Aulani purchase?

[blackcat19]

My family currently has 150 points direct at AKL, and love it. We’ve been kicking around getting more points for awhile, and sent in an offer on some Aulani resale points that we thought was a lowball… and they accepted

AUL 220/220/220, $110 per point, seller to pay half of the 2022 maintenance fees

Now we’re finding a lot of stuff about HARPTA and transient accommodation tax and such and my dad is starting to get leery. We would definitely vacation at Aulani, but also use them as sleep around points since we’re east coast and it’s hard to get out there. We were mostly looking for bang for the buck. So, Aulani, yea or nay? Worth it or regret it?

 

[Jimmy Geppetto]

My family currently has 150 points direct at AKL, and love it. We’ve been kicking around getting more points for awhile, and sent in an offer on some Aulani resale points that we thought was a lowball… and they accepted

AUL 220/220/220, $110 per point, seller to pay half of the 2022 maintenance fees

Now we’re finding a lot of stuff about HARPTA and transient accommodation tax and such and my dad is starting to get leery. We would definitely vacation at Aulani, but also use them as sleep around points since we’re east coast and it’s hard to get out there. We were mostly looking for bang for the buck. So, Aulani, yea or nay? Worth it or regret it?

I was leery at first too but eventually took the plunge. We have no regrets. The transient tax is only paid if you stay at AUL. Paid at check out. So if you’re using it as SAP you won’t have to pay the transient tax. HARPTA is real and you should assume it will go up from todays tax rate which IIRC is 7.5%.

It’s a fabulous resort. You will find many here in DIS boards either love it or will certainly tell you to stay away. Lol

Good luck with your decision.

 

[jkips]

HARPTA is real but only an issue when you sell. It's one more tax form and only costs you if you make money on the sale so not the worst thing in the world if you end up having to pay a little bit of money to the state of Hawaii.

I think Aulani is a great resort to own at and the points do work well as sleep around points. Seems like you got a good price on a fully loaded contract as well.

 

[ded4025]

Is it correct that you pay the HARPTA on the sale price, not the gains realized?

 

[Jimmy Geppetto]

Is it correct that you pay the HARPTA on the sale price, not the gains realized?

From the state of hawaii tax website:

If you will not realize a gain on the disposition of your Hawaii property, you may file Form N-288B, Application for Withholding Certificate for Dispositions by Nonresident Persons of Hawaii Real Property Interest, to apply for a withholding certificate that eliminates the amount to be withheld by the buyer. You must submit supporting documentation to show that there will be no gain realized. Such documentation may include: ● Closing statement when the property was purchased showing the purchase price, ● Documentation showing the depreciation allowed or allowable, if any, ● Documentation for any capital improvements and other increases in basis, and ● Documentation showing decreases to basis, including any deferred gain from any prior sale(s). You must file Form N-288B with the Department at least 10 working days prior to the date of transfer or it will not be approved. Even if a withholding certificate is granted by the Department because there is no gain realized on the disposition, you must still file a Hawaii income tax return for the year of disposition.

https://files.hawaii.gov/tax/legal/taxfacts/tf2010-1.pdf

 

[jkips]

Is it correct that you pay the HARPTA on the sale price, not the gains realized?

The amount you ultimately end up paying is based on your capital gain not the sale price. Per Jimmy’s comment above, if you don’t qualify to not have anything held back, HARPTA is there to ensure that owners of Hawaiian real estate that don’t live in Hawaii file Hawaiian state taxes when there is a taxable event.

 

[Brancaneve]

We own at Aulani and rented out those points very easily one year. It is such a special resort, and renting points makes it a much better deal than staying in a regular hotel room. I think that is a benefit of owning at Aulani

 

[Twohsieh]

We bought Aulani resale, almost ten years after we bought direct at VGC. We love Aulani (have been there five times) so we wanted to own there. The points rent easily when we don’t want to vacation at a Disney resort.
I don’t mind the transient taxes being added for our stays at Aulani or the HARPTA tax if we eventually sell. Aulani is a magical place that we’re willing to pay extra to always have the opportunity to visit.

 

[RoseGold]

That's just the start of how Hawaii treats timeshare owners, and those rules have changed dramatically over time, impacting existing owners. I wouldn't buy any timeshare in Hawaii.

I seriously considered a subsidized Aulani contract and decided against it because of Hawaii laws. I wouldn't buy anywhere outside of Florida.

 

[Budzooka]

I bought an AUL subsidized contact in 2020 and have enjoyed it. Visited summer 2021 with family and planning on doing it again in 2023.

