good deal??

I am a newbie here and Have owned a HGVC in Vegas since 98 at Karen Ave.. I pay over $1000 every year for 5000 pts gold. I am looking to add points. what do you guys think of this deal??

Its 3400 points every year at HGVC on Strip

Purchase Price $ 2000
Closing Cost $ 495
Transfer Fee $399.00
HGVC Club Dues $140.00
Estoppel Fee $35.00
HGVC Club Activation Fee $250.00
Total Purchase Price $2319

The maintenance fees are $541.96 and taxes are $18.53.

Why shouldn't I just buy 2 of these and sell my property on Karen Ave?? Maint. fees would be about the same but I would get 2000 more points!!

Is there any advantage to owning from developer rather than secondary market??

Thanks

You can get a 3400 contract for a lot less than $2K. There's a free one in the forums right now.

I avoid small point weeks. First you need to purchase 2 deeds and pay to closing fees. Second, usually the cost per Hgvc point is higher because MF tends to be about the same even though the larger unit or better season unit has more points. Next if you all ready own at HGVC you don't pay a second membership, or second annual club fee, you only pay $399 one time club fee. If you purchase a 5,000 pt week or even 8,400 it still costs you only $399 to enroll the club into HGVC so go for a higher point unit and go for annual.

I don't follow HGVC in Vegas so I don't know if your maintenance fee amount is annual or just in the year of use but since you all ready own 5,000 points compute the cost per point of mf/amt of pts.

As to the location of your unit, I am not thrilled being located in the parking lot of the previous Hilton which is now owned and operated by the previous Westgate TS bum. The location is too far away as compared to the Hilton Flamingo, but if you are just acquiring HGVC points and the selling price is less than it is up to you.

Remember that the MF's are assessed for each unit by the # of BR's (type), not the total points you own. That means that, if you buy a better season to get more points for the same size unit, you'll pay less MF$/per point. Also, you pay MF's for each unit you buy. Thus, if you were to substitute two 2-BR's for one 2-BR, you'd pay close to 2x the MF. Lastly, low-point packages are not very marketable. You could have a tuff time unloading them, if you ever tried to sell.
.

buy back

presley said:

You can get a 3400 contract for a lot less than $2K. There's a free one in the forums right now.

Click to expand...

Doesn't Hilton buy back anything that people try and sell really cheap??

Thank you

Thanks for your responses!!!

tnsna said:

I am a newbie here and Have owned a HGVC in Vegas since 98 at Karen Ave.. I pay over $1000 every year for 5000 pts gold. I am looking to add points. what do you guys think of this deal??

Its 3400 points every year at HGVC on Strip

Purchase Price $ 2000
Closing Cost $ 495
Transfer Fee $399.00
HGVC Club Dues $140.00
Estoppel Fee $35.00
HGVC Club Activation Fee $250.00
Total Purchase Price $2319

The maintenance fees are $541.96 and taxes are $18.53.

Why shouldn't I just buy 2 of these and sell my property on Karen Ave?? Maint. fees would be about the same but I would get 2000 more points!!

Is there any advantage to owning from developer rather than secondary market??

Thanks

Click to expand...

Questions & Comments:

1. $2000 seems a high for 3400 points. You can pick them up on eBay for under $500. Low HGVC demand for 3400 points = low chance of ROFR. In fact, I've seen a Flamingo, no ROFR, sell for about $500.

2. Closing costs could be lower, especially if you found a FSBO and did it your self thru JRA Services or similar.

3. You stated that you already own a HGVC TS, so why do you have to pay $140 for club dues?

4. Why the "HGVC Club Activation Fee"? Karen is not an affiliate, it's a true HGVC.

5. Why do you have to pay $35 for an estoppel?

Ron98GT said:

Questions & Comments:

$2000 seems a little high, but not much.

Closing costs could be lower, especially if you found a FSBO and did it your self thru JRA Services or similar.

You stated that you already own a HGVC TS, so why do you have to pay $140 for club dues?

Why the "HGVC Club Activation Fee"? Karen is not an affiliate, it's a true HGVC.

