I've been talking with a Tug friend and we were thinking about this question - have the resale values for the most popular HGVC unit* (2BR platinum, 7,000 points) hit the bottom of the market or will they go down further?
First, I'll qualify my * comment about the "most popular" HGVC unit. Based on what I've seen watching prices over the years the 7,000 point, 2BR units are what resell for the highest $. I'm sure there are people who have other units/sizes they would say are the best/most desirable, but from what I've seen and for the purpose of this conversation, I'll focus on the 2BR platinum units.
Anyway, Tug Friend and I are thinking about the market, the current going price for this type of unit, and the future. I know of 4 recent purchases of these units for $6,000 each. While many mention the standard $1/point pricing ($7,000 for a 7,000 point unit) I have seen prices drop down to $6,000. That doesn't mean that's the current market price, that could be just a few lucky buyers and/or desperate or uneducated sellers. Or it could mean a unit that a year ago went for no less than $7,000 now can only garner $6,000?
What's this unit going to go for in a year? In 5 years? At some point there is a bottom. And I don't think it's $0. I don't ever seen HGVC units being in the Bargain Basement.
What will the new properties (Hilton Head, Maui) and future expansion do to resale prices? Surely ("don't call me Shirley" - Airplane) these new properties will have MF's much higher than the lowest properties in Vegas. So at some point do the owners of these units at the low MF properties turn into the "White Whales" of the Club and own the coveted units with rock bottom MF's? Perhaps over time could the resale price for these units actually go back up if the new properties continue to have higher and higher MF's?
The underlying point of this question is about what's going to happen 20 or 30 years down the road when our kids get stuck with the various units my wife and I have bought? Is buying up some of these units now wise because the MF's are so low at the Strip and Karen/Paradise/Convention Center? Last year the MF for our 2BR platinum at the Strip was $787 and for the same unit at Kings' Land it was $1,484. If you're looking to build a portfolio is now a good time to grab some points that will hold their value?
First, I'll qualify my * comment about the "most popular" HGVC unit. Based on what I've seen watching prices over the years the 7,000 point, 2BR units are what resell for the highest $. I'm sure there are people who have other units/sizes they would say are the best/most desirable, but from what I've seen and for the purpose of this conversation, I'll focus on the 2BR platinum units.
Anyway, Tug Friend and I are thinking about the market, the current going price for this type of unit, and the future. I know of 4 recent purchases of these units for $6,000 each. While many mention the standard $1/point pricing ($7,000 for a 7,000 point unit) I have seen prices drop down to $6,000. That doesn't mean that's the current market price, that could be just a few lucky buyers and/or desperate or uneducated sellers. Or it could mean a unit that a year ago went for no less than $7,000 now can only garner $6,000?
What's this unit going to go for in a year? In 5 years? At some point there is a bottom. And I don't think it's $0. I don't ever seen HGVC units being in the Bargain Basement.
What will the new properties (Hilton Head, Maui) and future expansion do to resale prices? Surely ("don't call me Shirley" - Airplane) these new properties will have MF's much higher than the lowest properties in Vegas. So at some point do the owners of these units at the low MF properties turn into the "White Whales" of the Club and own the coveted units with rock bottom MF's? Perhaps over time could the resale price for these units actually go back up if the new properties continue to have higher and higher MF's?
The underlying point of this question is about what's going to happen 20 or 30 years down the road when our kids get stuck with the various units my wife and I have bought? Is buying up some of these units now wise because the MF's are so low at the Strip and Karen/Paradise/Convention Center? Last year the MF for our 2BR platinum at the Strip was $787 and for the same unit at Kings' Land it was $1,484. If you're looking to build a portfolio is now a good time to grab some points that will hold their value?
Last edited: