Timeshares never came back after the recession of 2008. Resales are not recovering value.

[rickandcindy23]

I paid quite a bit resale for my first SBP lockoff unit. With closing costs and MF's reimbursed, plus a price tag of $1,300. This was a long time ago, I admit, but the recession brought the resale value down to $0 with free closing and free usage (if Vistana would even allow free usage during a transfer).

What timeshares have held their value in these last 11 years?
What do you think has caused the devaluation even further from 2008?
Are Vistana "options" holding value?
What about Hilton? Has it gone up or down?
Wyndham and Shell and WorldMark?
Marriott weeks?

What trends have you seen in resales for the properties you own?

Just curious about your opinions.

 

[OldGuy]

News Flash?

 

[Bailey#1]

I know my DVC resale went up at least 50% since 2010.

 

[md8287]

It seems only the resort’s with name brand companies with ROFR have any “value”.

 

[OldGuy]

It seems only the resort’s with name brand companies with ROFR have any “value”.

Absolutely.

There's timeshares, and then there's timeshares, not like the old days, when there was just timeshares.

That's really obvious on this forum, how it has divided owners, and their sentiments.

It's as if there needs to be two forums, one for the name brand corporate operations, and another one for everyone else.

 

[vacationtime1]

It seems only the resorts with name brand companies with ROFR have any “value”.

My prime season "name brand" timeshares (Kierland, Waiohai, KBC, Westin Ka'anapali) are worth about 60% of what they were worth in 2007.

My Vistana traders all dropped to a dollar (+/-; I am talking SDO, SBP, and shoulder season Kierland).

 

[rickandcindy23]

I know my DVC resale went up at least 50% since 2010.

I do have DVC points that have increased in value. That is about the only thing I can think of.

I admit that I thought I would be able to sell our SBP units for some sort of profit. I knew timeshares weren't an investment.

 

[CalGalTraveler]

On balance, if we compare these losses against what we have saved renting during peak season, we are way ahead overall.

It seems that the only items increasing in value are the developer's prices! Resale the prices are so low that it doesn't really matter if it goes down because the overall dollars are small = low risk purchase. Although it always hurts to lose money nobody is going to the poor house over this loss.

 

[OldGuy]

Are you saying increase from developer prices, or increase from/in resale prices?

 

[jjking42]

If you depreciate the value of your time share over 10 years then you have no cost left. If I pay 2000 for a timeshare than I figure my annual cost is MF plus 200.
After ten years I figure it’s worth zero because I used it. After five years I would want to get 1000 for it when I sell it. I have held some of my weeks so long and used them so many times I got my money’s worth and can give them away now.

I just bought resale Westin and Hyatt mostly because I want 3-4 night stays and not weeks anymore. In 10 years I will have used up the value.

I like the low prices because it makes it easier to shuffle your holdings.


Sent from my iPhone using Tapatalk

 

[buzglyd]

Carlsbad Inn prices are crazy for summer weeks. Probably more than developer price when new.

 

[OldGuy]

I have held some of my weeks so long and used them so many times I got my money’s worth and can give them away now.

The reason people give away/get rid of timeshares is not because what they paid to purchase them, it is to stop what it costs to keep them.

In giving away a half-dozen weeks the past few years, I figure we have made/saved $4000/year, forever.

 

[CalGalTraveler]

@jjking42 makes a great point. We should not look at this like a real estate purchase, but more like a lease with depreciation over time. As long as you are receiving value above and beyond renting the unit, you are ahead.

The problem is the industry likes to use deeds to promote the image that it will act like a real estate investment. But it doesn't.

 

[OldGuy]

@jjking42 We should not look at this like a real estate purchase, but more like a lease where there is depreciation over time.

Or an open-end lease, with no ending date, with the price of the lease going up each year.

 

[CalGalTraveler]

Or an open-end lease, with no ending date, with the price of the lease going up each year.

True but as long as your MF increases are lower than market rental increases you are still way ahead. For example, our Westin Kaanapali OF rents for $5 - 7k during peak summer and whale season. With our resale purchased at $12k we will recoup our purchase in only a few years.

When it doesn't work anymore financially or we tire of it we will get rid of it.

With that said, there is a lot of underwater TS inventory out there.

