Developer Wanted MY Hawaii Properties

[LarryAck]

Developer wanted my north and Princeville properties, and in exchange they were offering 2 full weeks in Cancun. This exchange was worth about 148,100 points, and would also allow me to retoro my Scottsdale in. Of course I would have a dollar kicker of about $30,000 grand. One positive of this, is I would be getting an additional 148,000 star options, and the maintenance fees work out about the same with no increase over what I pay now. Any thoughts?

 

[DeniseM]

In my opinion this is a terrible deal. You would be trading property worth thousands of dollars on the resale market, for property worth nothing on the resale market, AND paying $30K for the privilege!

Also - is your SDO week Plat? If not, it's not worth 148,100 Staroptions when you requalify it.
If you are talking about WKV - why retro it? It already has Staroptions!

Literally, you could sell your Hawaii weeks and have enough money to buy 10 weeks at Lagunamar - with no money out of pocket!

Honestly - this is a terrible deal for you!

 

[pathways25]

I don't think it's a bad idea to get rid of Princeville, especially if you can get a 148K SDO retro. I agree with Denise that WKV is not worth retro'ing since it's a mandatory resort. I'm trying to upgrade out of my Princeville also, but I'm buying at WKORVN rather than WLR. I'd keep the WKORVN though as that has resale value. WLR really has no resale value so you better plan on keeping it!

 

[DeniseM]

I don't think it's a bad idea to get rid of Princeville, especially if you can get a 148K SDO retro. I agree with Denise that WKV is not worth retro'ing since it's a mandatory resort. I'm trying to upgrade out of my Princeville also, but I'm buying at WKORVN rather than WLR. I'd keep the WKORVN though as that has resale value. WLR really has no resale value so you better plan on keeping it!

Hi Jerome

I know what you are saying about WPORV - but trading it for WLR - PLUS paying $30K is like jumping out of the frying pan into the fire!

 

[pathways25]

Hi Jerome

I know what you are saying about WPORV - but trading it for WLR - PLUS paying $30K is like jumping out of the frying pan into the fire!

I'm not sure what the exact deal would be without the WKORVN, but he'd be trading one voluntary resort for another, halving his MF's and adding more SO's. If the numbers can work out to around the retro minimum of around 20K, I think it would be a good deal. I would do it...

I personally can't wait to get out of Princeville. It's crazy expensive and very difficult to resell.

 

[DeniseM]

Then what would you do with 2 weeks at WLR every year?

Also - I would expect the MF at WLR to increase once they are no longer in active sales.

WPROV is a sad situation - Starwood made a terrible mistake when they didn't make it a mandatory resort.

 

[PamMo]

...One positive of this, is I would be getting an additional 148,000 star options, and the maintenance fees work out about the same with no increase over what I pay now. Any thoughts?

I'm in complete agreement with Denise - it doesn't really make economic sense to me. But, only you can decide if trading (I wouldn't call it upgrading) your ownership in Hawaii for Mexico works for you. Lagunamar is nice if you want to regularly vacation in Cancun. But, I'd rather sell the Hawaiian units outright (they have value - Starwood just ROFR'd my WKORVN purchase of a 2BR @ $14,500) and buy two platinum weeks at Kierland if I wanted Star Options. You'd own a mandatory resort, with stable MF's and a decent chance of maintaining resale value. Of course, buying resale means you couldn't retro your SDO unit, though.

Take your time and think about it. Retail timeshare sales presentations often sound so good when you're at the table. It takes time for the real costs/ramifications to sink in.

 

[LisaRex]

Please be more specific. You currently own:

WKORV-N worth 148,100 SOs
WPORV worth 148,100 SO? Or did you buy this on the resale market.
A voluntary property (SDO?)

In exchange, they want to sell you:

WLR - 2 platinum weeks worth 148,100 each?
+
they'll retro your SDO property -- worth how many SO's if requalified?

 

[mjm1]

WPROV is a sad situation - Starwood made a terrible mistake when they didn't make it a mandatory resort.

Denise, would you please expand on your comment regarding this resort? Is it just because it isn't a mandotory resort? We have visited the property and think it is a very nice resort. My guess is your comment relates to it not holding value upon resale because it isn't mandatory. Thanks for clarifying.

 

[DeniseM]

Denise, would you please expand on your comment regarding this resort? Is it just because it isn't a mandotory resort? We have visited the property and think it is a very nice resort. My guess is your comment relates to it not holding value upon resale because it isn't mandatory. Thanks for clarifying.

I has higher MF than WKORV/N, AND it's voluntary. It's a beautiful resort, but that killed it's resale value and made it far less attractive to own.

WKORV - 2 bdm. lock-off (without ARDA) - $2,180.74

WKORV-N - 2 bdm. lock-off (without ARDA) - 2,344.56

WPORV - 2 bdm. lock-off (without ARDA) - $ 2,500.95

 

[pathways25]

Then what would you do with 2 weeks at WLR every year?

Also - I would expect the MF at WLR to increase once they are no longer in active sales.

WPROV is a sad situation - Starwood made a terrible mistake when they didn't make it a mandatory resort.

The same thing that I do with my SDO units, use them for StarOptions. I expect that WLR MF's will go up, but I doubt very much that they'll go up like Hawaii.

