Why are some Marketplace sales of Points going for $.01 ??

[DonM]

I own deeded weeks, although I thought I understood the concept of the point system.

I was looking at ads for buying an additional week, and I saw several ads for points. My understanding e.g. of the Shell membership club is that you are a member in a club, and unlike deeded ownership- you have no real estate ownership. I presume all point systems are based on this premise.

If you're just a member in a club, I thought you could just give up your membership and walk away without having any future maintenance fee responsibility. If this is so, why would anyone "sell" a membership in a points club for nothing when they could just walk away?

 

[TUGBrian]

many points ownerships are still indeed deeded weeks and not just memberships.

if one could easily walk away from points based memberships they certainly would! (and DRI wouldnt be able to charge $750 to owners who want out)

 

[DonM]

many points ownerships are still indeed deeded weeks and not just memberships.

if one could easily walk away from points based memberships they certainly would! (and DRI wouldnt be able to charge $750 to owners who want out)

That makes sense !

 

[DaveNV]

Some of those sales are also Weeks ownerships that have been converted to Points. Unlike Shell, which works great within its own system, these Points are within a larger system, (like Wyndham, to pick one), and "Points are Points" for those folks. So if someone owns a certain amount of Points in Wyndham, and they want to add to the amount they own, buying another ownership that is in that system lets them do that. Buying the most Points for the lowest maintenance fee (of the underlying deeded resort) makes good sense. You pay less to get more. The resorts owned may be wildly different, but (Wyndham) Points are Points. The trade value for redeeming those Points is the same, no matter where they came from. The bottom line is adding to the portfolio of the owner.

Dave

 

[dioxide45]

I thought Shell were trust based ownerships? Meaning they put all the weeks in to a trust and sell points against those weeks. They may still be indeed deeded, just like DVC and Marriott trust points.

 

[rickandcindy23]

It's Wyndham managed. You definitely want to keep those fees paid, and walking away is not possible without repercussions.

The Shell product has constantly increasing MF's. It was 16.9 per point for MF's, and now it's right at .25. This is only about 7 years. I am sick of the housekeeping fee increases and their lousy billing system, too. I like the product, but I liked it better when there was daily housekeeping and free breakfast at Peacock.

 

[breezez]

It's Wyndham managed. You definitely want to keep those fees paid, and walking away is not possible without repercussions.

The Shell product has constantly increasing MF's. It was 16.9 per point for MF's, and now it's right at .25. This is only about 7 years. I am sick of the housekeeping fee increases and their lousy billing system, too. I like the product, but I liked it better when there was daily housekeeping and free breakfast at Peacock.

In finance there is the rule of 72.

Take 72 / any percent and answer while not exact is always close to amount of time it takes something to double.

If timeshares increase say 5% a year in MFs 72/5 = 14.4 so in around 14 years MFs double. Wages go up, supplies go up, materials and furnishings go up, taxes go up, and developer fees to HOAs go up. So don’t ever plan on them going down.