Time Share
Another example of getting value out of what we own involves a time share that we bought seven years ago – an expensive one that we are still paying off. We are considering selling it although the re-sale market does not give you back a lot of value from what we are learning. I am considering it because getting rid of that debt is very appealing to me and I would not sell it unless I could get some money on top of what I still owe. In the meantime, though, I am at least using it properly to get some value out of it. For all the years we owned it, I just did not have the patience to learn the trading game: you turn in (deposit) your time share week and get a vacation elsewhere in a nice place "for free." The way our time share works is that we have one fixed week to come back to our home resort for a great week, and one "floating" week that can be a good or bad time of year. That week is part of the deal so that you can trade for other vacations. We used our fixed week every year for four years, let it sit vacant one year and gave it to my sister last year. This year, I traded it in and am looking for a trade against it. But, I also finally deposited my floating week, and for the first time ever, I figured out how to use the trade system and I actually got a great place for Spring Break 2007 near where both my son goes to school (he'll be in school that week) and where my mother lives. We wanted to go down there to visit anyway; now, we have a place to stay.
Before that, by being ignorant of the process and unwilling to do the work, the time-share just sucked money out of our pockets and did not give us back any real return (other than the great vacations my family had there until they got older and bored). The weeks we were not using were only costing us money because I could not figure out the time-share trading system. By learning that you must deposit early and be persistent if you want to trade: call and go on line every day, I was able to use the system to get me something that I would have had to pay money for. Our trip in the spring was planned, but we would have had to stay in a hotel; now, we have a "free" place to stay. I also have some people interested in renting my 2007 home week which will bring in some money. Ignorance and an unwillingness to invest the time in dealing with this property every year, have made me lose value in something that should be providing value.
However, if you are considering a time share, think long and hard. It can be a good thing if you have non-school break weeks to use and you like to travel; however, if you can only travel during school breaks when everyone else is traveling, you will need to work hard to make the time share worth what you will pay for it. And you should consider the re-sale market before you buy directly from the resort. Plenty of people are selling good time shares for a lot less than what the resorts are charging. Be careful of buying at resorts that are just selling you "trading power." You are better off buying at a resort that you would want to return to on your fixed week -- that is your only guaranteed vacation if you are on a "weeks" plan. You also might consider "points" programs: they seem far more flexible than weeks' programs. Either way, check out what you get: although expensive, I am in a desirable vacation resort which has top ratings and I own my weeks forever and can pass them to my heirs, etc. Many of the time-shares are more like long-term leases which do not give value to your estate. Although the time share people act as though all timeshares are equal, they are very much not equal. You must do your homework. Also, because it is so costly, do not make a decision on the spot. That is what got us into our time share in the first place: an impulse buy during a week that you are having an amazing vacation at a beautiful place. That impulse buy has really cost us a lot more than what it would have cost us to vacation each time we have actually used it. Think about it. They will show you pins and dots showing that all the weeks in the place will be gone if you do not buy right away -- that is not true. Also, they will build more units most likely and you'll just buy another one if you want to think about it at home. Finally, one more piece of advice that I cannot resist: we never thought of trying to refinance the time share and paid far more interest than we might have had we changed to a different method of financing.