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From: warren@ihnss.UUCP
Newsgroups: net.travel,net.invest,net.misc
Subject: Re: vacation condo Timesharing
Message-ID: <1881@ihnss.UUCP>
Date: Thu, 19-Jan-84 15:43:19 EST
Article-I.D.: ihnss.1881
Posted: Thu Jan 19 15:43:19 1984
Date-Received: Sat, 21-Jan-84 02:19:54 EST
References: <127@ames-lm.UUCP>
Organization: AT&T Bell Labs, Naperville, IL
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I've never understood all of this higher math, but these always
looked like a bad deal financially, unless you get some huge tax
benefit or can look forward to whopping appreciation in the long
run.  Take a look at Michael's example (not to single it out, it
sounds pretty typical to me):

condo cost was $5K, financed at 12%.  That's $600/yr interest.
Maintenance cost was $200
the fee for joining the swapping club was $50.

That works out to $850/yr to "own" a week, without repaying the
capital outlay.  In comparison, many of these same sorts of places
rent out at $100/day or less to individuals.  Some come with rental
cars at this kind of price, and some give you discounts on week or
longer stays.  (Last summer, we rented 4 or 5 days at two different
operations like this for about $80/day with car.)  There are no
restrictions on when or where you go, though the prices do vary with
the season. (Though not nearly as much as the ownership fees.)

With tax benefits, the costs may come out comparable, but for
convenience and flexibility, I find it hard to beat the approach of
renting it when you need it and not needing to worry about how to
make use of it when you don't.  I guess I am always skeptical of
something that gets the kind of hard sell publicity these things do.
-- 

	Warren Montgomery
	ihnss!warren
	IH x2494