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Thinking about buying a timeshare in VA Beach

Discussion in 'General Chat Forum' started by malmit, Aug 5, 2012.

  1. malmit

    malmit New Member

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    I am looking to purchase a timeshare in VA Beach and was wondering if anyone has any advise that might be helpful. From what I found online, it seems like Ocean Beach Club is the newest and best but Villas at the Boardwalk (Boardwalk Hotel) is more central but older. Any opinions on these timeshares or others? I am leaning towards Ocean Beach Club right now. Any recommendations in terms of which floors are better or worse? Also, can someone recommend a broker to help me purchase timeshare? Any advise/gotchas regarding purchasing a timeshare (if have never purchased a timeshare before)?

    Thanks,
    Tim
     
  2. mdcrim

    mdcrim Member

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    Visit the Timeshare Users Group forum (do a google search). It's a wealth of information. I think the bottom line is to never buy one from the developer, always after market. You'll save a ton of money.
     
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  3. glencastle

    glencastle The Paterfamilias

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    We've owned a timeshare for years and our experience has been that if you typically want to go to the beach in the summer (which is why we bought ours), you will always be faced with a situation where demand exceeds supply, which means it will be difficult to get what you want when you want it. Buyer beware.
     
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  4. jwf

    jwf Well-Known Member

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    My uncle was a very successful real estate agent and builder. He said "never buy a timeshare".
     
  5. IRideYZFR6

    IRideYZFR6 Linux Guru

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    Ok, this is coming from a Marriott Platinum Member and Marriott property owner. I always looked down at time shares but after spending almost $4k for a week at OBX every year I started looking around at time shares. After I paid off the mortgage on the timeshare I only pay around $800 a year in maintenance fees. I settled on Ocean Watch at Myrtle Beach. I have taken the family down to Virginia Beach a few times and the kids and wife like Myrtle Beach a lot more and it’s not really that much longer to drive to. I have “exchanged” a few times with REI properties and they really don’t stand up to Marriott properties. I decided on Marriott because I don’t have to always stay on my property but can stay at any Marriott Vacation Resort in the world or exchange it with different exchange members which allow a lot more vacation destinations.
     
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  6. T8ergirl

    T8ergirl New Member

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    Agree with Glencastle AND Iride....buying a timeshare in some random giant building built by a developer is not a good idea. Years into it the condo associations/HOA's don't manage the money or there's not enough of it to keep the building in good shape, etc. On the other hand, buying a timeshare from a well-known (Hilton, Marriott, Starwood) publicly traded hospitality company has much less risk. We own three Starwood timeshares and have been delighted with the value, the service, the quality of the properties (frequent renovations), the locations, and the flexibility. Really, we don't have a bad word to say about it--its been great and it works for us. For the same money we pay for 3 weeks of vacation a year for the rest of our lives, we couldn't have bought a quarter share in a a vacation home and then we'd have to worry about maintenance, etc. Do your homework. And do alot of math. Its not just what you pay now...its what you pay all along in maintenance fees and property taxes.
     
  7. malmit

    malmit New Member

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    I bought into my week 27 (July 4th week) timeshare at Villas at the Boardwalk in Virginia Beach over 2 years ago on the resale market. I've always been told not to buy a timeshare but after doing the research the reason why everyone says not to buy a timeshare is because they paid too much for it buying it directly from the developer (50%+ more than timeshares on the resale market). Fortunately, I didn't buy from the developer and put a low balled offer on an already low price resale for a prime week in Virginia Beach and my offer was accepted. Now instead of paying almost $3000 for week for an ocean front hotel, I am only paying $800 for a 2 bedroom unit for a week and get to see the summer oceanfront fireworks from my balcony. I don't have any regrets buying my timeshare and if I do decide to sell in the future, I will easily be able to sell it for a couple thousand more than I paid for it.
     
