Inherit HGV timeshare or decline - Advise pls

[Champagne Toast]

My parents own the HGV's below. Would you accept them both, one, or neither and WHY?

I really love the Bay Club better than Kingsland. I do know a little bit about them and my mom's frustration with reservations, etc. I have been using them over the years when my parents can't but I am not paying for them. I could afford the MFs, it would be nice but do I want the burden of forever dues? I do have found memories of taking our family to Bay Club. I know nothing of the RCI exchange system as I have not wanted to go down that rabbit hole yet.

The bay club = 1CD 4800 Platinum MFs approx. $1300 EY
Kingsland = 1BP 6300 Gold MFs approx. $1500 EOY

Thanks in advance for your time.

 

[bogey21]

My parents own the HGV's below. Would you accept them both, one, or neither and WHY?

The bay club = 1CD 4800 Platinum MFs approx. $1300 EY
Kingsland = 1BP 6300 Gold MFs approx. $1500 EOY

Check and see how much it would cost you to rent these Weeks. That should help you decide...

George

 

[Champagne Toast]

Check and see how much it would cost you to rent these Weeks. That should help you decide...

George

Thank you George. That was a very logical way of looking at it. They ranged from $285-$580.00. Appreciate your help.

 

[chellej]

If you would use them I would consider taking them. I have found that owning timeshares forces me to take vacations I normally wouldn't and I do not regret the vacations we have had over the years. I do think HGV's are still a timeshare that you can give away if you can't find a buyer. Maybe keep one and pass on the other. I would not take these with the anticipation of exchanging them but only if I were going to use them. There are plenty of other timeshares with lower fees if you are looking to exchange

 

[GT75]

There are much cheaper HGVC (MFs) than these. Secondly, BI (KL and Bay Club) is very easy to exchange into w/o owning there. So, I would recommend to pass.

 

[Champagne Toast]

There are much cheaper HGVC (MFs) than these. Secondly, BI (KL and Bay Club) is very easy to exchange into w/o owning there. So, I would recommend to pass.

Where are the MF's lower that would be better to own vs. just keeping these?

 

[GT75]

Where are the MF's lower that would be better to own vs. just keeping these?

Refer to link.

Also refer to this post

 

[pedro47]

Are the timeshares paid for (no mortgages or bank loan) is my question and concerns?

 

[CalGalTraveler]

Look on Ebay and redweek to see if they have any sales value (prob not much). How many years would it take to breakeven on buying more Vegas with transaction costs.

If you purchased a 7k point Vegas week at Blvd or Paradise, assume $8000 all in with transaction fees. MF savings per year $950/year = $2050 (what you are paying now) - $1100 Vegas MF).

$8000 purch cost divided by $950 savings/year = 8.5 years to breakeven with 7k points vs. 7450 points currently (loss of 450 points). If you believe that you would use this for more than 8.5 years you will be ahead. If you don't think you will use then decline now while you can easily do this for zero cost. You can easily rent a 1 bdrm for about the same MF cost or less on the BI with no obligation until you decide whether to buy resale again.

 

[GT75]

Let help give the OP any additional advice because I just moved the thread into our forum.

 

[Tamaradarann]

Thank you George. That was a very logical way of looking at it. They ranged from $285-$580.00. Appreciate your help.

Is that the cost of renting a week now during the pandemic or during normal times? Hawaii is a very desirable location even though Hawaii Island is much less booked than Oahu.

 

[letsgobobby]

I think you either want to own in a place that's hard to get into, that you want to go to regularly (for us, that is Oahu); or you want to own for the cheapest annual MF per point that you can find. I don't think these properties qualify as either, so I would pass.

 

[BingoBangoBongo]

I think you either want to own in a place that's hard to get into, that you want to go to regularly (for us, that is Oahu); or you want to own for the cheapest annual MF per point that you can find. I don't think these properties qualify as either, so I would pass.

I would tend to agree with that position, however it doesn’t recognize that his cost of acquisition for either or both of these is $0, other than any cost of changing the deed or the activation fee, if either of those would apply.

i think he really needs to a) decide whether he wants to own any timeshare. b) do these make sense vs acquiring something different.

To me the most telling part of the OP is the desire not to be burdened with the MF’s forever. If you do take either of these, you need to understand what an exit strategy could look like.

 

[PigsDad]

I would tend to agree with that position, however it doesn’t recognize that his cost of acquisition for either or both of these is $0, other than any cost of changing the deed or the activation fee, if either of those would apply.

I agree. @CalGalTraveler calculated the break even time would be 8.5 years, so the OP could use it for 8 years and then simply give it away and they would still be ahead. If after 8 years they still want to own, they could sell/give these away and buy an efficient MF$/point deed, and I bet they would be even less expensive in 8 years than they are today. If the OP wants to own HGV, I don't see the downside of accepting these free deeds.

Kurt

 

[dayooper]

I agree. @CalGalTraveler calculated the break even time would be 8.5 years, so the OP could use it for 8 years and then simply give it away and they would still be ahead. If after 8 years they still want to own, they could sell/give these away and buy an efficient MF$/point deed, and I bet they would be even less expensive in 8 years than they are today. If the OP wants to own HGV, I don't see the downside of accepting these free deeds.

Kurt

The downside is that in 8 years, it may be hard to give away. If the desirable units go down in price, the less desirable units will be harder to get out of. A 4800 point Bay Club is almost a giveaway right now. If it were me, I would pass. If owning at HGVC is something that the OP is interested to experience the resorts, a lower cost deed/deeds would be better, IMO.