 

[TeamRiley]

The Transient Accommodation Tax, and the HARPTA tax don't really even matter. Even if you do plan on selling in a decade. Yes, Transient Accommodation does add some to each visit, but the major expense of any DVC property is by far the maintenance fees. Even the buy in is not a major issue if you plan holding it till it expires.

You should do it, you won't regret it.

 

[RoseGold]

The Transient Accommodation Tax, and the HARPTA tax don't really even matter. Even if you do plan on selling in a decade. Yes, Transient Accommodation does add some to each visit, but the major expense of any DVC property is by far the maintenance fees.

This is completely misleading. Of course DVC owners pay property tax, we just call it dues. That's not a "maintenance fee."

If property tax (or whatever tax they invent or tsunami insurance or whatever) goes up, your dues go up. That's how it works.

And even in favorable tax environments, DVC has had out of control dues on its other aging beach properties, HHI and Vero. Aulani could go the same way as it ages, who knows.

 

[CaliAdventurer]

My Aulani points are the last I'd sell. Who cares if you have to pay taxes on profit- seems fair that Hawaii would get taxes on money made in their state and the fees to stay are less than a couple of cocktails. As my kids get older, currently young teens, they prefer to go to Aulani over DLR & WDW.

BUT if you are really buying them for SAP, you're better off with SSR.

 

[TeamRiley]

This is completely misleading. Of course DVC owners pay property tax, we just call it dues. That's not a "maintenance fee."

If property tax (or whatever tax they invent or tsunami insurance or whatever) goes up, your dues go up. That's how it works.

And even in favorable tax environments, DVC has had out of control dues on its other aging beach properties, HHI and Vero. Aulani could go the same way as it ages, who knows.

It isn't misleading at all. We all know about it, we all factor it in. It is still an awesome deal.

You missed what I was saying. Regardless of the TAT or HARPTA cost, the annual maintenance fees (or "dues") are the primary cost of long term ownership. You pay TAT when you stay in the room. You pay HARPTA when you sell.

If dues go up, they go up. If a meteor strikes the Grand Floridian, those dues will go up as well. Aulani dues could go crazy high, but then I would just sell and pay my very small HARPTA tax.

I don't typically avoid a good deal just because it might become less of a good deal in the far future.

 

[RoseGold]

Hawaii has even more taxes than that, like the GET tax on renting out timeshares. And, by the way, all of these were added and applied to existing timeshares, possible years after they were bought.

IMO, Hawaii's movement over time in this area has not been in favor of owners, and it's not like they are flush with cash right now. It's why I decided to buy in Florida, where I planned to use this anyway.

 

[TeamRiley]

Hawaii has even more taxes than that, like the GET tax on renting out timeshares. And, by the way, all of these were added and applied to existing timeshares, possible years after they were bought.

IMO, Hawaii's movement over time in this area has not been in favor of owners, and it's not like they are flush with cash right now. It's why I decided to buy in Florida, where I planned to use this anyway.

Glad it worked out for you. I would buy again at Aulani in a heartbeat.
We bought a decent subsidized contract so the points are awesome at Aulani and are still the cheapest sleep around points in the system.

 

[WillGan]

We own at Aulani and rented out those points very easily one year. It is such a special resort, and renting points makes it a much better deal than staying in a regular hotel room. I think that is a benefit of owning at Aulani

Agreed and I’d be interested in purchasing points being rented especially being a resident of Hawaii! Aloha!

 

[Paul Stupin]

The cost of staying at Aulani will increase over time as well, another reason to purchase a contract. But I would only buy if you actually want to stay there…I don’t think it’s a good choice for SAP.

 

[Paul Stupin]

Hawaii has even more taxes than that, like the GET tax on renting out timeshares. And, by the way, all of these were added and applied to existing timeshares, possible years after they were bought.

IMO, Hawaii's movement over time in this area has not been in favor of owners, and it's not like they are flush with cash right now. It's why I decided to buy in Florida, where I planned to use this anyway.

The fact of the matter is that it‘s superior to its fellow DVC properties, and in a truly spectacular location. The 11 month booking window is also useful for some times of year, and will become even more so as the years progress and the cost of cash stays rise. With incentives and the occasional super incentives, I think it will sell out within the next 5-7 years. I bought most of my Aulani contracts 1-2 years ago, and could sell them now at a decent profit.

Personally, I love it, but I wouldn’t buy it to stay elsewhere. You should try it one of these days. It has a tendency to convert skeptics once they’ve spent some time there!

 

[tweetykl]

Having finally being able to go to Aulani, we love it so much that we are looking for more points. I was nervous when we bought points direct and thought we would use them with the new Disneyland Tower but now my 125 points is not nearly enough because we want to go back to Aulani ASAP.