Ready to pack your bags for Thanksgiving? Well, wait... how many bags?
I’ve learnt this the hard way. I consider myself an organized person (!) and used to carry multiple bags, which had everything I needed, and anything I would ever want during my vacation. But, I ended getting a porter everywhere, luggage carts, paying an overage on my baggage limit, as well as paying for oversize bags (you don't want to visit somwhere and not shop!).
So, ended up paying a lot of $$ for nothing. And now, with the airlines industry in a deep hole and being charged $15- $25 for checked bags, all the more reason to travel light!
A packing list helps a lot when it comes to traveling light. If you write down what you need, you can eliminate the extras, and enjoy your vacation more. When I went to Europe (not backpacking), it was very easy traveling from one country to another, getting on and off trains, keeping my bag under the seat, when all I had was one carry-on size bag, instead of the gigantic bags I was used to carrying.
Depending on your destination, get a clear and categorized list, and carry just enough to last your through your stay. There are several websites that can help you with packing lists (!), no seriously, you definitely need one, especially if you are traveling with a baby/kid.
How to pack
Most folks don’t think about this. Iron your clothes, or fold them flat, and you’ll be able to carry more clothes. Roll up your socks, night pyjamas, or anything that you can, and line them along the edges of the bag- that saves space. Flatten everything, roll press or sit on it, whatever, but just flatten it. You can carry more clothes this way. Again, there are websites that can help you. Ridiculous? well, not really.. not when it can save you some money!
If you are traveling with a child, chances are you will have to check a bag or two, because of the contents. And chances are your child’s bag will be bigger than yours! That’s fine, make most of the space available. Carry one bag instead of two, that is a $50 saving right there for a roundtrip.
Depending on your destination, restrict stuff like baby foods, diapers, and buy it where you stay. Carry plastic containers, instead of glass for baby food. Dump any extras in your child’s car-seat bag (we usually dump our jackets/ woolens in the bag- great volume reduction!)
Nov 6, 2009
Nov 2, 2009
Travel- Money Saving Tips
It has been a while I have posted. Been a little crazy with work, travel, and trick o’ treating with my toddler. Fun, but busy. I am back, and to add to the holiday and travel excitement, I am planning to introduce a new section to the blog- “deal of the week”, whenever I see an irresistable deal. So anything from airfare, to hotel, to vacation rental, a timeshare deal, this will be my 2 cents. So check it out.
With the holidays coming, I am sure a lot of you are planning a trip or two. Some may be wanting to use up your timeshare time or some of you might find better deal elsewhere, either way, traveling is always fun and a great learning experience. So, some posts on travel and travel money-saving tips, and then we’ll get back to the ever interesting world of timeshares.
And you know what could make traveling even more fun- if you could save some green $$, without having to compromise on your comfort. I am not a millionaire, and don’t plan to become one. So, a few hundred or a few thousand dollars saved, is a huge saving for me.
Money Saving tips- Tip #1 – Travel at non-peak time
Whether you own a timshare or not, a small change in travel time and a little planning could go a long way in saving you some $$. Different people have a different definition of peak and non-peak time. For me, peak is the entire week of the holiday, for example the sunday before thanksgiving holiday although the Sunday after thanksgiving, or the week before Christmas through New year. My recommendation- travel a week or two before or after the holiday week.
It might be hard for folks to get vacation etc, but plan accordingly, and plan way ahead of time. The worst thing you can do for your budget is to plan last minute and travel the week/ weekend of the holiday- that’s a killer. Yes, there are last minute deals out there, but you may not get what you want. If you are open to going anywhere, or just being home if you don’t find anything, last minute deals are a good option.
Traveling at non-peak times could save you tons of money, and long waiting times for shows/ rides, etc. like:
- Airfare and ridiculous extra charges by airlines
- hotels
- car rental
- show tickets
- pet boarding is available
Check out this sample airfare chart from Continental airlines checked on Nov 2, 2009. I just entered 2 random cities- airfare form Houston, TX to Newark, NJ. See the fare differences between Nov 18 ($268) and Nov 25 ($418). If you are a family of four, you save $600 right off the bat. That is a LOT of money!
With the holidays coming, I am sure a lot of you are planning a trip or two. Some may be wanting to use up your timeshare time or some of you might find better deal elsewhere, either way, traveling is always fun and a great learning experience. So, some posts on travel and travel money-saving tips, and then we’ll get back to the ever interesting world of timeshares.
And you know what could make traveling even more fun- if you could save some green $$, without having to compromise on your comfort. I am not a millionaire, and don’t plan to become one. So, a few hundred or a few thousand dollars saved, is a huge saving for me.
Money Saving tips- Tip #1 – Travel at non-peak time
Whether you own a timshare or not, a small change in travel time and a little planning could go a long way in saving you some $$. Different people have a different definition of peak and non-peak time. For me, peak is the entire week of the holiday, for example the sunday before thanksgiving holiday although the Sunday after thanksgiving, or the week before Christmas through New year. My recommendation- travel a week or two before or after the holiday week.
