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Decided to payoff my mortgage.
Sooo AMC.. who’s in?
😂
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Obviously it is POSSIBLE to recoup your buy-in later, but not easy. With only 2 weeks access per year, it sounds like you’re a pretty small fraction. That could make resale difficult unless all shareholders want to sale, which in a large group is harder. Selling just your share could be very hard and you’re not likely to make back the initial 50k in that scenario. If you go both weeks every year for 20 years, and don’t recoup any of your 50k, and HOA/maintenance fees don’t increase (they will), you will have paid $3750 per week for your vacation spot. There are a LOT of really nice AirBnBs for that price.
As others have stated, you’re limiting yourself by purchasing this fraction. Do you already spend 10k/year on 2 weeks in Jackson hole? In that case, this might be a money-saving idea. Are you the kind of person who already vacations to the same place every year? If not, you may find it boring after a while.
If you have $2m why not just purchase a condo or something cheaper
Buying fractional real estate is the headache of owning something you also have to share. Spend your 50k on something that will return, and spend 5k on a nice Airbnb.
How much would renting for those two weeks cost?
Rack rate is about $1250/night. It’s top notch ski in/ski out. If I don’t use a week I could, in theory, rent it out for roughly that amount.
What would a comparable rental cost? How much control do you have over the timing of the week?
Probably about 2-3x the cost of the weekly HOA dues.
I wouldn’t want to be locked-in to the same location each year. What if the snow isn’t great in Jackson one year? You’ll feel compelled to go, even though you may have a better time skiing somewhere else. I’d value the flexibility of being able to stay wherever I want.
Reasons to not do it:
- You have to share with everyone else. You can book in advance, but it’s not like you can say “wow great snowfall this week, let’s go right now!” (Well you can try, but chances are, everyone else in the timeshare is having the same thought - same thing for holiday weekends etc, but you can book in advance for those and hope there’s good snowfall and no blizzards ).
- How confident are you that you’ll want to go the same location every year for 20 years (or however long it is)? You could go skiing elsewhere, or have non-ski vacations. If you have kids or plan to have kids, your ideal vacations may change depends on the kids ages at the time
- There’s a lot of hidden costs and costs that can go up IME looking into these. A lot of times you’re paying money for the privilege of being in the club whether you use it or not and then booking your actual stay is an additional charge, amenities fee is an additional charge, renting ski equipment is an additional charge, ski lift tickets etc. You’re not really locking in 2021 rates for life.
- Resale and/or subleasing tends to be difficult, you may find yourself struggling and/or having to do it at a steep discount
Obviously, it is your life, you are neither the first nor last person to get a timeshare. Clearly some people get value out of it but mostly seems like everyone who gets one regrets it down the line.
Very helpful. All worth thinking about. Thanks.
This post makes no sense. People shopping for real estate in J Hole are not people looking for fractional real estate. It’s equivalent to saying you’re car shopping for a Bentley but also interested in a Kia or Hyundai bc of the price. Go to a cheaper, less exclusive resort town. Fractional real estate is probably the worst solution for you. Buy a condo, house, find a cheaper location, get a couple friends / family to share, or just plan to Airbnb the rest of your life. These are all better solutions for you