i have Max, why would i ever do a retail upgrade again?

[ernststarhemberg]

November was awesome (weather & no crowds) at OO and OE Myrtle Beach. No thanks on the heat & humidity ... never again. Hoping to check out Liberty Place spring or fall someday.

Liberty Place in the Fall is beautiful. Definitely in our Top 3 HGV properties.

Love the property. Dislike the retail prices for deeds and the MFs!

 

[ernststarhemberg]

If the prospect of landing a Liberty Place resale deed were plausible, we’d probably consider buying one, even with the MFs. But full retail + MFs is a bridge too far.

 

[GT75]

But full retail + MFs is a bridge too far.

You could get resale, but it will cost more than other HGVC deeds. I am working on obtaining OO deeds, so I will increase the price until I am successful.

 

[ernststarhemberg]

You could get resale, but it will cost more than other HGVC deeds. I am working on obtaining OO deeds, so I will increase the price until I am successful.

I can’t see any rhyme or reason to the OO deeds on ROFR.net. Two identical deeds sold close in time to each other. A lower priced one will be approved, but a higher priced one will get rejected???

 

[GT75]

I can’t see any rhyme or reason to the OO deeds on ROFR.net. Two identical deeds sold close in time to each other. A lower priced one will be approved, but a higher priced one will get rejected???

I agree. It seems hopeless looking at ROFR, but I am thinking that Strand's ROFR price is ~ 1.5 X # annual points (pure speculation based on limited data). I am only interested/looking at OO deeds. I would suspect that MB deeds are lower (because there are so many resorts there).

 

[yodaDaenerys]

November was awesome (weather & no crowds) at OO and OE Myrtle Beach. No thanks on the heat & humidity ... never again. Hoping to check out Liberty Place spring or fall someday.

liberty place is a very nice resort. no pool, but lots to do in Charleston.

 

[ernststarhemberg]

Gotta try a burger at Big Gun down the street!

 

[scottc42]

I just finished an update meeting at Kingsland. We own 13,440 points at Kohala Suites, EOY, and for the most part enjoy staying at that location with the home week privileges being important. We turned down several deals, but as the final rep was closing us out ($175 gift card) she made an off-handed offer to upgrade us within Kohala from a plus to a premier… 13440 to 15360. I think the upgrade cost would have been $10,500. We were literally signing our sheet for the gift card, so I just waved it off, but now I am wondering if that could be a good deal. I mean if we only ever stay in the same place, it doesn’t mean much, but it IS more points for the same maintenance fee.

I have a VIP ($1695) not yet used that I should be able to get a credit for. She was offering to double the VIP value on some on the primary offers. If I could get that and a few bonus points, could it be considered a good deal?

Thoughts??

 

[GT75]

she made an off-handed offer to upgrade us within Kohala from a plus to a premier… 13440 to 15360. I think the upgrade cost would have been $10,500.

You could buy a resale for cheaper than $10K and stay two weeks in HI.

 

[WorldT]

Newbie question here. Since points are points when the club booking opens, what is the benefit of an upgrade that the OP is trying to calculate?
1. Is it to get a better week ( higher points) at the same resort OR
2. To turn in a current deed and swap it for a deed at another resort?

Wouldn't it be cheaper to just buy another resale deed to achieve either of the above.

 

[GT75]

Newbie question here. Since points are points when the club booking opens, what is the benefit of an upgrade that the OP is trying to calculate?

Good question. OP owns a 2BR+ platinum season and the sales team is trying to upgrade (trade in their current deed for this one) a 2BR premium platinum season.

 

[scottc42]

You could buy a resale for cheaper than $10K and stay two weeks in HI.

Yep, I could get another week for free, (which I am interested in doing) but then I’d have two maintenance fees, right? But yeah… a two-week vacation would be great!

 

[mountainboy]

Yep, I could get another week for free, (which I am interested in doing) but then I’d have two maintenance fees, right? But yeah… a two-week vacation would be great!

Get a Vegas 11,200 deed or craig lodge for cheap, low MF; make more vacays!

 

[yodaDaenerys]

Newbie question here. Since points are points when the club booking opens, what is the benefit of an upgrade that the OP is trying to calculate?
1. Is it to get a better week ( higher points) at the same resort OR
2. To turn in a current deed and swap it for a deed at another resort?

Wouldn't it be cheaper to just buy another resale deed to achieve either of the above.

i would like to reduce MF/pt ratio, bottom line.

now i pay $2K/yr for 13,440 pts.

if instead, i could pay $1.5K/yr for 13,440 pts., and it only cost $5K down, it would pay off in 10 years.

also if i move from FL to NV, maybe the MF/pt ratio over time will be even more beneficial.

at marbrisa they offered a trade/upgrade deal under $10K, but the MF/pt reduction was not enough to payback in my lifetime, if i live to 100.

 

[yodaDaenerys]

I just finished an update meeting at Kingsland. We own 13,440 points at Kohala Suites, EOY, and for the most part enjoy staying at that location with the home week privileges being important. We turned down several deals, but as the final rep was closing us out ($175 gift card) she made an off-handed offer to upgrade us within Kohala from a plus to a premier… 13440 to 15360. I think the upgrade cost would have been $10,500. We were literally signing our sheet for the gift card, so I just waved it off, but now I am wondering if that could be a good deal. I mean if we only ever stay in the same place, it doesn’t mean much, but it IS more points for the same maintenance fee.

