Update on VCI trust

[Ellis2ca]

Hi, Ellis, Yes I will renew. What I am not certain of is if I will renew both weeks. I have a 13 C unit and a 14 B unit. I may keep the C unit, apply the residuals from both to pay for that unit (though I may be out 1,000 dollars that way, and then plan to exchange in via II for the week before or after 13. I was hoping to find 2 consecutive weeks in the same unit. If that happens, anything goes!!

Hello Karen... Could you give us the details of your two weeks? What is the residual value of each, and how much do you have to pay to renew each week? This will also help others to understand how we are being treated at V.C.I. now, so they will understand how they will be treated when it is their turn to decide, someday.

"A grosso modo" I do not think that what you intend to do, as you described it, is to your advantage. If week 13 and 14 have MORE residual value than you need to renew only week 13, then you should PAY for week 13 with residual and cash, and ask for the return of your residual value for week 14. That will put money in your pocket, although in the meantime you will be paying for week 13, and waiting to receive residuals for week 14.

Or find two weeks in the same unit, as you said you would like to do, but either use up all your residuals or ask for them to be paid back to you. But according to the rules of the game as I understand them, you can't ask for "change"...

But maybe you could pool your residuals with mine and I would use your residuals and I would pay you the change... but I'm not sure if that can be done... and all my reinvestment is about $9400 for my three weeks... so this won't work if your residuals for week 14 are greater than $9400.

How happy and comfortable are you with your B Villa, as compared to your C Villa? (B Villa is 2 bedrooms and 1 bath on one floor about 1000 square feet, C Villa is a duplex with two bedrooms on two floors with about 1400 square feet.)

I find that I am quite happy with my B Villa, because FUNCTIONALLY it is practically the same as a C Villa (most of the extra 400 square feet is wasted space for the stairs going UP and DOWN, plus a second bathroom...) but a C Villa RENTS out to a third party more easily, and I like to rent out and travel with the money. I have a nice ocean view from my C Villa and a nice lagoon view from my B Villa. And I mean it, both views are very nice... either one of them is much nicer than the view of buildings that I have from my apartment in Mexico City.

I THINK you will be able to find two weeks together in the same Villa because Vacation Clubs was originally sold in two week intervals, so MANY members own two consecutive weeks. So I think you have a good chance to find two weeks together...

But you should do your exchanging early in the morning on May 15, because it is first come, first served. If you are flying and you want me to help you with this, I will be glad to help you. Give me precise instructions of what you want, and I will be glad to try to get it for you (if you won't be able to get on the internet early on May 15.) London is 5 hours ahead of New York, and Paris is 6 hours ahead of New York, so that helps.

Let me know if I can help you. - Ellis

 

[geoffb]

I exchanged email with Roger Sherman at Royal Resorts today and he sent me the following information:

We have made some revisions to the original timeline for the VCI Trust termination proposal in order to make sure that we can provide the most up-to-date and accurate information to all our valued Members.

Based on the proposal being made to current VCI Members and which is available for Members to view in its entirety on-line at http://www.royalresorts.com/vci/

The timeline now looks as follows:

* June 1st 2006 is the date on which VCI Members will be able to commence making their firm commitment to renew their Membership, paying the corresponding fee. For those Members who choose to take the interest-free financing, their payments can start on this date

* Members who do not wish to renew their VCI Membership are also being encouraged to let us know as close as possible to the June 1st date so that other Members wanting to switch their Villa or Weeks or buy more weeks can have immediate access to such inventory and this should help us to attain the 75% criteria

* Effective June 1st, VCI Members will begin to have access to the inventory that is available for switches or additional purchases. The inventory will change frequently as Members make their decisions to renew, swap, add or to opt for their residual rights payment

* First right of refusal for VCI Members on their existing Memberships will exist until August 31st, 2006

 

[KarenLK]

Thanks for the update. I really think that the June 1 date may be too soon, as it seems there must be many members still in the dark. The sign is quite prominent as you enter VCI, but many members did not even notice it!!

