HGV Owner Using Only RCI

[Agepay]

Thank y'all for TUG! Such a wealth of information and generous spirit here. So I'm a newbie and need your advice.

Ours seems to be a classic TS situation. Before we knew about TUG or even researched timeshares, about 5 years ago, our family vacationed in Orlando & bought into HGVC Las Palmeras on a whim, thinking there would be plenty of resorts for us to visit.

But there is nothing near our MS home and the struggle of trying to reserve an available week so far in advance, without knowing our work schedules, while booking air travel has resulted in us only using RCI on an as needed basis and one awesome trip to Germany.

I am learning here on TUG that we paid way too much for a one week vacation. MF & annual dues are about $1400 EOY. Plus the cost to reserve & exchange with RCI is about $300. Not to mention the initial investment amount of over $18k. Ugh.

So. We need advice from you experienced TUGgers. Both our kids are about to begin college. Should we just hang onto our HGV ownership? Or your advice for a best exit strategy?

We want beach properties closer to us: Alabama & FL: Gulf Shores, Orange Beach, Perdido Key, AL, Pensacola, Destin, Ft Walton, Seaside, FL. Which timeshare would you recommend to buy resale for these areas? Wyndam? Or... ? Thanks in advance for your thoughts on this. And feel free to share any links to previous threads on similar situations.

 

[Nowaker]

MF & annual dues are about $1400 EOY. Plus the cost to reserve & exchange with RCI is about $300.

Yes, you pay some extra cash money to exchange into RCI. However, you should be aware that the points cost of RCI bookings is lower. A regular 2 BR in HGVC is 8,000 (Gold) or 11,200 (Platinum), while it's only 7,680 in RCI (highest season, but more often than not, Gold Crown resorts have highest season year round).

So, when you calculate the cost on a daily basis, it will equal out. Assuming you own 2 BR Platinum 11,200 pts, here's the real costs:

HGVC: 2 BR = $1400 MF / 7 days = $200/day
RCI: 2 BR = (7,680 pts / 11,200 pts * $1400 MF + $300) / 7 days = $180/day


See, even a little cheaper per night.

 

[Nowaker]

Should we just hang onto our HGV ownership?

We can't say much here. You need to decide.

Or your advice for a best exit strategy?

If you have 2 BR Platinum in Las Palmeras, it could go for $2k. Parc Soleil, Tuscany and Seaworld go for a little more, but Las Palmeras is the least desirable of all Orlando resorts, so the market value is lower.

If you have 2 BR Gold or 1 BR Platinum, $1k.

Anything else, $500 (if purchased from a broker) or free - because the sales price of $500 with leave you with almost nothing for you, so why bother when you can get rid of it quickly via TUG giveaway. Mind you, a broker will first list it at a crazy price nobody will buy at. The goal is to get the foot in the door and get your listing. Then, when it doesn't sell at the suggested price by the broker (it never will), they'll suggest you lower the asking price, and you eventually sell at the prices listed above, but the commission is fixed so you lose compared to selling it yourself on Ebay and FB groups.

 

[Agepay]

@Nowaker Good thoughts on RCI. So for us, the flexibility is still worth it. I don't think my husband could bear to sell our deed at such a loss. And we can afford the MF fees. And who knows? Maybe we will make better use of the HGVC locations in the future. Thank you for your insights!

 

[escanoe]

If you are not using your HGVC points in HGVC, you should assess getting out.

With rare exception, RCI trading is much more affordable using a smart RCI trader purchase than by using HGVC points.

 

[PigsDad]

I don't think my husband could bear to sell our deed at such a loss.

First, you have to get into the mindset that the original $18K you paid for this is sunk funds. That money is already lost. You are never going to get that back, so just write it off in your head now. An EOY deed is not worth more than a few hundred dollars, and it will never be worth more. Sorry to be blunt, but you really cannot make a rational decision with the mindset that your deed is "worth" $18K or anywhere close to what you paid.

And we can afford the MF fees. And who knows? Maybe we will make better use of the HGVC locations in the future.

This is where you need to focus on your decision: will you get more vacation value out of using your ownership than the cost of the maintenance fees, reservation fees, etc. If the answer is yes, then keep it. If no, sell / give it away. No sense in throwing good money after bad.

Kurt

 

[audirt]

We want beach properties closer to us: Alabama & FL: Gulf Shores, Orange Beach, Perdido Key, AL, Pensacola, Destin, Ft Walton, Seaside, FL. Which timeshare would you recommend to buy resale for these areas? Wyndam? Or... ?

I'm curious if anyone else has experience with timeshare systems in this part of the country. I know that Escape! to the Shores in Orange Beach shows up in RCI once in a blue moon, but it's not often. I suspect that only part of that building is timeshare, with the rest being a traditional condominium.

