Would like to buy Marriott resales, really would, but every year, Marriott gets more greedy and devalues their own product while simultaneously artificially raising prices. From ~$10 a point a few years ago (at developer cost) to an artificially inflated ~$15 a point today (with absolutely NO market driving the increases except for corporate greed).
It is something like $14.10, not $15 and with discount it ends up as about $11.
If timeshares are deeded real estate and the original purchaser already paid the developer costs. Why does Marriott make it impossible to resell and get back any of your investment? Hyatt, as an example, never did this, it was simply a few hundred $$$ for the transfer fees and the buyer retained all the value. Marriott takes all privileges away from those who buy resales, except the right to stay at home resort.
In general, no system other than DVC, keeps its value when resold. Prior to Destination Club launch, Marriott weeks could only be used at their home resort, traded in RCI (old resorts) and II, plus the ability to convert to MRPs. Resale weeks only lose the ability to convert to MRPs. This is the same perk that is lost on a resale Hyatt week. With introduction of Destination Points program, week owners have not lost what they do not have in the first place.
Deeded timeshares MF go up 3-5% every year like clockwork, often without any precipitating expenses or event driving them -- other than Marriott charging more management fees. Further when Marriott rents deeded timeshares, only 10-15% of these monies are returned to the timeshare system to offset actual costs, while Marriott pockets 85-90% for fees. If 85-90% was instead returned to the timeshare system, MF would actual remain fairly constant.
Management fees is a fixed percentage of MF fees. Marriott owns their weeks and can make money on them, similar to us owners. They pay the same MF as the rest of us. Nothing nefarious.
Points are also supposed to be real estate, but Marriott makes it even harder to resell points and get back any value. Marriott now charges an artificial rate of $3 per point to register resale points (up from an already exorbitant $2 previously). With points, owners are left paying MF on unsold property in the trust, when Marriott would have otherwise have had to pay these expenses. Point MF which were at inception more than deeded timeshares (because points owners are paying MF on property no one yet owns) and have only increased over time. A whopping .58 per point, on the way to .60 for 2020.
Owners do not pay MF on unsold trust inventory. Marriott pays MF on them.
With points, two things would dramatically reduce the per point MF. #1 Getting Marriott to foot the bill (as it should have all along) for unused/unsold property in the land trust), #2 Reducing the exorbitant management fees Marriott charges owners. These are examples, there are more of course, but these are some of the reasons Marriott (and other timeshare companies) went to a points-based system. Another: No HOAs for oversight of Marriott mismanagement and overcharges.
Marriott does foot their own bill. Management fee is a fixed percentage of MF. Every timeshare system is the same, whether it is Hyatt, Hilton or Wyndham.
Left unsaid another reason for the move to points: Marriott literally has a license to sell AIR (points backed by no tangible property). Marriott can do this because owner use their points for non-property stays: tours, cruises, etc which are the worst use of points as all you are getting back in value terms are your maintenance fees (and completely omitting all the up front monies paid in).
Every trust point is backed by deeded weeks. Dioxide has links that point to where to find this information. Again, you are making up stuff.
Speaking of upfront costs: Having sat in on quite a few sales pitches, every salesman always tells my family members to forget about the monies they paid upfront and only calculate the cost based on their maintenance fees. As in "your 7-night Hawaii stay is only costing you $300 a night, your saving 60%)" "but what about the money paid upfront" i say. "you've already paid that and got back the value in previous stays" "point of fact: no we havent, in fact, when I calculate all up front costs, MF, and other fees, were paying $800 a night and we will continue paying $800 a night because the MF never go away and only increase over time" "no no that's not how it works, you dont understand the system." REAL CONVERSATION, REAL ACTUAL COSTS.
Points, even at, 50% of developer costs are way overvalued. Primarily because Marriott artificially sets and raises the pricing, but also because Marriott not only rolled out points in the middle of the largest economic downturn in modern history but had the gall to actually inflate point pricing 150% relative to current deeded pricing. AND people lined up to pay it. Head shake.
So my long rant on all this... Looking forward to hearing yours as well as opposing views.