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Giving up a deeded timeshare for more points? [Diamond]

chip15

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Hi Everyone,

I own a deeded timeshare in Hawaii since 2001. Recently we purchased more timeshare with Diamond resorts who own's the timeshare we have in Hawaii. We are looking at giving the deeded timeshare to diamond in exchange for another 8500 points on our trust timeshare. The reasoning behind it is to become gold members which has much more benefits vs the standard membership. My question is would it be smarter to keep the deeded timeshare which we have to pay dues on yearly or just combine the two for more benefits and less dues per year. Also the value of the points is worth more than the deeded timeshare dollar to dollar. Deed vs Trust does not seem much different to deal with two different yearly dues and one with RCI and the other with Diamond and Interval. Thank you for any help with this issue.
 

DeniseM

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Converting from a deed to points is almost always a very expensive proposition. In most cases, you can just buy a deed on the resale market that's already in points, for a fraction of the cost.

You are paying 90% more buying from the developer.

In fact, if you are still within the recession period - you should definitely rescind.
 

chip15

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Deed for points

There is no cost to me. If i give them my deeded week they are giving me 8500 points.
 

chip15

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Also at the current rate the 8500 points would cost close to 35k and I could never sell my deeded timeshare in Hawaii for that.
 

DeniseM

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There is no cost to me. If i give them my deeded week they are giving me 8500 points.
Maybe this is the exception, but I have never heard of a developer doing a conversion to points out of the goodness of their hearts.

Somehow this benefits them - or they wouldn't do it. I would not rush into this - there is a catch somewhere.

Also at the current rate the 8500 points would cost close to 35k and I could never sell my deeded timeshare in Hawaii for that.
Not on the resale market.

Looking at this statement:
Also the value of the points is worth more than the deeded timeshare dollar to dollar.
When you talk about "value," are you talking about the cost of buying them from the developer? Because the developer price is grossly inflated and for the most part, a comparison that they made up.

- You need to look at the resale value of both the points and the deed.
- You need to look at the difference in using the points vs using the deed.
- You need to look at any fees - "no fees," is suspicious.
 
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chip15

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Not exactly free lol they get some more of their deeded property back. I have a real nice ocean view on maui but never get to use it and dues are $1460 a year and then RCI fees to use the points so seems costly vs going for more points. Tough one to decide I really do not want 5k a year in dues between the two of them.
 

DeniseM

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So they are getting a valuable deed, and giving you points with far less value - that's the catch.

We see Diamond points given away for free on TUG all the time.

Can you really effectively use the points, and more vacation time than you have now? Or will you just have more points, that you can't really use?

We hear this frequently: We aren't really using our timeshares fully now, but the sales person convinced us that if we bought more time/points, we'd get more use out of them.

*When did you make your most recent purchase?
 
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chip15

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Very true for most it is a scam because half the people if not more are families that can't find the time or afford to go away that often. We are actually a younger retired couple with a large family and grandchild with another on the way. A big part of our plan with the diamond gold membership is to use the point for family gatherings as well as vacationing. As we all know these days to have a family go away is crazy $$$$$ lol. This is a big deciding factor with the larger amount of point we can take a family away vs a deeded Hawaii timeshare that is very expensive to get to and cost for a week with a family.
 

chip15

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Thank you very much for your help. Nice to have an opinion from both ends not the o'l sales pitch.
 

tschwa2

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Do you have the terms of the deal in writing? Regardless of what you are giving back I can't see them offering this deal without an additional $10,000-$20,000 out of pocket. There are a lot of owners right now giving back their nice Hawaii etc. deeds for $250 without DRI giving them anything in return. Also you will want to check what your total MF's will be with the additional 8500 including any trust program fees and The Club program fees.
 

chip15

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I was also told you cannot buy someone else's points and add them to yours that it would be two separate accounts.
 

traveldaddy

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So they are getting a valuable deed, and giving you points with far less value - that's the catch.

We see Diamond points given away for free on TUG all the time.

Can you really effectively use the points, and more vacation time than you have now? Or will you just have more points, that you can't really use?

We hear this frequently: We aren't really using our timeshares fully now, but the sales person convinced us that if we bought more time/points, we'd get more use out of them.

*When did you make your most recent purchase?
Lots of good questions.

Add one more:

Can you sell the week you own now for $$$$ and pickup what the developer is offering you for (materially) less $$ than your net on the sale of your week?

