Which LV resort? Or does it matter?

[brookberry]

First timer here, greetings!

I am about to make offers on some LV properties, they are all 5,000 points and I will offer around $4K.

Quick question is does it matter which LV resort? Strip, Flamingo, or the Hilton? Is one better than the other two? I see Strip has the lowest maintenance fee, but was told it should go up once development is complete.

Thanks!

 

[bastroum]

I think The Strip property has the best units (not counting Elara). The Flamingo has the best location (not counting Elara). I would just rent if Las Vegas is the only place I was going. If using to go to Hawaii go with the cheapest MF. BTW...they will never finish the strip property.

 

[UWSurfer]

Probably the most compelling reason for choosing one over the other is Flamingo units do NOT have a right of first refusal (ROFR) clause tied to HGVC. This means HGVC can't come in and take the unit at whatever purchase price you have accepted from the buyer for their own.

It's worth noting that Flamingo and Karen units also have recently undergone refubishing with new surfaces, fixtures and furnishings. Elara (formerly Westgate) is the newest more high vis property in HGVC's portfolio there and appear to be making an effort to sell it, likely over whatever inventory they still control at the other properties.

Both Karen & Flamingo were completely sold but HGVC gets inventory in trade, deed backs and in Karen's case ROFR. Neither have particularly high MF's for the HGVC collection but it is higher than my HIVC week a block from Flamingo.

 

[Yamabachi]

With consideration to the Flamingo issue above, unless you care about ARP, I'd just go for the one with the lowest MF.

 

[SmithOp]

I wouldn't load up on 5000 point gold season units, either choose a 4800 1br platinum or 7000 2br platinum. You pay the same mf gold or platinum, but get more points.

 

[brookberry]

I wouldn't load up on 5000 point gold season units, either choose a 4800 1br platinum or 7000 2br platinum. You pay the same mf gold or platinum, but get more points.

SmithOp, they would cost more up front right? You are saying it's worth it to pay more right now and have more benefit down the road?

 

[UWSurfer]

SmithOp, they would cost more up front right? You are saying it's worth it to pay more right now and have more benefit down the road?

I agree with SmithOp.

There often is a sweet spot of a few years between the purchase price and MF difference, but if you are going to hold the property for more than a couple years it usually worth it down the road.

Just remember maintenance fees in HGVC are determined by unit size, not season owned. So the MF for a 1 bdrm unit is the same to the owner regardless how many points it generates.

 

[brookberry]

I agree with SmithOp.

There often is a sweet spot of a few years between the purchase price and MF difference, but if you are going to hold the property for more than a couple years it usually worth it down the road.

Just remember maintenance fees in HGVC are determined by unit size, not season owned. So the MF for a 1 bdrm unit is the same to the owner regardless how many points it generates.

4800 platinum points costs about $7K to $8K, basically $4K more than 5,000 gold points, it's really that much more benefit down the road? Can you give me some more details? Thanks!

 

[brookberry]

To continue with my previous points, with another $4K, I could buy another 5,000 gold points. Are 10K gold points not better than 4,800 platinum points?

Sorry for all the questions, bit of confused, thanks in advance!

 

[UWSurfer]

Some real life example:

I have two gold weeks, a 1 bdrm @ Karen & a 2 bdrm @ Flamingo. Together they = 8400 points with this years MF's = $1658.71 including taxes, ARDA and HGVC club dues.

I could get 7000 points from my 2 Bdrm Flamingo unit alone if it were in Platinum season with the MF for that unit running $1018.46 which also includes, taxes, ARDA and HGVC club dues.

1018.46/5000 = 20 cents per HGVC point (20.3 cents) Gold Week

1018.46/7000 = 15 cents per HGVC point (14.5 cents) Platinum

Taking it further, I get 8400 points each year. If I were to get them at 15 instead of 20 cents, my MF would be roughly $1260, for a savings of nearly $400/year.

The other thing to keep in mind is the resale purchase price of HGVC properties have dropped by roughly 40% from when I purchase some 6 years ago. It would have taken roughly 12 years for me to realize a savings in the price difference of platinum vs gold season weeks due to MF cost differences. At the pricing you noted it's more like 8 - 10 years...possibly less. Also keep in mind MF's increase each year, on average about 4-5%

You have to decide what is right for you.

 

[SmithOp]

UWSurfer gave you a good example of the math, I put it in a spreadsheet to figure out the break even point, when will the difference in acquisition cost be overcome by difference in holding costs.

Here is an intangible I just discovered, we always stayed in 2br units until recently retiring and becoming empty nesters. My 7,000 points now gets me a lot more days when I use a 1br, and I can travel off season, so I can get 2 weeks in Hawaii gold season (3400/week).


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