 

[LisaRex]

The biggest drawbacks, IMO, are this:

a) You lose your view in Hawaii. Not sure what view you own in Hawaii, but I paid extra to get the better view. I wouldn't be happy in an IV room. That's why I bought where I wanted to go, with the view I wanted.

b) With Starwood now allowing the banking of SOs, I foresee that the more expensive resorts will be more difficult to exchange into. Simple supply and demand. If you can be flexible with your dates, then it will probably be okay. If you can't, then you may regret not buying where you want to travel.

c) The $30k. Yes, you'll save on MFs, but it'll be a decade or so before you ever get ahead on this transaction.

d) SDO is still a great II trader. Where else can you use a 1 bdrm to get a 2 bdrm? SVN can't do that.

 

[ocdb8r]

The title of this thread should read "Developer Wanted MY $30k". I don't know how you could justify the additional outlay, especially when it involves giving up one of the few SVN resorts that still has some value on the resale market (WKORV-N). Given the glut of Cancun inventory, this looks to be a total win for SVO.

Given you won't be saving anything on the yearly maintenance fees, the only benefit you're receiving is the additional 148K Staroptions from retroing. Why not ditch your SDO on eBay and spend $15-17K on WKV. That way you end up with two mandatory resorts that will hopefully hold some value moving forward and the extra Staroptions from the WKV.

 

[PamMo]

The title of this thread should read "Developer Wanted MY $30k".

:hysterical: :hysterical:

 

[LarryAck]

Thanks for all your opinions. This transaction would have brought me up to 550,000 options, and since we do use the hotels, I would have been that much closer to 5 star. The thing that bothered me the most was the value I was giving up, in Maui, for in my opinion Mexico which is still a selling property with a lower resale value. That is pretty much why I passed.

The retro would have given me 81,000 start options from Kierland.

 

[DeniseM]

Thanks for all your opinions. This transaction would have brought me up to 550,000 options, and since we do use the hotels, I would have been that much closer to 5 star. The thing that bothered me the most was the value I was giving up, in Maui, for in my opinion Mexico which is still a selling property with a lower resale value. That is pretty much why I passed.

The retro would have given me 81,000 start options from Kierland.

If you are going to requalify in the future, and spend $20K to do so, I highly recommend that you buy a resale that will retro for 148,100 Staroptions. It is so expensive to requalify - you want to maximize the Staroptions.

 

[LisaRex]

The retro would have given me 81,000 star options from Kierland.

You don't need to retro Kierland to get StarOptions; It's a mandatory resort. But I agree with DeniseM 100%. If you're going to buy from the developer, by all means, buy a platinum unit worth 148,100 SOs.

 

[LarryAck]

You don't need to retro Kierland to get StarOptions; It's a mandatory resort. But I agree with DeniseM 100%. If you're going to buy from the developer, by all means, buy a platinum unit worth 148,100 SOs.

Lisa

Wasn't looking to retro for Staroptions. I am looking to make 5 star elite eventually since we do use the hotels, so this would help me accumulate more starpoints.

 

[DeniseM]

Lisa

Wasn't looking to retro for Staroptions. I am looking to make 5 star elite eventually since we do use the hotels, so this would help me accumulate more starpoints.

Larry - In many cases, converting to Starpoints is not a very good value. Especially with the resorts with high maintenance fees. Have you put a pencil to it? You can often buy Starpoints from Starwood for LESS than the cost of your maintenance fees.

Do you have a Starwood AMEX card so you can accumulate virtually free Starpoints?

 

[pathways25]

Larry - In many cases, converting to Starpoints is not a very good value. Especially with the resorts with high maintenance fees? Have you put a pencil to it? You can often buy Starpoints from Starwood for LESS than the cost of your maintenance fees.

Do you have a Starwood AMEX card so you can accumulate virtually free Starpoints?

I just received an offer in my email to purchase 80,000 SP's for $1,550 with a 4,000 SP "bonus", thus 84,000 SP's for $1,550. That's only 1.8 cents per point!

 

[DeniseM]

I just received an offer in my email to purchase 80,000 SP's for $1,550 with a 4,000 SP "bonus", thus 84,000 SP's for $1,550. That's only 1.8 cents per point!

WOW! That is a good deal!

 

[jarta]

LarryAck, ... "Wasn't looking to retro for Staroptions. I am looking to make 5 star elite eventually since we do use the hotels, so this would help me accumulate more starpoints."

I understand the idea of getting rid of the high MF in Hawaii for the low MF in Cancun. It makes the cost of conversion to Starpoints less and, therefore, the use of the Starpoints more valuable. WKORV, WPORV, Harborside or WSJ, IMO, have MFs that are too large for a 5 Star portfolio - unless you want to go to the resort almost every year or you want to take the risk of reserving and renting out the week to recoup MF paid.

Good plan. It would have gotten you well on your way.

However, if I read your particulars right (they are a little vague about exactly what you now own), it's the wrong deal. You should be able to do better. You were right to pass on this one. ... eom

 

[Ken555]

Wasn't looking to retro for Staroptions. I am looking to make 5 star elite eventually since we do use the hotels, so this would help me accumulate more starpoints.

A 148k week will get you to 5* faster than 81k. I agree with the others... Buy 148k and retro it instead, given the incremental increase it would cost ahead of time (but will require planning).

 

[oneohana]

I just received an offer in my email to purchase 80,000 SP's for $1,550 with a 4,000 SP "bonus", thus 84,000 SP's for $1,550. That's only 1.8 cents per point!

don't forget the 3k *points for using your spg amex.

 

[gtm2011]

Have any resale owners received this offer or is it just going to people that bought weeks directly from Starwood? Just curious.