Old Key West Extension question

[okw2012]

If the HHI contract is working for you, why not just wait for now and reevaluate as you get closer. And if you need more points, why not just add to what you own. The ONLY way I'd suggest selling and rebuying is if the current ownership is not working for you in some way. I would not do so just to have the later expiration down the road. You'll lose the perks you currently have assuming you didn't buy this recently or you'll have to pay retail prices.

I have other contracts so won't loose the perks. I want to bring down my dues, which are much higher at HHI than at SSR, and I don't need as many points. I have 480 in total right now. I think I can sell my 230 HHI pts at 70$/pt = 16k$ and buy 150 SSR pts for roughly same price. Because there's 24 years left of the HHI contract and 39 years left on the SSR contract I actually get *more* points (24x230 vs 39x150). And my dues come down substantially from 7.3$x230 to 5.6$x150 (dues are essentially cut in half)

 

[Matty B13]

I have other contracts so won't loose the perks. I want to bring down my dues, which are much higher at HHI than at SSR, and I don't need as many points. I have 480 in total right now. I think I can sell my 230 HHI pts at 70$/pt = 16k$ and buy 150 SSR pts for roughly same price. Because there's 24 years left of the HHI contract and 39 years left on the SSR contract I actually get *more* points (24x230 vs 39x150). And my dues come down substantially from 7.3$x230 to 5.6$x150 (dues are essentially cut in half)

I wouldn’t expect to get SSR points for $70/point, maybe $90/point right now.

 

[The Jackal]

I wouldn’t expect to get SSR points for $70/point, maybe $90/point right now.

I took it as he is thinking his 230 HHI points will let him get 150 SSR

 

[okw2012]

I took it as he is thinking his 230 HHI points will let him get 150 SSR

Yes. Of course this is what I meant. I hope to get 150 points for 39 years for the value of my 230 points x 24 years. Total number of points is about the same. But I will save on dues.

 

[Matty B13]

Yes. Of course this is what I meant. I hope to get 150 points for 49 years for the value of my 230 points x 24 years. Total number of points is about the same. But I will save on dues.

Oh sorry, I miss read it, but sounds like a good plan, good luck!

 

[Dean]

I have other contracts so won't loose the perks. I want to bring down my dues, which are much higher at HHI than at SSR, and I don't need as many points. I have 480 in total right now. I think I can sell my 230 HHI pts at 70$/pt = 16k$ and buy 150 SSR pts for roughly same price. Because there's 24 years left of the HHI contract and 39 years left on the SSR contract I actually get *more* points (24x230 vs 39x150). And my dues come down substantially from 7.3$x230 to 5.6$x150 (dues are essentially cut in half)

That might be the best but here's the other side. First, the dues are less more because of less points than the dues differential though both come into play. You'll pay roughly $1500 in commissions and it's very possible you'll lose out on the transition around one half to one years worth of dues so altogether the difference just swapping is a los of maybe $2500 that can not be recouped. I probably wouldn't do this to go from HHI to SSR since they'll both function similarly. If you decide to do so, I'd buy the SSR first looking for the right loaded contract even if that means you have to do some rentals in the interim, that way you'll avoid having to make a hurried choice or settle for a contract and you'll avoid some of the potential loss on the swap out. Of course one could just rent out around 80 points per year and likely come out ahead. And while you may not need to qualified points now, you will be potentially losing future options by having less qualified points. I'm assuming your other points are OKW, if so and that's all, you might consider something that gives you an option you don't currently have. SSR doesn't do that for you other than the end of the RTU for an additional 12 years. Plus you lose out on the HHI option for rentals. Also remember those last 12 yeas are of points are worth far less paid for today than the ones that you get much sooner.

 

[okw2012]

That might be the best but here's the other side. First, the dues are less more because of less points than the dues differential though both come into play. You'll pay roughly $1500 in commissions and it's very possible you'll lose out on the transition around one half to one years worth of dues so altogether the difference just swapping is a los of maybe $2500 that can not be recouped. I probably wouldn't do this to go from HHI to SSR since they'll both function similarly. If you decide to do so, I'd buy the SSR first looking for the right loaded contract even if that means you have to do some rentals in the interim, that way you'll avoid having to make a hurried choice or settle for a contract and you'll avoid some of the potential loss on the swap out. Of course one could just rent out around 80 points per year and likely come out ahead. And while you may not need to qualified points now, you will be potentially losing future options by having less qualified points. I'm assuming your other points are OKW, if so and that's all, you might consider something that gives you an option you don't currently have. SSR doesn't do that for you other than the end of the RTU for an additional 12 years. Plus you lose out on the HHI option for rentals. Also remember those last 12 yeas are of points are worth far less paid for today than the ones that you get much sooner.

