Purchased SoCal, should I take 2009 fall week?

[MOXJO7282]

Just purchased SoCal (actually two) cheap on ebay, hopefully they pass ROFR. I was happy that one of the purchases didn't have a 2009 week, because one of the negative things about buying resale is getting a good reservation that first year. Usually just because of the timing of things you don't get control and the most deisred weeks get taken.

Anyway on the other week, I may have the option of taking a 2009 fall week Sept or Oct or no week at all. I can't use the week, so I would need to be able rent it.

My question to anyone who really knows the SoCal market is, do fall SoCal weeks rent? I would just expect to cover MF or so, first year, but what I can't afford to do is not rent and not use the week, then the overall value of the week I purchased goes down. I've gotten bad weeks with almost every one of my resales, that lucky rented, but in this market I don't want to take a chance.

Regards.
Joe

 

[KathyPet]

OK I give up! what resort is SoCal? I cannot think of any Marriott resort that is called that so clue me in.

 

[gmarine]

He probably means in Southern California, Newport Coast.

 

[cp73]

Joe,

Are you a timeshare collector? Just curious as to why you are buying more timeshares. Are you making money on these things some way? Just curious. Good luck. I guess you are referring to Newport Coast, but it could also be DSV I, 2, or SR. So Cal is a big area....

 

[Werner Weiss]

Anyway on the other week, I may have the option of taking a 2009 fall week Sept or Oct or no week at all. I can't use the week, so I would need to be able rent it.

Are you saying that if you don't book the week, you won't be responsible for the maintenance fee?

Normally, for a resale, the contract spells out who gets the year's usage, and it's customary for the party that gets the usage to be responsible for the maintenance fee. And even if you don't book a reservation for that usage, you're responsible for the maintenance fee.

EDITED TO ADD THIS: If the seller is providing the option, then I see the point of the question. But if you're acquiring the 2009 usage in any case, then my comments above apply.

There are several MVCI resorts in Southern California (SoCal):

Marriott's Desert Springs Villas I
Marriott's Desert Springs Villas II
Marriott's Newport Coast Villas
Marriott's Shadow Ridge Villas

The desirable seasons are different at the coast and in the desert.

At Newport Coast Villas, the weather in September is absolutely great. The month is not as high-demand as when school is out, but for guests who aren't tied to a school calendar, it's the best month to visit Newport Beach. I would have to think it could easily be rented out for substantially more than the maintenance fee, but I have no personal experience.

An alternative to renting would be deposit with II. I have no experience with the resorts in Palm Desert, but a September week at Newport Coast Villas will be a strong trader and it will earn an accommodation certificate ("bonus week").

 

[MOXJO7282]

Are you saying that if you don't book the week, you won't be responsible for the maintenance fee?

Normally, for a resale, the contract spells out who gets the year's usage, and it's customary for the party that gets the usage to be responsible for the maintenance fee. And even if you don't book a reservation for that usage, you're responsible for the maintenance fee.

EDITED TO ADD THIS: If the seller is providing the option, then I see the point of the question. But if you're acquiring the 2009 usage in any case, then my comments above apply.

There are several MVCI resorts in Southern California (SoCal):

Marriott's Desert Springs Villas I
Marriott's Desert Springs Villas II
Marriott's Newport Coast Villas
Marriott's Shadow Ridge Villas

The desirable seasons are different at the coast and in the desert.

At Newport Coast Villas, the weather in September is absolutely great. The month is not as high-demand as when school is out, but for guests who aren't tied to a school calendar, it's the best month to visit Newport Beach. I would have to think it could easily be rented out for substantially more than the maintenance fee, but I have no personal experience.

An alternative to renting would be deposit with II. I have no experience with the resorts in Palm Desert, but a September week at Newport Coast Villas will be a strong trader and it will earn an accommodation certificate ("bonus week").

I was trying to be coy because I didn't want to be seen as trying to advertise my week for rent. I'll continue with that but will offer that its not Palm Desert.

Walt provides good info. If I take the week I pay the MF, so I want to make sure it has some rental value. Trading and getting an AC will at some point be a value to me, but for now my vacation planner is full for the next five years, so I don't need weeks I can't rent.