It might be hard for folks to get vacation etc, but plan accordingly, and plan way ahead of time. The worst thing you can do for your budget is to plan last minute and travel the week/ weekend of the holiday- that’s a killer. Yes, there are last minute deals out there, but you may not get what you want. If you are open to going anywhere, or just being home if you don’t find anything, last minute deals are a good option.
Traveling at non-peak times could save you tons of money, and long waiting times for shows/ rides, etc. like:
- Airfare and ridiculous extra charges by airlines
- hotels
- car rental
- show tickets
- pet boarding is available
Check out this sample airfare chart from Continental airlines checked on Nov 2, 2009. I just entered 2 random cities- airfare form Houston, TX to Newark, NJ. See the fare differences between Nov 18 ($268) and Nov 25 ($418). If you are a family of four, you save $600 right off the bat. That is a LOT of money!
Oct 7, 2009
Costs of owning a timeshare
So, lets get down to some numbers, shall we? How much will a timeshare actually cost you? Remember, it is not only the upfront payment, and the annual fee that you should consider. There are other ‘hidden’ costs that you should keep in mind before deciding whether you want to buy a timeshare, think about a vacation rental every time you visit, or may be buy real estate in your favorite destination and use it like a second home.
So, in general, here would be your cost considerations:
1. Purchase price – amount you pay upfront to the resort or developer
2. Annual maintenance fee – the amount charged by the developer every year for maintaining your property
3. Income lost - this is basically the income you might lose if you had used your money for something other than buying the timeshare. This is termed as opportunity cost. For example, if you had put the money in a CD in the bank, you would probably make an average of 2% on it. Or if you decided to invest it in your 401K or IRA, your return on an average would probably be approximately 8% with a cumulative effect over a few years. Consider after tax effects of any other investments you might consider.
4. Exchange costs – if you decide to exchange or trade your timeshare week with another destination during the year
5. Consider any qualitative losses, i.e. are you cutting corners and not buying a car that you desperately need, because you’re planning to buy a timeshare. Remember, in some cases, big expense items, like cars, household items expenses, are deductible for your tax returns. Based on your lifestyle and vacation style, also, consider things like greater flexibility of rentals.
6. Additional expenses - You could be taking a vacation just because you own a timeshare, which otherwise you might defer. Airfare, food, are additional expenses.
7. Legal and paperwork costs, if you decide to hire a real estate agent or attorney.
OK, enough words- gets let down to the nitty-gritty. Here are the timeshare evaluation steps demonstrated, with an example. Please remember, this is purely a hypothetical example and there could be several other considerations in your specific situation.
1. Purchase price of $15,000
2. Annual fees of $1000
3. Income lost of $320.
So, now if you total all of the annual expenses only: $1000(fee) + $320 (lost income) +$120 (exchange fee) = total of $1,440
Using this calculation, you would compare the $1,440 estimated total annual cost with the cost of renting a hotel or a vacation home in the area or in the same resort, as well as other destinations where you would like to vacation. You make your choice!
So, in general, here would be your cost considerations:
1. Purchase price – amount you pay upfront to the resort or developer
2. Annual maintenance fee – the amount charged by the developer every year for maintaining your property
3. Income lost - this is basically the income you might lose if you had used your money for something other than buying the timeshare. This is termed as opportunity cost. For example, if you had put the money in a CD in the bank, you would probably make an average of 2% on it. Or if you decided to invest it in your 401K or IRA, your return on an average would probably be approximately 8% with a cumulative effect over a few years. Consider after tax effects of any other investments you might consider.
4. Exchange costs – if you decide to exchange or trade your timeshare week with another destination during the year
5. Consider any qualitative losses, i.e. are you cutting corners and not buying a car that you desperately need, because you’re planning to buy a timeshare. Remember, in some cases, big expense items, like cars, household items expenses, are deductible for your tax returns. Based on your lifestyle and vacation style, also, consider things like greater flexibility of rentals.
6. Additional expenses - You could be taking a vacation just because you own a timeshare, which otherwise you might defer. Airfare, food, are additional expenses.
7. Legal and paperwork costs, if you decide to hire a real estate agent or attorney.
OK, enough words- gets let down to the nitty-gritty. Here are the timeshare evaluation steps demonstrated, with an example. Please remember, this is purely a hypothetical example and there could be several other considerations in your specific situation.
1. Purchase price of $15,000
2. Annual fees of $1000
3. Income lost of $320.
- Say if you were not buying a timeshare, you would put aside the money in your bank account as a CD, which earns an average of 2%, depending on the economy. This will be a total of approximately $320 ($16,000*2%) for one year, and a lot more when it compounds in the next few years. For simplicity, lets just consider the annual simple interest.
- If your exchange is in popular destinations or international locations, its even more.
So, now if you total all of the annual expenses only: $1000(fee) + $320 (lost income) +$120 (exchange fee) = total of $1,440
Using this calculation, you would compare the $1,440 estimated total annual cost with the cost of renting a hotel or a vacation home in the area or in the same resort, as well as other destinations where you would like to vacation. You make your choice!
Sep 29, 2009
Popular timeshare destinations in the US
Any guesses for which one tops the chart? You got it- Florida! Florida is the most visited vacation destination in the US, primarily for Orlando and the beautiful beaches. Florida offers something for everyone- the magical world of Disney, Magic kingdom, Epcot center, Universal studios, shopping, nightlife, beaches, entertainment.. you ask for it, and Florida has it.