 

[bogey21]

It's as if there needs to be two forums, one for the name brand corporate operations, and another one for everyone else.

I agree. There are two different worlds out there...

George

 

[OldGuy]

OK, I sit corrected.

We were way ahead, way, way ahead, paying $4000/year for something that had outlived it's usefulness for us.

I should have kept them, so we could be getting even more way, way ahead. Think how far, far ahead we would be in another, say 30, years.



(20 years ago, when we were in our timeshare-lover denial phase, I used to say, "When we are done, we'll just walk away."

Long, difficult walk.

 

[rickandcindy23]

I am just talking resales here because I bought almost all of my timeshares resale.

I think Hilton and other companies with ROFR maintain their value somewhat, but what about pre-2008 to today? Have they maintained value, when inflation is figured into the equation?

Disney is a phenomenal thing to own. When resales are going for $200, I might sell. I might not. 500 points X $200 is a lot of money. But I rent for about $9-11 over MF's.

 

[jackio]

In 1996 I bought my first timeshare, at Vistana Orlando, 2BR, week 27 for $5200 resale. Six years later I sold it for $4,000. I would now have to pay closing costs to give it away.

 

[CalGalTraveler]

OK, I sit corrected.

We were way ahead, way, way ahead, paying $4000/year for something that had outlived it's usefulness for us.

I should have kept them, so we could be getting even more way, way ahead. Think how far, far ahead we would be in another, say 30, years.



(20 years ago, when we were in our timeshare-lover denial phase, I used to say, "When we are done, we'll just walk away."

Long, difficult walk.

Location, Location, Location still applies. Most of the hotel branded timeshares are relatively easy to sell/deedback/or giveaway. Especially those that are the right location, points values and season. Too many people get into timeshare presentations and have no idea what they are buying = junk.

I recently got an offer from HGVC to buy back one of our timeshares in NYC for $15k without having to purchase an upgrade.

Like any real estate purchase you have to cherry pick. There are too many in Florida so hard to find nuggets there.

Much of the OF units at MVC and Westin on Kaanapali are holding value. Some of the Of units at Marriotts on Maui have increased over the past few years. The 3 bdrms were going for $35k a few years ago, now going for more like $45 or 50k+. Same with Westin Kaanapali OF Centers and Deluxes. HGVC Lagoon Tower OF/OV units on Oahu seem to be holding steady too. They aren't making any more beach at these locations. The island view units at these resorts are declining though.

 

[x3 skier]

Bought a 1/4 year share of a studio in a timeshare in 2001 at the Steamboat Grand. Never used, it’s always been in the rental pool and pays for itself. Resales are about 50% more than my original purchase price. Bought another different complex 1/5 year share, use it myself during ski season and could sell it for twice as much as I paid for it back in 2007(?).

The Allen House was a right to use that expired so it was a fully deprecated asset.

The only “true timeshare” I now own is Raintree week which I bought resale and probably couldn’t give it away.

Cheers

 

[OldGuy]

It's as if there needs to be two forums, one for the name brand corporate operations, and another one for everyone else.

I agree. There are two different worlds out there...

George

Just the few posts in this short thread shows that.

 

[OldGuy]

Like any real estate purchase you have to cherry pick. There are too many in Florida so hard to find nuggets there.

Funny, the ones I am familiar with that have held their value are in Florida.

The only one I have flipped, and made a little money on, in recent years, was in Florida.

The only place I'm waiting to see what new is available from the Association is in Florida.

Wassup with that?

 

[jjlovecub]

I bought a Sheraton Vistana $4,000 resale in 2001 - now goes for $0
I bought a Manhattan Club resale in early 2003 for $8,000 - bought another 5 years ago for $0 plus a free year usage
I bought an EOY WKORV for $10,000 resale - now about $5,000
I bought a Westgate Lakes from the Developer in 1999 for $13,500 now I can offer it for free plus a free year usage plus $500 cash and my inbox would stay empty LMAO

 

[CalGalTraveler]

Funny, the ones I am familiar with that have held their value are in Florida.

The only one I have flipped, and made a little money on, in recent years, was in Florida.

The only place I'm waiting to see what new is available from the Association is in Florida.

Wassup with that?

Sounds like you found the needles in the haystack!