I have a VIP ($1695) not yet used that I should be able to get a credit for. She was offering to double the VIP value on some on the primary offers. If I could get that and a few bonus points, could it be considered a good deal?

Thoughts??

how long does it take to pay off the 10.5K with the better MF/pt. ratio?

or another way of thinking about it, how much are the extra pts (at same cost) worth to you, and how many years does it take for you to make back the $10.5K?

as far as VIP locking your price, that should be true for any deal they offered.

 

[Zenichiro]

i would like to reduce MF/pt ratio, bottom line.

now i pay $2K/yr for 13,440 pts.

if instead, i could pay $1.5K/yr for 13,440 pts., and it only cost $5K down, it would pay off in 10 years.

also if i move from FL to NV, maybe the MF/pt ratio over time will be even more beneficial.

at marbrisa they offered a trade/upgrade deal under $10K, but the MF/pt reduction was not enough to payback in my lifetime, if i live to 100.

$10.5K to gain 1,920 points with the same MF saves only about $250 per use year. That’s a 30–40 year breakeven.

Since you mostly use home week, the extra points don’t help much. Unless the net cost drops to around $5K or less after credits, it’s not worth it.

Current cost:
$2,000 ÷ 13,440 pts = $0.149 per point

After upgrade:
$2,000 ÷ 15,360 pts = $0.130 per point

Difference:
About $0.019 per point

Annual savings (per use year)
13,440 × $0.019 ≈ $255

Payback:
$10,500 ÷ $255 ≈ 41 years

 

[yodaDaenerys]

$10.5K to gain 1,920 points with the same MF saves only about $250 per use year. That’s a 30–40 year breakeven.

Since you mostly use home week, the extra points don’t help much. Unless the net cost drops to around $5K or less after credits, it’s not worth it.

Current cost:
$2,000 ÷ 13,440 pts = $0.149 per point

After upgrade:
$2,000 ÷ 15,360 pts = $0.130 per point

Difference:
About $0.019 per point

Annual savings (per use year)
13,440 × $0.019 ≈ $255

Payback:
$10,500 ÷ $255 ≈ 41 years

i think two different posts are getting mashed up here, but i did that same type of math before going into my update/sales pitch, so i agree 100%.

they just deflect to other things they want me to believe are more important...

 

[Zenichiro]

i think two different posts are getting mashed up here, but i did that same type of math before going into my update/sales pitch, so i agree 100%.

they just deflect to other things they want me to believe are more important...

Yep, I see. Sorry about that. I was just running similar numbers and looking at resale upgrades myself.

 

[dayooper]

Yep, I could get another week for free, (which I am interested in doing) but then I’d have two maintenance fees, right? But yeah… a two-week vacation would be great!

You could sell your Kohala and purchase 2 2 bedroom platinum deeds at Boulevard and pay just around the same MF’s for less than they were asking you to upgrade. The number of MF’s doesn’t matter. It’s the total cost per point. Having 22,400 points for roughly the same MF’s as ~15,500. The 2 bedroom Boulevards would cost about the same as the $10,500 they were asking to bump you up 2000 points.

 

[mountainboy]

purchase 2 2 bedroom platinum deeds at Boulevard

Or at Elara for 1 BR Grand or higher, for even lower MFs than Blvd or Flamingo...

 

[WaikikiFirst]

upgrade us within Kohala from a plus to a premier… 13440 to 15360. I think the upgrade cost would have been $10,500

without doing any actual calculation, that must have about a 40 yr payback, and using payback as the metric ignores Time Value of $, which you shouldn't do.
edit: I now see that Zen has calculated it.
wadr, if someone makes you an offer that has a 40 yr payback and you think "Hmmmm. Maybe.", you shouldn't go to these pitches. They will wear you down with the repetition and someday you will bite on a terrible terrible terrible deal.

Also, what is the plan for the extra 2000 pts/yr? Go for 8 nights instead of 7? IDK how those people can make these offers with a straight face. I was very polite in my only TS presentation, even when the closer came in and offered me the EVEN-WORSE EOY deal, which made me realize they hadn't listened to a word I said. But, being baited with such crap as a 40 yr payback would soon make me just tell them to "Shove it. We're done." But not about me, about you ...

For your safety, if you can't figure out things like a 40 yr payback and what that means ON THE FLY, do not go to these meetings. A thought: buy a really good deed resale, one that gives you more pts than you could possibly need. Then, you won't be tempted to go to a meeting and get screwed over.

Although maybe it is attractive just because you want to stay in a "Premier" every year? If so, then it is your life, your preference, and never mind all the advice & #s from everyone. THough I guess you could book a Premier by buying resale pts in Vegas or wherever. Is a Premier hard to book? Do you need to Home Wk it?

 

[jp10558]

"Oh, look, it's 95 degrees and 95% humidity, let's go sweat in the sand!"

This is what vacationers actually believe!

One of my relatives likes it like that so that the ocean is also warm. So if you mainly want to swim in the ocean, I guess it might make sense?

 

[muscae]

@scottc, in your post you mentioned home week privledge is important. If you upgrade to a premier, you'd be staying in a premier unit during the home week. If you are going to book in the club window, then buying anywhere in HGVC allows you to use those points for a kohala stay. Just stay away from the HVC trust points, they currently have a 7 month booking window. Booking in the HGVC club window would allow you to book any unit type. Home week booking is only in your specific unit type.