Just thought I'd share some interesting information I found on the TUG website. This map has RCI properties only, I believe, and the map was created in 2006, although the google map is current. Florida is a region by itself!
http://tug2.com/tsmaps/TimeshareMaps.html
California has been gaining popularity in the recent years. California offers a lot to visitors in terms of natural beauty- the mountains, the beaches, the vineyards, are all within a few hours drive. The magical world of Disney and ofcourse the glamour world of Hollywood are top California attractions. The temperate weather is definitely a plus.
Las Vegas attracts thousands of visitors each year because of its world class entertainment- whether you are a gambler or not! The recent real estate bust affected home prices and other real estate prices in and around Las Vegas. As a result, hotel prices have dropped a lot. At a nice hotel like Monte Carlo, you can get hotel rooms starting $50 for this month.
Hawaii is a beautiful vacation spot- it really is. And like me, a lot of people fall in love with this destination, and probably want to keep going back. Hawaii, with all its natural beauty, is a tropical paradise. So, no wonder, timeshare developers make an increasing effort to lure tourists into buying their property.
There are other US destinations that are getting popular, like Hilton Head in South Carolina, Colorado, and Texas.
I’ve always wondered why people buy timeshares when they can just rent a hotel room, or a vacation rental, for sometimes a fraction of the cost. Well, I think when people fall in love with a destination, they want to return to it every year. They are also looking for least worry, and not having to go through the hassle of looking for a hotel room, and making reservations. I guess they enjoy stability, knowing their unit or property will be waiting for them every year.
Just thought I'd share some interesting information I found on the TUG website. This map has RCI properties only, I believe, and the map was created in 2006, although the google map is current. Florida is a region by itself!
http://tug2.com/tsmaps/TimeshareMaps.html
Sep 19, 2009
Timeshare Depreciation
Ever wondered why timeshares depreciate or lose their value so much?
Well, think about it, most traditional timeshare sales happen when slick salesmen show you your ‘dream-come-true” property, and tempt you to buy your week. They over-price those units because, remember, they have probably also offered you free lunches, or free tickets, or even holidays- they need to cover those costs plus make a profit. They also have to account for taxes, maintenance, and salaries and commissions for those slick salesmen.
So as soon as you buy it, the value goes down, and you can probably never even recoup the price you paid for your timeshare when you sell it. You basically purchase the rights to use it- its like buying a new car. You purchase it for your own recreational use, an expense, whose value depreciates as soon as you drive it off the lot. Not the best investment strategy, is it?
Well, think about it, most traditional timeshare sales happen when slick salesmen show you your ‘dream-come-true” property, and tempt you to buy your week. They over-price those units because, remember, they have probably also offered you free lunches, or free tickets, or even holidays- they need to cover those costs plus make a profit. They also have to account for taxes, maintenance, and salaries and commissions for those slick salesmen.
So as soon as you buy it, the value goes down, and you can probably never even recoup the price you paid for your timeshare when you sell it. You basically purchase the rights to use it- its like buying a new car. You purchase it for your own recreational use, an expense, whose value depreciates as soon as you drive it off the lot. Not the best investment strategy, is it?
Sep 11, 2009
Does timeshare constitute an investment?
I came across a very interesting article while doing my research on timeshares sometime ago, and I thought I’ll share it with you. The article is called- Time and Time Again: Buying and Selling Timeshares and Vacation Plans. This article is published on the Better Business Bureau website: http://www.bbb.org/us/article/4786, in cooperation with the Federal Trade Commission. This is an old article, but not much seems to have changed in the timeshare industry since. The second paragraph talks about “You should know that the value of these options (timeshares & vacation ownerships) is in their use as vacation destinations, not as investments.
As a real estate investor myself, I do not consider timeshares as an investment, and here are some of the reasons why:
I consider a timeshare to be a contractual agreement and obligation where you agree to commit your money, time, and energy. The only ones making a profit on timeshares are the developers and resellers. Hey, my 2 cents- if you are in love with a destination and want to visit every year, think about buying a second home or an investment property there, and rent it out for the rest of the year!
As a real estate investor myself, I do not consider timeshares as an investment, and here are some of the reasons why:
- No increase in value overtime – Timeshares depreciate, just like any other real estate property (with the exception of land), but unlike real estate, they do not increase in value over time. Even if the property value itself increases, you don’t get a benefit- your resort developers will. And you can never really get the price you paid for it, when you sell it.
- Tax Benefit- When you own real estate, for example an investment home and rent it out, you are able to deduct certain expenses related to home improvement, repairs, etc. in your income taxes. Very few deductions are available for a timeshare, and are subject to different conditions, based on whether it is for personal use or business use. Also, deduction of property tax is usually determined based on who is billed for it, and other conditions. In short, you spend all this money, few tax deductions, and there is no equity building.
I consider a timeshare to be a contractual agreement and obligation where you agree to commit your money, time, and energy. The only ones making a profit on timeshares are the developers and resellers. Hey, my 2 cents- if you are in love with a destination and want to visit every year, think about buying a second home or an investment property there, and rent it out for the rest of the year!
