Flamingo 4,800 platinum purchase

[zenfloater]

The seller is asking for $3,000 and is including 4,800 points from 2015 (no reimbursement).
Closing costs are about $700 + $315 transfer fee.

Should I jump on this?

 

[tompalm]

Not bad because the 4800 HGVC points are worth about $1000 when you add the maintenance fee and membership fee into it. So it is like getting it for $2000. But, you can make an offer for a little less and maybe save a few hundred dollars.

 

[zenfloater]

Not bad because the 4800 HGVC points are worth about $1000 when you add the maintenance fee and membership fee into it. So it is like getting it for $2000. But, you can make an offer for a little less and maybe save a few hundred dollars.

Actually, I tried to offer $2,500 and they wouldn't budge. To clarify the total cost for me would be:
$3,000 + $399 (Hilton xfer fee) + $375 (closing costs) + $35 (estoppel) + $315 (Hilton points activation fee)

Total would be: $4,124
Still decent?

 

[tompalm]

Actually, I tried to offer $2,500 and they wouldn't budge. To clarify the total cost for me would be:
$3,000 + $399 (Hilton xfer fee) + $375 (closing costs) + $35 (estoppel) + $315 (Hilton points activation fee)

Total would be: $4,124
Still decent?

Closing cost will be around $1000 no matter who you use. So forget about that and focus on the price. I still think getting 4800 points for 2015 is worth money and a free vacation this year.

 

[GregT]

Actually, I tried to offer $2,500 and they wouldn't budge. To clarify the total cost for me would be:
$3,000 + $399 (Hilton xfer fee) + $375 (closing costs) + $35 (estoppel) + $315 (Hilton points activation fee)

Total would be: $4,124
Still decent?

Yes, that is a good price. I would buy it ---- enjoy your new ownership, and not worry about if someone else reports a similar buy for $200 less. That's a great purchase.

Best,

Greg

 

[capjak]

The seller is asking for $3,000 and is including 4,800 points from 2015 (no reimbursement).
Closing costs are about $700 + $315 transfer fee.

Should I jump on this?

That's a good price make sure the seller is reliable if possible

 

[JSparling]

By the time you get the points for 2015 it will be November. So unless you're planning a trip late in the year you can add the $89 rescue fee to the price to push your points out to 2016 for use next year.

I always look at the cost per point over about 10 years. So that would include everything in the purchase price/transfer and the total maintenance fees over 10 years. I just made two purchases on E-Bay and the per point cost for everything over 10 years was:

2BR Penthouse Las Vegas Strip - $20.0 cents
1BR Las Vegas Strip - $21.0 cents

It appears that you're looking at a platinum 1BR. There is some type of inflation/MF increase that will occur over the next 10 years but I've ignored that and used the current pricing (which may be foolish since the Flamingo and Club fees have gone up over 10% over the past 2 years). The 2015 MF per the HGVC sticky post was $966 for a 1BR at the Flamingo (season is irrelevant). If you already are an owner then you can take $140 out of the annual MF since you already pay your membership fee – so that makes it $826.

You've got these costs over 10 years:
All-in purchase - $4,124
MF for 2015 - $0
MF for 2016 through 2026 (if you already own HGVC) – $8,260
MF for 2016 through 2026 (if you don’t already own HGVC) - $9,660
You'll get 11 years of points since you're getting 2015 for "free" - So that's 52,800 points. That makes your price per point $23.5 cents if you already own HGVC and $26.1 per point if you don’t.

Not a bad price, but you’d be better off at the Vegas Strip or Convention Center properties since the MF’s are lower. For example, my 2BR platinum at the Convention Center (Karen Avenue) property is 7,000 points with a MF of only $888. It’s been said many times on here – the key to a good buy is the lowest MF. You pay the MF every year (FOREVER) but you only pay the purchase price once.

 

[JSparling]

Have you looked at the classifieds on here? There is a 2BR gold (5,000 points) at the Las Vegas Boulevard location for only $2,500. Assuming you have to add $1,000 for closing that means you're still paying $600 less for 200 more points a year and less MF per year. The MF (excluding the Club fee) for this unit was $787 last year and your unit was $826.

Why pay $40/year more in MF and $600 more for the initial purchase and get 200 less points per year? Maybe take this math back to your seller and tell them to drop the price. And if they don't then bail and go with the unit posted in the classifieds.

 

[Ron98GT]

The seller is asking for $3,000 and is including 4,800 points from 2015 (no reimbursement).
Closing costs are about $700 + $315 transfer fee.

Should I jump on this?

NO!

1. I think $3,000 is to high for 4800 points in Las Vegas.
2. I think $700 for closing costs is too high. Definitely over charging.
3. $315 for transfer fees sounds like an odd number?


