Let us assume that u have a studio apartment in white season, and u desire to take holdiays abroad. So what do you pay. Initial : 194000 ASF (annual) : 7000, and increasing at inflation rate. Assume 6% inflation: then over 25 years you pay approx 380000. (hope we never have 20-30% inflation as some economies world over have had; and what happens if inflation is negative - does ASF come down? BTW Club Mahindra gives the option to pay the entire amount in advance at today's prices) RCI Membership renewal fees (payable every few years) : Approx : 50000 Exchange fee at current rates payable when you take a holiday abroad using RCI : 12000 per holiday. For 25 years = 300000 Total Assured Outflow = approx > 9 lakhs.
(Assumption : Time value cancels out as you pay almost upfront 194000). So each weekly holdiay = 37000 Currently you can get some great deals at 150$ per day for white season holidays across the world. It is almost the same amount of money, without hassles and you actually get the holiday you want (not dependent on rooms being available are there or not).
RE:More Charges
by shankar venkat on Dec 27, 2007 01:41 PM Permalink
Great analysis! Hope some one from the time share company would respond to your post.