This is very much like a trade in on a used car, no?

You can usually get more than the dealer offers, but you have to do the work.
 

DeniseM

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We purchased 15000 points this past weekend.
You should rescind, and research the resale market - where you will pay 90% LESS.
 

chip15

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Yes we purchased more points at our lock in rate (so called) from our first purchase. We get the 8500 for the deeded timeshare as a perk i guess. They actually said we could keep the deed that we would get the 8500 for just depositing the week into diamond vs rci but I really don't see the need to keep the deed with the 1460 a year dues if the trust is legitimate.
 

DeniseM

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I was also told you cannot buy someone else's points and add them to yours that it would be two separate accounts.
And that may or not be true, but we know that sales people will say anything, including outright lies to make a sale, so you have to verify everything independently.
 

chip15

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I have looked and thats the sad part people are practically giving away these timeshares and it has just killed the value for the rest of us. If I thought it would be any kind of investment I would keep it. We paid in 2001 I think 19,5 for it and I would be lucky to sell it for 10k.
 

DeniseM

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I have looked and thats the sad part people are practically giving away these timeshares and it has just killed the value for the rest of us. If I thought it would be any kind of investment I would keep it. We paid in 2001 I think 19,5 for it and I would be lucky to sell it for 10k.
I hate to burst your bubble, but you wouldn't get anywhere near $10K.

Almost all timeshares, not just yours, go for 0-10% of original retail on the resale market. That is why we are encouraging you to rescind your recent purchase, and take your time looking at the resale market, and looking at all your options, with no pressure.
 
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DeniseM

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would the rescind terms be on signed contract?
What STATE were you in, when you signed the contract, and exactly what day did you sign it?

Yes - by law the instructions for rescinding must be in your purchase documents, but it may be in fine print and semi-hidden.

Here is an article on TUG with lots of info. about rescinding:
http://tug2.net/timeshare_advice/cancel_timeshare_purchase.html

Really important point - you have a limited amount of time to rescind, so you should do it ASAP.
 

artringwald

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DRI: The Point at Poipu, 3 deeded weeks, 1 of which is in The Club.
We purchased 15000 points this past weekend.
If you do some research, you'll quickly find many unhappy DRI points owners. One of the big reasons is the fees for their points plus the Club dues are much higher than for equivalent deeded weeks. They go to use the points and discover that the majority of destinations are affiliates with few units available, and are very difficult to reserve. As DRI sells more points, the popular destinations will become even harder to reserve. You'll also discover that many of the benefits promised during you're presentation are simply not true. If it's not in your contract, don't believe it.

I'm one of the DRI owners happy with what we bought. The resorts that they manage are kept in good condition, and I enjoy going to several of their destinations. I have 3 deeded weeks, only one of which is in the Club. However, with Club dues going up, and other destinations becoming harder to book, I'm considering dropping Club membership. Even if I do, I'll have deeded weeks I can use.

My advice to you would be to rescind the purchase of the 15,000 points ASAP. If you don't use your Maui week(s), exchange them, rent them, or sell them. Deeded weeks can still sell for up to $1k-5k. Points are almost impossible to sell or give away. If you like the DRI destinations that are managed by them (not affiliated with them), buy resale points in the trust collections the resorts belong to. You won't have to spend much to buy plenty of points.
 

chip15

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Thats kind of why I think it might be worth taking the 8500 points for the deeded timeshare they are near worthless. The 8500 points may not be worth much either but I will get rid of Hawaii dues every year and we will still have places to go. In the future if we miss it we could always buy someone's Hawaii timeshare again for peanuts lol.
 

DeniseM

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We are in Florida and I just checked contract it say's ten day's.
Then you are in luck! Take a look at the article that I posted above, and read the instructions in your purchase documents carefully, and then follow them exactly and mail it tomorrow - without fail. You need to use a verifiable delivery method, and retain the receipt to prove that you mailed it on time.

-Don't call the sales person
-Don't accept calls from the sales person
-They have no input into your rescission and they will only try to TALK YOU OUT OF IT.
-The only thing you should do is to follow the steps for legally rescinding in writing. Phone conversations with sales staff will have no legal standing, and won't be pleasant or productive.
 

chip15

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I agree some more good points. Rescind it is thank you all very much superb help very greatly needed. Thank you a bunch
 
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