References:

http://timeshareresaleclosings.com/fees.html

http://www.hgvclubprogram.com/content/2014-HGVClub-Fee-Schedule.pdf


NOTE:

Check out the TUG Market Place. There are 2 EY 5000 point HGVC TS's for sale for $2500. One at the Flamingo and the other at the Hilton/Karen site. Demand to use a closing service like JRA Services: very competent and reliable, recommended here on TUG, and a lot cheaper.


LASTLY:

I just noticed that you are a guest. You'll need to join TUG to see the TUG Market Place. You could also place a want ad in the Market Place, that's how I got my HGVC TS, got what I want for the price that I wanted to pay.

 

[JSparling]

3. $315 for transfer fees sounds like an odd number?

It went up from $250. That's HGVC's new fee as confirmed on the Estoppel I got a couple of days ago.

 

[zenfloater]

NO!

1. I think $3,000 is to high for 4800 points in Las Vegas.
2. I think $700 for closing costs is too high. Definitely over charging.
3. $315 for transfer fees sounds like an odd number?


References:

http://timeshareresaleclosings.com/fees.html

http://www.hgvclubprogram.com/content/2014-HGVClub-Fee-Schedule.pdf


NOTE:

Check out the TUG Market Place. There are 2 EY 5000 point HGVC TS's for sale for $2500. One at the Flamingo and the other at the Hilton/Karen site. Demand to use a closing service like JRA Services: very competent and reliable, recommended here on TUG, and a lot cheaper.


LASTLY:

I just noticed that you are a guest. You'll need to join TUG to see the TUG Market Place. You could also place a want ad in the Market Place, that's how I got my HGVC TS, got what I want for the price that I wanted to pay.

Just signed up

 

[JIMinNC]

NO!

1. I think $3,000 is to high for 4800 points in Las Vegas.
2. I think $700 for closing costs is too high. Definitely over charging.
3. $315 for transfer fees sounds like an odd number?

Actually the OP's true price is closer to $2000 since the seller is throwing in free 2015 usage.

Also, the actual "closing costs" according to the OP's post #3 are only $375, not $700. In their first post that mentioned $700, I think they lumped the Hilton transfer fee into the closing costs to get the $700 figure. Post #3 has more accurate numbers. The $375 seems more reasonable.

 

[Ron98GT]

Is 4800 2015 points worth $1069?


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[Jason245]

Is 4800 2015 points worth $1069?


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That is about the cost of my MF for my 4800 points at bay club.

That being said, 7 nights in a 1 BR plat open season is only $890....

I guess it depends on where you want to go and general open season availability.

 

[GeorgeJ.]

Actually, I tried to offer $2,500 and they wouldn't budge. To clarify the total cost for me would be:
$3,000 + $399 (Hilton xfer fee) + $375 (closing costs) + $35 (estoppel) + $315 (Hilton points activation fee)

Total would be: $4,124
Still decent?

What on earth is a "Hilton points activation fee"? If that's some fee for allowing you to convert your points into HHonors points, I'd tell them I don't need that and make that scratch it off the costs....(it sounds like a junk fee that would be on a contract for buying a new car).

Since there's also a $399 HGVC transfer fee listed, it obviously isn't that..

 

[Jason245]

What on earth is a "Hilton points activation fee"? If that's some fee for allowing you to convert your points into HHonors points, I'd tell them I don't need that and make that scratch it off the costs....(it sounds like a junk fee that would be on a contract for buying a new car).

Since there's also a $399 HGVC transfer fee listed, it obviously isn't that..

It is the enrollment into HGVC fee. Basically, it is a BS administrative fee that they incorporated into their program to nickle and dime members.

The $315 is the resort ownership transfer admin fee.

For example, Bay Club has a resort ownership transfer fee of $50, but interval enrollment into HGVC is $315...

Fortunatly it is one time cost... then they just nickle and dime $140 a year for "Membership fee" and lets not forget the "Reservation fee" which is $50 for half the resorts and $100 for the other half because you can't make those reservations online.

 

[Ron98GT]

It is the enrollment into HGVC fee. Basically, it is a BS administrative fee that they incorporated into their program to nickle and dime members.

The $315 is the resort ownership transfer admin fee.

For example, Bay Club has a resort ownership transfer fee of $50, but interval enrollment into HGVC is $315...

Fortunatly it is one time cost... then they just nickle and dime $140 a year for "Membership fee" and lets not forget the "Reservation fee" which is $50 for half the resorts and $100 for the other half because you can't make those reservations online.

There should be a $316 fee, not $315, for club enrollment ($250) and the 1st year club dues ($136):

http://www.hgvclubprogram.com/content/2014-HGVClub-Fee-Schedule.pdf

The Bay Club is an affiliate, where-as the Flamingo is a true HGVC TS.