 

[geoffb]

Well if they do get a mailing out to all members in the next week or so that should get the ball rolling hopefully. Obviously having the right of first refusal extend to August 31st is critical since it will take time to get everyone to respond.

 

[Carolyn]

Just spoke with ISCO at 1-800-791-4409 as I didn't know the value of my unit since it was a resale. I do have the Residual figure. I was told they will be sending a mass mailing to all the members around May 10th that has everyone's individual figures and what it will cost to buy back your unit with the discounts. I will anxiously wait.

Carolyn

 

[chicagobob]

I exchanged email with Roger Sherman at Royal Resorts today and he sent me the following information:

Hi. I am new to the forum and NOT a member of VCI. However, my family has been vacationing at VCI since 1984 and we love the place. So, I am VERY interested in purchasing a 1 or 2 week time share in August. Could you tell me what the current status of the resale of the trust is? Is there any hope for an 'outsider' to purchase a time share? Is there any URL that I should to to in order to obtain current information? Sorry for all the questions... thanks for your time and help,
Bob

 

[tonyg]

Bob, try: www.royalresorts.com
for official information
The Royals do have a resales department.

 

[chicagobob]

Thanks

Bob, try: www.royalresorts.com
for official information
The Royals do have a resales department.

Thanks tonyg---
However, the 'VCI information' option requires a login as a member.

 

[geoffb]

The current status is apparently still undecided. Earlier this month VCI members got an email that said the first right of refusal deadline for current members has been extended "for a limited time." First Right of Refusal was originally set to end on August 31, 2006.

Once first right of refusal expires all unreserved units should be made available for sale to any VCI member for a period of time. After that any unreserved units would be offered to members at other Royal Resorts. But the dates for those offers are not known now.

My understanding of the plan is that no sales would be offered to non-members until and unless the trust is renewed. Since the trust would be renewed with only 75% of the membership reinvesting their residual rights there would certainly be some amount of inventory available for sale.

 

[chicagobob]

Thanks geoffb. I guess I'll just have to wait (a long time?).
Bob

 

[geoffb]

Not sure how long. But the current trust expires in mid-2007 so there will have to be some sort of announcement in the first half of the year.

 

[KarenLK]

I had traded weeks and a while ago tried to log on to see what had happened with the weeks I had given up. One looked like it hadn't been "scooped" up. The last 10 or so times I have tried to log on I get a logon error and I know I have the correct IDs, so I don't know what has happened with the website.

 

[njsueb]

50% of owners have not re-bought

I called VCI last week and they indicated that they still are not at the 75%-80% mark. If owners are interested they need to contact royal resorts right away. They are encouraging owners to tell their friends about the resort and the fact that if their friends buy under their name they'll receive the 50% off the price. Otherwise, other Royal members will be allowed to purchase at the full sale price (not at 50% off).
It's a great deal, we've thought of buying under a friends name but already owning 4 weeks (3 in Cancun, 1 in Curacao), we think enough is enough...........but still a tough deal to walk away from.

I hope for all you owners that you make the 75% and have another 30 great years at VCI.

 

[KarenLK]

It's a deal

It was posted on another thread as well, but I got the official postcard, and the e-mail indicating that the Board of Directors met and agreed to continue for 30 more years.

 

[Jim in Cancun]

I have 2 weeks and chose to take the residual money of $9,100 for both. They will be giving me the money in 5 payments by check as follows:

August 2007: $1,820
Feb: 2008: $1,820
Aug: 2008: $1,820
Feb 2009: $1,820
Aug 2009: $1,820

Interesting.

 

[tonyg]

Perhaps the delayed and partial payments are more in line with expected cash inflows. It would be a liittle tough to just pay out $ 30 million (rough estimate) in residuals before sales of those units were possible, particularly with ongoing construction outflows to the south..

 

[nana7]

Jim, How do you know when and how the payments will be given back? We have not recieved one word about payments. Interesting that you found out so soon.

