Tip 9 - Ten Year Savings

In the early days of timesharing (pre-1980), the developers often used the ten year savings formula for establishing timeshare value. Since timeshares are not an investment and potential owners should be looking at timeshares as a long term usage product, the ten year savings guideline is one way to determine the resale value of a timeshare.

YOUR VACATION SAVINGS OVER A TEN YEAR PERIOD IS ONE WAY TO EVALUATE A TIMESHARE RESALE.

Ten year savings example for a studio timeshare at the Whaler in Maui, Hawaii purchased in 1992:

    Equivalent hotel/day    - $ 150
    Timeshare maintenance   - (  40)
    Hotel savings           -   110
    7 day savings           - $ 770
               
    $5,500 4% 1992 CD loss  - ( 220)
    Adjusted annual savings - $ 550
              
   Ten Year Timeshare Value - $5,500/wk
             
Example notes:
   1. Your timeshare will pay for itself in ten years. 
      Usage and resale after 10 years is all profit.
   2. If you use your CD savings for your annual vacations,
      your savings will be gone in less than 6.5 years.
   3. It is assumed that any increase in maintenance, will
      be offset by a similar increase in hotel rates.