Author Topic: Living in a Timeshare full time when retired.  (Read 6424 times)

Kaplin261

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Living in a Timeshare full time when retired.
« on: March 14, 2016, 10:06:12 AM »
So this past week I was gifted a time share for the week because the owners were having a baby and couldn't go. The time share was at Massanutten ski resort during the off season. While we were there we met some timeshare owners who picked up their timeshare off of ebay for $1+ $400 yearly maintenance fee. This gave me a idea, what if I were to buy 52 timeshares for no upfront investment and only have the yearly maintenance fee.

To live like this it would only take $21k a year, however other costs in a normal living situation would be eliminated, no utilities,no taxes,no insurance and I would get a maid,linens and towels would be washed,most toiletries are included. There is also the perks of being around a community that is on vacation all the time, versus a community that works all the time. I can also choose to live in different parts of the world without owning multiple homes, mountains in the summer or beach life in florida for the winter. Pools, amusement parks, gyms, tennis courts and much more activities for a retiree.

This definitely is not for mustachians who are looking for the most frugal route to retire, but for $600k in savings with a safe withdrawal rate of 4% you could have this lifestyle. Add in another $200k to cover the other essentials you need in life.

Has anyone ever considered this is a option for retirement?

Catbert

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Re: Living in a Timeshare full time when retired.
« Reply #1 on: March 14, 2016, 11:30:43 AM »
The biggest problem with this is that the maintenance fee can skyrocket without any way for you to control it.  The kind of timeshares people are giving away probably have (many) other owners defaulting on their maintenance fee.

Kaplin261

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Re: Living in a Timeshare full time when retired.
« Reply #2 on: March 14, 2016, 12:27:58 PM »
The biggest problem with this is that the maintenance fee can skyrocket without any way for you to control it.  The kind of timeshares people are giving away probably have (many) other owners defaulting on their maintenance fee.

I have never owned one before and have no idea how they work, but this makes since. Can you just give the time share back to the resort without any penalties if something like that happened?

Vilgan

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Re: Living in a Timeshare full time when retired.
« Reply #3 on: March 14, 2016, 01:51:03 PM »
The biggest problem with this is that the maintenance fee can skyrocket without any way for you to control it.  The kind of timeshares people are giving away probably have (many) other owners defaulting on their maintenance fee.

I have never owned one before and have no idea how they work, but this makes since. Can you just give the time share back to the resort without any penalties if something like that happened?

Nope. That's why people frequently sell them for $1 on ebay, to try to get the timeshare off their hands. There are many other cases where people will pay thousands in order to escape a timeshare. Many charities have stopped accepting timeshare donations because they are a nightmare and not really worth anything.

Each potential purchase should also have some due diligience done by you to understand what's coming up. People trying to sell their timeshares for cheap don't usually mention the 20k assessment due in a year for upgrades/other nonsense.

I think it'd be easier and safer to live off of airbnb or house sitting all over than taking on 52 weeks of timeshare obligations.

frugaliknowit

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Re: Living in a Timeshare full time when retired.
« Reply #4 on: March 14, 2016, 02:09:20 PM »
Check out the video here:  https://timeshareexitteam.com/

Selling one on ebay for $1 is a bargain compared to paying someone to dissolve the contract.

bobechs

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Re: Living in a Timeshare full time when retired.
« Reply #5 on: March 14, 2016, 02:10:09 PM »
Your plan would cost $57/night with a contractual obligation to pay for every night of the year plus the open-ended obligation to pay whatever continuing increases the management sees fit to charge.

You could instead stay in a series of fairly decent hotels for the same money, leave whenever you like and change your whole approach to housing without penalty or inconvenience.

honeybbq

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Re: Living in a Timeshare full time when retired.
« Reply #6 on: March 14, 2016, 02:34:22 PM »
Wouldn't you have to move every week?
Sounds tiring.

ohsnap

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Re: Living in a Timeshare full time when retired.
« Reply #7 on: March 14, 2016, 05:11:40 PM »
We would almost be able to do this with the timeshares my parents own.  Theirs is a point-based system, and I figured out recently that if I used it for the cheapest places it would be 30 weeks per year.

That said, I would never recommend your plan.  I've suggested to my folks that they unload their timeshares as soon as their usage starts declining (they aren't getting any younger).  Neither my sister nor I have any interest in owning a single week.  We've seen the costs for my parents go up every year, and the difficulty in getting the weeks when & where they want would make me crazy.  Most of the places they stay, I can pay cash at a nightly rate that is the same as or less than what the maintenance fee for that property would be!

I'm the executor of my parents' wills, and the first thing I plan to do after burial is notify the time share companies that all heirs are disclaiming the assets & accompanying liabilities.

Cassie

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Re: Living in a Timeshare full time when retired.
« Reply #8 on: March 14, 2016, 05:41:53 PM »
My hubby bought 4 time shares off a tax sale and thought he made an investment. I wanted to kill him. In the end we sold them all for 1.00 and had to offer people the paid maintenance fees the first year to get someone to take it. Yearly fees were not fun. He paid 5500 for the 4 of them. Bad idea.