 

[letsgobobby]

I would tend to agree with that position, however it doesn’t recognize that his cost of acquisition for either or both of these is $0, other than any cost of changing the deed or the activation fee, if either of those would apply.

i think he really needs to a) decide whether he wants to own any timeshare. b) do these make sense vs acquiring something different.

To me the most telling part of the OP is the desire not to be burdened with the MF’s forever. If you do take either of these, you need to understand what an exit strategy could look like.

Agree to a point but note that lower cost MF deeds are available on eBay for free or close to it.

 

[alwysonvac]

My parents own the HGV's below. Would you accept them both, one, or neither and WHY?

I really love the Bay Club better than Kingsland. I do know a little bit about them and my mom's frustration with reservations, etc. I have been using them over the years when my parents can't but I am not paying for them. I could afford the MFs, it would be nice but do I want the burden of forever dues? I do have found memories of taking our family to Bay Club. I know nothing of the RCI exchange system as I have not wanted to go down that rabbit hole yet.

The bay club = 1CD 4800 Platinum MFs approx. $1300 EY
Kingsland = 1BP 6300 Gold MFs approx. $1500 EOY

Thanks in advance for your time.

JMHO...I suggest thinking about where and how you want to travel over the next ten years.

Also think about whether you would have taken some of your previous trips if you had to pay the timeshare cost (MF + Club Dues + Reservation Fee + Guest Certificate fee) or would you have spent the time someplace else.

Some folks like to come back to the same resort year after year. Others like to explore and visit new places. Do you see yourself using HGV every year or every other year? If not, then perhaps it’s better to rent for the occasion use.

JMHO...Timeshare fees are going to increase over time. Each year as fees increase, so will the competition to find a buyer as additional sellers enter the marketplace. How will the HGV resorts fare over the next ten years? No one knows. To me it simply doesn’t make sense to own if you’re losing money (by letting unused weeks expire or when it cost more to own than to rent).

 

[fernow]

My parents own the HGV's below. Would you accept them both, one, or neither and WHY?

My answer is neither. Accept neither.

But the question may not be quite that simple.

Others here know more than I do on the subject but as I understand it, the obligation to HGVC for the yearly maintenance fees doesn't end on the death of your parents. Their estate will remain obligated. So unless you sell them, you will be responsible to pay for them to the extent you are receiving anything from the estate. You cannot be compelled to pay the fees but since the estate IS obligated, your inheritance is reduced. Might want to verify that.

Also, this whole Covid thing should be something you consider. Being obligated to any travel destination right now may not be a good idea. Things (government) have shut travel down before and they will likely do so again. All the "break even" figures do not take into account one or two years of paying fees with no travel available. If Covid was the result of some poor person eating a bad batch of bat AND the vaccine is safe and effective, this may be a "one and done". But...

Sell them or give them away if you can. Wait and see about buying in later.

 

[jehb2]

First, I’m assuming both are paid off. Otherwise the answer is no. Also, is this something you have to decide on now?

Yes, I would accept one or both. It’s a good timeshare. It’s a free timeshare. Finding a timeshare with a cheaper MF isn’t all that relevant to you because it’s a free timeshare. Any out-of-pocket cost to you to obtain a timeshare with a lower maintenance fee is going to have to be factored in to the total cost of that timeshare over the course of however many years.

You also know what you’re getting into. But don’t plan on exchanging into RCI.

 

[VacayKat]

So for us, we bought a resale timeshare after staying at the property and realizing we couldn't stay there each year (maybe could afford every three years), but the cost of the maintenance fees we could cover and afford our family a Hawaii trip each year. We’ve slowly amassed more, and will be able to subsidize our now adult children’s vacations as well as take extended family vacations. But if you asked us to inherit something primarily used on the mainland we’d say no- on Hawaii, in a location we like, we’d do it.
I do think it making you take vacation is a viable reason for some. For us it changed how we vacation and we do less camping and road trips but our family liked Hawaii to get out of Seattle winters and be sane again. Since relocating, finding the sun isn't as big of a deal as we now get lots -so while we might have chose to inherit for winter break vacations, now we‘d only do it for the prices you list if the every year got a 1 bed for a week and a half and a 2 bed for a week. The every other year would need to be a 2 bed for 2 weeks. We also probably wouldn't at this time in our lives with kids in college because we just don't do that many big family trips right now. In 5 years though we probably would as a bribe to make them vacation with us (lol).
My advice is only to inherit if you actually want to use it. An option would be to make a deal with your parents where you pay for the MF for the year and try it out. If it feels good and liberating then inherit, if its a burden and vacation doesn't feel like joy, then forgo. One other thing is you can start to feel locked in to the same vacation year after year- if you don't understand how to do trades etc(if they are an option), and you want to go different places, the timeshare can start to feel limiting. So definitely only say yes if you really want it.

 

[GT75]

My advice is only to inherit if you actually want to use it.

Agree 100%.

An option would be to make a deal with your parents where you pay for the MF for the year and try it out. If it feels good and liberating then inherit, if its a burden and vacation doesn't feel like joy, then forgo.

I think that @VacayKat has really presented a good option here. This would be a great option if you haven't used the HGVC system to book your stay.

 

[Harry]

Depending on where you are domiciled renting could be a hassle tax wise.
We own at both these resorts and are original owners at BC. We have used every year and the enjoyment can not be measured in dollars. Keep them and enjoy.

 

[Champagne Toast]

Are the timeshares paid for (no mortgages or bank loan) is my question and concerns?

YES, there are no loans outstanding on either of them.