of return. I should have read that one a little more closely before linking it. The main point he was making without hesitation is that timeshares are not a good investment.

1. I have never heard a timeshare owner talk positive about their experience 10 years down the road.

2. I have sat through 4 timeshare talks and never understood the actual costs that I would be agreeing to pay. It's constant bait and switch and relationship building.

3. When you start to have doubt, It has high pressure sales tactics.

4. The resale value on them stinks.

Due to all of the above, I don't understand why anyone would consider one.

My parents own a time share and we have access to thousands of resorts. Best business decision I ever made was them owning and me using. My parents never use the damn thing and have seven or eight weeks banked all of the time. To make use of it, my family uses it and pays them pennies on the dollar for it. Long story short--use someone else's time share and pay fractions of the cost.