La Pacifica

[Chris-ATX]

Hi All -

I’m looking at a possible La Pacifica resell deed, well, RTU.

It’s got a good point to 2025 MF ratio at $0.084/point for the premier studio.

I don’t really see us going there. So I’m thinking of this as more a source for efficient HGVC points (plus the possibility for the 1:32 HH conversion if wanted).

Any thoughts on this as a point source for our general HGVC adventures (we’ve bought Vegas already as our current point source just want more points!)? Any downsides?

There aren’t a lot out for resell, so unclear in future market when we are done with it. I guess that’s a possible concern - or is it?

The RTU lasts till 2069, I assume we will use it for maybe a decade. So still plenty time after our use.

The purchase price is looking like $0.43/point all in with closing costs. So not crazy unicorn, but I like the MF (which will save lots over time) and I like option of maybe using the 1:32 conversion.

 

[JJ215]

What is the points and M&F?
I bought studio premier plus 23040points. Process almost done.
But if you are talking about same unit, I won't recommend

 

[Chris-ATX]

What is the points and M&F?
I bought studio premier plus 23040points. Process almost done.
But if you are talking about same unit, I won't recommend

It’s the same unit.

$10k resell all in.

23040 points and 2025MF total is $1925. So, $MF/point is $0.08355

Please tell Me more on why not recommended? Thanks

 

[WaikikiFirst]

I talked to someone about that studio premier+ a yr ago. $10K is lower than I was being asked. Generally, if you will use it for a decade or more, the #s sure work.
caveat, $1925 MF? wasn't that $1,700 a yr ago. Big jump. You should put that # in the 2025 HGVC MF thread pinnd to the top, noting that you don't own it yet, I guess.
Nobody reported La Pacifica in 2024 either

 

[JJ215]

It’s the same unit.

$10k resell all in.

23040 points and 2025MF total is $1925. So, $MF/point is $0.08355

Please tell Me more on why not recommended? Thanks

2023MF was $1420.
Nearly 40% increase in only 2 years.

 

[SmithOp]

2023MF was $1420.
Nearly 40% increase in only 2 years.

I don't know the sales history of this resort but sometimes this happens when the developers subsidy ends when the units are sold out. During initial sales years the developer will subsidize the MF to keep them low.

 

[Chris-ATX]

This certainly changes the calculus. In a big way.

I've asked the broker for confirmation on the MF history. But based on this feedback, we won't move forward.

 

[Chris-ATX]

2023MF was $1420.
Nearly 40% increase in only 2 years.

@JJ215

Do you have any other reservations about La Pacifica? You mentioned you don’t recommend it, is this something based on the growth of MF? Or are there other factors?

I’m curious if anyone has a projection of where the MF achieve a more steady state level?

 

[1Kflyerguy]

In general MF have taken some big jumps in recent years. Last year Marriott resorts had big increases, this year some of HGV resorts had bigger increases. Things like insurance and labor cost have had an impact

 

[JJ215]

@JJ215

Do you have any other reservations about La Pacifica? You mentioned you don’t recommend it, is this something based on the growth of MF? Or are there other factors?

I’m curious if anyone has a projection of where the MF achieve a more steady state level?

Only MF is the reason why I don't recommend.
Still need to check the MF trend for 2026. If MF for 2026 increase more than 10% again, value of the unit will be dropped.