Sep 5, 2009
Alternatives to selling your timeshare
I got an email the other day from a person asking- "well, does it make sense to sell a timeshare in a market like this?" As a real estate investor, I would NEVER sell my properties- I would like to retain it till the end of time. This is ofcourse presuming all goes well for me, and I do not have a dire need for money at some point in my life. Then maybe, I will be left with no choice but to sell, but till then.... nope. This is because you can never go wrong with real estate- it is like wine- the longer you keep it, the better (financially) it gets. But here is the BIG difference, and VERY important to remember that timeshare is not a real estate investment, and hence you need to wear a different thinking hat.
Well, to sell or not to sell depends on many factors: which market it is that you own your timeshare for demand-supply and price point, your financial situation- i.e. whether or not you need to pull money out, and ofcourse your personal choice. But, it is important to know that there are alternatives to selling.
If selling is something you don’t want to consider yet or your unit has been on the market for sometime and you want to consider alternatives, here are some. I will go into further details in my later posts.
1. Rent- Might be an easier way than selling, in order to recoup your expenses on the unit. But do make sure you consult with your resort on their rules, speak to a real estate agent, have a rental agreement in place with the renter and the resort, get a security/ damage deposit, use paypal as a secure way of payment, etc. - just common things you would think of while renting any property.
If your timeshare is in a different country, things would become a little more complicated, in which case, might be worth the money to consult with a tax attorney or someone who understands international tenancy laws just to understand the process. Determining rent generally follows the same rules as determining a sale price- your real estate agent will be able to guide you better, based on your specific market.
2. Trade/ Exchange – At resorts like Marriott for example, which are present worldwide, you can have an option to trade your week for any other resort for any other time, for a comparable timeshare. Companies like RCI (Resort Condominiums International) are called exchange companies; these exchange companies work with your resort, and can help you look for a comparable timeshare wherever you want.
3. Donate to charity- Folks do this in order to get a big tax break. Consult with your tax attorney before taking this step. Also, keep in mind, there are limited charities that accept timeshares.
Well, to sell or not to sell depends on many factors: which market it is that you own your timeshare for demand-supply and price point, your financial situation- i.e. whether or not you need to pull money out, and ofcourse your personal choice. But, it is important to know that there are alternatives to selling.
If selling is something you don’t want to consider yet or your unit has been on the market for sometime and you want to consider alternatives, here are some. I will go into further details in my later posts.
1. Rent- Might be an easier way than selling, in order to recoup your expenses on the unit. But do make sure you consult with your resort on their rules, speak to a real estate agent, have a rental agreement in place with the renter and the resort, get a security/ damage deposit, use paypal as a secure way of payment, etc. - just common things you would think of while renting any property.
If your timeshare is in a different country, things would become a little more complicated, in which case, might be worth the money to consult with a tax attorney or someone who understands international tenancy laws just to understand the process. Determining rent generally follows the same rules as determining a sale price- your real estate agent will be able to guide you better, based on your specific market.
2. Trade/ Exchange – At resorts like Marriott for example, which are present worldwide, you can have an option to trade your week for any other resort for any other time, for a comparable timeshare. Companies like RCI (Resort Condominiums International) are called exchange companies; these exchange companies work with your resort, and can help you look for a comparable timeshare wherever you want.
3. Donate to charity- Folks do this in order to get a big tax break. Consult with your tax attorney before taking this step. Also, keep in mind, there are limited charities that accept timeshares.
Sep 2, 2009
Selling your timeshare?
Like any other venture, owning timeshares has its pros & cons. If you’re reading this blog, you are either looking at buying a timeshare, or you already own one and you’re not a happy owner who is looking to sell or rent it.
If you’re looking at buying one, please be very wary, talk to owners, real estate agents, other investors and be informed about what you’re getting into. If you’re on the market to sell/ rent your timeshare, this post sheds a little light on what alternatives are out there. I will provide more details on such alternatives in later posts.
Selling your timeshare:
It is not a sellers market and its a rough road ahead for sellers - bear in mind, people like me, who love to travel are always looking for good bargain deals, and there are plenty available in this economy. If I can get the same unit/ property for a fraction of the cost of the unit for a week, plus not pay fees associated with a timeshare, what would I do? It’s a no-brainer.
Let me give you an example: I recently visited Canmore & Banff in Canada last month. I got an awesome deal in a resort called Lodges at Canmore. It was the peak of summer (end of August), and I got the deal for $110 USD a night. It was a beauty- 2-bedroom condo, with a patio, fireplace, full kitchen, washers, parking, grill, etc. Now if I google timeshares for resale on Canadian Reort Vacation Club, I see a 2-bedrom comparable in Canmore is selling for approx. $7,000, with an annual membership fees of $500. Why would I buy it?
Well, if you have decided that selling is what you want to do, there are several online resources available, websites like myresortnetwork.com, and these websites usually charge a listing fee (anything from USD $30 - USD $500). You can also go through brokers or other organizations. Remember, it is a very tough market out there, especially for timeshares, so it might be a while before you can find a buyer, and you might have to incur huge costs, just trying to sell it.
