Timeshare Dilemma

sneakyweeone

Have been thinking about taking a timeshare on for a while. The benefit for me is having a place I'm familiar with each year and close to the amenities I want. I can get here quickly from a local airport courtesy of Ryanair. Restaurants, good walking and golf courses. The price and management fee £585 per year look reasonable including  cyclical and planned maintenance.
Anyone wish to share the upsides/downsides of their timeshare experience. Anything I should ask the management company and has anyone bought a resale timeshare? Was that easy or difficult?

sneakyweeone

Perhaps timeshares aren't that popular amongst AV enthusiasts[emoji16]

Shimrod

How does the cost of the timeshare plus annual maintenance compare with booking a holiday at the location? How are increases in the management fee calculated, and how easy is the timeshare to sell? If you are spending a large amount on the timeshare, what happens if you die - can it pass on to family or does the contract cease on death? How easy is it to sell on? Is the airline route popular, or could it be dropped for more profitable routes?

I don't have a timeshare, but these are the questions I would be asking myself.

timbo46

I don't have a timeshare, but what would you do if Ryanair pulled out of that airport?

sneakyweeone

Timbo46 good point but Glasgow Airport is only 30 minutes away so not a major concern. Easy jet and Jet 2 fly direct to Faro.  Ryanair have flown to Faro from Prestwick for at least eight years and seems a profitable route for them.

sneakyweeone

These are definitely some of the questions we are also asking ourselves. The buy in fee is reasonable 4-6k for a week from the rep or 2.5-3k for a resale. We can also transfer the week to other resorts or times. Management fees are about 20% cheaper than what it would cost to hire a comparable villa in the same area. I need to check out the fee increases but we spoke to a seasoned timeshare owner and they say they can't fault the place and ended buying two weeks. The timeshare is transferable on death and is something like 90 years length.
I think the main thing will be getting the week we want in a good apartment location on the site.

Shimrod

20% cheaper is about £146 for a week. £2500/146 = 17 years, so that would be your breakeven point when the timeshare becomes better value that renting for a week (if I've understood your figures correctly) at the lower end of the purchase.

I'm not trying to put you off, but we've been through the same calculation a few times when looking at buying a holiday home (both abroad and in the UK), but always come down on the 'not worth it' side.

This may be the challenge - do the good locations cost more?

sneakyweeone

Thanks Shimrod for your input. Still thinking about this quite seriously. We also have access to 241 offers in the off season. I don't think I'd bother buying outright abroad all the hassle of decoration, maintenance and renting it out. This seems a nice option as the apartments we have seen are all modernised and well maintained. This is in stark contrast to the one we are in which is owned outright and internally is a bit tired.

sneakyweeone

The prices are all the same regardless of location.

Shimrod

One final question: Are you stuck paying the £585 every year whether you go or not? What happens if your financial circumstances change or you can no longer travel?