HELP! Canyon Villas decision

[mvmess]

Your original post says:
"While it appears reasonable at face value, when considering the opportunity cost associated with the purchase price and the fact that we are 72 I am not certain it is.
I would love to hear your thoughts."

If you did the math already, then I'm at a loss to understand why you would think it appeared "reasonable at face value." I didn't factor in the lost opportunity cost either. At 72, given that you'd need to live to be 150 in order to recoup the capital outlay, regardless of the lost opportunity cost on that $35k, IMHO that is far from even seeming reasonable ever.

If you don't want that week, and you don't want to go to the effort to sell or give away to a third party, then contact MVC exit services and deed the unit back to MVC.

You cannot simply calculate the time it takes to offset the difference in maintenance fees. There is value in the purchase. The point difference is 1875 vs 4150. If you compute the value as it relates to simply reserving the same property paying cash. My calculations were expenses minus value. If the points purchase 10 nights in a property that would otherwise cost $600 per night, that is a $6,000 offset of the expense incurred to pay for the points. If you reserve the same 10 nights over a ten year period that equates to $60,000 in benefit. If I paid $35,000 up front and $18,000 in maintenance fees that results in a $7,000 positive position when compared to simply paying cash for the same property. That is a reasonable consideration until you consider opportunity cost.

The $35,000 invested in today’s market in a portfolio with moderate risk would likely double or more in ten years. NOW, the proposition becomes unreasonable!

 

[LeslieDet]

You cannot simply calculate the time it takes to offset the difference in maintenance fees. There is value in the purchase. The point difference is 1875 vs 4150. If you compute the value as it relates to simply reserving the same property paying cash. My calculations were expenses minus value. If the points purchase 10 nights in a property that would otherwise cost $600 per night, that is a $6,000 offset of the expense incurred to pay for the points. If you reserve the same 10 nights over a ten year period that equates to $60,000 in benefit. If I paid $35,000 up front and $18,000 in maintenance fees that results in a $7,000 positive position when compared to simply paying cash for the same property. That is a reasonable consideration until you consider opportunity cost.

The $35,000 invested in today’s market in a portfolio with moderate risk would likely double or more in ten years. NOW, the proposition becomes unreasonable!

You can rent Club Points from other owners without any capital outlay whatsoever, thus, there is no need to compute the value of reserving the property vs paying cash. And, frankly, you said it was you buying 2000 points and you would give up ownership of the one deeded week. If you are buying 4000 points, then the cost is even greater than the $35k. But whatever.

BTW - your math sounds like a misleading sales pitch.

 

[dioxide45]

You can rent Club Points from other owners without any capital outlay whatsoever, thus, there is no need to compute the value of reserving the property vs paying cash. And, frankly, you said it was you buying 2000 points and you would give up ownership of the one deeded week. If you are buying 4000 points, then the cost is even greater than the $35k. But whatever.

BTW - your math sounds like a misleading sales pitch.

While they were giving up the Canyon Villas week, MVC was giving them the equivalent number of Club Points that the week was worth. So in essence 2,000 points purchased plus 1,875 trust points for the week. really just another 2K since you can't have 3,875 trust points.