The age old Question...

[Ridewithme38 Senior Member Find all posts View Profile Close Ridewithme38]

So i'm looking at TWO ebay auction right now, for the same location in Wyndham...Both converted Fixed weeks, one from a Prime week the other from a High week...one 238,000 points with a 904.97 MF($3.80 per 1000) the other 203,000 points with a $890 MF($4.38 per 1000)....The Prime week seller is asking the buyer to pay all closing costs, the High week seller is paying them him/herself...

So the question is....Do you pay more upfront($1200 with closing costs vs $100) to get what you Truly want(perfect points amount, good MF) or do you save money on the upfront cost and settle for a little less(less points then i want, MF a little higher per 1000)

The Auctions:
http://cgi.ebay.com/Wyndham-Williams...item1c1d2e9731
or
http://cgi.ebay.com/203-000-Wyndham-...item23125d3036

[puppymommo Senior Member Find all posts View Profile Close puppymommo]

This the a tough choice, Ride. I guess I would go the the one that has cheaper mfs and the number of points I want.

Why do you want a converted fixed week?

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

Why do you want a converted fixed week?

It usually is better in MF per point structure if the unit size is biggest and the season is primest.

Jya-Ning

[Ridewithme38 Senior Member Find all posts View Profile Close Ridewithme38]

This the a tough choice, Ride. I guess I would go the the one that has cheaper mfs and the number of points I want.

Why do you want a converted fixed week?

Currently at Kingsgate the UDI MF's are $4.39 per 1000 or about $1,151.90 for 238,000 points or about $1,055.39 for 203,000 including the Program fee


A Converted Fixed week just comes out cheaper per 1000

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

It is the same as you evaluate every deal

The fix cost + the yearly cost for the duration you own it - end residue value compare to the potential profit

The better the value the better the deal. If it is negative, it does not need to bother.

With point, it make the calculation a little bit difficult.

But use the 1st deal as example.

Assume you value that with 238k you can get 1 prime week stay at beach, and you estimate it will cost you about 2500 per week for the similar stay you are spending now. And if you don't care to add opportunity cost, and potential inflation cost of the MF, You end up like this equation

People usually assume 10 years in owning TS, it usually need big remodel before that.

1200 + 904.97 * 10 - 100 (since you don't actually pocket the closing cost and resort transfer fee, assume it give you the same amount money 10 years later as your bidding price today plus maybe 100 extra in inflated closing cost you may get) Compare to 2500 * 10.

And assume with 203K deal, you now get something valued as 2000 per stay, so it is
your bid cost + 890 * 10 compare to 2000 * 10 (assume you will get nothing when you try to get rid of it)

It all depends on how you plan to use these point.

Some people add opportunity cost,
so it will be
1200 * (1+ r) ^ 10 + 904 * (1+r)^9 + 904 * (1+r)^8 ... + 904 - 100 compare to 2500 * * (1+ r) ^ 10 + 2500 * (1+ r) ^ 9 ... + 2500
where r is the potential return you think you can get it if you put it as investment outside, it could be -100% (negative will change the above equation) since you will spend it more likely, to few thousands since you are very good at making money that is better than Warrent Buffet.

The difference between the contract is about 35k, with RCI change, it will not be able to get you another exchange, and internally, 35 k usually don't give you 1 night stay on Friday or Sat on Prime Season. So, you should assume both give you about the similar length of stay (maybe 1 week day different) except maybe a little bit different of location and time,

With owner renting 2500 or 2000 maybe too high assumption.

Jya-Ning

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

In this market, it is not a smart idea to purchase fixed weeks for conversions. There are so many deals for points with low maintenance fees, that's the way I would go.

I own over 3.5M Wyndham points. My average MF is less than $4/1000 points.

[Ridewithme38 Senior Member Find all posts View Profile Close Ridewithme38]

In this market, it is not a smart idea to purchase fixed weeks for conversions. There are so many deals for points with low maintenance fees, that's the way I would go.

I own over 3.5M Wyndham points. My average MF is less than $4/1000 points.

These have already been converted...how did you average below $4/1000? Do you own alot of resorts that are still in developer sales?

[chriskre Super Moderator Find all posts View Profile Close chriskre]

These have already been converted...how did you average below $4/1000? Do you own alot of resorts that are still in developer sales?

I only own one contract and my fees are less than $700 for 168K points.
It's not at a new resort either. It's about 7 years old already.