Now then... are you aware of what's happening with Diamond and the acquisition? Embarc, which is part of Diamond, has a nice property in San Destin. The rumor for a while was that all of the Embarc properties would become HGVC after the merger. It seems like maybe that rumor is cooling off a bit with all the HGV Max stuff? But if(!!!) those properties get re-branded to HGVC and added to the system, that will give you a high-quality resort in the area you're talking about. The only possible problem is that the property is bay-side. There's a shuttle that will run you across the (really busy) street to the beach at SanDestin, but I can tell you from experience that the shuttle's operating schedule is... irregular (at best). And that was pre-Covid. But the property itself is top-notch.

EDIT: Per the HGV Max FAQ that was published this morning, it looks like the Embarc properties (including San Destin) will not be available to HGVC members anytime soon.

 

[GT75]

The rumor for a while was that all of the Embarc properties would become HGVC

Honestly, we here all have the same question. It is a wait and see.

I don't know exactly where you are located in Mississippi but I live in Tennessee. We love Ocean Oak on Hilton Head Island but have also visited both Anderson Ocean Club and Ocean 22 (there is also Ocean Enclave now) in Myrtle Beach. This I believe would be a little longer drive for you but might be an option. The resorts in Myrtle Beach will be much easier to book than Ocean Oak.

 

[MickeyBlue]

[QUOTE="Nowaker, post: 2765870, member: …the commission is fixed so you lose compared to selling it yourself on Ebay and FB groups.
[/QUOTE]
Exactly. The Orlando timeshare real estate woman that is all over the FB HGVC Groups charges a guaranteed minimum fee that she gets IF the unit sells. It’s like $1500 minimum to sell through her so if you sell for $1500 with buyer paying -$800 in closing costs, you net $0. If you can find a buyer who will pay closing.

 

[Nowaker]

Exactly. The Orlando timeshare real estate woman that is all over the FB HGVC Groups

Judi Koz. People on FB seem to like her - I guess she's the only one who really took her time to engage with the community there.

charges a guaranteed minimum fee that she gets IF the unit sells. It’s like $1500 minimum to sell through her so if you sell for $1500 with buyer paying -$800 in closing costs, you net $0. If you can find a buyer who will pay closing.

Wow, I knew it would be much, but I didn't think it'd be as much as $1,500 to sell through her!

 

[Agepay]

a smart RCI trader purchase

Appreciate your advice. Yes, I was wondering about buying RCI alone; is that a thing? What would be considered a smart RCI trader purchase? Like a closer, floating timeshare purchase with a lower MF?

 

[Agepay]

Oops... misquote.

 

[Agepay]

First, you have to get into the mindset that the original $18K you paid for this is sunk funds. That money is already lost. You are never going to get that back, so just write it off in your head now. An EOY deed is not worth more than a few hundred dollars, and it will never be worth more. Sorry to be blunt, but you really cannot make a rational decision with the mindset that your deed is "worth" $18K or anywhere close to what you paid.


This is where you need to focus on your decision: will you get more vacation value out of using your ownership than the cost of the maintenance fees, reservation fees, etc. If the answer is yes, then keep it. If no, sell / give it away. No sense in throwing good money after bad.

Kurt

Yes yes, cold, hard facts. But much appreciated wisdom. Thx 'Kurt'

 

[Agepay]

I'm curious if anyone else has experience with timeshare systems in this part of the country. I know that Escape! to the Shores in Orange Beach shows up in RCI once in a blue moon, but it's not often. I suspect that only part of that building is timeshare, with the rest being a traditional condominium.

Now then... are you aware of what's happening with Diamond and the acquisition? Embarc, which is part of Diamond, has a nice property in San Destin. The rumor for a while was that all of the Embarc properties would become HGVC after the merger. It seems like maybe that rumor is cooling off a bit with all the HGV Max stuff? But if(!!!) those properties get re-branded to HGVC and added to the system, that will give you a high-quality resort in the area you're talking about. The only possible problem is that the property is bay-side. There's a shuttle that will run you across the (really busy) street to the beach at SanDestin, but I can tell you from experience that the shuttle's operating schedule is... irregular (at best). And that was pre-Covid. But the property itself is top-notch.

EDIT: Per the HGV Max FAQ that was published this morning, it looks like the Embarc properties (including San Destin) will not be available to HGVC members anytime soon.

Thx Audirt. Yes following the acquisition. We've had the good fortune to stay in Sandestin several times and have always enjoyed it.

 

[Agepay]

Honestly, we here all have the same question. It is a wait and see.

I don't know exactly where you are located in Mississippi but I live in Tennessee. We love Ocean Oak on Hilton Head Island but have also visited both Anderson Ocean Club and Ocean 22 (there is also Ocean Enclave now) in Myrtle Beach. This I believe would be a little longer drive for you but might be an option. The resorts in Myrtle Beach will be much easier to book than Ocean Oak.

Thx @GT75. Not through HGVC, but we have visited both Hilton Head & Myrtle Beach for conferences; both beautiful resort areas. But, yes, would prefer a time share that us closer.

 

[Agepay]

[QUOTE="Nowaker, post: 2765870, member: …the commission is fixed so you lose compared to selling it yourself on Ebay and FB groups.