Some things to keep in mind when selling your timeshare:
1. Please do lots of research and homework on the market, current resale price of comparable units, demand & supply. Talk to other owners, agents, brokers, and get as much data as possible before you actually price your timeshare for resale.
2. Resale price is very important. Research on a comparable resale-, and try to price at or below the lowest average to have the best chance of selling your timeshare.
3. Be very careful about upfront payment fees while selling your timeshare. I have heard horror stories about sellers being charged thousands of dollars, on the pretext of ‘reaching out to prospective buyers’, but nothing concrete is ever done. Do not pay upfront fees, if it looks fishy or not legitimate.
4. Negotiate a commission/ payment after the deal is done- this motivates the broker or the agent to work hard for you. Always use a licensed and legitimate broker. Keep in mind though that broker fees might cost you almost 20% -30% of your sales price.
5. Your resale price will never equal what you paid for it to the developer. Times depreciate over time, and due to the economy, some have depreciated almost 99%.
6. Advertise as much as possible, and for as little as possible- use free advertising websites, posters in your resort, etc. tug2.net is a good marketplace for timeshares. Ebay and Craigslist are good websites as well- they will also give you a good idea of what other timeshares are selling for.
7. Some companies offer to buy your timeshare for their own use and in return want you to get an appraisal from an independent appraisal company that they recommend. Sounds like a good deal, right? Refuse such a offer- many such companies have cheated sellers for millions of dollars in the form of appraisal fees. A good forum to learn more details is: http://tugbbs.com/forums
8. Be careful of foreign buyers/ transactions/ banks- avoid those if at all possible.
9. Be wary of your resort company or any other offering you some amount for your timeshare and in turn tempting you to buy another.
If you’re looking at buying one, please be very wary, talk to owners, real estate agents, other investors and be informed about what you’re getting into. If you’re on the market to sell/ rent your timeshare, this post sheds a little light on what alternatives are out there. I will provide more details on such alternatives in later posts.
Selling your timeshare:
It is not a sellers market and its a rough road ahead for sellers - bear in mind, people like me, who love to travel are always looking for good bargain deals, and there are plenty available in this economy. If I can get the same unit/ property for a fraction of the cost of the unit for a week, plus not pay fees associated with a timeshare, what would I do? It’s a no-brainer.
Let me give you an example: I recently visited Canmore & Banff in Canada last month. I got an awesome deal in a resort called Lodges at Canmore. It was the peak of summer (end of August), and I got the deal for $110 USD a night. It was a beauty- 2-bedroom condo, with a patio, fireplace, full kitchen, washers, parking, grill, etc. Now if I google timeshares for resale on Canadian Reort Vacation Club, I see a 2-bedrom comparable in Canmore is selling for approx. $7,000, with an annual membership fees of $500. Why would I buy it?
Well, if you have decided that selling is what you want to do, there are several online resources available, websites like myresortnetwork.com, and these websites usually charge a listing fee (anything from USD $30 - USD $500). You can also go through brokers or other organizations. Remember, it is a very tough market out there, especially for timeshares, so it might be a while before you can find a buyer, and you might have to incur huge costs, just trying to sell it.
Some things to keep in mind when selling your timeshare:
1. Please do lots of research and homework on the market, current resale price of comparable units, demand & supply. Talk to other owners, agents, brokers, and get as much data as possible before you actually price your timeshare for resale.
2. Resale price is very important. Research on a comparable resale-, and try to price at or below the lowest average to have the best chance of selling your timeshare.
3. Be very careful about upfront payment fees while selling your timeshare. I have heard horror stories about sellers being charged thousands of dollars, on the pretext of ‘reaching out to prospective buyers’, but nothing concrete is ever done. Do not pay upfront fees, if it looks fishy or not legitimate.
4. Negotiate a commission/ payment after the deal is done- this motivates the broker or the agent to work hard for you. Always use a licensed and legitimate broker. Keep in mind though that broker fees might cost you almost 20% -30% of your sales price.
5. Your resale price will never equal what you paid for it to the developer. Times depreciate over time, and due to the economy, some have depreciated almost 99%.
6. Advertise as much as possible, and for as little as possible- use free advertising websites, posters in your resort, etc. tug2.net is a good marketplace for timeshares. Ebay and Craigslist are good websites as well- they will also give you a good idea of what other timeshares are selling for.
7. Some companies offer to buy your timeshare for their own use and in return want you to get an appraisal from an independent appraisal company that they recommend. Sounds like a good deal, right? Refuse such a offer- many such companies have cheated sellers for millions of dollars in the form of appraisal fees. A good forum to learn more details is: http://tugbbs.com/forums
8. Be careful of foreign buyers/ transactions/ banks- avoid those if at all possible.
9. Be wary of your resort company or any other offering you some amount for your timeshare and in turn tempting you to buy another.
Aug 31, 2009
How does a Vacation Rental differ from a Timeshare?
I just got back from a 10-day vacation to the Canadian Rockies. It is an awesome place! For those of you who have not heard about it or have not been there, it is the south central part of Canada, and is primarily a ski destination. In the summer months, the small towns of Banff & Lake Louise are flocked by visitors to appreciate the beautiful landscape and awesome weather.
