Grand Pacific Resorts... debt cycle and property value

[klpca]

The maintenance fees aren't that much different.

Seapointe includes the property tax in the amount.

Carlsbad Inn it is paid directly to the county.

Carlsbad Inn is a high demand location and resale values are still good because people want that location.

I use Seapointe more for day use but stay at Carlsbad Inn more often.

Good point on the property taxes. I just looked - on my EOY it was $85 last year. My maintenance fee was $350, and my reserve amount was $121. So higher than Carlsbad Inn, but not by much. But it is always good to hear everyone's voices on the issue and especially good to keep management on their toes about spending.

FWIW, both Coronado Beach Resort (Grand Pacific managed) and Club Donatello (independent - not the Shell units) have outstanding loans on their books. CBR used theirs the same way as Seapointe - doing upgrades all at once, and the Donatello used theirs to pay for a large unexpected HVAC replacement in 2013. Stuff happens. We own a rental condo and I doubt that the reserves that they collect in our hoa fees will ever be enough to pay for significant repairs or upgrades. They use models that predict future costs and while I think that they will come close, the starting point is always historical cost. People's tastes and expectations change - and you wind up doing an upgrade rather than a replacement. It always costs more than you expect. At our house, we need a new pool pump. And it looks like we will be spending extra for the variable speed pump because no one uses a single speed any more because of the energy efficiency difference. If I had been setting aside $$ to replace the pump (lolol) I would have assumed replacing a single speed pump all along, not a variable speed.

A reasonable amount of debt is probably ok, especially if it is short term and there is a good repayment plan, especially with the low interest rates that we have now. I personally prefer it to a special assessment, or a cheap refurbishment that could be paid from the reserves on hand.

 

[buzglyd]

I went to variable speed a few years back.

SO much better and quieter.