Question for the braintrust..

[JUSTWANNARACE]

Does any one have any experience on fractional ownership/owner share vs. Timeshare? Is it basically the same kind of shit just different name? Seems like all info on the web is by people involved so of course they are going to be bias. This is a 50yr owner share which seems more like a lease to me then "ownership"? It is all new construction with the site/resort still being developed/expanding.

Looking for some advice. Thanks in advance!

 

[LuauLounge]

Closest we got to both is we rented a lakefront place at Lake Tahoe, 1 to 2 weeks a year for 15+ years. Thought about both and strongly considered buying a place on our own. After going over the costs on all, renting was the best choice. This was all pre AirBnB.
Did do 1/4 fractional ownership of a large houseboat and that was a doable deal. Costs were reasonable and boat was relatively new. Other owners personalities can influence the enjoyment factor.

 

[Singleton]

Houseboat I was looking at was fractional ownership. You purchased your week(s) and had an annual maintenance fee. Then assessments as needed. Houseboat had an HOA as well.

 

[LuauLounge]

This was in the early 90’s, boat was 5 years old, 55’ and monthly cost, including loan, insurance, covered berth and a maintenance/repair reserve was $400/month each for the 4 partners. Weeks were rotated and holidays were divided out. Boat was under utilized and if wasn’t being used was available with permission of the person whose week it was.
We had a written contract and designated managing partner. All in all, it’s a great way to own a larger boat without having to carry the fixed costs alone. Downside is you have to pack and unpack personal clothes, etc. as there wasn’t adequate room to store. Liquor was easy, bring full ones, leave what’s left and repeat.

 

[jet496]

All I know is every single person that I know who owns a time share regrets it.

 

[hallett21]

Avoid a timeshare at all costs lol.

That being said we have a Nautical Time Share. We basically use it for the ramp. It’s more expensive than an annual launch pass but it’s private and suits our needs. We haven’t used a “week” in a long time.

 

[JUSTWANNARACE]

This is a "fractional owner/owner share"(is how they presented it) resort in Puerto Vallarta. But it's for 50yrs so it seems to me more of a "lease" than "ownership". And I would think your "share" would depreciate every year as your 50yrs gets shorter? My father in law is pretty gullible and they sold him on it telling him it is a great "investment" property. I havent read his paperwork yet and I probably wont as it was his choice as I told him not to even go(it was one of those things they try and rope you into doing when you get to the airport sounds more like a time share to me. He says it is 2 weeks a year now and goes up to 4 weeks after so long. I asked who holds the shares and how that works and he had no clue. But he dropped $150k for the buy in and $2500 a year for maintenance fees. It does have an HOA but he said it was part of the yearly maintenance fee but I find that hard to believe and he knows nothing about real estate let alone this shit. I just dont see how it could be a positive investment?

 

[LHC Kirby]

This is a "fractional owner/owner share"(is how they presented it) resort in Puerto Vallarta. But it's for 50yrs so it seems to me more of a "lease" than "ownership". And I would think your "share" would depreciate every year as your 50yrs gets shorter? My father in law is pretty gullible and they sold him on it telling him it is a great "investment" property. I havent read his paperwork yet and I probably wont as it was his choice as I told him not to even go(it was one of those things they try and rope you into doing when you get to the airport sounds more like a time share to me. He says it is 2 weeks a year now and goes up to 4 weeks after so long. I asked who holds the shares and how that works and he had no clue. But he dropped $150k for the buy in and $2500 a year for maintenance fees. It does have an HOA but he said it was part of the yearly maintenance fee but I find that hard to believe and he knows nothing about real estate let alone this shit. I just dont see how it could be a positive investment?

That’s awful… $150,000

 

[LHC Kirby]

All I know is every single person that I know who owns a time share regrets it.

I use mine every year. I own at Havasu Dunes. I have used bonus time for friends and I have about 5 other timeshare locations I can use.

After coming to it here in Havasu for 3 years, I enjoyed Havasu so much I had a house built……. 22 years ago. So I use my week in Palm Springs or Hawaii.

Annual fee is $775 ….. if I remember correctly. So a week in a condo in Hawaii or Palm Springs for less than $100 a night….. that’s good with me.

