Secondary market vs purchase from developer

kellya71 wrote:

I recently went thru the sales presentation for the Westin Villas North due to open this summer. It seems that the value is mostly in the extra points that come with the purchase (80,000/yr). What are the advantages of purchasing from the developer other than paying a premium for the points as compared to buying on the secondary market at a reduced price without the points? Are the points really worth the extra $35,000 to $40,000? The resale value of timeshares seems to depreciate over time like a vehicle does instead of appreciating like a real estate should. Based on many reviews, it doesn't really seem like having title to the real estate makes a difference in the property valuation. Having said that, it seems that by the time interest is paid on the mortgage and maintenance fees are paid, someone could enjoy a very luxurious vacation without having to pay for it in advance (down payment). Am I missing something here? It would be interesting to get replies from owner having bought from developer and those who purchased on secondary market. Thank you.

Kelly,

We purchased a re-sale (every other year) a year ago for about 45 cents on the dollar. In May we stayed in our one bedroom oceanview at the Westin in Maui and loved it...it was fantastic. They invited us to an owners presentation...it was very casual and the salesman offered to roll our re-sale into the program if we purchased a unit in the new phase. We declined and mentioned selling ours and he recommended we not sell based on the low price we paid. We were given 4500 star points and continued our vacation. It was a very pleasant experience...no pressure. As an owner we have access to the Star Central owners website. When I look at my information it shows we have options value of 81,000 and star points value of 46,200 for our next year. The options are valid but I'm not sure about the star points. As far as I know star points are only credited to your account when you give up your week to Starwood.

Why would I give up my week when I can rent it through Redweek for a nice profit? So far, I can't see us giving up our week...we enjoy it too much.

Craig

We bought a resale for Sheraton Vistina Villages in Orlando. We also have 81,000 staroptions. We can use these staroptions to stay at our home resort or any of the other sister resorts. This summer we traded for Harborside. You can also rent/exchange your week with Redweek or bank it with Interval International. You can use your starpoints for the hotels but you cannot EXCHANGE YOUR WEEK to Starwood for points with a resale.

jeffw92 wrote:

jonr5 wrote:

In my opinion, I think that proves the converting to Star Points is worthless when compared to trading within the Starwood network or banking within Interval. Simply put - staying 7 days at a cat 4 hotel would be 70,000 points - you'd have to have convert the entire unit 2.5 times! The only value I see is if you've had your unit for a while and really want to go to an area where Starwood or II does not have a vacation property. But trading 2+ weeks for 1 is pretty steep.

Starwood would make this aout of this world if the equated the points to the average similar hotel rate. e.g trading out a whole 2 BR unit got you 70,000 points.

Thanks for all the input. I will definitely consider redweek or Ebay when I shop for a SVN mandatory resort couple years from now, unless Starwood make me an offer that I couldn't refuse.

jeffw92 wrote:

I own a Starwood property (not Hawaii) that I bought via Ebay for $1400 (escrow included) for 1 premium bedroom, every other year. It came with no StarOption or StarPoint.

While I was there for vacation last month, they want to upgrade my ownership. They offer another 1 premium bedroom, EOY usage for $11,000; it comes with 81,000 staroptions and 30,000 StarPoints. If I sign up with AMEX, I would get another 12,00 StarPoints.

If you enjoy returning to the same resort each time, then you are better off buying it on Ebay. If you want to travel the world or to other SVN resorts, then I do see the value of paying $11,000. It all depends on the kind of traveler you are.

I also bought last year at the Westin Villas on the open market. Payed 19K for a one bedroom ocean view every year. I go to Hawaii every year so it made since to buy where I wanted to vacation. While in Hawaii I say a new villa ocean front, I believe it was a 3 bedroom for 44K though All Islands Timeshares resales. Although thats a lot of money it's a lot cheaper than buying from the developer. I was very concerned about buying over ebay or the internet (only because I like to talk to people face to face and check out the company) so I found a company that had an office that I could walk into. This company is also really good and is will to call the current owners to see if they will take less for the units. The original listing on mine was 22K but I didn't want to go over 20K. We offers 19 and it was a done deal.

One other advantage to being able to convert to Starpoints - the StarOptions are use them or lose them. In other words, if for some reason you can't use your StarOptions, i.e., can't go on the original date reserved and/or can't find a substitute location for other dates, you lose the Star Options. However, if you convert to Starpoints (by March 31st, I think, for regular owners and May 31st, I think, for Elite owners), the StarPoints are good for 2 years, I think. I'm a little fuzzy on the exact time frames. Two years ago, we converted all of our StarOptions to Starpoints and the family stayed in 3 separate rooms at an awesome property in Venice, Italy. Also, look for Cash + Points on Starwood. A lot of properties offer this option at various times of the year and that's an economical way to stay in some of the nicer hotel properties.

I think you are always better off buying from ebay or redweek if you go to the same place or are willing to trade within the network. Ignoring the freebee when you sign up the difference for a 2 br maui is about $16K-$18K. So if financial considerations is the primary objective don't buy from the developer. The only sales pitch line that was true(as an owner) was the quality of your vacations will be better. As someone with 3 kids or more(if we take friends) we need the sleeps 8 plan. I can either stay in our 2 br or trade for 2 rooms at the Westin in Puerta Vallarta for example. We do love the flexibility and being "forced" to take nice vacations.

