When I run the figures. If we were to continue with this deal. In 30 years we would have paid $132k. If we divide that by 33 years (since we’ve owned for 3 years) we would pay approx $4k per year for multiple vacations. Is that not good?
just this year alone we did 2 weeks in Hawaii, a week in VA beach during peak, and are planning Disney in December. That’s more than a $4k value. No?
Our room in Hawaii retail was $900 a night. We stayed 13 nights and only used 8k points.
Just trying to understand
You are making so many assumptions. 30 years is far too long to amortize the cost as developers consistently change the systems to what benefits them. Take a look at what Wyndham is currently doing. All of the major systems have devalued their benefits over time. Marriott Bonvoy and Hilton Honors have all increased their needed points and the conversion rates have stayed the same. Marriott is notorious for introducing higher status levels and then telling their owners that what they have is garbage and need to buy more to reach the new level. Especially with HGVC buying out Diamond, benefits and even resorts available could change. In my estimation, I look at savings in ownership at most 10 years down the road. Anything after that is gravy. The industry changes too much to bank on those benefits for 30 years.
I just want to get straight what you are saying about the finances. Are you saying the potential vacations you could potentially take would cost $132,000 or through Diamond you plan on spending $4000 a year to get to $132,000? Did you include maintenance and upgrade fees (and their yearly increases) in your calculations? If not, add another $2000 a year or more to your total cost. Diamond has expensive MF’s and most resorts will need to be brought up to Hilton standards so who knows if they will go down? The money has to come from somewhere.
FYI - When is your break even point? My savings from my HGVC resale ownership is just as good or better. Just an example where my family has gone: Myrtle Beach 2 bedroom high season (Hilton rack rate $4500), Hilton Head Island 2 bedroom high season (rack rate $5500), 5 nights at Elara in Vegas 3 bedroom mid season (rack rate $3800 when I booked in January, it was $8500 a few days ago), 3 nights Downtown Chicago 1 bedroom high season (rack rate $1100). This is for a total ownership cost of around $10,000 ($6000 for deed, transfer and closing costs and 3 years of MF’s and booking fees). After 3 years, by Hilton rack rates, I’m already up close to $5000. All in more highly rated accommodations than Diamond. And yes, I could go to Hawaii with my points. Now, could I rent these rooms from owners for less? Absolutely, many here say you should.
It seems your mind is made up and that’s fine. You asked for opinions and they were given to you. While many owners love their Diamond vacations, there are just as many or more that abhor them for their practices. When the merger/takeover was looking like it was going the other way (Diamond/Apollo buying out HGVC), I was prepared to dump my deed for whatever I could get (as were many other HGVC Tug members). This is a lifetime commitment. If you are unhappy, Diamond will allow you to give back your points for the low, low cost of $1000. That $36,000 would be gone.
As to your question above on achieving gold status from resale, it’s most definitely possible. There are Diamond members here that can tell you how to go about making dirty points clean (I “love“ how Diamond uses words like dirty to shame resale owners feel like they shouldn’t own and use them). I believe they involve buying a portion of your points directly from Diamond.
Here‘s my last piece of advice: rescind now. Find out how HGVC plans on dealing with Diamond (HVC is their new branding) and purchase then. Research other systems. Rent from different current owners. Maybe HGVC or Marriott (if I were to buy from a developer, it would be Marriott) might be a better fit? Both of those are much more upscale (Diamond’s Cabo Azul not withstanding) with accommodations in much better condition. Maybe Wyndham‘s extensive resort network might be to your liking? We aren’t just talking about $36,000 here. We are talking about a lifetime of MF’s and changing benefits. If, after research you still feel that you want to buy from Diamond (or HVC), that deal, or better will still be there.