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Pre-construction purchase Marriott
- Thread starter annamaria
- Start date
Bill4728
Moderator
Most Marriott resorts take many years to finish the full resort. BUT that doesn't mean that the resort will not open for many years. Most of the time Pre construction means about a year before they open. So if you buy pre-construction, you'll get a good price and hopefully a huge number of Marriott hotel reward points to use for the year or two before the resort opens.
There are many long time Tuggers, which have found that the specials assocaited with pre constuction were enough to make them forget the TUG moto " Buy Resale" and buy direct from Marriott.
There are many long time Tuggers, which have found that the specials assocaited with pre constuction were enough to make them forget the TUG moto " Buy Resale" and buy direct from Marriott.
stevens397
TUG Member
I know that people have done well buying pre-construction (or early construction). My business partner bought Aruba Ocean Club that way and got in for $17,000 for Platinum.
My concern now is that the economy is so bad. Sales staff is being reduced and if sales continue to falter (as you would expect in a bad economy with a luxury purchase), I could see developers slowing down the construction. I'd be very nervous about a 1 year anticipated opening getting stretched out to 3 years. And they would expect you to keep paying during that period.
That same partner bought a luxury timeshare to be built in Cabo and has already paid it off. The developer sold it to Starwood and, basically, it's still sitting there with nothing being done four years later. Not a happy camper.
My concern now is that the economy is so bad. Sales staff is being reduced and if sales continue to falter (as you would expect in a bad economy with a luxury purchase), I could see developers slowing down the construction. I'd be very nervous about a 1 year anticipated opening getting stretched out to 3 years. And they would expect you to keep paying during that period.
That same partner bought a luxury timeshare to be built in Cabo and has already paid it off. The developer sold it to Starwood and, basically, it's still sitting there with nothing being done four years later. Not a happy camper.
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There are laws that assist the purchaser with this. The laws may be specific to the state you reside, not the timeshare. For instance, I live in NY, and both of my purchases were only allowed because the units I purchased were already available. Otherwise, the salespeople said I would not have been able to complete the purchase, only the down payment.
hot2trot
newbie
I purchased pre-construction in Las Vegas. This is how it works. You get an purchase incentive in the form of points when you purchase. You can use the points for hotel stays. You will be told when your use year begins. Let's say for conversation purposes it is 2010.
You do not have to pay any maintenance fees until you can use the resort, and if you live in New York you don't have to close escrow and pay any additional money until the building has a certificate of occupancy. NY'ers only have to put down 25%. You are usually given the option of purchasing the "alt use" points (alternate use) if you want because you don't have anything to trade and you don't have anything to occupy. The amount of points are what your week would trade for if you turned it in. Different weeks are different amounts. If you had a week that was worth 110,000 points then all you have to do is pay the alt use fee and Marriott will give you 110,000 points.
You can usually purchase one or two years at purchase. This is the only time you will ever be able to do this - when you are purchasing something that isn't ready to use. If it will be 2 years before you can use the resort you can choose. Let's say you decided to purchase the alt use points 110,000 +110,000 (2 years worth) 150,000 purchase incentive points, 18,750 points for putting your 25% down payment on your Marriott visa and VIOLA! you have 388,750 points which will give you an incredible trip for 4 or 2 incredible trips. - hotel and airfare.
The other plus is you don't have to start paying on this for 2 years and you got the property at the entry level price. Marriott raises the prices of all their property regularly.
You do not have to pay any maintenance fees until you can use the resort, and if you live in New York you don't have to close escrow and pay any additional money until the building has a certificate of occupancy. NY'ers only have to put down 25%. You are usually given the option of purchasing the "alt use" points (alternate use) if you want because you don't have anything to trade and you don't have anything to occupy. The amount of points are what your week would trade for if you turned it in. Different weeks are different amounts. If you had a week that was worth 110,000 points then all you have to do is pay the alt use fee and Marriott will give you 110,000 points.
You can usually purchase one or two years at purchase. This is the only time you will ever be able to do this - when you are purchasing something that isn't ready to use. If it will be 2 years before you can use the resort you can choose. Let's say you decided to purchase the alt use points 110,000 +110,000 (2 years worth) 150,000 purchase incentive points, 18,750 points for putting your 25% down payment on your Marriott visa and VIOLA! you have 388,750 points which will give you an incredible trip for 4 or 2 incredible trips. - hotel and airfare.
