Tuesday, February 16, 2010

Time Shares--I've never understood them

USAToday on Jan. 18 had an article about a well-educated, wealthy couple who were apparently not real smart about money. Their marriage was in trouble. So they accepted a free week-end at a resort, and were "suckered into" buying a time share during a week (October ) they can't possibly use! They have school age children.
    $18,000 for one week
    $1,150 annual fees
    $90 annual club fees
    $200 trade fee for a different week
She blames the beauty, excitement and charismatic salespeople. I see her dilemma (divorcing while trying to cut expenses and sell it), but we did something slightly similar in the heat of the moonlight when we bought a lake lot in Indiana we really couldn't use. However, we paid $10,000 for it and sold it a year later for $25,000.


Anonymous said...

Murray sez:
I find it hard to believe that anyone locking in on a time share isn't financially brain dead. Hmmm, my old boss had one.

Norma said...

Their friends love them. They are always looking for someone to use them!

billo said...

Actually, we have some friends for whom this worked out very well. They bought time in one of these big multi-location timeshare resort things many years ago. As the years went by, they kept buying more and more.

When they retired, it turned out that they had enough "points" to live year-round in these resorts if they play their cards right (some places, such as Las Vegas, cost a lot of points, and others, like New Bern, NC, don't).

So, now they have a small place they call "home" but spend most of their time travelling across the country spending time in various resorts. They love it.

I'm not sure it could be done like that now. We looked into it and found the buy-in to be very, very expensive...

Norma said...

Billo--good points as always. There's always another side. Our son-in-law once removed has one, and they enjoy it. If he were just one degree closer, we might too!