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equity hypotheticals - dues, etc

Discussion in 'Non-traditional Interval Ownership' started by Kagehitokiri2, Dec 19, 2010.

  1. Kagehitokiri2

    Kagehitokiri2 Guest

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    #1

    what about simply dividing expenses (plus a reserve) by number of nights held by members each year?

    would eliminate any potential problems of nights/dues downgrades.
     
  2. NeilGoBlue

    NeilGoBlue Guest

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    That is 'in effect' what AK does. They calculate the expenses for the year, add a capital expense into it, add AK 15% fee into it, and you then have the dues.

    They don't do it so that it fluctuates every year like your suggesting kage, but the dues of the club are directly tied to the actual expenses.
     
  3. Kagehitokiri2

    Kagehitokiri2 Guest

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    im not getting into how clubs "round" im just saying what about NOT rounding? its clear no club does this. *

    since NGB brought up AK >
    $17000 / 15 = $1133.33
    $29000 / 30 = $966.67
    $42000 / 45 = $933.33

    if the actual figure is say $1037.46, then it would be $15,561.90 / $31,123.80 / $46,685.70 *

    i recognize the marketing "problem" but doesnt having "divided to x per night" work, especially for equity clubs?

    of course, the trade off is not "discounting" the nightly rate for those with more nights.
     
    Last edited: Dec 19, 2010
  4. TarheelTraveler

    TarheelTraveler Guest

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    I've never thought about this before, but I do think all of the clubs discount for additional nights. I'm betting the main theory is to encourage folks to get larger plans (i.e., increase sales).

    However, there is probably some justification for decreasing the cost for additional nights by some amount. I'm sure there is some increased cost for accounting to deal with 3 15 night members versus one 45 night member. Or member services getting to know and take care of three members versus one. Communicating with three members versus one, etc. I don't think the cost differences would amount to that much necessarily, but it probably justifies some cost differential. Just my two cents.
     
  5. Kagehitokiri2

    Kagehitokiri2 Guest

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    ok, i guess i have to say i have no idea how much the discounting impacts plan purchased.

    i agree with your point, so if its beneficial to the club, thats certainly a positive thing.

    (not just a case of "simplicity" in marketing.)
     
  6. Kagehitokiri2

    Kagehitokiri2 Guest

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    #2

    seems equity clubs could accept contributed properties?

    - member 'loans' the property to club for free
    - member pays regular dues, but not deposit
    - club pays property costs

    only "question" would be regarding potential club equity participation
     
  7. TarheelTraveler

    TarheelTraveler Guest

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    From what I understand, various equity clubs have looked into that. Problems have included making sure the property meets the quality and value standards for the club. Also have to spend money on retrofit or standardization of the house, so that it has the same amenities as other houses. Those aren't obstacles that can't be overcome, but it's definitely more complicated that people just ponying up cash and the club buying the property once you have enough cash.

    Doesn't EE do a simplified version of this in that a person who owns a house contributes certain time in the house to EE in exchange for time in the rest of the portfolio? I guess that is really more Demeure-like than what you are suggesting the more that I think about it.
     
  8. Kagehitokiri2

    Kagehitokiri2 Guest

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    agree you cant have uneven deposits of time.

    agree re standards, which if not already paid by contributor, could be, or club.
     
  9. Kagehitokiri2

    Kagehitokiri2 Guest

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    #3

    i see m private residences is now doing a "2 family" plan.

    i remember hearing EE did this.

    has any other club?

    i wonder how it works in terms of split and resignation/resale...
     
  10. Kagehitokiri2

    Kagehitokiri2 Guest

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    correction - IIRC EE just discounted half membership (normally worse value than full membership) if 2 signed up together

    and perhaps with m private residences its just a single designee (like Q doing designees at least at one point.)
     

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