 

[TBulger]

I use mine every year. I own at Havasu Dunes. I have used bonus time for friends and I have about 5 other timeshare locations I can use.

After coming to it here in Havasu for 3 years, I enjoyed Havasu so much I had a house built……. 22 years ago. So I use my week in Palm Springs or Hawaii.

Annual fee is $775 ….. if I remember correctly. So a week in a condo in Hawaii or Palm Springs for less than $100 a night….. that’s good with me.

Love the looks and location of Havasu Dunes. It is nicely kept up and looks like fun for the whole family and seems simple in and out.

 

[JDKRXW]

This is a "fractional owner/owner share"(is how they presented it) resort in Puerto Vallarta. But it's for 50yrs so it seems to me more of a "lease" than "ownership". And I would think your "share" would depreciate every year as your 50yrs gets shorter? My father in law is pretty gullible and they sold him on it telling him it is a great "investment" property. I havent read his paperwork yet and I probably wont as it was his choice as I told him not to even go(it was one of those things they try and rope you into doing when you get to the airport sounds more like a time share to me. He says it is 2 weeks a year now and goes up to 4 weeks after so long. I asked who holds the shares and how that works and he had no clue. But he dropped $150k for the buy in and $2500 a year for maintenance fees. It does have an HOA but he said it was part of the yearly maintenance fee but I find that hard to believe and he knows nothing about real estate let alone this shit. I just dont see how it could be a positive investment?

This wouldn't be Vidanta World in Nuevo Vallarta would it?

 

[Markus]

Don’t do it.

 

[JUSTWANNARACE]

That’s awful… $150,000

They have him convicted that a "timeshare" is just buying the time spent and this you actually "own" something so it's an "investment" but I just dont get it if it's only 50yrs I see that as a lease not ownership. we just paid $2800 per couple to come here, flights, resort(all inclusive) for 10 days. At that rate he could come here 50+ times at $150k and not have to pay $2500 a year plus HOA fee maybe I'm stupid and missing something on how these work

He is excited and keeps saying he "bought a condo" wanted the wife and I to go check it out with them today. The wife went... i stayed had a massage on the beach a couple drinks and heading to the pool now.. if I would have went it would have been an argument I'm sure as he thinks he is going to be able to make $ off this "investment" ohh well, as long as he is happy and thinks he did the right thing in his decision I guess I should just bite my tounge and be happy for them!

 

[JUSTWANNARACE]

This wouldn't be Vidanta World in Nuevo Vallarta would it?

I think so. Some are built and done and some still being constructed

 

[JDKRXW]

It's a nice place and growing like crazy. From what I see; they're marketing it as a Disney world in MX - and it is busier and busier every time we're near there. The PGA now has a huge event on their golf course.
As a successful investment? Who knows? The inland Mexicans coming to vacation in PV seem to love it and the toll toad to Mexico City that's opening this spring can only help.

 

[TBulger]

I think so. Some are built and done and some still being constructed

I suspect he may be getting his money back after so many years. I have known people that have done similar to this and they get to use it and then get money back after a period of time, sort of letting them use the money to build the resort.

 

[Spitfire]

I have a time share. Excuse me, vacation ownership lol. Bought almost 30;yrs ago. Never use it as we moved away. Could join RCI and bank week to use someplace else but can’t be bothered at this point with 2 in college and last 2 starting in the fall. If I could get someone to pay whatever it costs to transfer “ownership”they could have it.

 

[JUSTWANNARACE]

I suspect he may be getting his money back after so many years. I have known people that have done similar to this and they get to use it and then get money back after a period of time, sort of letting them use the money to build the resort.

I am assuming that is why they are pitching it as a "positive investment" as it is helping finance the build. Maybe I'm just skeptical, and he'll become a millionaire..

They "say" that he can AB&B the weeks that they dont use(he gets 4 weeks after a year of buy in, 2 weeks the first year) and they send him the income from the time that is AB&B'd minus a fee. And they are saying he can get $400 a night for AB&B. He I required to use it at least 1 week a year and the rest he can AB&B if he is not using them.

