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Value Proposition?

onenotesamba

TUG Member
Joined
Jul 3, 2015
Messages
244
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128
Location
Brooklyn, NY
Resorts Owned
HGVC Sea World, HGVC Boulevard/Strip
We're thinking of making our first entry into HGVC, and I'm hoping to get advice on what our current thinking is, in terms of what and where to buy.

We've calculated the number of points that we're likely to use each year, and our initial thought was to look for a 7000 point package at the Strip, Karen, Flamingo or one of the cheaper Orlando properties, to keep the annual fees close to, or below $1K (understanding that they'll increase over time, of course). But my husband is thinking that it's entirely conceivable that we'd use more than 7000 points annually, on a somewhat regular basis. I think he'd be inclined to wait around for a good deal on a 8400 point unit somewhere, but it seems to me that most of the time, that'd be a 3 BR with significantly higher annual fees, or a Hawaii property with higher annual fees.

So, now I'm thinking that buying two 4800 point contracts might be a better value--we'd have a combined 9600 points, and if they were at locations with low membership fees, we could wind up with a combined maintenance that would be cheaper than maintenance on a 3BR in Orlando, or a high-point unit in Hawaii.

I think the other thing that appeals to me about this strategy is that we could move into the program gradually--looking for a good resale deal and pouncing, and then waiting patiently for the next good deal to come along.

So, help me out--where are the flaws in my thinking, here?
 

SmithOp

TUG Review Crew
TUG Member
Joined
Jun 17, 2010
Messages
7,742
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Points
499
Location
Huntington Beach, CA
Resorts Owned
HGVC King's Land 2BR Premier 23.040K Points.
I dont think a 3br is significantly higher, specially when compared to two 1br annual fees. I think you should target a LV strip, 3br platinum plus, 9600 points. Annual fees are about $1100.

Your target should be less than 90 cents / point purchase cost and less than 15 cents / point annual fees whatever you buy.

Thing is, these value units don't pop up on eBay every day, you will probably have to work through a broker, and those units run a little higher for purchase cost. People that own the better value units know it and want top dollar for resale, but you may get lucky - I am in the process of purchasing a high point unit for 90 cents a point up front and 12 cents annual cost. Happy hunting!


Sent from my iPad Mini 4 using Tapatalk
 

alwysonvac

TUG Lifetime Member
Joined
Sep 11, 2005
Messages
16,147
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3,924
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848
Location
New Jersey
Resorts Owned
WORLDMARK, HGVC, VISTANA

SOLD (DVC, FSRC)
We're thinking of making our first entry into HGVC, and I'm hoping to get advice on what our current thinking is, in terms of what and where to buy.

We've calculated the number of points that we're likely to use each year, and our initial thought was to look for a 7000 point package at the Strip, Karen, Flamingo or one of the cheaper Orlando properties, to keep the annual fees close to, or below $1K (understanding that they'll increase over time, of course). But my husband is thinking that it's entirely conceivable that we'd use more than 7000 points annually, on a somewhat regular basis. I think he'd be inclined to wait around for a good deal on a 8400 point unit somewhere, but it seems to me that most of the time, that'd be a 3 BR with significantly higher annual fees, or a Hawaii property with higher annual fees.

So, now I'm thinking that buying two 4800 point contracts might be a better value--we'd have a combined 9600 points, and if they were at locations with low membership fees, we could wind up with a combined maintenance that would be cheaper than maintenance on a 3BR in Orlando, or a high-point unit in Hawaii.

I think the other thing that appeals to me about this strategy is that we could move into the program gradually--looking for a good resale deal and pouncing, and then waiting patiently for the next good deal to come along.

So, help me out--where are the flaws in my thinking, here?

Hi onenotesamba :hi:

I just looked up your July thread about where you want to go - http://tugbbs.com/forums/showthread.php?p=1778661#post1778661

I'm a firm believer that you shouldn't put all of your eggs into one basket.

Based on your July post, it looks like you have the flexibility to travel any time during the year so I suggest a small package with HGVC and WorldMark. They both provide a lot of flexibility (banking, borrowing, nightly stays, etc)

I like the idea of starting off gradually. I would suggest one small resale HGVC package to start out (one bedroom platinum 4800 annual points) to get your feet wet with HGVC and RCI.
NOTE: You can always purchase additional nights via HGVC and RCI rental rates.

I would also suggest looking into a small resale WorldMark package (5k to 7k credits) instead of getting more HGVC points. This will give you access to WorldMark resorts as well as the other major exchange company Interval International (which is associated with Marriott, Starwood, Hyatt and Four Seasons timeshares). Interval International also offers timeshare rentals as well and they have timeshare rentals for Marriott, Starwood and Hyatt timeshares.
WorldMark also provides extra added owner benefits such as
- allowing owners to rent additional credits from other owners as needed.
- offering greatly reduced exchange rate for last minute trades with RCI and Interval International (4,000 credits for a week stay)
- providing no additional fees for reservations, banking and borrowing
- providing owners with the trading power to search for any unit size desired with the 3rd party exchange companies (RCI and International International)

See these threads for WorldMark pluses -
http://tugbbs.com/forums/showthread.php?t=223233
http://tugbbs.com/forums/showthread.php?t=202811

See this site for a great overview on WorldMark - http://www.wmtsinfo.com/

Also, think about becoming a TUG member. It will allow you access to our TUG Sightings Forum which will give you an idea of your possibilities via the 3rd party exchange companies where travel flexibility is key. ;)

Good Luck
 

onenotesamba

TUG Member
Joined
Jul 3, 2015
Messages
244
Reaction score
17
Points
128
Location
Brooklyn, NY
Resorts Owned
HGVC Sea World, HGVC Boulevard/Strip
Thanks for the thoughtful replies.