As I mentioned before, I am a bargain hunter, and found this great deal at a vacation rental in Banff (Canada), a one-bedroom condo, with a kitchen, washers, grill, basically everything we could ask for, since we were travelling with a baby. Ofcourse we also saved money by having "home-cooked" breakfasts and dinners, 24/7 coffee and snacks! And the other reason we saved money was because we travelled at the tail-end of the peak season, so great weather and yet great deals on travel.
The concept of vacation rentals is similar to a hotel or an extended stay, with a few differences. Very popular in Europe & Canada, a vacation rental is in most cases a fully furnished apartment or villa which is rented out to a tourist, instead of a hotel. The rental unit is usually fully equipped with a kitchen, dishwasher, washing machine, grill, DVD player, sports equipment, etc.
A big advantage of a vacation rental over a hotel room is space. This is a big plus when travelling with kids, or with extended family, and usually works out much cheaper than a hotel. You could rent just one unit instead of multiple hotel rooms, for example, and can save money. You could get anything from a studio to a spacious 5-6 bedroom house with a pool, as a vacation rental. So, why would you want a timeshare if you could get rentals whenever you want, wherever you want?
The rental period of a vacation unit could be nightly or weekly or even monthly. Usually such units are not for sale, they are purely rental. But keep in mind, some units are owned by people like you & me, and are leased/ sub-leased out for tourists. And some timeshares are also rented out by owners or by the resort.
So, to quickly recap the differences between timeshares and vacation rentals:
1. Rent a vacation rental vs Own a timeshare property
2. More space in a vacation rental unit- living room for watching TV for example. Most timeshares are hotel rooms, although in Canada I saw 2-3 bedroom timeshares.
3. Cost savings especially when travelling with kids or extended family. You can save a lot of money on eating out.
4. More privacy and a little away from the noise of downtown.
So, any cons of vacation rentals?
Well, I don't think so. Most vacation rentals have parking, 24-hr front desk or contact for property manager. Its like renting a place temporarily, and unlike timeshares, there is no annual fee required, no memberships needed, and no obligation after you return back home after your vacation.
As I mentioned before, I am a bargain hunter, and found this great deal at a vacation rental in Banff (Canada), a one-bedroom condo, with a kitchen, washers, grill, basically everything we could ask for, since we were travelling with a baby. Ofcourse we also saved money by having "home-cooked" breakfasts and dinners, 24/7 coffee and snacks! And the other reason we saved money was because we travelled at the tail-end of the peak season, so great weather and yet great deals on travel.
The concept of vacation rentals is similar to a hotel or an extended stay, with a few differences. Very popular in Europe & Canada, a vacation rental is in most cases a fully furnished apartment or villa which is rented out to a tourist, instead of a hotel. The rental unit is usually fully equipped with a kitchen, dishwasher, washing machine, grill, DVD player, sports equipment, etc.
A big advantage of a vacation rental over a hotel room is space. This is a big plus when travelling with kids, or with extended family, and usually works out much cheaper than a hotel. You could rent just one unit instead of multiple hotel rooms, for example, and can save money. You could get anything from a studio to a spacious 5-6 bedroom house with a pool, as a vacation rental. So, why would you want a timeshare if you could get rentals whenever you want, wherever you want?
The rental period of a vacation unit could be nightly or weekly or even monthly. Usually such units are not for sale, they are purely rental. But keep in mind, some units are owned by people like you & me, and are leased/ sub-leased out for tourists. And some timeshares are also rented out by owners or by the resort.
So, to quickly recap the differences between timeshares and vacation rentals:
1. Rent a vacation rental vs Own a timeshare property
2. More space in a vacation rental unit- living room for watching TV for example. Most timeshares are hotel rooms, although in Canada I saw 2-3 bedroom timeshares.
3. Cost savings especially when travelling with kids or extended family. You can save a lot of money on eating out.
4. More privacy and a little away from the noise of downtown.
So, any cons of vacation rentals?
Well, I don't think so. Most vacation rentals have parking, 24-hr front desk or contact for property manager. Its like renting a place temporarily, and unlike timeshares, there is no annual fee required, no memberships needed, and no obligation after you return back home after your vacation.
Aug 12, 2009
What are the different kinds of timeshares?
Before getting into buying or selling timeshares, its very important to understand what you're getting into. Just to give you an overview, they can be divided into the following main types based on ownership and usage rights:
Deeded Property: This is when you own the deed to the timeshare. This ownership ends when you decide to sell,lease, or donate the property.
Fixed time: You pick the one week in the year to use the property, and use the property for the same week each year. If you miss it, you lose it.
Floating Time: Unlike fixed time, you get usage rights for a specific period of time- say, one week in a year, but it does not have to be the same time of the year. Offers a bit more flexibility, but advance booking is needed, and availability of unit sizes may vary, especially in peak seasons.
Points: Various vacation clubs offer such properties With the points timeshare option, you pay for, and accumulate credits or points for use during anytime of the year. As in the case of floating timeshares, advance booking is needed to book the unit in the vacation destination of your choice. You use up points as you reserve nights at the unit.