 

[Jason245]

There should be a $316 fee, not $315, for club enrollment ($250) and the 1st year club dues ($136):

http://www.hgvclubprogram.com/content/2014-HGVClub-Fee-Schedule.pdf

The Bay Club is an affiliate, where-as the Flamingo is a true HGVC TS.

http://www.hgvclubprogram.com/content/2Fees-ENG-Rev010715.pdf

You are a year behind on the fee schedule. They jack up prices on everything to nickle and dime people. Just wait another 3-4 months for the new open season rates...GRRR

I paid next to nothing for bay club so have nothing to lose. Even if it somehow magically leaves HGVC, my intervals will always be enrolled (see the one affiliate that left and how it still has legacy owners as members of HGVC), and I get all the same benefits as a HGVC owner. When it comes time to sell my interval (which is also an RCI Gold Property), I am confident I can sell it for at least as much as I paid....

The benefit of Flamingo vs Bay Club is MF difference.

 

[JSparling]

What on earth is a "Hilton points activation fee"? If that's some fee for allowing you to convert your points into HHonors points, I'd tell them I don't need that and make that scratch it off the costs....(it sounds like a junk fee that would be on a contract for buying a new car).

Since there's also a $399 HGVC transfer fee listed, it obviously isn't that..

The $399 fee you pay in your closing costs and that goes to HGVC to transfer the property/contract to your name. But if you actually want to use it you have to pay the $315 "activation" fee directly to HGVC at a later date. So that's not part of "closing" because you don't pay it to the seller/closing company. Then, you also have to pay your annual club dues of $140 if you are not a current owner.

Ron98 - your schedule is a year old.

 

[JSparling]

Actually the OP's true price is closer to $2000 since the seller is throwing in free 2015 usage.

Also, the actual "closing costs" according to the OP's post #3 are only $375, not $700. In their first post that mentioned $700, I think they lumped the Hilton transfer fee into the closing costs to get the $700 figure. Post #3 has more accurate numbers. The $375 seems more reasonable.

If you're going to think about it that way then you are indeed paying $2,100 to buy it. But then you're paying $900 for the 2015 usage (the 2015 MF). How can you say you're actually paying $2,000 (when you're writing a check for $3,000)? You're paying $3,000 and getting 2015 usage. So you can say you're paying $3,000 total and getting "free usage" or you can say you're paying $2,100 to buy it and then $900 for the 2015 MF. But you can't say you are paying $2,000. Because you're not.

Regardelss - it's a bad deal. The Flamingo fees have gone up something like 10% over the past 2 years. My Karen/Convention Center unit MF's went down a dollar or two last year. Flamingo fees are already higher and appear to be increasing at a faster rate. Bad buy!

 

[zenfloater]

If you're going to think about it that way then you are indeed paying $2,100 to buy it. But then you're paying $900 for the 2015 usage (the 2015 MF). How can you say you're actually paying $2,000 (when you're writing a check for $3,000)? You're paying $3,000 and getting 2015 usage. So you can say you're paying $3,000 total and getting "free usage" or you can say you're paying $2,100 to buy it and then $900 for the 2015 MF. But you can't say you are paying $2,000. Because you're not.

Regardelss - it's a bad deal. The Flamingo fees have gone up something like 10% over the past 2 years. My Karen/Convention Center unit MF's went down a dollar or two last year. Flamingo fees are already higher and appear to be increasing at a faster rate. Bad buy!

I decided to pass on this ...

 

[JIMinNC]

If you're going to think about it that way then you are indeed paying $2,100 to buy it. But then you're paying $900 for the 2015 usage (the 2015 MF). How can you say you're actually paying $2,000 (when you're writing a check for $3,000)? You're paying $3,000 and getting 2015 usage. So you can say you're paying $3,000 total and getting "free usage" or you can say you're paying $2,100 to buy it and then $900 for the 2015 MF. But you can't say you are paying $2,000. Because you're not.

Regardelss - it's a bad deal. The Flamingo fees have gone up something like 10% over the past 2 years. My Karen/Convention Center unit MF's went down a dollar or two last year. Flamingo fees are already higher and appear to be increasing at a faster rate. Bad buy!

My point was simply that several posts above mentioned other weeks that the OP could buy for $2500 or whatever, with the implication being that they were cheaper to purchase than the OP's original deal. But if those cheaper weeks did not include 2015 usage, then you are not comparing apples to apples. So in my opinion, the proper way to look at the OP's proposed purchase would have been exactly as you said above - they would be paying $2100 for the week plus $900 for the 2015 usage. That way some value would be attributed to the 2015 usage that, presumably, the other weeks listed for $2500 did not include.