Good points, but in reality we can survive with "only" 250 points while shopping for the SSR contract. My other contracts are 150 OKW + 100 VB. It is true that I could rent the extra 80 points for ~12$/points. I had not thought of that. I'd pay 230x7.3$=1680$ in dues and get 960$ back from the rent so would pay ~700$ in dues minus rent, compared to 150x5.6$=840$ in SSR dues. But there's uncertainty in future dues and rent prices, and also the fact that dues have been growing faster at HHI than at SSR, so I'd say these are two equivalent propositions for the foreseeable future. In the end the main difference is getting the extra 15 years or keeping the option of renting at HHI at 11mo. The thing is, we prefer to go to VB and Aulani when it comes to beach resorts so we don't really use the 11mo advantage.

The one thing I had forgotten to take into account is that in 2042 we'll be left with only a contract bought on the resale market after the date the perks ended so we'll have 15 years of ownership left but won't have the perks

I guess if we want to keep the perks after 2042 we'd have to buy direct! We could buy 100 OKW or SSR points direct but that's quite a price to pay (50 points for 39 years) for having the perks for 15 more years.

 

[zavandor]

If they will mess again with perks in the future will be introducing tiers. They cannot restrict resale more than not giving them any perk.
If they introduce tiers, you have a sizeable amount that might get you into an higher tier, given that average size has decreased over the years, so 2-400 is probably more than most members have. I would rent the excess points to offset part of the dues (you can get more than $12pp renting HHI for the summer at 11 months) and see what happens.

 

[Dean]

Good points, but in reality we can survive with "only" 250 points while shopping for the SSR contract. My other contracts are 150 OKW + 100 VB. It is true that I could rent the extra 80 points for ~12$/points. I had not thought of that. I'd pay 230x7.3$=1680$ in dues and get 960$ back from the rent so would pay ~700$ in dues minus rent, compared to 150x5.6$=840$ in SSR dues. But there's uncertainty in future dues and rent prices, and also the fact that dues have been growing faster at HHI than at SSR, so I'd say these are two equivalent propositions for the foreseeable future. In the end the main difference is getting the extra 15 years or keeping the option of renting at HHI at 11mo. The thing is, we prefer to go to VB and Aulani when it comes to beach resorts so we don't really use the 11mo advantage.

The one thing I had forgotten to take into account is that in 2042 we'll be left with only a contract bought on the resale market after the date the perks ended so we'll have 15 years of ownership left but won't have the perks

I guess if we want to keep the perks after 2042 we'd have to buy direct! We could buy 100 OKW or SSR points direct but that's quite a price to pay (50 points for 39 years) for having the perks for 15 more years.

A lot can happen in 24 years, you might get another option to extend OKW (likely not VB). If that matters you might consider something that isn't that much of a savings anyway like VGF or VGC retail. Personally I wouldn't worry about the perks after 2042 and I certainly wouldn't pay the extra today to have the option in 24 years. Even if it's break even from dues standpoint with renting, you still have less points to work with and still have the drain of the commissions, any closings you pay and the potential drain of lost points/dues in the transition. Obviously you're OK with the limitations of the 7 months window and thus staying only at OKW/SSR potentially. But given your current and planned future volume, having options is always a good thing. IMO SSR doesn't give you anything you don't have now except an 11 month option for WDW at SSR. Personally I wouldn't do this for SSR given your points situation. IF I were going to do this I want an option that might hold promise for me that I didn't currently have and frankly, I wouldn't let the RTU expiration drive the show but I would take it into consideration from a value standpoint. To me in this situation that's buying something that gives me an option I don't currently have like BLT, BWV, AKV, VGF, VGC or Aulani (? subsidized). If you know you're going to wait on the right loaded contract with SSR, which might take 1-2 years, then I think it's OK to sell first, most don't have this kind of patience and commitment. But personally I would find the right SSR contract first if that's what you want to do. And you're still giving up the qualified status, though I do see that as a minor loss in this situation. Personally I think you're throwing away the transition costs for little, if any, benefit. There's uncertainty in all of this, these are timeshares.