Polo Towers as Gift

[kaigoss69 Junior Member Find all posts View Profile Close kaigoss69]

Hi,

we are total timeshare noobs so sorry in advance if this is a dumb question. My parents own a timeshare at the Polo Towers for one week out of the year, with flexible dates. We have actually stayed there 2 times and we really like the property.

My parents have now offered to "gift" us this timeshare and I wanted to ask if you guys think we should accept. Now we do like going to Vegas at least once a year so from that standpoint we would definitely make use of it. The fees are around $600 or so a year which we would be paying for hotels anyways. Besides that, is there anything we should know about? Anything that would make us think twice about accepting this?

Also, what is the worth of this timeshare? They said theirs is one of the original ones with a deed so does that make it more valuable?

Sorry again for all the noob questions. It is probably a no-brainer but we just wanted to make sure!

Thanks!

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

We've owned two weeks at Polo Towers dating back to 1998. We've made excellent usage of our ownership over the years. As far as cash value, you're actually paying what it's worth if it's being gifted to you for free. Being a deeded week doesn't increase, or decrease it's actual cash value. I've seen them sell for anywhere from $1 with all closing costs paid to over $1,000 with the buyer paying closing costs. With the economy where it is now, $1 is closer to present value than $1,000.

I take it that this must be a 1 bedroom unit. Currently, the MF's on our two bedroom units are in excess of $1,000. For several years, MF's remained unchanged and relatively low. IMHO this was a mistake on the part of the HOA (home owners assoc). Because there was not sufficient funds in the cash reserve, owners were hit for a large special assessment a few years ago to pay for complete refurbishment of the units. Now it seems as if the HOA has realized the error of their ways but, it's causing MF's to increase a little more dramatically as they're playing catch up in order to get the cash reserves where they need to be. I'm expecting MF increases to be closer to 7% per year for the forseeable future on this property, making it one of the more expensive timeshares we own.

If you enjoy staying at this timeshare and the MF's are in your budget, this is actually a very nice offer. Especially if you consider the original purchase price was likely around $10,000 if they were original buyers back when Polo Towers first started selling units. Considering you've used it for a few years and enjoyed your stays, I think you'd get good usage out of this week.

[timeos2 Senior Member Find all posts View Profile Close timeos2]

The resale value today is at most $2000 - probably much less. It is a nice, if slightly dated, resort. Remember the value isn't in the resale but in use. If you will use it and the fees are reasonable for that annual use it can be a good deal. As with any timeshare buying to trade or rent is risky and probably not a good idea for most.

[falmouth3 Senior Member Find all posts View Profile Close falmouth3]

If you like it and you plan to use it most years, go for it. Sounds like you're helping yourselves, as well as helping your parents get out from under the maintenance fees.

Thank your parents and enjoy your vacations!

[kaigoss69 Junior Member Find all posts View Profile Close kaigoss69]

Thanks for all the replies. We are still undecided on this. I just wanted to bump this thread and see if there have been any changes in value on this timeshare. My dad said that he was told that there are plans to tear down PT within the next 10 years and that we would then be offered at least $50k for the (deeded) timeshare, but that the people with the points system would be out of luck. (They have been trying hard to get him converted to points, BTW).

The wife and I are not sure that we would take advantage of this every year, but I would still take it if it was indeed a good investment like my dad suggested.

What do you guys think?

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

If your Dad was told by sales people---it is likely a lie. Otherwise. it is likely a gross exaggeration.

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

Thanks for all the replies. We are still undecided on this. I just wanted to bump this thread and see if there have been any changes in value on this timeshare. My dad said that he was told that there are plans to tear down PT within the next 10 years and that we would then be offered at least $50k for the (deeded) timeshare, but that the people with the points system would be out of luck. (They have been trying hard to get him converted to points, BTW).

The wife and I are not sure that we would take advantage of this every year, but I would still take it if it was indeed a good investment like my dad suggested.

What do you guys think?

The value of TIMESHARE is in the use.
VEGAS, your Dad might be able to unload it, maybe not
if you can USE it, take it
if you can't, then let your conscience be your guide

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

Thanks for all the replies. We are still undecided on this. I just wanted to bump this thread and see if there have been any changes in value on this timeshare. My dad said that he was told that there are plans to tear down PT within the next 10 years and that we would then be offered at least $50k for the (deeded) timeshare, but that the people with the points system would be out of luck. (They have been trying hard to get him converted to points, BTW).

The wife and I are not sure that we would take advantage of this every year, but I would still take it if it was indeed a good investment like my dad suggested.

What do you guys think?

1. The value won't change. It's not worth cash. As Spence said, the value is in the vacations you take. If you're looking at this as an investment, you'll find it to be a money pit.

2. There are no plans to tear down Polo Towers and give the owners anything. You don't own a piece of Polo Towers. You own the right to use a condo for one week every year. You do not own the property, just the right to use the property for a vacation stay.

Again, if you're looking at it as an investment, maybe you should watch the Tom Hanks movie Money Pit. I can't stress to you enough that a timeshare is NOT a financial investment, it's an investment in taking quality vactions with your spouse or family.

[kaigoss69 Junior Member Find all posts View Profile Close kaigoss69]

OK, thanks to all of you for responding!

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

As a side note, I can see an arguement presented that one has a deed, just like you have a deed to any piece of property. But if one reads the fine print closely enough, all your really own is a deeded right to use the property for a specified period of time, each year, for infinity. The deed does not convey ownership in the actual property itself. You do not own real property, only a right for usage of that real property. That minor difference makes a huge difference in real value vs precieved value.

That is not to say that if Polo Towers was for one reason or another closed down, deeded owners would not have a claim for reimbursement but, that claim would be based on the severed right for use of a property that is no longer availabe. To that end I could see an interest in converting as many owners as possible into a trust, where the trust does not have to provide access to one particular property, but access to any property in a group of resorts included in such a trust. By converting Polo Towers owners into trust owners, it would free up the true owner of the property, DRI, to do with it as they please without having to pay off owners who have continued to hold their deeded right to use.

I may, or may not, have all of this correct. This is just what I have gathered over they years of owning, reading and studying timeshare properties. It is a more complicated situation than owning a home, building, or land. You only own the deeded right for the use of a condo specified in the contract that was signed at the time of purchase. You do have deeded rights but, you don't hold a deed to the actual property or land the property sits upon despite what a timeshare salesman might allude too (buy a piece of the Las Vegas strip can often be overheard in Vegas timeshare sales rooms).

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

I may, or may not, have all of this correct.

how true!

the gist is, currently the deed is not worth the paper it's printed on unless you want the use of the time share to stay or to trade.