 

[JEFF H]

Perhaps the delayed and partial payments are more in line with expected cash inflows. It would be a liittle tough to just pay out $ 30 million (rough estimate) in residuals before sales of those units were possible, particularly with ongoing construction outflows to the south..

I agree it would be pretty hard to pay out full residuals to the owners befor the units were resold.
This seems like a good compramise plan to get the residual payments flowing right away to all owners who choose to opt out.
under The original proposal they floated owners would not have received residual payment untill the specific interval was resold.
Owners were also responsible for yearly maintenance fee payments and would retain week usage untill the interval actually sold.

Under this new residual payout plan I would assume owners who opt out are also now excused from making maintence payments and lose the usage rights untill the unit is sold.

 

[JEFF H]

double post deleted

 

[Jim in Cancun]

When asking about the payment of residuals my secretary was told that I would personally "...need to contact the Club International Desk at 1-800-791-4408 to give his final decision." When I called they asked for my pin number or something and then I gave them my contract numbers and they said they were aware that I wanted my residual money and they gave me that schedule of payment.

 

[chicagobob]

current status for an 'outsider'

Could anyone help me with the current information on purchasing a time share for an 'outsider', ie... someone who is NOT curently associated with the time-share system at Club International. My family really wants to become a member and purchase a two-week time slot. Will the BOD open up the available units for 'public' comsumption?
Thanks for your time and help,
Bob

 

[tonyg]

My guess would be as soon as the extension is rejected by the current owner, but since the membership contractually ends on June 28,2007, they may not be offering them for sale until then. Best bet would be to call ISCO at 1-800-930-5050 and inquire, perhaps asking for whatever weeks you are interested in. If you go that route, let us know the results.

 

[KarenLK]

I am not sure about this, but I thought that once the "open season" for VCI members ended, it was going to open to other Royal members. I don't know how long that period would last.

 

[JEFF H]

Could anyone help me with the current information on purchasing a time share for an 'outsider', ie... someone who is NOT curently associated with the time-share system at Club International. My family really wants to become a member and purchase a two-week time slot. Will the BOD open up the available units for 'public' comsumption?
Thanks for your time and help,
Bob

If you do call ISCO ask about resale units available at the other royals as well. You can also look for Royal resales online.
My understanding members will no longer share in the resturant and store profits that have help reduce maintenance fee costs.
Maintenance fees are expected to rise and come into line with fees being paid at the other Royals.
For me VCI has too many drawbacks compared to the other royals.
Some however really love VCI for what it is and If its what you really want
you should have no problem getting units next year.

 

[Ellis2ca]

Update on V.C.I. trust... prices UP 40%

I have been out of touch for a while... I didn't know that V.C.I. has officially announced that it extends the resort for another 30 years, until I called on Friday to confirm if my week 52 was rented through the Club... (it was rented...)

So... now I come to TUG to see what's going on, and I find that there have been some big changes already... I logged on to www.royalresorts.com/vci
and I did a search for ALL available Villas... and... the inventory available is 6733 VILLA-weeks!!! Wow! that is 65% of a total of 10,251 Villa-weeks.

However... they confirmed and you have confirmed too that it is being extended for 30 years... that means that 65% of the membership decided to ask for their money back!!!

Well... too bad for you, those who did not renew... Prices, I see, have jumped up 40% from what we were being offered a few months ago... So that means I now have a net worth about $15,000 more... That is, they have ended the 50% discounts, and now are offering us 30% discount... so my property is now worth 40% more ((70-50)/50)... The instant somebody buys at 30% discount, everything is worth the new prices. They are going to sell out, with 30% discount, or less discount.

I suppose, by the discussion I am reading on TUG bulletin boards, that sales have still not opened up to the rest of Royal Resort members, but I suppose January 1 is as good a day as any to open them up... So maybe this is just a transition screen that I am seeing...

Maybe you thought it was a fake, that the 50% was not a real discount. Well... now you know, it is a real discount... unless you think the 30% is not a real discount either... well... just you watch how long it takes for them to sell out V.C.I.

Jim, I hope now you believe in the Royal "numeros magicos..." magic numbers.

Ellis