As for all the weeks I own, I'm not sure what a "timeshare collector" is, but if it is someone who buys prime oceanfront Marriotts to use, and rent to "cover my costs," and maybe a "nickel" more then that is what I am a "timeshare collector".

So far every purchase has worked out well, where if I couldn't use the week, I could rent successfully. The best part is I've very little of my own money. For example, my MOW, bought from Marriott using MAR credit card then transferred to 1.9% life of loan credit card. So I had a 1.9% overhead on this week. I've now paid that down to less than $5000, so 1.9% now translates into $100 a year in overhead. I've successfully rented that 4 years running, at a "modest" amount above MF and overhead, that makes it a winning equation for me.

I hoping to do the same with my new NCV weeks. I really need to rent for at least $1700 to make it a smart move for me. If not, I purchased at such a good price, I could flip quickly if necessary to break even, or worst case lose a small part of my investment.

Regards.
Joe

 

[Cathyb]

Werner: First I was SOOOO glad it was you that posted -- now I am not so sure. Why are all of you trying to make a business of profit and hurting all the rest of us -- esp you??? Is money SO important to hurt all the rest of us 'normal' buyers??? Please respond!

 

[Werner Weiss]

Werner: First I was SOOOO glad it was you that posted -- now I am not so sure. Why are all of you trying to make a business of profit and hurting all the rest of us -- esp you??? Is money SO important to hurt all the rest of us 'normal' buyers??? Please respond!

I guess I don't see that I'm "trying to make a business of profit," and I don't see where my reply advocates hurting anyone.

I thought I was primarily pointing out that September is a great time to visit Newport Beach, and there are probably people who would gladly rent a Newport Coast Villas week in September for more than the owner's maintenance fee.

As floating-week Marriott Vacation Club owners, we can each book in the season we own, subject, of course, to availability. We then have various ways to use whatever weeks we reserve. We can stay there ourselves, give the week to family or friends, exchange though II, exchange privately, exchange through another exchange company, rent out through Marriott, rent out privately, turn in for Marriott Rewards points, or leave the room empty for a week (and I'm probably leaving some options off this list).

I have never rented out a week. I own timeshare weeks for great vacations, sometimes at the resorts where we own, and sometimes though II exchanges.

Considering the initial purchase price, annual maintenance, annual property taxes, income tax on rental income, and the various risks inherent in renting, it seems to me that privately renting out timeshare weeks is not a good business. But there are obviously others, such as Joe, who don't agree with me.

Actually, it's nice to know that I have the option to rent out a week, should we ever find ourselves unable to use all of our weeks. And it's also nice to know that I could rent an extra week from a private party if we want one, probably for a much lower price than renting directly from Marriott.

Private rentals do not seem evil to me.

 

[Cathyb]

werner: thank you for clarifying! I get so frustrated when a one week owner wants to get a July/Aug week and can't because the 'investor' types buy multiple weeks, get priority reservations and then rents them out. I know it is legal, but it still defies the original purpose of buying a nice timeshare week for us 'poorer' folks.

btw, did you know half the sales mgt. staff at Newport Coast got the boot?

 

[applegirl]

btw, did you know half the sales mgt. staff at Newport Coast got the boot?

No, I didn't know this! We were just there 2 weeks ago and the sales building did seem a bit quiet. Tough economic times for everyone.

Janna

 

[dlpearson]

Joe, if you need to clear $1700 to make it worthwhile (and you don't really want/need the week as a deposit since you're booked for the next 5 years), personally, I wouldn't take the chance on a fall week in this economy. If the sales contract gives you the option to take the week (and pay associated maintenance) or not, I'd probably pass myself.

David

 

[Bill4728]

This year Marriott deposited a whole bunch of Fall weeks at NCV. So many, that II used them as get-a-ways. they were rented this summer for ~$1000.

So IMHO, you'd be hard pressed to rent a fall ( late sept or Oct) week for much more than $1000.

 

[CaliDave]

Joe,

Fall isn't going to rent very well. Even thought weather is great and its a great resort, year round.. I wouldn't try to rent anything from Labor day until Spring Break.

Summer at Newport should rent easily and for a good price. Even in down times.. it should do well. You have a local base of 10 million people with a easy drive.

Good luck