Can't find economics post?

[In the Pink Senior Member Find all posts View Profile Close In the Pink]

I can't find it now, but I thought there was a post somewhere (was it BocaBum?) that went into detail on the numbers and suggested something like under $.02 per point MF and some similar number for acquisition costs. Does anybody know where to find that thread or have their own economics they'd like to share?

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

I can't find it now, but I thought there was a post somewhere (was it BocaBum?) that went into detail on the numbers and suggested something like under $.02 per point MF and some similar number for acquisition costs. Does anybody know where to find that thread or have their own economics they'd like to share?

RCI, Bluegreen, DRI, Starwood, Wyndham, RHC, Equivest, etc, etc? Buy this, I'm sure it's in there!

[lawren2 Malibu Beach Barbie & A Super Moderator Find all posts View Profile Close lawren2]

This one?
http://www.timeshareforums.com/forum...-good-buy.html

followed up with this post:
http://www.timeshareforums.com/forum...en-owners.html

Very nice young man willing to do his own homework.

[In the Pink Senior Member Find all posts View Profile Close In the Pink]

RCI, Bluegreen, DRI, Starwood, Wyndham, RHC, Equivest, etc, etc? Buy this, I'm sure it's in there!

See, I've still got so much to learn I'm not even smart enough to ask the right questions. RCI

[In the Pink Senior Member Find all posts View Profile Close In the Pink]

This one?
http://www.timeshareforums.com/forum...-good-buy.html

followed up with this post:
http://www.timeshareforums.com/forum...en-owners.html

Very nice young man willing to do his own homework.

I'm not sure either of those were the one I saw, but they do help. Thank you very much, Lawren.

[wontontx Junior Member Find all posts View Profile Close wontontx]

I can't find it now, but I thought there was a post somewhere (was it BocaBum?) that went into detail on the numbers and suggested something like under $.02 per point MF and some similar number for acquisition costs. Does anybody know where to find that thread or have their own economics they'd like to share?

Wouldn't the economics that you require, $MF/point and Cost/Point, depend on the time share system?

It would be better related into annual cost per week or if you want to compare it to getting a hotel (minus the living quarters upgrades), a per night cost.

I'll take a stab at what you are looking for and I will use Bluegreen as an example.

Maint Fees/Annual fees:

For about 20000 points, one would have MF of $960, Add in the $122 annual fee .. on an ongoing annual basis, one would pay $0.054 per point.

Up Front costs:

Say you are buying resale on E-bay. Have not seen a 20000 auction in a while, but let's say you are paying $0.35 per point, so $7000 sale price and $500 for closing and e-bay tends fold in the past years MF back into the sale, so add in the $960, for a total of $8460. If you were to want a true cost on an annual basis, you would want to amortize that upfront cost over the number of years you plan to keep the timeshare at some investment rate. For the sake of this argument, take 10 years at 5%, the yearly annuity payout of $8460 is $1095.61 per year, so $0.055 per point per year. Obviously if you plan to keep the TS longer, then the number would go down, and if your savings pays you more, then the number would go up.

Given the two numbers, your total cost per point per year is $0.054 + $0.055 = $0.099.

Now here is where your usage/club would effect what the "real" cost is.

Say a typical bluegreen 2BR TS rents for 8000 points/week, then that rental is costing you $792/week or $113/night - which is less than most 2BR hotels that I have stayed at.

Now if you like the ultra reds, that same week could cost you 16000 points for $1584/week or $226/night.

That all said, back to your original question ... to place a number like $0.02/Point MF really depends on the system you are under to mean anything. The above analysis is transferable to any system as long as you know how many points it takes to rent what you want.

Then, once you have that number, go out and find what people are renting their points for ... if the rental cost is lower than what you could acquire points for and you do not mind the added time/risk in hunting for the right rental, then maybe rental is better than a purchase .. and vice versa.

- John