  8. Zeratul

    Zeratul Well-Known Member

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    Good points here and VA Beach is full of Timeshares, but largely they are part of the local builder there and part of Interval International on the exchange side. I recently purchased a timeshare (resale) at the Ocean Beach Club (prime week #30). The key question you need to look at, really to me is - do I want to have a week vacation, at VA Beach at the same time every summer? If yes, you have to buy a prime week in the summer and just use it. The maintenance fee goes up every year, typically around $30 I think. It is around $860 now. So the basic math is to take the purchase price + closing... spread that out over like 20 years and get an annual amount, add that to your maintenance fee and compare to what you would have spent for the same vacation each year on your own...

    This is going to give you at least a SWAG at something to compare... not a actuarial level of detail. Right now, to buy a Prime week at the new Oceanaire at the Beach Club it will cost you $40-$60k. There is limited supply and not much resale yet for that building so top dollar is what you will see (supply and demand). At those prices it gets hard to justify...and the key is that there is no way that prices will stay at that level.

    Oceanfront timeshares at the Ocean Beach Club will set you back $15-20k on the resale market now...for a prime week in the summer. That is for a 2-bedroom that sleeps 6 and exchanges on the timeshare system as a 2 bed unit/6 people.

    But if you do not use your Prime week at VA Beach at the Beach Club, you can rent your week for around $2700...to me it would be stupid to exchange since renting will get top dollar. Oh and the other bid difference we heard is that if you buy through the developer, they do throw in a free week getaway each year for the next 10 years.... but you have only a 45 day window to book and it is unlikely you will find what you want....

    I too did a lot of research and found that if we could get an Ocean front 2 bed unit for under $15k then it would make sense at the Ocean Beach Club. I made an offer and got one about 2 months ago. Most prices online seem to be around $20-30k....but that is what they want.
     
  9. blunoz

    blunoz Member

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    I'm also a fan of Marriott. We've owned a Marriott timeshare in Orlando since 2004 and have used it to trade into other Marriott Vacation Club locations from Aruba to California. Very pleased with our Marriott experience.
     
  10. Zeratul

    Zeratul Well-Known Member

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    Financial investment.... depends, and some basic analysis should be done. Right, timeshares may or may not be deeded property. clubs.... yea like Disney Vacation Club... but you certainly mention the important point about buying from Resort Developers. You will pay TOP RETAIL Dollar that way... often waaaay above resale value but it really depends. VA Beach holds value well but you need to buy from the resale market... unless you feel like you have to have the newest resort on opening day....

    avabutler - are you a real estate agent or familiar with Timeshare rentals as a buyer?
     
  11. superstix

    superstix New Member

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    I Googled "are timeshares a good investment" and got nothing but negative returns. I don't know of anyone who ever justified a timeshare as being a good investment. The following article says it the best: http://www.daveramsey.com/article/the-truth-about-timeshares/

    "Myth: I can get a great deal on a timeshare and go for vacation every year! Plus, I can always sell it if I get tired of it."
    "Truth: Timeshares are one of the biggest scams on the market today. Once you are stuck in one, you are stuck in a black hole. The first word that should come to your head when you hear the word timeshares should be RUN! Run far, far away!"

    Something to think about.
     
  12. Zeratul

    Zeratul Well-Known Member

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    Yea I crunched the numbers pretty carefully... and my ROI on the timeshare we got is about 8 years. If I do not use the timeshare that summer.... the rental pays above my annual costs so I can make money... but that is not a guarantee of course. But we got it to use for vacations... for family.

    The resale value (historically) has held well and considering it is a relatively new resort (5 years) I have good faith in the value. But you are right, all things being equal, I did not buy it as an investment... but rather as part of our "vacation" budget. We love VA Beach and will use the timeshare effectively.

    The latest scam that I have been introduced to is the companies that have now called me to "sell" my timeshare.... they "appraise" my timeshare at $55k and offer to advertise it and sell it for me, all for an UP FRONT fee of $1500. And there is no guarantee. In what right mind would I pre-pay someone to sell property... just perfect.


    Anyway... if you all are interested in a rental at VA Beach this summer let me know!!!! 2 bedroom unit on the Beach, sleeps 8
     
  13. blunoz

    blunoz Member

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    I'm like Zeratul. We didn't buy our timeshare as an investment, but as part of our "vacation budget." At the time we bought in 2004, I did the math and figured we would "break even" about 8 years into it. We've owned it for 10 years now and have had a lot of good memories and good family experiences both at our "home" timeshare in Orlando and the other timeshare places we've traded into.
     
