Now, my opinion and input about timeshares:
Dick and I added up the actual cost to purchase a time-share. Then, we added the yearly maintenance fees, plus the cost to belong to RCI (the exchange agency) the actual exchange fee, and any other costs associated with the purchase. Then, simply divide that amount by – what – 30 years – 50 years? …and see if it is a good buy – as far as Dick and I are concerned, most timeshares are not.
For example over a 50 year time period (How old are you now, plus how many more years you expect to vacation for a week at a time.)- if your purchase price is $15,000 (for a 7 night stay), plus yearly maintenance ($ to begin with – and they all increase) – maybe $300/year – and most that we have seen are much more than that – probably double at least. Plus $120 exchange fee, plus $100 RCI fee (these are approximate). So – your total cost will probably be about $40,000 to $55,000 (plus interest if you finance – and that could easily add another $30,000). And if you don’t finance but pay cash – look at the interest you would accrue in 30 years on that amount!! You loose all that beautiful compounding interest!
So, just using the $40,000 total price – divide that by 50 (one vacation a year for 50 more years – if you plan on only 25 more years, double the expenses) and you have a yearly expense of $800 minimum/per year for use of a resort for one week.
Now, if you can rectify that cost against putting the same amount into a savings account and retiring quite well, then timeshare is for you. Or, perhaps you don’t need to worry financially – good for you – go for it!
Dick and I do have a timeshare – in the states – we paid $300 (cash) at a timeshare closeout sale – about 20 years ago. Our maintenance has just hit $200/year – and hadn’t been raised for years. We still have the RCI membership and pay an exchange fee – between $140 and $180, approx. so, our yearly amount to spend a week in very nice resorts averages just under $400 a year. It’s simply a matter of doing the math.
An argument the salesmen will give you: You will pay over that just for plain old motel rooms. Well, first of all, we don’t – you can find coupons for almost any motel/hotel. We don’t feel we have to stay in 5 star facilities just to sleep – and again – we search for the deals. But, if you can find a timeshare at the cost we did – more power to you!!! Just make sure the maintenance fee is reasonable.
Now – to the actual ownership – and you must ask this of each different timeshare you look at. Some are secured by deeds, some are not. Ours is a fee simple – deed – with actual ownership (of what? a room – in a resort that gets older each year, remember). So, don’t expect to get rich selling it – they’re on EBay all the time and there are lots and lots of timeshare resale – companies out there.
Worried about Mexican government taking over your property? – No need. Just read my book.
I’m not a realtor, nor a financial advisor – do what is good for you.