Pricing question, dollar per point

[jlange]

One more question as I research our purchase, perhaps folks here will know. We are looking at buying into an LV location resale. I see some out there that are 5,000 points going for between $5-7K. But 7,000 point listings tend to be between $11-13K. The cost per point is much cheaper for the 5,000 point deals. Why is that? Usually the more you buy the lower the per unit cost. What am I missing that would explain this?

Thanks

 

[PigsDad]

The 7000 point packages are 2BR units in Platinum season, whereas the 5000 point packages are 2BR units in Gold season. You pay yearly maintenance fees based on unit size, not number of point -- so the 5K point owner will pay the same MF every year as the 7K point owner, but will receive 2K less points!

Even though HGVC is a points-based system, you actually purchase a certain unit size and a certain week. The week you purchase determines how many points you will receive, not the other way around.

Therefore with all things being equal, Platinum-season weeks usually command a premium over Gold-season weeks, due to the yearly MF/point ratio.

Kurt

 

[DEROS]

Sometimes the price difference is the expectation of the owner that is selling. For example, when I purchased my TS, I was able to buy a 9600pt platinum season for what other sellers were asking for their 8400pt platinum at the same resort.

TS is no different than buying a house. A seller makes an asking price and the buyer can give a counter offer. In the good old days of the housing boom, sellers good ask for outrageous prices. Currently during the housing bust, buyers can drop the price and get a paid 1 week vacation in Hawaii.

In closing, buying resale will always put you ahead because it will always be up to 50% off the retail price. Sometimes even more.

 

[Sandy VDH]

Platinum weeks have higher purchase prices usually, but lower per point costs over time.

Gold weeks usually have lower purchase prices, but then have higher costs per point over time. So initially this may be a cheaper purchase, but over time it will always cost more, unless you sell your week.

So for example $1000 MF for 7000 points Platinum = $0.1428 per point cost
same $1000 MF for 5000 points Gold = $0.20 per point costs. So Annually it would be about 40% more per point costs for a Gold underlying weeks versus a Platinum. If you keep your timeshare for any length of time, cost per point of ownership will be less on the larger packages.

 

[Zac495]

If you want to use Hilton every year and you need a 2 bedroom, 7K points is the way to go. Correct me if I'm wrong, but you can't later add one 2K point package - you'd have to buy more- and pay more maintenance fee.

5K is enough for me because we own 2 Marriotts - we only need Hilton every other year (this year we hope to borrow ahead for Hawaii). If Hilton had more locations (the affiliates "don't count" for me because they're not as easy to trade into), I would have bought more points and one less Marriott.

 

[jlange]

Thanks all for the advice. Its great to talk this out before a big purchase.

 

[robichaudj]

EOY cost?

Hey, can anyone provide some guidance on how every other year packages should price out, I see $1.40/pt - $2.00/pt being thrown around as "good" sales prices, but don't see a lot of info on EOY units. We are looking at a 2 bed/platinum in Hawaii with 7,000 HGVC points, seller is looking for $6k, any advice is appreciated.

 

[Bill4728]

Hey, can anyone provide some guidance on how every other year packages should price out, I see $1.40/pt - $2.00/pt being thrown around as "good" sales prices, but don't see a lot of info on EOY units. We are looking at a 2 bed/platinum in Hawaii with 7,000 HGVC points, seller is looking for $6k, any advice is appreciated.

Price /pt has several variables. In your case the biggest variable is that your looking at pts from the hawaii resorts. They often get a significant price bonus. So platinum pts from resorts in LV or Orlando pts may be a good deal at $1.50/pt, Pts from the hawaiian resorts ( except the bay club which is an affiliate) generally run significantly higher >$2.00/pt.

Hope that helps!