  14. PDILLM

    PDILLM Well-Known Member

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    I noticed an interesting thing about that link that you quoted. Notice the assumption it made? "Put that money in a mutual fund averaging 12% over 10 years." If we changed that 12% to what most people are experiencing (average year to date for 2015 thus far- 6.5%). Not saying what is written isn't accurate, just that decisions shouldn't be made on assumptions and expected returns.

    I think most people got it right. A timeshare is a vacation cost and is a separate pot of money from investments.
     
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  15. Zeratul

    Zeratul Well-Known Member

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    Yes you got it.... and the other thing to consider with owning a Timeshare is getting access to the "Network"... in my case is Interval International. You typically get additional vacation weeks to use throughout the year other than the one you buy. I currently get 3 weeks through various promotions and certificates, some time limited, some not. So, for example, I used one of my "free weeks" next week for Spring Break and booked at Marriott Williamsburg for $179 (whole week). We were limited with time on that one but it was not too hard to find something.
     
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  16. boomertsfx

    boomertsfx Booyakasha!

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    We go on presentations for free stuff, that's about it.... it's amazing how many people commit to the hard sell that day without doing much or any research.
     
  17. blunoz

    blunoz Member

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    I'm generally a fan of Dave Ramsey, but I don't agree with that article at all.

    "Why in the world would you pay thousands and thousands of your hard-earned dollars for a place with minimal square footage that you might get the chance to visit for one week each year?"

    First, I don't agree with his characterization of "minimal" square footage. Sure, it's "minimal" square footage if you normally vacation in a 4,000 square foot 7 bedroom beach house. However, if you compare a timeshare condo with a hotel room, I would argue that the timeshare condo is considerably more spacious. Our timeshare property is a full two-bedroom, two bath, nicely furnished condo with a full size kitchen and dining room. In order for us to get the same square footage, separate bedrooms and closing doors for privacy, we would have to get 2 hotel rooms. Plus, the second bedroom has two queen size beds, so it can accommodate 6 people in beds, and another 2 in the living room if you use the pull-out couch.

    If we got a suite someplace like the Residence Inn, it would provide us a minimal kitchen and a tiny dining table. The timeshare condo has a full-blown kitchen with pots, pans, plates, and utensils, and a full size dining room for everyone to sit and eat a meal together. When we arrive in town, the first thing we do is go to the grocery store to buy cereal and stuff to make sandwiches for lunch for the rest of the week, so we spend less money eating out than we would if we were in a hotel room.

    Second, I don't understand why he wrote "might." There's no "might" in this equation. That implies to me that I might NOT be able to use it. The timeshare week is ours to use whenever we want it. We spend at least a week on vacation every year. If we decide to go someplace that doesn't use our timeshare (i.e. grandparents' house), then we "bank" that week with Interval International. With banked weeks, we can go someplace and reserve TWO condos the same week and take along other friends and family.

    "Add to that the fact that you have absolutely no equity in the place."

    This isn't true. We own a deed that shows we own a 1/50th share of the condo. We can sell it or leave it to our kids as part of our estate.

    "And you have to pay extra ongoing "maintenance fees."

    This is true, but the maintenance fees are much less than I would pay for TWO hotel rooms for SEVEN nights each year.

    "And selling it is near impossible."

    I have never sold one, so I don't have personal experience upon which to refute this. However, Dave Ramsey doesn't offer any data or proof to back up this claim. I think it's anecdotal at best. I would be very interested to see some actual data that supports this claim. I think Marriott has a good reputation for being a leader in the industry and would assist in resale, but I don't want to sell, so I guess I won't find out first hand.

    "Your money is better off in a cookie jar."

