Fastpc2020
TUG Member
- Joined
- Mar 21, 2012
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So I went to a presentation at the Maui Ocean Club and thought about buying for a fraction of a second and then I did some math. First I was offered points at $9.3 each with mx feses of .41 a point. In the folowing scenario I don't assume an increase in mx fees or the cost of lodging going up. Also I assume paying the full price and no financing to keep the math simple. For arguments sake let's go with 3100 points. At the MOC this would get a 1 bed in the new section (2525 old section) garden views or every 3 years you could go twice and get a 2 bedroom but would need to buy 100 points from someone else (4700 points per week).
I'm assuming a 10 year return window. So at 9.30 a point and 3100 points that's 28830 or $2883 a year plus 1271 in mxf fees for a total of $4154 a year for the 3100 points or $1.34 a point (again no interest charges or mx fees going up.
The "true" cost of a week is 1 bed $3338 (old section) $4154 (new section) or $6298 for a 2 bed either section (these are the cheapest availible for points according to the reward charts)
Now the sanity test if I took $28830 and invested it today using a 3% rate in 10 years I'd have $38745 compounded. Now it wouldn't be 1000 a year but in the end its $10k.
Why does all the above matter? Let's see what's availible at the MOC in May. I picked date and looked them up on Marriott.com red week and eBay.
Marriott.com 5-12 May. 1 br 356 night ocean front or 399 ocean view. With a $25 daily resort fee and 7% tax thae totals are $2853 or $3175 respectively.
Red week 4-11 May $1500,1 bed, 6-13 May $2500 2bed, 5-12 may $4995 3bed
EBay 11-18 may $795 studio.
Now this is with 2 months notice. If you can plan further ahead I'm almost positive you can find what you want. Also if you want to go short notice deals can be had and you can bargain with the renters.
My point is even on Marriott website I found a better deal ($2793 vs $3338) and its an ocean view.
With points the numbers don't add up and if you have to finance the initial costs just go up. Save your money and if you love just one resort just buy a week resale.
If you like to go different places looks for deals because there out there and it doesn't always have to be a Marriott (even though it is my favorite brand)
Just my .02 cents
I'm assuming a 10 year return window. So at 9.30 a point and 3100 points that's 28830 or $2883 a year plus 1271 in mxf fees for a total of $4154 a year for the 3100 points or $1.34 a point (again no interest charges or mx fees going up.
The "true" cost of a week is 1 bed $3338 (old section) $4154 (new section) or $6298 for a 2 bed either section (these are the cheapest availible for points according to the reward charts)
Now the sanity test if I took $28830 and invested it today using a 3% rate in 10 years I'd have $38745 compounded. Now it wouldn't be 1000 a year but in the end its $10k.
Why does all the above matter? Let's see what's availible at the MOC in May. I picked date and looked them up on Marriott.com red week and eBay.
Marriott.com 5-12 May. 1 br 356 night ocean front or 399 ocean view. With a $25 daily resort fee and 7% tax thae totals are $2853 or $3175 respectively.
Red week 4-11 May $1500,1 bed, 6-13 May $2500 2bed, 5-12 may $4995 3bed
EBay 11-18 may $795 studio.
Now this is with 2 months notice. If you can plan further ahead I'm almost positive you can find what you want. Also if you want to go short notice deals can be had and you can bargain with the renters.
My point is even on Marriott website I found a better deal ($2793 vs $3338) and its an ocean view.
With points the numbers don't add up and if you have to finance the initial costs just go up. Save your money and if you love just one resort just buy a week resale.
If you like to go different places looks for deals because there out there and it doesn't always have to be a Marriott (even though it is my favorite brand)
Just my .02 cents
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