The other plus is you don't have to start paying on this for 2 years and you got the property at the entry level price. Marriott raises the prices of all their property regularly.
jerseyfinn
TUG Member
. . . I could see developers slowing down the construction. I'd be very nervous about a 1 year anticipated opening getting stretched out to 3 years . . .
Definitely a concern with some developers, but I don't think so with Marriott. We've purchased Oceana Palms pre-construction and it's due to open January 2010. Construction is ahead of schedule.
Groundbreaking was in March 2008 and the first building was 90% framed out when we were at Ocean Pointe in August. In the sagging construction economy in Florida, there's no issues getting the necessary crews to keep moving ahead. But it's also key that the developer has deep pockets to move ahead no matter what -- and this is where doing business with Marriott has its advantages.
Now a good question to ask is what will happen at Oceana Palms once the first building (of two ) is up. But from an owner viewpoint, this is not a problem as you have your resort up and running as promised. If the economy (and sales) remain laggard, then perhaps MVC could push back the construction of the next building(s). But this does not affect the owner as your MF would be subsidized until sales in the existing building hit a predetermined level of owners. It's all part of the game. With Marriott, I'd expect the thing to get built. But like all developers, they could alter future timetables.
Barry
Definitely a concern with some developers, but I don't think so with Marriott. We've purchased Oceana Palms pre-construction and it's due to open January 2010. Construction is ahead of schedule.
Groundbreaking was in March 2008 and the first building was 90% framed out when we were at Ocean Pointe in August. In the sagging construction economy in Florida, there's no issues getting the necessary crews to keep moving ahead. But it's also key that the developer has deep pockets to move ahead no matter what -- and this is where doing business with Marriott has its advantages.
Now a good question to ask is what will happen at Oceana Palms once the first building (of two ) is up. But from an owner viewpoint, this is not a problem as you have your resort up and running as promised. If the economy (and sales) remain laggard, then perhaps MVC could push back the construction of the next building(s). But this does not affect the owner as your MF would be subsidized until sales in the existing building hit a predetermined level of owners. It's all part of the game. With Marriott, I'd expect the thing to get built. But like all developers, they could alter future timetables.
Barry
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For NY residents at least, there is another interesting twist: since NY law requires a CO before closing, NY residents can purchase at pre-construction prices but don't actually pay until the resort is open. If I am not mistaken, however, they can pay the MF's for points in the interim.
That is correct. My sister and I purchased an Aruba and got usage two years ahead of our closing date.
Also purchased points for the 1 st year where there was no usage. MF were paid each year from the beginning but closing didn't occur for 2 years. This is only NY residents. Not sure it is the same anymore.None the less, I wouldn't worry about Marriott leaving you high and dry on a TS purchase. They will finish their construction. If anything in this slow market they will delay beginning new resorts, but I have no doubt they will finish what they started.
Beverley
ARG!!
We bought two weeks at the Marriott Lakeside Reserve in Orlando which is only on the drawing board now. I wonder if I will be paying MFs if it is not completed in a timely fashion. They are giving us points in lieu of usage until it's done but that is a small consolation since we want to stay there.
We bought two weeks at the Marriott Lakeside Reserve in Orlando which is only on the drawing board now. I wonder if I will be paying MFs if it is not completed in a timely fashion. They are giving us points in lieu of usage until it's done but that is a small consolation since we want to stay there.
TheTimeTraveler
TUG Member
Why would you be paying maintenance fees at Lakeside Reserve if it isn't completed? Aren't maintenance fees applied just to run the complex, not build the complex?
NOPE, I have to pay them.
Dave M
TUG Lifetime Member
Yes, TimeTraveler, that's what fees are for. But buyers of uncompleted Marriott properties typically pay annual fees to Marriott. Those fees pay for the 100,000 +/- Marriott Rewards points that the new owner receives each year until the property is ready for occupancy. Unless the fees are more than 1 to 1 1/4 cents per point, it's not a bad deal.