Is This a Good Purchase? Seeking Advice

[svarma81]

Hey everyone,

I’m considering purchasing a timeshare at Elara, Hilton Grand Vacations and would love to get some feedback before finalizing the contract. Below are the key details from my offer:

Property & Ownership Details:​

• Resort: Elara, Hilton Grand Vacations (Center Strip, Las Vegas)
• Ownership Type: Deeded
• Unit Info: 2 Beds, 2 Baths
• Usage Type: Annual
• Season: Platinum
• Points Allocated: 13,440 points per year
• Week Assigned: 44-45
• First Available Usage: 2025
• Undivided Interest: 1/104

Purchase Price & Fees:​

• Purchase Price: $2,000
• Initial Deposit: $1,000 (held in escrow)
• Closing Costs: $425
• Service Fee: $349
• Resort Transfer Fee: $489
• Estoppel Fee: Included in Resort Transfer Fee
• Club Activation Fee: $715 (paid directly to HGVC upon closing)
• Annual Club Dues:
  • Domestic owners: $219
  • International owners: $256
• Maintenance Fees for 2023: $1,557.68 (subject to change in future)

Other Contract Terms:​

• Buyer Rescission Period: 10 days to cancel with no penalty
• First Year of Usage: 2025
• Buyer responsible for 2026 maintenance fees; seller covers 2025 fees

 

[rjp123]

Edit: Too many unknowns now. I'd pass.

Sent from my Pixel 8 using Tapatalk

 

[vacationtime1]

I see two issues (which may be typos).

You show a 1/104 interest in the common space. That would indicate an every other year rather than an every year usage. What does the estoppel show?

You show 2023 maintenance fees; those should have been paid years ago; again, the estoppel will have the truth.

The absurdly high transfer fees are typical of HGVC and not a red flag.

 

[svarma81]

Thanks for pointing that out.

The maintenance fee is for 2025. That is a typo.

But the contract of sale shows undivided interest of 1/104. Let me get back to the attorney and check as to why, when the usage is annual.

 

[svarma81]

I checked with the attorney. These are 2 contracts together for 2 units to make it a 2 bedroom unit (1 unit in each contract).

 

[svarma81]

Thanks for pointing that out.

The maintenance fee is for 2025. That is a typo.

But the contract of sale shows undivided interest of 1/104. Let me get back to the attorney and check as to why, when the usage is annual.

So there are 2 contracts together. there is one for 44th week and one for 45th week. So each one has an interest of 1/104 but combined an interest of 1/52.

 

[SmithOp]

Purchase price is excellent.

Maintenance fee stated includes the annual club dues. Points per maintenance fee is good at 10 cents a point.

2025 points included is a bonus.

Here is 2025 maintenance fee:

Elara 2 Bedroom (13440 pts)
2025 Operating Fee: $1011.93
2025 Real Estate Taxes: $65.05
2025 Reserve Fee: $254.70
Total: $1331.68

1.73% increase from 2024 (1309.08)

 

[vacationtime1]

That likely means double closing costs, resort transfer fees, club activation fees, etc.

Even if the purchase price is low enough to make this pencil out for you, realize it will be more difficult to sell when the time comes to sell because whoever buys it from you will be looking at double fees and probably go elsewhere.

 

[Chris-ATX]

Something seems strange. You say it is two 1-bedroom contracts to make it a 2 bedroom. But I don't see how the MF sum up.

I'd make your contract is subject to Estoppel verification, giving you an out. And as @vacationtime1 points out, there will at least be 2 activation and transfer charges from HGVC, 1 for each interval. You might also have double closing costs and service fees. It isn't clear from your message. Depending on how all of these add up, this might remain a good opportunity.

Good luck with the transaction!

 

[svarma81]

That likely means double closing costs, resort transfer fees, club activation fees, etc.

Even if the purchase price is low enough to make this pencil out for you, realize it will be more difficult to sell when the time comes to sell because whoever buys it from you will be looking at double fees and probably go elsewhere.

