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My husband and I attended a 2 hour Tahiti Village Resort seminar last week.
Here's what the deal boils down to in terms of dollars and sense. (Yes, sense, not cents...)
Tahiti Village offers their best package for the Vegas Strip Phase II site at
$55,000 and an interest rate of 17.9% at 7 years of payments with an annual fee which covers general site condo style maintenance of somewhere around $350. These numbers aren't down to the dollar but they'll give you a good feeling for the overall cost.
The 7 years of payments accumulate to $35,842 in interest alone so if you add that to $55,000, your total principal plus interest equals $90,842 for a 2 bedroom suite with a kitchen and kitchenette and 2 sleeper sofas so you can sleep 8 in your suite.
I hopped online tonight and checked out Tahiti Village to see if you can actually rent a hotel room since that's what these suites look like. You can indeed for as low as $187.50 per night at the Vegas location on the strip.
If you do some rough math, that’s over 484 nights of vacationing at Tahiti Village ($90,842 divided by $187.50 per night) or 34 two week trips (take 484 nights divided by 14 nights which is 2 weeks and you get 34)! Of course, inflation is not taken into account but neither is the fact that you're paying 17.9% interest instead of keeping your money in the bank or some other investment that you could use to offset the out of pocket cost...
Things you have to ask because they don't volunteer information...
They didn't say what the tax implications would be.
They didn't say what happens to the vacation ownership deed if you die before you finish paying it off - most will purchase this package as an out of state buyer... If you're going to go for it, you should check on what this means. Probate proceedings can be messy within your own state - I can't imagine what your family would have to go thru to clean up the ownership issues if both owners die before the package is paid off - perhaps in the fine print, there's something that says Tahiti Village is the default beneficiary? Who knows. I can only speculate.
They didn't say if there is a pre-payment penalty if you find a better way to pay off the balance.
They didn't say anything about whether or not you have the ability to select the location for the suite you're staying in - you're obviously not the owner of the room itself, you only get to own 2 weeks of usage out of the year. Heck, if you were the real owner, you could take the plasma TVs home with you when you leave, right?
Basically, when you buy one of these packages, you're paying in advance for a nice hotel room with access to a concierge, swimming pool, etc., just like you would if you booked a hotel room somewhere. The doors have hotel key access (magnetic cards), just like a hotel would. There will be wear and tear on the items within the room as you would expect when the other 50 weeks of the year, the rooms are being used by total strangers).
If you go into one of these purchases, my only advice to you is to ask a lot of questions. Do your homework before you sign anything. Make sure it's the right choice for you so you don't have any regrets afterwards.
I hope this posting is helpful, if only to one couple who may have made a decision without knowing all the implications. Good luck vacationing!!
Here's what the deal boils down to in terms of dollars and sense. (Yes, sense, not cents...)
Tahiti Village offers their best package for the Vegas Strip Phase II site at
$55,000 and an interest rate of 17.9% at 7 years of payments with an annual fee which covers general site condo style maintenance of somewhere around $350. These numbers aren't down to the dollar but they'll give you a good feeling for the overall cost.
The 7 years of payments accumulate to $35,842 in interest alone so if you add that to $55,000, your total principal plus interest equals $90,842 for a 2 bedroom suite with a kitchen and kitchenette and 2 sleeper sofas so you can sleep 8 in your suite.
I hopped online tonight and checked out Tahiti Village to see if you can actually rent a hotel room since that's what these suites look like. You can indeed for as low as $187.50 per night at the Vegas location on the strip.
If you do some rough math, that’s over 484 nights of vacationing at Tahiti Village ($90,842 divided by $187.50 per night) or 34 two week trips (take 484 nights divided by 14 nights which is 2 weeks and you get 34)! Of course, inflation is not taken into account but neither is the fact that you're paying 17.9% interest instead of keeping your money in the bank or some other investment that you could use to offset the out of pocket cost...
Things you have to ask because they don't volunteer information...
They didn't say what the tax implications would be.
They didn't say what happens to the vacation ownership deed if you die before you finish paying it off - most will purchase this package as an out of state buyer... If you're going to go for it, you should check on what this means. Probate proceedings can be messy within your own state - I can't imagine what your family would have to go thru to clean up the ownership issues if both owners die before the package is paid off - perhaps in the fine print, there's something that says Tahiti Village is the default beneficiary? Who knows. I can only speculate.
They didn't say if there is a pre-payment penalty if you find a better way to pay off the balance.
They didn't say anything about whether or not you have the ability to select the location for the suite you're staying in - you're obviously not the owner of the room itself, you only get to own 2 weeks of usage out of the year. Heck, if you were the real owner, you could take the plasma TVs home with you when you leave, right?
Basically, when you buy one of these packages, you're paying in advance for a nice hotel room with access to a concierge, swimming pool, etc., just like you would if you booked a hotel room somewhere. The doors have hotel key access (magnetic cards), just like a hotel would. There will be wear and tear on the items within the room as you would expect when the other 50 weeks of the year, the rooms are being used by total strangers).
If you go into one of these purchases, my only advice to you is to ask a lot of questions. Do your homework before you sign anything. Make sure it's the right choice for you so you don't have any regrets afterwards.
I hope this posting is helpful, if only to one couple who may have made a decision without knowing all the implications. Good luck vacationing!!
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