Exactly. The Orlando timeshare real estate woman that is all over the FB HGVC Groups charges a guaranteed minimum fee that she gets IF the unit sells. It’s like $1500 minimum to sell through her so if you sell for $1500 with buyer paying -$800 in closing costs, you net $0. If you can find a buyer who will pay closing.
[/QUOTE]
Wow! I see your point. Or would HGV buy it back at a reasonable rate?

 

[escanoe]

First you need to research if you need/prefer RCI Points or RCI Weeks.

I am more a fan of starting with points but YMMV.

Vacation Village (VV) seems to have the best mf/points ratio options. Grandview is the closest thing to an easy commodity to purchase (the 2 BR 122K point units have the best yield there), but there are harder to find VV point properties that have even better ratios.

RCI Weeks is a complete different game as far as the best traders, and things vary more on that side.

This is one of many decent TUG threads on the topic.

What Is The Best Trading Unit?

If you were going to buy a timeshare that you solely plan on using for trading, what would you buy.? Whether it be Marriott, VSE or whatever resort system. Trading into RCI or II. What is the unit that is the most powerful trader. I recently bought a SDO 2BDR 1-52 and am very happy with what...

tugbbs.com

 

[Cyberc]

Yes, you pay some extra cash money to exchange into RCI. However, you should be aware that the points cost of RCI bookings is lower. A regular 2 BR in HGVC is 8,000 (Gold) or 11,200 (Platinum), while it's only 7,680 in RCI (highest season, but more often than not, Gold Crown resorts have highest season year round).

So, when you calculate the cost on a daily basis, it will equal out. Assuming you own 2 BR Platinum 11,200 pts, here's the real costs:

HGVC: 2 BR = $1400 MF / 7 days = $200/day
RCI: 2 BR = (7,680 pts / 11,200 pts * $1400 MF + $300) / 7 days = $180/day


See, even a little cheaper per night.

The rci fee is not $300 it’s $209 or $239 depending on if the booked reservation is points inventory or weeks inventory

the commission is fixed so you lose compared to selling it yourself on Ebay and FB groups.

Exactly. The Orlando timeshare real estate woman that is all over the FB HGVC Groups charges a guaranteed minimum fee that she gets IF the unit sells. It’s like $1500 minimum to sell through her so if you sell for $1500 with buyer paying -$800 in closing costs, you net $0. If you can find a buyer who will pay closing.

Jesus are her fees really THAT high?. Her listing practice is also to list completely wrong information and just washing her hands and saying it’s not her fault.

She really only should be able to get 6-9% of the selling price, but if people really opt in to pay a minimum of $1,500 then maybe it’s okay. OTOH scammers also get people to opt in to pay them insane amounts and everyone knows that’s not okay.
Not even DVC brokers have so high fees

 

[WORLD TRAVELER]

The rci fee is not $300 it’s $209 or $239 depending on if the booked reservation is points inventory or weeks inventory





Jesus are her fees really THAT high?. Her listing practice is also to list completely wrong information and just washing her hands and saying it’s not her fault.

She really only should be able to get 6-9% of the selling price, but if people really opt in to pay a minimum of $1,500 then maybe it’s okay. OTOH scammers also get people to opt in to pay them insane amounts and everyone knows that’s not okay.
Not even DVC brokers have so high fees

The typical commission on resales through brokers is 40% of sales price for timeshares with a set minimum since they are having to advertise, review all the completed paperwork from the seller and buyer and work with the Title company and HGVC corporate to ensure the transaction is completed properly.

 

[Cyberc]

The typical commission on resales through brokers is 40% of sales price for timeshares with a set minimum since they are having to advertise, review all the completed paperwork from the seller and buyer and work with the Title company and HGVC corporate to ensure the transaction is completed properly.

Sorry but I find it hard to believe that it should warrant 40% of the sale price. Since I sold without using a broker and the title company handled EVERYTHING I assume the will do the same here and if not for a hgvc purchase all you basically need to do is fill out a form and email it.
I do however believe that they want to earn as much money as possible also at the cost of the seller.

 

[escanoe]

The rci fee is not $300 it’s $209 or $239 depending on if the booked reservation is points inventory or weeks inventory

The prices above may be the current RCI exchange fee structure within HGVC.

However, outside of HGVC the fees have increased. In current RCI accounts (in USA) a 7 day exchange fee in points inventory is $239. In weeks inventory it is $259.

 

[Nowaker]

The rci fee is not $300 it’s $209 or $239 depending on if the booked reservation is points inventory or weeks inventory

Add resort fees and you're more or less at $300.

 

[Nowaker]

review all the completed paperwork from the seller and buyer and work with the Title company and HGVC corporate to ensure the transaction is completed properly

It's basically no work, LT Transfers does everything, or - if you want - you can take over some of the work from them, as I did, to speed it up.

 

[escanoe]

Add resort fees and you're more or less at $300.

Increasingly ….. that is on the optimistic side. The short stay cleaning fees are now often the better part of $100 as well. You simply have to factor it all in and make your calculations.