Converting to RCI Points

[squiggle]

I can convert a fixed week 34 Florida beach resort ( w/c cost me 4K incl closing) for 40K RCI points for $2900 - MF $475 - although I can rent my unit for $700 at least, I dont really want to keep doing it and dont want the hassle of trying to sell this and buying a points resort w/c is what I should have done to start with - am I losing a lot by doing this?? I can't stay for a full week most of time anyways and cant go week 34 all the time..
thanks

 

[Dani]

I can convert a fixed week 34 Florida beach resort ( w/c cost me 4K incl closing) for 40K RCI points for $2900 - MF $475 - although I can rent my unit for $700 at least, I dont really want to keep doing it and dont want the hassle of trying to sell this and buying a points resort w/c is what I should have done to start with - am I losing a lot by doing this?? I can't stay for a full week most of time anyways and cant go week 34 all the time..
thanks

I am no expert, but those conversion fees seem pretty high if it's going to cost you $4,000 total to obtain just 40,000 points. I think that you can do better. Also, the MF's are a little on the high side. You might be better off selling your week 34 and simply buying Points for less money. Look into Austrailian resorts and search this board for other ideas. Also take a look at ebay.

 

[nightnurse613]

Danielle has given you some good advice. Whatever you do, don't rush in and be sorry later. Get as much info as you can and this is certainly one place. I bought my first points resort thru Scott Riddle (he deals in South Africa and Texas). There is another that deals in Australian T/S. Search the forums. Check out Scott at: http://www.tradingtime.net/default.asp?DocumentID=24

 

[squiggle]

I am no expert, but those conversion fees seem pretty high if it's going to cost you $4,000 total to obtain just 40,000 points. I think that you can do better.

thanks for the replies - it will cost me $2.9 conversion fee not 4K (I pd total 4K for this unit) to get 40K so maybe total of $6.9 is too expensive. However, I looked up the site for the SA or Rayburn and the best I found was 43K points for $4395+~600 fees,closing etc. So for almost $5K I get 43Kpoints so if I sell and get $3K for my unit, I would only cost me an additional $2,000 and I get 3K more points. If on the other hand I convert, I have to come up with $2,900 . Now if I get <$3K for my unit, doesn't look like selling and buying points is such an attractive option. I am trying to get to the points with the least $$ now - never mind what I have already spent before.

 

[timeos2]

Convert or resell

Selling one and buying another to possibly save $500 doesn't make sense. If the conversion cost is within your budget, you like the resort you own and the annual fee gives you an acceptable annual fee to point ratio why go through the hassles of selling & buying? Places like Rayburn are best used as cheap entries to RCI Points then you fatten your point account using PFD weeks. In your case you can't PFD with your current resort so I think you're better off just converting.

 

[nightnurse613]

The number one rule IMHO is buy where you would be willing to stay and, if that's the case, you'd be better off converting where you are at. I bought at Texas for easy entry into PFD. I think you might want to check out e-bay by typing in "rci points" in your search.

 

[squiggle]

If the conversion cost is within your budget, you like the resort you own and the annual fee gives you an acceptable annual fee to point ratio why go through the hassles of selling & buying?

I am beginning to think like that - what is an acceptable ratio?

 

[JudyS]

I am beginning to think like that - what is an acceptable ratio?

Generally, TUG members say that 1 cent in MF per point is good. I think that a MF of $475 for 40,000 points is too high. However, your time is also valuable, and you say you don't want the hassle of selling this week and buying another, so that's a strong point in favor of converting.

$2900 is the price VRI charges to convert a week. Is this a VRI week? In that case, you will get the VRI Home Group Reserrvation Window for these points (and any other points that you put in your account, by any method) which makes converting to be a somewhat better deal.

 

[timeos2]

I am beginning to think like that - what is an acceptable ratio?

1 cent per point is good but it does tend to be a little higher in FL as the fees are, on average, higher due to the fancy resorts and higher property taxes.

