# RCI Timeshare



## daddybigbucks (Jan 30, 2011)

I thought this would be an interesting topic.
I just got back from a "free" weekend at Meadow Lake Timeshares by RCI in Montana.
We got to stay for 4 days for free plus $100 free dinner voucher, but we had to stay for the 90 minute presentation.

The area is great. Like my 5 year old said "its an oasis" . Big Mountain ski resort was closing for the season and the golf course doesn't open till next week, so we just bummed around at the beach and parks for 3 days.

We did go to the presentation to see if it was for us. It was no pressure and the salesman was great. 
But the end, the deal was $12K for a deeded 1/52 share of a condo (1 week every two years). 
Pros
We could trade in for any other condo in RCI network. 
We could sell the deeded share anytime on open market.
We got free usage of campground on flathead lake

Cons 
yearly maintenance fees of about $400
yearly RCI fees of $175
yearly trading fees of $150


So all in all, it didnt sound that bad (as bad as timeshares were back in the 90's) but the thing that really got me was the $400 maintenance fees. So if there are 20 units in that condo, that condo would generate 20 units x $400/tenant x 51 weeks a year = $408,000 for maid/plumbing/groundskeeper?


Has anyone ever owned one of these timeshares? or any input?


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## kcowan (Jul 1, 2010)

They had a pitch in Collingwood for timeshares. The cost per fixed week translated to a purchase price of $452k for the townhouse at a time (the 80s) when the purchase price was $150k. Needless to say, we took a pass. (2 nights fee in a motel and a free continental breakfast)

But I have maintained an interest because it seemed like a good investment for the developer (1/3 for each for the property, the developer and the costs of sales). I would avoid timeshares as a user purchase. If it fits your lifestyle, resale units are available through TUG. But as you noted, the cost of maintenance is another profit centre for the organization.


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## daddybigbucks (Jan 30, 2011)

Yes, it piqued my interest as well, but not to vacation more but for an opportunity.
I saw there are currently 5 Meadow lake timeshares on kijiji alberta. I'm wondering if a property bought on there for half price would be a deal.


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## summer (Jul 7, 2011)

Wouldn't 1/52 be a week EVERY year? You said every two years.

The annual fees covers things like new roof, replacing carpet, furniture, insurance, property taxes.

We own one in Florida. The annual fee is 700.


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## Sampson (Apr 3, 2009)

Even at $6000 plus maintenance costs per year, this is a bad deal. In terms of valuation, as kcowan points out, 1/52 ownership at $12,000 means $624,000. Property around Columbia Falls is not expensive, 1500 sqft, 2+ acres for $200k-$300k.

If you like the area (my family visits the Flathead lake area and GN Park) at least twice per year, just rent a condo via VRBO.com or other similar sites. You can get proper lake front cabin rentals for ~$200/night. One week is $1400, way cheaper overall that your timeshare. It would take at least 10years of visiting the same condo annually for a week to 'break-even', and that is assuming you stay at a $200/night location, many can be had for $100/night.

Regarding transferring credits, have you looked at the other RCI resorts and what you can actually get with your Meadowlake credits? Often, when transferring them to 'nicer' locations like Hawai'i etc, you use your week, plus you have to add money, so not the greatest deal.

As an investment, it will take more than a lifetime for your property to appreciate to a point where you break even.

I've listed a few negative points, the real evidence is people wishing to sell their shares for half their cost. In real estate, this means bad news.


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## daddybigbucks (Jan 30, 2011)

summer said:


> Wouldn't 1/52 be a week EVERY year? You said every two years.
> 
> .


The salesman didnt give me any paper details just scribbles on a paper. But ill just use 1/52 ownership and 1 week per year with $400 maintenance fees for calculations.




Sampson said:


> Regarding transferring credits, have you looked at the other RCI resorts and what you can actually get with your Meadowlake credits? Often, when transferring them to 'nicer' locations like Hawai'i etc, you use your week, plus you have to add money, so not the greatest deal.


The salesmen said that meadow lake was the top 10 resort and in such high demand that its points are the highest. Not that i believe that but its what he said.

_I think this is the kicker._
Usual condo fees for a condo maintenance are around 0.7c /square foot/ month. So a 1000 ft condo would be about $8,500/year. 
A comparative 1000 sq ft timeshare condos are charging $20,800/year or $20.8/sq.ft!! (ie $400x52weeks)

With those numbers, its not a condo but now a hotel. So it seems like you are paying a preferred hotel rate. (probably because of its zero vacancy rates)

Man, this looks like quite the business.


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## spirit (May 9, 2009)

Hi. My family and friends know me as a timeshare queen. (; Something of the same thing happened to us about 8 years ago. Our neighbors could not use their timeshare and we rented if from them. My first time in a timeshare and I was smitten. Loved the extra room (compared to a hotel room) and the kitchen really saved on meal costs with two hungry older teenage boys. The resort was sold out so no pressure to buy so I decided to research timeshares.
I found a great online site Timeshare Users Group (TUG) made up of volunteer timeshare owners. We post our experiences and knowledge and there are some very knowledgeable people there. Free to look and I looked and learned there for 6 months before I decided that timesharing was for us. BUT....and here is a big but......it took me a year before I found the timeshare I wanted. In the mean time I saw a LOT of really good bargains and I was tempted to buy, but the knowledge I had from TUG saved me from a lot of mistakes. 
I eventually did become a member ($15 a year, best investment I have done in a long time) and that allowed me to post and get answers plus get information on resorts available only to members. I really advise you to visit the site and educate yourself. Timeshares are easy to get into but very difficult to get out of. We bought close to home and my two boys will use it when we are tired of it. And if they can't use it, I have found my timeshare rents easily on Kijiji for just maintenece fees. It is in Banff so very desirable at New Years....not all timeshares are. Good luck.