I think the suggestion of a larger strip package is terrific, but it just seems that they don't surface very frequently. That having been said, we're not in a hurry, so we can always lurk in the bushes looking for the elusive bargain, I suppose.

As for splitting with Worldmark and HGVC, I hadn't thought of doing a split between programs. Sometimes my husband and I travel alone, but other times we try to bring friends or family along with us, so getting multiple units or really large units is appealing to us. When discussing whether 7000 points was enough, one of our considerations was whether we'd be able to plan a big family trip without having to bank and borrow ourselves out of a vacation in the year prior or afterward.

But I'm open to the idea of splitting, so I'll take another look at Worldmark, on your advice.

Thanks again.
 

vacationbear

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Sep 2, 2013
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San Ramon, CA
I dont think a 3br is significantly higher, specially when compared to two 1br annual fees. I think you should target a LV strip, 3br platinum plus, 9600 points. Annual fees are about $1100.]

And another point/ fee ratio since we asked ourselfs the same questions and decided to get our second TS at Kings Land/ Hawaii:
12600 pts (2bd plus, platinum) with annual fess of ~$1600.
 

JSparling

TUG Review Crew
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7,000 point package at the Strip, Karen, Flamingo or one of the cheaper Orlando properties, to keep the annual fees close to, or below $1K.

Since you're only looking for points and not caring about the home resort priority booking window you want to buy at Vegas Strip and Vegas Karen. Those MF's are a good $300 less per year, per unit than Orlando. That adds up over time. Of course if you can get a 7,000 point unit for considerably less in Orlando then paying higher MF's would be worth it. I always run the total costs (purchase, closing, transfer, activation, MF's....) out over 10 years and see which one has the lowest point to MF value. Paying more for a Vegas Strip unit could be worth it if you're saving $300/year on MF's.
 

JSparling

TUG Review Crew
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So, now I'm thinking that buying two 4800 point contracts might be a better value--we'd have a combined 9600 points, and if they were at locations with low membership fees, we could wind up with a combined maintenance that would be cheaper than maintenance on a 3BR in Orlando, or a high-point unit in Hawaii.

Totally disagree. A typical 4,800 unit is a 1BR platinum. At the cheapest place (Vegas Strip) the MF for 2016 for that unit is $582. For a 8,400 unit (2BR penthouse) at the Vegas Strip the MF is $803. A 7,000 unit (regular 2BR) at the Vegas Strip the MF's are also $803. Buying more points in a single unit will be more economical than buying 2 units with fewer points and paying the MF twice.
 
Last edited:

JSparling

TUG Review Crew
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And another point/ fee ratio since we asked ourselfs the same questions and decided to get our second TS at Kings Land/ Hawaii:
12600 pts (2bd plus, platinum) with annual fess of ~$1600.

This is indeed a great MF/point ratio. But the buy-in likely was more than a more basic property like the Vegas Strip.

That's why you have to run all the numbers out for 10 years (or longer) and see what scenario has the cheapest TOTAL COST OVER 10 YEARS to point ratio. Perhaps getting 4 silver units for free would be better than paying $5K for a single platinum unit. Perhaps not. You really have to type all the numbers, for all the costs, for all the scenarios into the model and see which one is cheapest in the long run.
 

Jason245

TUG Review Crew: Expert
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We're thinking of making our first entry into HGVC, and I'm hoping to get advice on what our current thinking is, in terms of what and where to buy.

We've calculated the number of points that we're likely to use each year, and our initial thought was to look for a 7000 point package at the Strip, Karen, Flamingo or one of the cheaper Orlando properties, to keep the annual fees close to, or below $1K (understanding that they'll increase over time, of course). But my husband is thinking that it's entirely conceivable that we'd use more than 7000 points annually, on a somewhat regular basis. I think he'd be inclined to wait around for a good deal on a 8400 point unit somewhere, but it seems to me that most of the time, that'd be a 3 BR with significantly higher annual fees, or a Hawaii property with higher annual fees.

So, now I'm thinking that buying two 4800 point contracts might be a better value--we'd have a combined 9600 points, and if they were at locations with low membership fees, we could wind up with a combined maintenance that would be cheaper than maintenance on a 3BR in Orlando, or a high-point unit in Hawaii.

I think the other thing that appeals to me about this strategy is that we could move into the program gradually--looking for a good resale deal and pouncing, and then waiting patiently for the next good deal to come along.

So, help me out--where are the flaws in my thinking, here?


How about you start back at the basics.

1. How long do you plan on owning this?
2. Where do you plan on traveling to and when? Are you tied to a specific schedule (like only traveling last 2 weeks of year and want to be in Hawaii), or very flexible.
3. If you were to plan out 2 years of travel, how many points would you use?
4. How much can you afford to pay out of pocket right now to make that all happen (in Cash).
5. Are you willing to lose whatever number you said for #4 should it become worthless and you need to get rid of it?
 
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