I'm baaaaaack! And considering re-entering the TS world

[LisaRex]

The lanai at Nanea is quite large, but they have most of it taken up by a large table to seat 6. Great for those that want to dine out on the lanai, but not great for just lounging.
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Thank you for the response. As they say, a picture is worth 1000 words.

P.S. Is that unit considered OF? Please tell me no.

 

[dioxide45]

Thank you for the response. As they say, a picture is worth 1000 words.

P.S. Is that unit considered OF? Please tell me no.

Yes, that is oceanfront. The middle building (4). Building 1 and 8 oceanfront are situation much closer to the water. Ours was a third floor unit. Interestingly enough, there was a large deck below us on the second floor. I asked how to get to it and was told it is only accessible to those in the oceanfront rooms on the second floor in building 4. It has several lounge chairs and daybeds. All for three units. I guess if you get the most terrible oceanfront unit at the place, they can throw them a bone. We didn't see anyone out on that deck for the three days we were at the resort. I suspect our third floor building 4 unit was the lowest placement one could get. We booked (rebooked) relatively last minute so we had a low date/time stamp.

 

[VacationForever]

Yes, that is oceanfront. The middle building (4). Building 1 and 8 oceanfront are situation much closer to the water. Ours was a third floor unit. Interestingly enough, there was a large deck below us on the second floor. I asked how to get to it and was told it is only accessible to those in the oceanfront rooms on the second floor in building 4. It has several lounge chairs and daybeds. All for three units. I guess if you get the most terrible oceanfront unit at the place, they can throw them a bone. We didn't see anyone out on that deck for the three days we were at the resort. I suspect our third floor building 4 unit was the lowest placement one could get. We booked (rebooked) relatively last minute so we had a low date/time stamp.
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Did you use SOs to book?

 

[rickandcindy23]

@LisaRex I prefer Westin over Marriott as well. We own four OFC weeks, so I am right there with you. Love the balcony.

 

[WahooWah]

Change will absolutely happen. Our 1st visit to Maui was 2004 and I rented a OF suite in Wailea Marriott for $2100 and used Delta SkyMiles to book free airfare. SkyMiles are worthless now and that hotel doesn’t even exist any more but lodging rates skyrocketed over the next 20 yrs…, as did MFs. Started at $1700 and was maybe $3700 when I sold.

However, the pendulum did swing and rental/purchase prices for condos are down considerably from last time I looked 4 yrs ago.

Anyway, I considered buying because I hoped I could stay 1 month in the same unit with 1 phone call, which it turns out is not possible. But the economics of buying 4 weeks v renting is at WORST a wash given I'll be 60 next year and can only reasonably snowbird for 15-20 more yrs. Split the difference and call it 18 yrs for the calculation:

WKORV OF 2 bdrm are going for ~$35.000/wk to clear ROFR, so I’d have to take $140,000 out of investments now and lose ~18 yrs of compounded interest.

$140,000 @ 5% over 18 yrs is ~$343,000. Assuming I recoup my entire $140,000 purchase price in 2048, I lost $203,000.

As long as I can rent at WKORV for $203,000 ABOVE THE COST OF MFs over those 18 yrs, the worst I do is I break even. That’s $11,277/yr or $2800/wk. I doubt it’ll be difficult to find an owner willing to rent for MFs + $2800, even in 18 yrs, unless things REALLY change.

1. Once demand returns to long-term trend levels, what is the liklihood of stringing four home resort reservations together vs. finding rentals that work for your four weeks? And what will the rental rates of those weeks be?

In 2023, I have data on rentals of 2BR COF between January and April going for 6,600 - 7,400. The renters paid this plus the GET and TAT, so $7,700 - $8,700. That is a cost savings less the HOAs of at least $4,300 - $5,300.

2. Compounding isn't a one way street. You also have to calculate the compounding of the money you save by paying HOA fees vs. the rental rate over the 18 years if you want to compare apples to apples. You also have to allow for the future value of the weeks if you assume they go up with inflation commensurate with rental rates and HOA dues.

3. Redweek isn't charging renters the 4.5% GET and 14.00% TAT. That change is coming soon. Redweek now forces owners to use their verified system and their payment system in order to rent their reservations on the platform.

 

[jp10558]

I also scratch my head at the number of owners who let weeks go unused. My friend recently bought a nice Myrtle Beach Marriott TS from her aunt, who hadn’t used it since her kids left home a decade ago. What?! I’ve literally given weeks away to my family and friends vs letting it go unused.

I mean, this is the main complaint of TS owners, they get charged but don't use the week. IDK how you get in that situation - the only thing I can think is you buy, and then have a major job change and can't afford to get to the TS each year. But I still maintain this is a lack of education, as I've had retail, call center, "real jobs" and in every case, a TS week would have been pretty easy to use, because you could tell the job you'd want week X off in a year, and I've never had problems with that kind of notice. And if it's an issue of getting to Hawaii or whatever, at least you probably can exchange it or rent it or give it to a friend like you say.

I'd guess it's at least partially having a loan so it's much harder to walk away, and people just not wanting to be bothered. Which again is strange but whatever.

 

[dioxide45]

Did you use SOs to book?

Yes

 

[GregT]

Welcome Back @LisaRex !

I was away for a bit also but happy to be back -- I hope you find the right timeshare ownership for you. These are still a wonderful addition to my life and I appreciate the Starwood / Marriott blend! Happy travels!

Best,

Greg