Multiple Locations: Different resort or hotel chains, offer such deals. You buy the timeshare with the resort, but you can use it in different locations. So you can buy a membership with a resort, and based on your agreement, can use their property in Hawaii or Florida or Europe.
Mix & Match: Resorts and vacation clubs could offer a mix & match of the above categories- for example a fixed & floating dats etc. Look at this example of a Hyatt property. http://www.hyattaspen.com/p-own-grand-hyatt-aspen-302.html. Also look at how much they charge you!
I'm sure you can further divide & subdivide categories of timeshares, and get "own" anything from an apartment to a boat. But you really need to do lots of research and homework before you get into buying one.
What are the benefits of owning a timeshare (see benefits & Pains of owning a timeshare in further posts) vs. renting a condo, or a vacation rental? or even a hotel room? Most people who buy timeshares are the ones who travel to a destination, say Hawaii, fall in love with the place, and decide they want to visit the place every year. By the way they also fall in love with the resort property they are staying in, and want to stay there every year. Well- good for them, but heres a newsflash- there are cheaper options! You can go to Hawaii each year, and stay in the same place, and pay lesser than you would if you own a timeshare there.
Well, if money is not a consideration, there are even beter options, like owning a condo, vacation home, etc. and you could even qualify for tax benefits! For more information on how to find best deals, travel vacation deals, or specific questions, feel free to email me at travelbugmundo@gmail.com
Deeded Property: This is when you own the deed to the timeshare. This ownership ends when you decide to sell,lease, or donate the property.
Fixed time: You pick the one week in the year to use the property, and use the property for the same week each year. If you miss it, you lose it.
Floating Time: Unlike fixed time, you get usage rights for a specific period of time- say, one week in a year, but it does not have to be the same time of the year. Offers a bit more flexibility, but advance booking is needed, and availability of unit sizes may vary, especially in peak seasons.
Points: Various vacation clubs offer such properties With the points timeshare option, you pay for, and accumulate credits or points for use during anytime of the year. As in the case of floating timeshares, advance booking is needed to book the unit in the vacation destination of your choice. You use up points as you reserve nights at the unit.
Multiple Locations: Different resort or hotel chains, offer such deals. You buy the timeshare with the resort, but you can use it in different locations. So you can buy a membership with a resort, and based on your agreement, can use their property in Hawaii or Florida or Europe.
Mix & Match: Resorts and vacation clubs could offer a mix & match of the above categories- for example a fixed & floating dats etc. Look at this example of a Hyatt property. http://www.hyattaspen.com/p-own-grand-hyatt-aspen-302.html. Also look at how much they charge you!
I'm sure you can further divide & subdivide categories of timeshares, and get "own" anything from an apartment to a boat. But you really need to do lots of research and homework before you get into buying one.
What are the benefits of owning a timeshare (see benefits & Pains of owning a timeshare in further posts) vs. renting a condo, or a vacation rental? or even a hotel room? Most people who buy timeshares are the ones who travel to a destination, say Hawaii, fall in love with the place, and decide they want to visit the place every year. By the way they also fall in love with the resort property they are staying in, and want to stay there every year. Well- good for them, but heres a newsflash- there are cheaper options! You can go to Hawaii each year, and stay in the same place, and pay lesser than you would if you own a timeshare there.
Well, if money is not a consideration, there are even beter options, like owning a condo, vacation home, etc. and you could even qualify for tax benefits! For more information on how to find best deals, travel vacation deals, or specific questions, feel free to email me at travelbugmundo@gmail.com
Aug 8, 2009
Timeshare shopping?
Being a real estate investor, and an avid traveller myself, I am perpetually looking for vacation deals- deals for flights, hotels, car rentals, etc. And yes, I had considered owning a timeshare once upon a time. I did a lot of research to understand this unique market, and found it very interesting, how its changed over the years. This concept started in Europe in the 1960s, and came to the US around the late 1960s. This inspired me to write this blog to explain what timeshares are and whether or not it makes sense to buy them.
If you are reading this blog, then you have probably heard about one; and may be even planning to invest in one or looking at selling yours. Well, if you haven't heard of timeshares before, here is a short story. You are on a vacation and arrive in Cancun, Mexico with your spouse/ partner/ family. You are approched by a well-dressed gentleman, who introduces himself as an employee of a resort XYZ, greets you, welcomes you to his country, asks where you're from & how
your flight was, etc.- thats a nice gesture, right?
Well, then he asks you where's you're staying, and if you need a ride to your hotel. Well, since most of us have got up at wee hours of the morning of travel, travelled a few hours by air, a ride to the hotel in a private van is would be nice, as compared to sitting in a local airport shuttle that takes 2 hours to reach you hotel.
By this time you probably have an idea of whats to come, but well, "lets see", you say. On the way to the airport, this nice gentleman offers a "free" breakfast next morning at his resort (and ofcourse there will be a private van to pick you up for breakfast), and "free" tickets to see Chichen Itza (a tourist spot near Cancun). "After breakfast", he says, "you only need to spend a few minutes looking at our property, and then you are on your way to Chichen Itza". Hmmm.. you think... not bad... you can save some money on food & tickets. "Sure" you say.
