Why does “season” matter if…

[fernow]

As in an earlier post: Every other year points, I want to add some points to my already developer purchased units. This time I will buy resale.

I understand HGVC reasonably well but not as well as many of you. I almost always book at the 9 mo window at units I don’t own so it is my impression that “points are points”.

But I often see the recommendation to only buy Platinum season. Why?

I can combine and use my points whenever. Correct? If a one bdrm gold season at a resort I never want to go to has the best price per point and maintenance fee per point then that’s what I want. Or is it?

Thanks again. Your expertise is helpful.

 

[HuskerATL]

in HGVC, the MFs are based on unit type, not season but the platinum season has the most points so it has the best MF/pt. For use purposes, it only matters that you can book your homeweek during platinum season but other than than, it is about saving money...or having more points that cost you less.

 

[HuskerATL]

For example, Craigendarroch Lodges is one of the properties that has a Bronze, Silver, Gold, and Platinum Seasons.

For a 1 bed, the 2024 MFs were $837
Bronze is 2,720 points so the MF/pt is $837/2720 = 0.31
Silver is 3,840 and a 0.22
Gold is 5,440 and 0.15
Platinum is 7,680 and 0.11

So, a platinum owner spends the same amount on MFs as a bronze owner but gets almost 3 times more points. So, you can use your homeweek during prime season, get more points, lower MF/pt, and they are easier to sell later when you want to offload.

 

[BingoBangoBongo]

Normally Platinum season deeds will have a higher cost to buy, but as @HuskerATL pointed out, lower fees per point. As you can expect an increase in MF's every year, it is more advantageous to start those increase off a lower number.....ie 5% of $.10 is $.005....5% of $.20 is $.01. The other thing to consider is your exit strategy. It is generally easier to get out of a Platinum deed, either selling or giving away...vs Gold which you will likely have to give away or a Silver that would be somewhat difficult to even give away.

 

[HuskerATL]

There is a caveat to this though. Some folks like gold season for use, since it is typically a shoulder season and cheaper to buy but you do pay a higher MF/pt than a platinum season so you need to weigh use versus cheap points but also calculate in the purchase price and the break even point compared to a similar platinum week.

 

[fernow]

Perfect. So ease of selling in the future and probability that the maintenance fee per point will be too high.

BTW, since I am looking, any idea why there are so many Grand Islander units for sale? Seems like more than any other resort.

 

[ljmiii]

BTW, since I am looking, any idea why there are so many Grand Islander units for sale? Seems like more than any other resort.

I haven't looked at GI recently...Vegas and in particular Elara seem to have an infinite number of deeds available. That said, I'll hazard a guess.

A large number of GI deeds are owned by Japanese who bought relatively recently compared to GW and been unable to visit Hawaii for a large percentage of their ownership. Maybe GI owners who have been unable to use their ownership feel the pinch more keenly than those who enjoyed many years at GW.

 

[fernow]

I know I have seen this mentioned from time to time but can't readily find it. What are the approximate costs of the resale transaction apart from the unit itself. ie fees to the broker, title etc. Thinking Hawaii mostly. And even though I am already a member, isn't there a "activation fee" from Hilton?

 

[HuskerATL]

There is the:

- closing costs that include the commission, if any (the last one that I did was $775 but there was no commission for the broker so this covers the deed preparation, recording, and estoppel request)
- Transfer fee paid to HGV - $474
- Club Activation fee paid to HGV - $695
- Estoppel fee paid to HGV - $95

https://club.hiltongrandvacations.com/en/club-membership/hgv-club-fee-schedule