At 1.18 cents/point you are certainly in the right ballpark but on the higher end. I'd be willing to go as high as $1.5 cents for trades but not for airline tickets, rental cars, etc.

 

[brucecz]

I pretty much agree with Dani.

I think a question you should ask yourself if you kept your present ownership to use or rent out how many Yearly RCI Points would you need considering that most Two Bedroom Gold Crown Red week RCI Points Resorts require 60,000 or more RCI Points for a one week stay?

For the Midwest the amount of RCI Points needed to book a genaric weeks (non RCI Point resort) 2 bedroom redtime Gold Crown unit is about 56,000 RCI Points for one week.


Do you know that 43,000 yearly RCI Points do not go very far in booking the better resort 2 bedroom units in prime or even white time.

Do you need at least 100,000 or 200,000 or 300,000 or even more yearly RCI Points? ( we for example use more than 300,000 RCI Points per year)

There are deals out there for that have on gong yearly costs per RCI Point of .8 of a cent or less.

One of our (2 RCI Point) resorts is in Las Vegas cost us $1,991.including closing costs for 53,500 yearly RCI Points with yearly maintenance fees of $425. The ebay win included an extra 39,000 RCI Points that added a cost $300. other wise the ebay cost would have been only $1,691 without those EXSPENSIVE extra 39,000 RCI Points costing .75 cents per extra RCI Point.

This Las Vegas ownership we will most likely use or rent out to cover the high cost of almost .8 cents per RCI Point and not bank it for the 53,500 yearly RCI Points.

IMHO I would not convert your unit for Points because of the high yearly cost per RCI Point for a small amount of RCI Points that may not meet your overall timeshare needs.

Keep your present unit if you are going to use most years or sell it if you are not going to use it or rent it out most years.


To have the $4,000 you have in this ownership and then add another $2,900 to convert for a total $6,900 for only 43,000 yearly RCI Points with on going high yearly maintenance fees of over one cent per yearly RCI Point does not make much dollars sense to me.


Bruce

I am beginning to think like that - what is an acceptable ratio?

 

[brucecz]

Heck, IMHO for $6,900 you should be getting a miminum of 200,000 RCI Points at a cost lof .7 cents or less per RCI Point without having to do rentals.

Bruce

 

[squiggle]

Heck, IMHO for $6,900 you should be getting a miminum of 200,000 RCI Points at a cost lof .7 cents or less per RCI Point without having to do rentals.

Bruce

I see your point - unfortunately I have already spent the first $4K before I learned of the points - dont really stay for a full week so I waste it - would really just like 2-3 days here and there, 1 or 2BR so dont really need a lot of points - just trying to see what would make sense now and have more flexibility the cheapest way. If I could get what you got in Vegas - $1991 for 53K closing cost included, I'll buy it and jsut keep renting the unit I have and then sell when I have recouped my cost so I can sell cheap.

Yes, it is a VRI resort and I do like it and from what I understand, I can still use it but as points, I can select the time and limit the days, right??
Thank for all the advice.

 

[brucecz]

There are a few US resorts on ebay like our Las Vegas that you can buy as well or better cost wise than we did on ebay for a small amount of RCI Points in the 40,000 to 60,0000 yearly RCI Points.

Just watch the ebay auctions for US locations like Nevada, Florida, Branson, Wisconsin, etc. I think you could find a good deal in the next month or so at a cost far less than $2,900.

I think you should be able to find something really good for a total cost of less than the $2,900 converison fee with a better on going RCI Point to maintenance fee cost than converting your present timeshare would offer you.

I own a VRI unit at Coco Beach but would not convert it if possible or deposit it for points as I would only get about 57,5000 RCI Points for the about $638 yearly maintenance fee.

Still IMHO if you are only using and are going to use your present resort a few days a year then sell it asap so you can get rid of that alligator and spend the procedds from that sale on some other ownership that will be better for your pocket book starting now.

