Understanding Redemption Options for SO from Resale Units

[DanTUG]

It also fails to mention that WKV can be rented for 2-3x MF's. It is one of the few timeshares that returns an investment rate ROI on capital if rented.

The option to rent and recover MF+ is valuable if in a given year or for a period of time you would not otherwise be able to use your week e.g., work issues, health issues or cash issues. Missing or "giving away" a week has an impact on the long term value equation.

 

[DanTUG]

Also, WKV seems to have relatively more "rentable weeks" (.e., beyond just Christmas holiday season) due to MLB baseball Spring training season.

 

[ExplorerII]

Yes like I said all valuable points. For me accessing Orlando is almost to easy for me. That I can honestly never see a situation where using up the 81k SO or now 162 every other year will be a problem.

And again buying 81k SOs resale for $800 and another 81k every other year for another $500 to me is exactly where I want to be.

 

[dioxide45]

What your analysis fails to mention is that you would likely have a much easier time selling WKV should you decide to sell at some point...

Again, your ability to eventually sell your TS should factor into your decision. Keep in mind Orlando is oversaturated with TSs..

I see this often when comparing SVV to WKV. I am not sure it really holds up. I sure don't see where people are having problems selling their SVV weeks. There are plenty of willing buyers even though there are a lot of weeks that pop up. One could even say it might be easier to sell SVV over WKV. I would suspect there are a lot more buyers in a market for $1,000 weeks vs. $15,000 weeks. You certainly can't sell the SVV week for as much, but you certainly didn't pay as much. Now, if everything tanks, it might be easier to get out of the WKV than it will be to get out of the SVV. Though you might be out a lot more money in that WKV week vs SVV.

 

[dioxide45]

Why buy Orlando (and tie yourself down with perpetual MFs) when you can choose to rent from multiple Orlando resorts for the cost of annual MF?

No one was suggesting to buy Orlando to go to Orlando. Of the 206,000 SOs we own in Orlando, we never plan to ever book our home resort there or use the SOs in Orlando.

 

[ExplorerII]

Yes I totally agree with dioxide45 yes I enjoy going to Orlando and yes I understand its a waste of SOs to use them there. But I bought my weeks to use at Orlando and use the SOs to stay elsewhere. But as a backup when I cannot get a reservation elsewhere I will gladly go to Orlando but thats myself with 2 young daughters. And for the buy in price just do not see how you beat it.

 

[DavidnRobin]

No one was suggesting to buy Orlando to go to Orlando. Of the 206,000 SOs we own in Orlando, we never plan to ever book our home resort there or use the SOs in Orlando.

Sorry @dioxide45 - I was replying to the OP - and not replying to strategy of using SVV for VSN. I think buying SVV resale SO to exchange via VSN is a great idea. I have never said otherwise.

I own WKV Plat - because it meets our qualifications (and not that of others):
Great resort (for us) that we can drive to (aka Buy where you want to go strategy)
Low MF/SO
Easily rentable (mine have paid for themselves)
Large 1Bd Plat has 81K SO
Westin Brand

Resale SVV (Mandatory) certainly has value, but if you are planning buy a week to use in Orlando regularily - my suggestion is to rent there as Orlando is oversold (unlike Scottsdale).

IMO only disposable income should be used buy TSs - I do not include our TSs as part of our assets. I consider part of vacation spend. We can walk away if needed since our weeks have value.

 

[r1lee]

No one was suggesting to buy Orlando to go to Orlando. Of the 206,000 SOs we own in Orlando, we never plan to ever book our home resort there or use the SOs in Orlando.

Dioxide, I added in SVV for the same reason as you, I will probably never use the SO's to book SVV as it's cheaper to stay at places like bonnet creek. Paying $9k for Kierland and $500 for SVV, at $100 difference in maintenance and taxes, would take 80 years to recoup that amount. Had I thought about this originally I might not have bought WKV but rather the 3 bedroom I found on SVV.

I also agree with you David. I consider the MF's as part of my yearly vacation spend. Love the idea of cooking and preparing our own food instead of going and having to eat all the time. I also expect a level of quality in westin and Sheraton resorts.

 

[md8287]

WKV rental rate seems great for owner compared to SDO right next door that has full access to WKV. I own SDO and other than Super Bowl have had no real luck renting. I paid almost nothing to buy and will likely sell cheap unless I figure this out.

 

[vacationtime1]

Got it. And if I have read the string correctly, you are renting a 1bd premium?

Also, if I understand things, you bought two 1bd premiums at WKV, right? Why that choice vs. a 2bd LO? Is it because you really don't want to stay in the 1bd or was there a compelling SO/MF reason?

Yes, the $2,200-$2,400 is for the large side one bedroom (MF's are $918).

We own a platinum two bedroom (148.1K SO's), a platinum one bedroom (81K SO's), and a gold plus one bedroom (37K SO's). The first two were to use for StarOption trading, but we have too many weeks and it is so profitable renting them out that we deferred the decision to sell.

Yes, we bought the one bedroom due to the MF/SO ratio adjusted for an imputed return based on the purchase price. The small side one bedroom (67.1K SO's) is usually slightly better economically, but our purchase was during The Great Recession and we bought at a fire sale price.

The 37K unit is for trading. We used to own SDO and SBP (voluntary resorts with very similar economics to off season weeks at Kierland), but decided that if Vistana ever changed the trading rules, we would be better off owning something with StarOptions we could use. A good decision.

 

[DanTUG]

You seem to be really nicely set up. Congrats!

I'm keeping my fingers crossed - just made an offer for an EOY Plat+ 2BD LO at Kierland. First TS purchase after TONS of research and help from this board.