HGVC Maintenance Fees (MFs) at non-US properties

[GT75]

For the past two years anyway, some of the lowest MFs/points have been at the non-US HGVC properties (such as Portugal, Scotland & Italy). I am wondering why that is the case. I know that the strength of the dollar or the exchange rate is a factor but I don't think that can account for all of it. I looked at the historical exchange rate between the GBP and USD over the years (http://www.macrotrends.net/2549/pound-dollar-exchange-rate-historical-chart) and I would say somewhere between 1.6 to 1.2 for the past 8 years. Of course there are some highs (2) and lows (1). If I use an exchange rate of 1.6 GPB to 1 USD, the Scotland properties still seem to have very low MFs (as @ConejoRed has point out in another post). I would think that personal and material cost would be similar to the US. Are they missing something in their MFs such as reserve fee or am I missing something?

 

[ConejoRed]

I just looked at my statement and the fees were broken down the following was on the statement:

Management Charge: 400.25 GBP
Reserve Fund: 134.40 GBP
VAT (Value Added Tax):106.93 GBP
Disbursement’s: .53 GBP
Total: 642.11 GBP

It is not a deeded property but a perpetual “holiday certitificate” so don’t know if that helps with annual costs as there are no things like property taxes etc. (but there is VAT which is 20%). I also don’t think there is the same “HOA” structure of the US resorts which may help with costs. I don’t really know any of the details of the actual underlying property ownership either and it may just be that there are less overall costs since it is not a true real property ownership situation.

The above is for an annual 2 Bedroom Lodge unit, Fixed Platinum week (June).

 

[GT75]

It is not a deeded property but a perpetual “holiday certitificate”

That is a difference. So, is it like a RTU then? Is there an end date?

 

[GT75]

Is there an end date?

Never mind, I now read the word, perpetual.

 

[ConejoRed]

Just to confirm, there is no end date... I suppose there is some risk since it is not a true deeded property ownership that use rights could be terminated, but I expect there are some U.K. regulations around when/how that can be done.

 

[GT75]

If it is RTU and not deeded, what are the buyer closings cost? I would assume that there isn't an HGVC activation fee since there isn't a deed.

 

[ConejoRed]

I think that other than the usual transfer HGVC fees, the only other fee I paid was a Original Holiday Certicate fee of around 250 GBP (going off memory). The entire process was about 4 weeks, with the longest step being waiting for the previous owner to mail their original certificate back to Scotland so they could issue a new one to me. Diane did all the paperwork (purchase contract etc.) and monitored everything, and it did not need to go through an separate transfer company (so none of those typical fees). It helped that the seller was also a US resident so we did everything in USD with the exception of the certificate which was paid directly to the resort (used my Hilton card with no foreign transaction fees) and because the fixed week is in June and this closed in February, the previous owner threw in free use of the 2015 week/points as an added bonus. So... good deal in a lot of ways and an easy transfer. Only minor glitch was that I had to explain that I only had to pay the US Club dues as dues are based on where the buyer lives and not the International Club dues (when drafting the purchase documents). Have put the points to a lot of good use and I am always looking out for another good deal (just closed on a 7000 point MarBrisa unit for $2500) as you can find them if you are patient. All of my units are at affiliates, but affiliates that are closely intertwined with HGVC (i.e. at Craigendarroch, HGVC purchased and developed the Suites section there) so not worried they are only affiliates and not delveloped resorts.

 

[Mosescan]

Not sure about the other property but the Scotland lodges charge the user for electricity used during their stay. By passing this cost on to the consumer actually staying at the property it also helps to keep costs low. I stayed at the suites so this didn't affect me but if you read the reviews of the lodges, it is a sore point with some people. I can imagine if you are staying in the winter that it could be quite an expensive extra cost.

 

[GT75]

Scotland lodges charge the user for electricity used during their stay.

Now that is different. Of course, if you just mainly use this TS for points, that would be a plus for the owner.

 

[ConejoRed]

When we went, we also stayed in the Suites section so this was not an issue. I also just looked at the website and you also do not get a mid-week cleaning (you can pay for one) at the Lodges so that helps with costs as well. I think the Suites maintenance fees are much higher, but those units also have much higher point values. In looking at the 2018 maintence fee thread, they have also been going up quite a bit (although the VAT is much lower and not sure why that would be). The 2 bedroom we stayed in the Suites section was exceptional (2 story, entrances from two different floors, great view of the mountains and countryside) but have not actually stayed in a lodge unit yet. We do use it mainly for points so not having to pay for these types of charges (unless we actually stay there) is a benefit.

 

[Cyberc]

i'm an owner at the Hilton Vilamoura and when we receive the annual invoice during may/june the invoice is never broken down so you can see what is what. I'll try and ask for a breakdown of the 2017 invoice, maybe that will provide more information.

The Hilton Vilamoura is also RTU and expire for some (me) in 2042 and iirc for others around 2025.