    This is misleading. Ramsey's subsequent mathematical exposition of how much money you would have at the end of 20 or 40 years assumes that you NEVER go on vacation. It's an apples and oranges comparison. A better mathematical analysis would be to compare two alternatives that both involve going on a family vacation each year. In other words, assuming you're going to go on a family vacation each year, is it better to spend $15k NOW on a timeshare and pay an annual maintenance fee each year but have otherwise "free" lodging for your family vacation, or is it better to spend $2,000 per year on lodging for your family vacation from now to kingdom come.

    "Throwing money at a timeshare is not an investment and will not generate money for you."

    This is true. I agree. I did not buy a timeshare thinking I would make money on it. Looking back through my bank statements and doing some calculations in an Excel spreadsheet, it took us approximately 9 years to break even. The money we WOULD have paid for two hotel rooms for 7 nights per year every year for the first 9 years was about what it cost us to buy the timeshare. Now, we just pay the annual maintenance fees, which are about half of what it would cost us to rent two hotel rooms for 7 nights. Essentially, after we broke even about year 9, each year since then it has saved us about $1,000 in hotel expenses per year for our family vacation.

    Disclaimer: We paid cash. I would NOT recommend taking out a loan and going into debt to buy a timeshare. That adds a whole 'nother dynamic to the calculations that I won't go into here. This part rings true in what Ramsey wrote about, "timeshares are generally marketed and sold to people who really can't afford them." Yes, they have very talented salesmen who will convince you the benefits of owning a timeshare and then will convince you that it's okay to finance it. I wouldn't do it.

    "With timeshares, you're just pre-paying your hotel bill for the next 20 years whether or not you use it."

    This is partially true. Buying a timeshare for us was indeed pre-paying our vacation hotel bills, but not just for 20 years. It prepaid our vacation hotel bills for the rest of our lives. It's not limited to any number of years. If you go with a large, reputable company such as Marriott, then it's okay to skip a year and not use it. If we don't use it in a given year, we can trade it in for Marriott Reward points, or we could hypothetically sell the week (we've never done that), or we could just bank it with Interval International to use later. The years we haven't used it, we've banked it and used it subsequently for two weeks of vacation or for two condos the same week to take more family along with us.

    For example, last year, we semi-spontaneously decided, hey, let's go somewhere for the week after Christmas - the week of New Year's Eve. Similar to what Zeratul wrote, we jumped on Interval International and took a look at what was available, and we ended up going down to Williamsburg for a week using one of our banked weeks. Then when we were freezing our butts off about 2 months before spring break, I said to myself, "Self, let's go someplace south of here, warmer than here, and within a day's driving distance." We ended up using one of our banked weeks to go to Hilton Head and coincidentally ended up being there for the big Heritage Golf tournament. We had a great time and it would have cost us a fortune to go there during the golf tournament if we hadn't gotten in via the timeshare trade. Now we're getting ready to head out to Newport Beach, CA to stay at the Marriott timeshare property there for spring break.

    In summary, I agree that a timeshare is NOT a financial money-making investment, but it can be a worthwhile family vacation investment that will save you some money in your family vacation budget in the long run. I'm glad we did it.

    Okay, stepping down off of my soap box now.
     
  18. KTdid

    KTdid Well-Known Member

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    blu, have you ever considered selling Time Shares - you're pretty good!
     
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  19. Hoya86

    Hoya86 Weekend Warrior

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    My mom bought a timeshare in Atlantic Beach, NC. She owned it for may years. Paid her $60 per month maintenance fee all that time (maybe 20 years). Then, the management company mailed each timeshare owner a bill for over $6,000. Seems the building had degraded so badly it was condemned and had to be torn down and a new one rebuilt. 20 years ago the same company pitched me to buy my own unit. Sure glad I ignored it now. No timeshares for me, thanks. Waaaay to many uncertainties. You put your financial well being in someone else's hands, someone who does not have your best interests at heart.
     
  20. Zeratul

    Zeratul Well-Known Member

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    Yea you also remind me of an important point. While most timeshares are actual deeded property, I believe most have a time limit. I do not have my deed in front of me but it is like 50 or 65 years. You can pass it along to family but the "property" does not last forever... kind of a morbid thought but weird too.

    We are 2 separate weeks at VA Beach this summer... so we are enjoying ours. See you there!
     

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