Heck even if you only got $500 for selling your present unit ( or hopefully more) and had to pay $2,900 for some more cost effective ownership you would have that $500 or more to use, plus have about 10,000 more yearly RCI Points for about $50 less per year in maintenance costs.

That $4,000 you have already spent IMHO does not jusify putting another $2,900 into that ownership given the yearly on going cost per RCI Point ratio you will be paying.

Its not that hard to do. Heck I think I could find and win a ebay deal for $2,900 or less that would have a on going yeary cost RCI Point ratiothat if you converted.

IMHO if you are only using your present unit only two to 3 days a year and as per your post then you are paying $475 in yearly maintenance fees and then in essense you are paying $950 in maintence fees to get 4 to 7 days usage. Och, Och, Och.

Good luck to you.

Bruce

I see your point - unfortunately I have already spent the first $4K before I learned of the points - dont really stay for a full week so I waste it - would really just like 2-3 days here and there, 1 or 2BR so dont really need a lot of points - just trying to see what would make sense now and have more flexibility the cheapest way. If I could get what you got in Vegas - $1991 for 53K closing cost included, I'll buy it and jsut keep renting the unit I have and then sell when I have recouped my cost so I can sell cheap.

Yes, it is a VRI resort and I do like it and from what I understand, I can still use it but as points, I can select the time and limit the days, right??
Thank for all the advice.

 

[squiggle]

IMHO if you are only using your present unit only two to 3 days
a year and as per your post then you are paying $475 in yearly maintenance fees and then in essense you are paying $950 in maintence fees to get 4 to 7 days usage. Och, Och, Och.

Good luck to you.

Bruce

Bruce,
thank you for your analysis and am slowly absorbing all that's been said - but you lost me here -??$950 MF-
I will watch ebay for a deal and I'll try to rent it again this year- if doesnt rent, I have friends who can always use it last minute and then I'll try to sell next year. I jsut dont feel good selling cheap now since it is"usable" if I want to - jsut toying with the idea of a more flexible ownership.

Appreciate all the input.

 

[timeos2]

And don't think the $2900 conversion fee is set in stone. Ask about ways to get it lowered - they may offer some "deals"

 

[brucecz]

If you are only using your present timeshare timeshare for only 2 to 4 days per year and paying $475 per year in maintenance fees then, for 7 days use every two years you are paying $950 per one full weeks use while the other week is basically not used.

If you do not rent your week out then you will lose $475. Most timeshares do not appreciate and if you feel you over paid then it may reasonable to assume that it may not be a good renter so their may not be any rental profits for you to be able to count on. Trying to rent out only one unit makes for high ad costs compared to multiple units at the same resort.

Maybe at this point a every other year ownership might work our better for you as then you could split the points week up to use several days each year.

Our friend bought a every other year RCI Points one bedroom in Orlando for about $1,0000. forhis young family of four with yearly maintenance fees of only $160 per year.

They plan to use it to do to Disney for a while EOY and will also use it to deposit other NON RCI Points weeks for RCI Points.

That person had bought at a resort that was nice but he saw a better way to do things and has ditched that first timeshare and how has obtained timeshare ownerships that are more cost effective in RCI Points and has less money now tied up in his timeshares.


You have mail about a current cost effective RCI Points auction that is not my auction. It is a US resort that has a .8 of a cent maintenance fee cost ratio per RCI Point.

The buy it now cost is a shade over $3,000 and has over 60,000 yearly points.

Bruce

Bruce,
thank you for your analysis and am slowly absorbing all that's been said - but you lost me here -??$950 MF-
I will watch ebay for a deal and I'll try to rent it again this year- if doesnt rent, I have friends who can always use it last minute and then I'll try to sell next year. I jsut dont feel good selling cheap now since it is"usable" if I want to - jsut toying with the idea of a more flexible ownership.

Appreciate all the input.