Next day, as promised you are picked up, arrive at the resort for breakfast, have a brief "chat" about the property, and then head to the property tour. Now, you definitely know whats coming, and you're just waiting for this to get over, and drive off to Chichen Itza, but wait.. this is not over. For the next 3 hours, you tour the property, watch videos, sit in a room full of "shark" salesman and their "super-shark" managers who are desperate to sell you timeshare or 'ownership' in their resort for a 'minimal' fee and great benefits- "its the best investment you can ever make" or "why rent when you can own for cheaper"- they say. By the end of it all, you pobably want to cry out loud or jump off the Chichen Itza tower.
True story, and victims were my my spouse & me. This is a typical scenario how people are wooed into "owning" a property, lease, condominium, apartment etc. either standalone or as a part of resort or club membership. for a limited number of days in a year for a certain membership fee. I am not stating that all timeshare owners have been through this experience; I'm just saying this is a typical scenario. These types of arrangements usually exist at tourist hotspots, like Las Vegas, Florida, Hawaii, Mexico, Carribean, etc.
From a sellers point of view, this arrangement works well, since they get paid membership fees for something that you may or may not use. Its like a gym membership fee, the gym makes money from you whether or not you are interested in toning your muscles. And the catch is even if you are an 'owner' of the property, you may not get what you are looking for at a time you want to go visit. For example, if you want to travel to Alaska in ther summer, or Florida in the winter, you might have to book way in advance to ensure availability, which you may or may not get.
If you are part of a club membership which has a bunch of different properties, you can choose from different hotels, but again if you don't book way in advance, or if you're travelling at the peak season, you might have to settle for something more expensive or further away from the main town. Nothing comes free!
Does this mean it does not make sense to own a timeshares? Well, I think it does not, but there are some arguments that support such an investment. I do not agree with all of them, but I just wanted to put it out there.
Stay tuned in for later posts describing types of timeshares, differences between ownership & other forms of vacation rentals, benefits & pains of owning one, how it may not be the best use of money if you are a bargain hunter like I am.
If you are reading this blog, then you have probably heard about one; and may be even planning to invest in one or looking at selling yours. Well, if you haven't heard of timeshares before, here is a short story. You are on a vacation and arrive in Cancun, Mexico with your spouse/ partner/ family. You are approched by a well-dressed gentleman, who introduces himself as an employee of a resort XYZ, greets you, welcomes you to his country, asks where you're from & how
your flight was, etc.- thats a nice gesture, right?
Well, then he asks you where's you're staying, and if you need a ride to your hotel. Well, since most of us have got up at wee hours of the morning of travel, travelled a few hours by air, a ride to the hotel in a private van is would be nice, as compared to sitting in a local airport shuttle that takes 2 hours to reach you hotel.
By this time you probably have an idea of whats to come, but well, "lets see", you say. On the way to the airport, this nice gentleman offers a "free" breakfast next morning at his resort (and ofcourse there will be a private van to pick you up for breakfast), and "free" tickets to see Chichen Itza (a tourist spot near Cancun). "After breakfast", he says, "you only need to spend a few minutes looking at our property, and then you are on your way to Chichen Itza". Hmmm.. you think... not bad... you can save some money on food & tickets. "Sure" you say.
Next day, as promised you are picked up, arrive at the resort for breakfast, have a brief "chat" about the property, and then head to the property tour. Now, you definitely know whats coming, and you're just waiting for this to get over, and drive off to Chichen Itza, but wait.. this is not over. For the next 3 hours, you tour the property, watch videos, sit in a room full of "shark" salesman and their "super-shark" managers who are desperate to sell you timeshare or 'ownership' in their resort for a 'minimal' fee and great benefits- "its the best investment you can ever make" or "why rent when you can own for cheaper"- they say. By the end of it all, you pobably want to cry out loud or jump off the Chichen Itza tower.
True story, and victims were my my spouse & me. This is a typical scenario how people are wooed into "owning" a property, lease, condominium, apartment etc. either standalone or as a part of resort or club membership. for a limited number of days in a year for a certain membership fee. I am not stating that all timeshare owners have been through this experience; I'm just saying this is a typical scenario. These types of arrangements usually exist at tourist hotspots, like Las Vegas, Florida, Hawaii, Mexico, Carribean, etc.
From a sellers point of view, this arrangement works well, since they get paid membership fees for something that you may or may not use. Its like a gym membership fee, the gym makes money from you whether or not you are interested in toning your muscles. And the catch is even if you are an 'owner' of the property, you may not get what you are looking for at a time you want to go visit. For example, if you want to travel to Alaska in ther summer, or Florida in the winter, you might have to book way in advance to ensure availability, which you may or may not get.
If you are part of a club membership which has a bunch of different properties, you can choose from different hotels, but again if you don't book way in advance, or if you're travelling at the peak season, you might have to settle for something more expensive or further away from the main town. Nothing comes free!
Does this mean it does not make sense to own a timeshares? Well, I think it does not, but there are some arguments that support such an investment. I do not agree with all of them, but I just wanted to put it out there.
Stay tuned in for later posts describing types of timeshares, differences between ownership & other forms of vacation rentals, benefits & pains of owning one, how it may not be the best use of money if you are a bargain hunter like I am.
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