Originally Posted by
KoKoBuddy
Fine take 35% off taxes. Instead of losing $63K you lost $41K.
And I am being very generous at 35%. Had you bought a 0 coupon bond with a 7.5% yield, you'd pay only 15% capital gains on the gain in 2014. Either way you still saved $7500 to lost between $40K and $60K.
Always an if. When bonds paid 7.5% I was buying stock. So were many others. Very few made the money they would have had they bought the bond.
Originally Posted by
KoKoBuddy
I worked in the timeshare industry for a while as a consultant. Believe me, NOBODY comes out ahead on those deals. But everyone who gets burned on one is convinced they're the exception to the rule. .
Guess your focus is on dollars alone. Most who are happy saw a return far beyond dollars. I just spent a happy father's day with my adult children, something that might not have happened but for my timeshare.
Originally Posted by
KoKoBuddy
Put yourself in the shoes of the developer. If it's as good a deal as you claim it is, why would the developer pass on that deal to you? Why not rent out the units at $3K per week (as you claim the going rate is) and keep the profit all to themselves? Why in the world would they sell something that they can rent out at $3K a week to you for a 1 time cost of $12,500 and then charge you $1000 a year? They wouldn't.
When my timeshare was built, little guys could not easily borrow to build in Mexico. The Royal Resorts was not some big company. My purchase was part of their financing. They kept the management/food contracts (prices for food, etc. are very competitive). And after 30 years (up in 2014) they share in the sale of the unit. Not a bad deal. Had they built a hotel, they would have to rent the rooms year after year or go bust. Here, use it or not, I pay maintenance. So they have no costs, no risk, management fees, food income and upside. And I got what I thought I was buying and remain pleased.