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## Echo (Apr 1, 2011)

I agree with Sampson. We started using VRBO and similar sites to rent a cabin in areas that we like (Canmore, Moyie, and Crawford Bay so far). A week rental costs less than $1,000 and we get to see a different place each time.


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## fraser (May 15, 2010)

Terrible deal.

Add up your annual costs: $725. Then add in the opportunity cost of money, say 4 percent on 12K- $480. year. 

Altogether that is $1205 year. Your can rent a nice place anywhere for that.

And your capital cost has vanished...it has little or no residual or resale value.

If you are serious, look at the resale market. Even then the math is questionable.

A land locked timeshare is difficult to trade. Most people want beach/oceanview.

We attended a 90 minute seminar in Dayona Beach last month. Price was 9K if we bought that day plus extras. It was $12K if we bought the next day plus we would forgoe all the other benefits including a travel club membership boasting 'half price airfare'. We declined but did take our $100. cheque for attending.

Later, we looked up the resort on timeshare resale sites.  They were selling from $450. to $2500. for the same thing. If a timeshare really appeals to you then go with a resale.

We were staying in a timeshare condo building. We paid $600 for one week post the Daytona 500. Our friends also stayed there. They did a timeshare exchange and ended up with a very much substandard suite compared to us. At the presentation they boldly told us that the condo we rented for $600 would fetch as much as $1500. a week if we decided to rent it out. It was a laughable presentation. 

Timeshares have a huge marketing budget and pay high sales commissions. Who do you think pays for this?


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## Charlie (May 20, 2011)

A $400 annual maint seems quite low...so I'll bet it's an every other year deal you've been offered.
Is this the place?

http://www.ebay.com/itm/2BR-Columbi...00872630348?pt=Timeshares&hash=item2ec4f1184c

this one is five weeks, every year at Meadow Lake in Montana. The ask was $1 and nobody was willing to buy! (so how much do you figure one week every other yr is really worth?).

You can do well with timeshares -- spirit's link is a good starting point. But you have to understand the costs (all of them) and restrictions. Never buy from the developer (there's a reason they had to bribe you with $100 and four days free just to give you their pitch)....takes a lot of research, and a real understanding of how you're going to use it. It's a very shady industry overall.


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## fraser (May 15, 2010)

If you check the timeshare resales you will lots of places for sale for $1 or just take over the mtce or mtce arrears. Just do a google on timeshare resales and you willfind a few sites.


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## Plugging Along (Jan 3, 2011)

daddybigbucks said:


> Yes, it piqued my interest as well, but not to vacation more but for an opportunity.
> I saw there are currently 5 Meadow lake timeshares on kijiji alberta. I'm wondering if a property bought on there for half price would be a deal.


We have looked into timeshares for years, just because they have those teaser deals to get you to come and talk to them. I have found that they are basically a lifestyle choice and not an investment. If you want to do it because you want to enjoy the vacationst there, then go for it. However, look at all the resales, they go for a lot less.


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## spirit (May 9, 2009)

Before we bought our timeshare I rented a New Years week at Banff from Timeshares Only. ( I am a teacher and need high holidays so cannot be very flexible) If you want to rent, give one of their agents a call and remember everything is negotiable...make a fairly low offer and see if it is accepted. I was a little worried about giving money to an online company but everything was legit. If it was me I would definitely rent.....there are lots of units for sale because people who bought 30 years ago have had a change in lifestyle, do not want to travel so much anymore, their children cannot use the timeshare and those maintence fees will go on forever. You CANNOT walkaway from a timeshare easily. You are obligated unless someone takes it over from you...and buyers are very few and far between. They are selling a dream......and that can soon turn into a nightmare.
Don't be in a rush....educate yourself and remember there will always, always, always be another timeshare deal. (;


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## DesignerDee (Apr 10, 2013)

Hmm, I guess we were pretty lucky with ours, we bought out a high week from someone offloading one of their timeshares. It was already converted to points, and we paid $1,000. Our maintenance is just under $500 per year, and well you know the annual fees (we took the discount for multiple years). The good thing about it, is as we are prone to last minute drive to destinations such as Vermont, Virginia and Florida (from the Ottawa area) we can get multiple weeks bringing down the average cost for each vacation to less than $500 per week for two at pretty respectable joints. This excludes food and gas of course. If you have the time, it sure can be a cheap way to travel and vacation. IMHO.


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## Ponderling (Mar 1, 2013)

get on Netflix and watch a doco called The Queen of Versailles to get a fly on the wall version of the side of time share the rep showing the glamour do not talk about. Not a bad show as a human story as well.


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## niicole (Jan 3, 2015)

*Timeshare Fraud*

Thousands of International travelers, particularly from the US and Canada, have fallen victims of timeshare fraud while vacationing. Resort developers hire skilled salesmen to represent their timeshares as many different attractive packages, such as financial investments, deeded properties, or vacation clubs, just to increase their sales.


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## margaretsims90 (Dec 9, 2014)

*Timeshare*

The timeshare industry has been into the lion’s mouth for the last couple of years, and it has generated lots of controversy and discussions in many forums and blogs on the web. However, since we’re living an economic downturn, anyone would expect that the timeshare sales collapse, but instead of that the sales seem to be increasing… but this comes with a trap: timeshare scams are increasing too. That leads us to the question: then, why keep people investing on timeshares?


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