 

[DB / HAV]

I think so. Some are built and done and some still being constructed

Vidanta World in Nuevo Vallarta - This is a massive, beautiful property. All of the amenities are top notch and the golf is incredible. The downside, it’s in Mexico and you never know what happens from one year to the next. But this property was one of the nicest I’ve been to. I’ve never purchased a timeshare or fractional so not any help.

 

[caribbean20]

The real question with these deals is that $2,500 annual maintenance fee (of course other than the $150k.). Is it fixed, or can the manager increase the cost every year? That’s where you get killed with time shares. The manager/maintenance company/owner/thief keeps raising the fee to outrageous amounts, and you have no recourse.

We took over a time share from parents in Vail that they owned for many years, a Marriott property. Marriott kept raising the annual “maintenance fee” to a silly amount. We were able to deed the title back to Marriott and we’ve never been happier about selling something for a $0 sales price.

 

[Markus]

Time shares are scams for people who don’t understand financial basics and basic psychology.

The selling practices are the same all over the world: nice free dinner with the wife. Other couples (actors?) buying. Wife putting pressure on you to buy as well from these lovely people who just gave you a free dinner. Don‘t be a rude cheapskate. Don’t miss out on this great opportunity.

Stay the h*ll away!

 

[LuauLounge]

When I was in my 40’s, Marriott’s would send me a spend 5 days at our new resort in Palm Springs, Hawaii, LV, etc. Cost was $200 and you got $200 in credit to spend at the resort. Did a few of them and played with the sales folks. Places were nice and had a good time. Answer was always the same, I didn’t see the value. They continued to send the invites and if we wanted to go see the area, we’d go.

 

[Ziggy]

Avoid a timeshare at all costs lol.

That being said we have a Nautical Time Share. We basically use it for the ramp. It’s more expensive than an annual launch pass but it’s private and suits our needs. We haven’t used a “week” in a long time.

Same here. We have traded our bi-annual week for other locations.

 

[BabyRay]

When we were in Mexico about 30 years ago with another couple, they insisted we go to a free dinner with them. The presentation was super high pressure, such that it was a complete turnoff, yet our friends were so close to falling for it that my wife and I both started laughing. Our friends, of course, got pissed off at us, but we did embarrass them out of buying into it though, so we did our part. Since they’re divorced now, I’d say we helped my buddy. After all, she got the house in Seattle, the vacation house on Hood Canal, the boat, 100% of their cash and equities, and their CPA that she was having an affair with. All he kept was his business, which barely survived the lack of cash. I’m sure he’d have been stuck with the time-share.

 

[Roosky01]

With the secondary market nowadays, it makes any type of vacation "ownership" scenario that much more non-intelligent, IMO.

Why not just rent a place for basically the "maintenance" fee from the poor sucker that purchased it already and not be locked into a damn thing? I've done this multiple times all over the place during the last 10 years and couldn't be happier.

P.S. There are very few exceptions when a type of limited ownership might prove beneficial based on the structure of the agreement, location, and consistent high demand. I would think that scenario may exist less than 1% of the time. Timeshare sales folks are the devil's spawn...

 

[JUSTWANNARACE]

I told him to bring me the contract this morning cause I wanted to read through it. Well he finally listened to me, he got up early this morning and spent some time actually reading all the fine print. Needless to say he made the call and is going in the morning to pull out. It's going to cost him $1000 to get out but that's better then what could have been.

I tried and tried to tell him but he wouldn't listen. He met us at the pool this more with his head low doing the walk of shame. Ot was great him having to eat crow and tell me I was right the whole time

 

[cofooter]

I told him to bring me the contract this morning cause I wanted to read through it. Well he finally listened to me, he got up early this morning and spent some time actually reading all the fine print. Needless to say he made the call and is going in the morning to pull out. It's going to cost him $1000 to get out but that's better then what could have been.

I tried and tried to tell him but he wouldn't listen. He met us at the pool this more with his head low doing the walk of shame. Ot was great him having to eat crow and tell me I was right the whole time

Did he really want the time share initially or was he just interested in the free booze cruise for going to their presentation

 

[JUSTWANNARACE]

Did he really want the time share initially or was he just interested in the free booze cruise for going to their presentation

He dont drink..lol he is just gullible and believes everyone tells the truth. They had him hook line and sinker. Hell he had already given them $75k that he has to get back now

Lesson learned for him I guess.