Thank you for bringing this to my attention. I did not realize this as I am new. The broker did tell me that there will be twice the club activation fee and the estoppel fee as there are 2 contracts (odd and even every other year together). She will lower her commission so that I do not have to pay it while buying but yes that can be an issue while selling. She did offer to lower her commission if I use her to see in the future.

Do you think the price is good enough to undergo this complication? or should I forgo it.

 

[WaikikiFirst]

price is good enough to undergo this complication?

Depends on timeframe, alternative & whether you're all revved up and ready to go.
you're getting >13K pts. Maybe it costs (somebody) an extra $1,400 each way or $2800 R/T I guess. "She" offered to cover most of the cost going in.
So, is it $2000 extra cost R/T?
Is the alternative to pay $0.05 more per point? on those pts, the extra $0.05 woould cost you $670/yr. So BREAKEVEN on the $2000 is almost exactly 3 yrs.
Past the 3 yrs, you're saving $670/yr vs some TBD alternative. How many yrs will you use it? How revved up are you? Do you have an alternative already in mind, ready to buy? How much time do you want to spend on this?
only you can answer
generically, I think bundling 2 good EOY contracts and having the broker eat some of the overhead is a good idea for all parties

 

[svarma81]

Depends on timeframe, alternative & whether you're all revved up and ready to go.
you're getting >13K pts. Maybe it costs (somebody) an extra $1,400 each way or $2800 R/T I guess. "She" offered to cover most of the cost going in.
So, is it $2000 extra cost R/T?
Is the alternative to pay $0.05 more per point? on those pts, the extra $0.05 woould cost you $670/yr. So BREAKEVEN on the $2000 is almost exactly 3 yrs.
Past the 3 yrs, you're saving $670/yr vs some TBD alternative. How many yrs will you use it? How revved up are you? Do you have an alternative already in mind, ready to buy? How much time do you want to spend on this?
only you can answer
generically, I think bundling 2 good EOY contracts and having the broker eat some of the overhead is a good idea for all parties

The seller is also paying the 2025 MF.

 

[WaikikiFirst]

seller is also paying the 2025 MF

Yes. I know. That is why I ask "how soon do you want to get this done?" & "what are the alternatives?"
the other question is "How many Pts do you think you will eventually want? Is 13,440 all you can imagine owning? Do you think you'd someday want 35,000?"
If you someday want many more then knock yourself out, do a ton of research, hang around ebay, figure out how to get a few deals that you can REALLY brag about. Invest you time. If you don't see yourself buying more pts any time soon, trying to squeeze the last drop out of this stuff is a completely personal decision.

and remember, what people told you was that if "seller is also paying the 2025 MF" then SOMEDAY, when you want to sell it you will likely have to do the same ...
but again, you give zero info on how old you are, how long you think you will use it, what you see as your alternative if this doesn't happen ... so....
ONLY YOU CAN ANSWER

 

[svarma81]

Yes. I know. That is why I ask "how soon do you want to get this done?" & "what are the alternatives?"
the other question is "How many Pts do you think you will eventually want? Is 13,440 all you can imagine owning? Do you think you'd someday want 35,000?"
If you someday want many more then knock yourself out, do a ton of research, hang around ebay, figure out how to get a few deals that you can REALLY brag about. Invest you time. If you don't see yourself buying more pts any time soon, trying to squeeze the last drop out of this stuff is a completely personal decision.

I personally won't be doing more than 1-2 weeks with timeshare (out of around 6 - 8 weeks of vacation). I do want to keep the flexibility of staying wherever we want to stay and the location as well. We also tend to travel internationally and was reading it is harder to do timeshare for that.

 

[dayooper]

I personally won't be doing more than 1-2 weeks with timeshare (out of around 6 - 8 weeks of vacation). I do want to keep the flexibility of staying wherever we want to stay and the location as well. We also tend to travel internationally and was reading it is harder to do timeshare for that.

Good luck with that train of thought. I remember saying I'm not sure that I can use my week every year. Yeah, that's not what happened. I learned that we would be using our points and easily borrowing into next year. We quickly bought another and, at some point down the road, we will be buying a 3rd.