Why do you have to pay $35 for an estoppel?

Click to expand...

This is just the quote I received from Judy Koz. I am now looking at a Karen ave property that's 5000 points and $3900 annual. Thank you for your response!!!

Good luck on your search for another hgvc unit. I just bought a unit and am excited to use the system. You will find the right fitting unit.

Ron98GT said:

Questions & Comments:

5. Why do you have to pay $35 for an estoppel?

Click to expand...

You don't have to get an estoppel.

But if you want HGVC to verify that the unit really comes with 3400 points, that the unit is an annual use (or eoy, if that's what you are trying to buy), and that your seller is current on paying MF's, it is worth the $35.

I don't buy title insurance on purchases of less than $10,000, but I would never buy without an estoppel.

vacationtime1 said:

You don't have to get an estoppel.

But if you want HGVC to verify that the unit really comes with 3400 points, that the unit is an annual use (or eoy, if that's what you are trying to buy), and that your seller is current on paying MF's, it is worth the $35.

I don't buy title insurance on purchases of less than $10,000, but I would never buy without an estoppel.

Click to expand...

I've always gotten an estoppel, which I also think is required to verify the TS, but I don't recall ever paying for it. When your going thru a closing company, it's usually part of what you paid for. When I get some time I'll check my HGVC that was closed thru JRA Serviices, Janet.

Thank you

Thanks again for all of your responses.

just watched a Sea World unit sell 10000pts every year for $5100 on ebay.....any chance it clears ROFR?? Maint $1600

tnsna said:

Thanks again for all of your responses.

just watched a Sea World unit sell 10000pts every year for $5100 on ebay.....any chance it clears ROFR?? Maint $1600

Click to expand...

This is actually two 5000 pts packages. So you would get two x 2BR units. HGVC don't have 10.000 pts.

In my opinion it's not that good of a deal.

/regards.

Cyberc said:

This is actually two 5000 pts packages. So you would get two x 2BR units. HGVC don't have 10.000 pts.

In my opinion it's not that good of a deal.

/regards.

Click to expand...

No disrespect......but are you saying that the Maint. fees would be $1600 per unit?? To me......$1600 in Maint fees for 10,000 HGVC points seems better than the $1000 I pay in Maint. fees for 5, 000 now. I am just trying to figure this out......Thanks!!!

Cyberc said:

This is actually two 5000 pts packages. So you would get two x 2BR units. HGVC don't have 10.000 pts.

In my opinion it's not that good of a deal.

/regards.

Click to expand...

Well, two 5,000 pt packages for $5,100 is a VERY good deal. That comes out to $2,550 per 2BR unit. If it passes ROFR, you got a good deal if you're ok with having 2 2BR units.

I was watching that as well. It is two 5000 point units, so will result in two MF as well.

Based on the 2015 MF thread, i think this will be approx 1800 per year for the two units.

not terrible

Not terrible maint fee.......is it??

$1800 for 10,000 points

tnsna said:

No disrespect......but are you saying that the Maint. fees would be $1600 per unit?? To me......$1600 in Maint fees for 10,000 HGVC points seems better than the $1000 I pay in Maint. fees for 5, 000 now. I am just trying to figure this out......Thanks!!!

Click to expand...

Hi

The MF would be either the 1600 or 1800 in total for the two units. IMHO you would be able to buy two units a the strip or at Anderson for cheaper MF. The initial buyin may be higher but currently I think most will pass ROFR.

I have a theory that HGVC budget for ROFR is mostly used up, but I could be wrong.

/regards

The MF is not bad for the points. As Cyberc pointed out, the Vegas properties typically have the lowest MF in the system, so two Gold weeks at the Strip location would have slightly lower annual MF.

An alternate view, would be to consider that they combined MF of $1800 is close to what you will pay for some of the Hawaiian resorts, with more than 10K annual points.. Of course those resort will have a much higher sales prices, so its not exactly an apples to apples financial comparison..

As for ROFR, i don't know how active they using this in Florida, but this was a fantastic sales price, so lots of profit potential for HGVC if they do buy it back to resale from their inventory.