Nanea Presentation week trade in question

[darius]

Hello there,

We did an owner update today and are staying at the property for the week.

My understanding based on a previous presentation was that you can "trade in" a week (We own a week at WKORV-N OF).

Today, even though the "Trade In" value showed on the sales persons sheet, they said they couldn't trade it in because it was a resale. Is this accurate? Are resale transactions "blocked" from trade ins?

We were looking at trading the week in towards a purchase of a new 2 bedroom or 3 bedroom unit and are curious as to if that information is correct.

My wife loves the new Nanea, and my thoughts are to just leave it alone (or even sell our WKORV-N as I personally really enjoy the Marriott new towers and we are already Chairman Club with them..).

Thank you everyone in advance for any info here..

 

[vacationtime1]

Vistana would have taken my resale SDO or SBP units as trade-ins -- although that was years ago. They would have taken them at their original sale prices (approx $12K) rather than the $75 - $1700 I paid for those units.

You own WKORVN, a mandatory property that holds much of its value over time, especially if you bought resale. otoh, Nanea is a voluntary property; your unit will lose 80% of its value as soon as the rescission period is over. And if you check out some recent/current threads on Nanea, people who bought 81000 FlexOptions there are having a tough time even getting reservations. I would never buy Nanea, although I would not hesitate to do a StarOptions trade for an OF unit there.

 

[darius]

Vistana would have taken my resale SDO or SBP units as trade-ins -- although that was years ago. They would have taken them at their original sale prices (approx $12K) rather than the $75 - $1700 I paid for those units.

You own WKORVN, a mandatory property that holds much of its value over time, especially if you bought resale. otoh, Nanea is a voluntary property; your unit will lose 80% of its value as soon as the rescission period is over. And if you check out some recent/current threads on Nanea, people who bought 81000 FlexOptions there are having a tough time even getting reservations. I would never buy Nanea, although I would not hesitate to do a StarOptions trade for an OF unit there.

Thank you Robert for your quick reply!

I did purchase the unit years ago for about 20K - and what your saying makes absolute sense (mandatory vs. voluntary). I suppose I was just surprised they wouldn't do the upgrade at all (and claim they never have previously, even though I was offered it years ago).

I would absolutely do a StarOption trade here, it's a gorgeous property. However, if view is important to you I would try to get a Oceanfront as the resort views are average, IMO and can be very disappointing. But hey, it's still great to be in Hawaii

Thanks!

 

[bizaro86]

How hard did you press them on it? I strongly suspect if you said you were interested in buying with a trade but wouldn't buy otherwise they would change their tune.

 

[Markus]

The transaction you are contemplating is called an upgrade. The rules, as of a year ago, which was the last time I did this, although on the mainland, were as follows. The sales price of the week that was being purchased needed to be greater than $20,000 ($40,000 for Hawaii and St John). You would receive 80 % of the price that the developper sold the resale week that you are trading in as equity (100 % of the price you paid if it were a developer bought week by yourself). The minimum cash brought to the table must be $15,000 ( $25,000 Hawaii or St John).

To illustrate, this was my transaction. I purchased a Westin Desert Willow annual Platinum Plus week for $41,000. I traded a resale Westin Desert Willow odd week, which was originally sold for $19,500 and therefore (at 80%), gave me a credit of $15,600, and a Westin Lagunamar Gold Studio with a value of $7,900. The net cash outlay was therefore $17,500 ($41,000 less $15,600 and less $7,900), over the required cash threshold of $15,000. I also used an explorer package, and requalified two resale Platinum Plus weeks at Lagunamar because I asked that the new purchase be recorded as two every other year weeks, allowing two weeks to be requalified. This transaction also generated 210,000 SPG points.

This was a great transaction for me and was done by a corporate rep in Orlando. They have access to all the inventory, and if Hawaii will not do the transaction, often the Corporate reps will. If you are seriously contemplating this, do buy an explorer package to get the bonus SPG points at little to no cost.

PM me if you have any other specific questions.

Markus

 

[darius]

The transaction you are contemplating is called an upgrade. The rules, as of a year ago, which was the last time I did this, although on the mainland, were as follows. The sales price of the week that was being purchased needed to be greater than $20,000 ($40,000 for Hawaii and St John). You would receive 80 % of the price that the developper sold the resale week that you are trading in as equity (100 % of the price you paid if it were a developer bought week by yourself). The minimum cash brought to the table must be $15,000 ( $25,000 Hawaii or St John).

To illustrate, this was my transaction. I purchased a Westin Desert Willow annual Platinum Plus week for $41,000. I traded a resale Westin Desert Willow odd week, which was originally sold for $19,500 and therefore (at 80%), gave me a credit of $15,600, and a Westin Lagunamar Gold Studio with a value of $7,900. The net cash outlay was therefore $17,500 ($41,000 less $15,600 and less $7,900), over the required cash threshold of $15,000? I also used an explorer package, and requalified two resale Platinum Plus weeks at Lagunamar because I asked that the new purchase be recorded as two every other year weeks, allowing two weeks to be requalified. This transaction also generated 210,000 SPG points.

This was a great transaction for me and was done by a corporate rep in Orlando. They have access to all the inventory, and if Hawaii will not do the transaction, often the Corporate reps will. If you are seriously contemplating this, do buy an explorer package to get the bonus SPG points at little to no cost.

PM me if you have any other specific questions.

Markus

Markus, thank you for this detailed explanation and great job on your transaction! I'll PM you as well.