Simply put... google "TUG Timeshare Starwood" and you will learn everything you need to know (and more) about Starwood Timeshares from educated Owners. Best of Luck.

Please share your experiences trading KOR for Harborside?

I am considering it -- we have 2 bed oceanfront KOR and need to sleep 6 at Harborside. I called once at the beginning of the 8 month window and was told waitlist only -- but that was for a holiday (spring break).

Is it only possible to get hurricane season units? Are 2-beds impossible? Are Pres. Week / Spring Break ever possible?

Positive and negative experiences welcome.

Thanks. Jan

jesse121 wrote:

kellya71 wrote:

I recently went thru the sales presentation for the Westin Villas North due to open this summer. It seems that the value is mostly in the extra points that come with the purchase (80,000/yr). What are the advantages of purchasing from the developer other than paying a premium for the points as compared to buying on the secondary market at a reduced price without the points? Are the points really worth the extra $35,000 to $40,000? The resale value of timeshares seems to depreciate over time like a vehicle does instead of appreciating like a real estate should. Based on many reviews, it doesn't really seem like having title to the real estate makes a difference in the property valuation. Having said that, it seems that by the time interest is paid on the mortgage and maintenance fees are paid, someone could enjoy a very luxurious vacation without having to pay for it in advance (down payment). Am I missing something here? It would be interesting to get replies from owner having bought from developer and those who purchased on secondary market. Thank you.

Dear Kelly: To the contrary in many regards, the value of the weekly timeshares appreciates. I have been offered considerably morethan what I paid for both my Westin Ka'anapali Ocean Villas weeks and my Westin St. John weeks. I think you need to pay attention to the type of property you buy (deeded and fixed vs. floating), the week you purchase, and most importantly, the resort you select. The Starpoints can be rip-roaringly valuable, if you know how to play the game. My family of 4 has used them exlclusively for airfare over the last six years, but recently, in an effort to turn profitable, the airlines have all but eliminated flights accepting air miles or they have doubled and tripled the amount of miles required for the flights. That makes your points for airfare almost useless, as a simple flight now turns into a questionable value at a 250,000 point/mile echange.

I'm confused. Are points tansferrable or not?

Assuming a re sale purchaser can buy points (that will be honored) is that all the points they will ever realize?

Are they transferable more.than once?

We are staying at Sheraton Desert Oasis in Scottsdale on a RCI exchange - the resort is beautiful and staff are fantastic.

We went to a sales presentation yesterday. Bottom line is that SPG is selling a 2bdrm/2bath unit for $500,000+ ($10,000+ for one week x 50 weeks) plus about $3,000 per month in maintenance and taxes. Think about what type of condo you can buy for this type of coin!

As far as all the extra points (which are not free - they want $1,550 for those) - you decide. An Amex Platinum card costs around $400 per year (about half the cost of the annual maintenance), you get 25,000 points when you sign up, and if you know how to work the system, you can keep getting bonus points.

I know this topic is old but... my husband and I started out with a timeshare in Maui at the Westin. We had one week every other year. Last year we traded it for a week in Kaui every year. The fees/taxes are ridiculous. For $2800 that we are expected to pay this year in fees we could have bought a week on our own through Redweek. We will never buy a timeshare again. It is a big rip off. The exchange company that we have to use is very hard to maneuver online and we cant find anything we want to trade for. You have to put in a request for two or three places and dates and you must travel the dates that they give you once something becomes available. In addition, you have to pay a fee again just to exchange a week that you have already paid for twice, once with the original purchase and then again every year with taxes/fees. Unless you have a lot of money and/or can travel alot the timeshares are not cheap and the fees keep going up,up, up!!! Think long and hard about this decision.

I totally agree with you. I regret buying my timeshare. The ONLY resort I can trade into is Kauai. I have been calling all week (8 month window) to try to trade into Harborside or St John. No luck....they should tell you about this when they sell you the timeshare but of course they don't

I also tried to call interval and they only have ONE PROPERTY available in the ENTIRE carribean for the summer!

And....insult to injury....Starwood just upgraded the Westin villas to a category 6 hotel just becuase it's in "high demand." So a free night went from 12,000 pts to 20,000 and cash and points went from 4500pts and $90 to $8000pts and $150. Now it's on the same level as the St Regis brand???? It's a TIMESHARE not a luxury hotel

We usually trade our week to Kauai and spend a few days on Maui. Now it's not worth the $$ and points to do that anymore.

I guess if you travel like me and USE your StarOptions every year (or every other) there's no need to turn them into StarPoints, right?? Plus, the conversion isn't great anyway I've found! So what you're saying is I should cancel the 81,000 options I just bought in Kaanapali and buy resale instead?? I only got a bonus 81,000 options for signing up, and some certs to buy Bonvoy points at a reduced rate, but I paid $18,000 for it!! $6700 sounds like such a better deal to me...

janices62 wrote:

You are right, cannot covert StarOptions to StarPoints with resales. We do pay $99/yr for SVN membership.

You can bank with Interval International and you pay a fee when you trade.

There are no additional fees when you bank within the Starwood system, we traded our Sheraton Vistina Villages in Orlando for Harborside this year - no extra charges.

I think your confusion comes from not realizing that there's a difference between StarOPTIONS and StarPOINTS.