HGV at Coylumbridge Lodges

[Sky313]

Also seems like there's not too many people exchanging their weeks or signing up for HGVC with their fixed week.

If anyone on this forum is interested in a relatively cheap exchange week with low maintenance fees and low buy in costs, this is it.

 

[PigsDad]

If anyone on this forum is interested in a relatively cheap exchange week with low maintenance fees and low buy in costs, this is it.

After reading that letter, I would say that buying in now has a significant risk of being hit with either "substantial increases" in the reserve fee (part of the MF) or special assessment(s) to cover the the upcoming work, especially considering this line from the letter:

"As we have an ageing property portfolio you can understand that projected work over the next 20 years is substantial and costly. To be able to commit to this programme will inevitably require substantial increases in the reserves funding element of our annual fees."​

Combined with the exchange rate risk, I would be very cautious about purchasing a week there right now. It may be a bargain now, but could become a nightmare later. For those who have been around a while, this could be another South Africa TS situation.

Kurt

 

[Sky313]

After reading that letter, I would say that buying in now has a significant risk of being hit with either "substantial increases" in the reserve fee (part of the MF) or special assessment(s) to cover the the upcoming work, especially considering this line from the letter:

"As we have an ageing property portfolio you can understand that projected work over the next 20 years is substantial and costly. To be able to commit to this programme will inevitably require substantial increases in the reserves funding element of our annual fees."​

Combined with the exchange rate risk, I would be very cautious about purchasing a week there right now. It may be a bargain now, but could become a nightmare later. For those who have been around a while, this could be another South Africa TS situation.

Kurt

You make a good point. I was able to get Elite status through resale prices however....
At the time didn't know about the projected work needed. I think if US owners are looking for a way to elite status at resale prices this may be it, although has some risks. Sounds like the relationship with Hilton and HGVC is still intact. It's still considered a RCI gold property as well.

 

[Pathways]

After reading that letter, I would say that buying in now has a significant risk of being hit with either "substantial increases" in the reserve fee (part of the MF) or special assessment(s) to cover the the upcoming work, especially considering this line from the letter:

Seriously? Currently $700 US for 7000 points. The reserve fund at a measly $150 US out of that $700. I would welcome a 'substantial' increase, even a 100% increase would not bother me. I would rather have it fully funded. It would still be one of the cheapest 7000 point contracts in the HGVC system.

I know, I know, the exchange rate risk. That's always a concern, unlike my Marriott's where there is no 'risk' as it's a 'given' that it's going up, up , and up.

The exchange rate is a significant risk, IMO. In 2007 the exchange rate would have made the MFs 60% higher than today

While correct, you're really cherry picking here. (even at 60% higher, it would have been a great value in the HGVC system) While exchange right now is GREAT, look back thirty years - there have been only four or five years even close to 2007's rate.

At the time didn't know about the projected work needed. I think if US owners are looking for a way to elite status at resale prices this may be it, although has some risks. Sounds like the relationship with Hilton and HGVC is still intact. It's still considered a RCI gold property as well.

The 'acceptable' standard throughout most of the EU locations is quite different than our USA 'resort' expectations. They don't seem to look ahead on a schedule, but only consider replacements when things get really in poor condition. While I can't see a change from the HGVC system at Craigendarroch because the Suites there are 'points only' sales, I have wondered what HGVC would do if Coylumbridge didn't maintain reasonable standards.

I am pleased that more oversight from the US is taking place. The only real risk is a lot of the owners are locals who don't belong to the Club, and may be resistant to funding renovations. HGVC does not control the BOD, but hopefully the BOD will look far enough ahead to realize dollars now will be well spent towards future value.

 

[PigsDad]

Seriously? Currently $700 US for 7000 points. The reserve fund at a measly $150 US out of that $700. I would welcome a 'substantial' increase, even a 100% increase would not bother me. I would rather have it fully funded. It would still be one of the cheapest 7000 point contracts in the HGVC system.

I'll stand by my statement. It is not only the risk (or most likely the inevitability) of the reserve fees being significantly increased, with the reserves having been set below what they needed to be for so long, there is also the risk of special assessments. And those would be way more than $150.

Like I said previously, if you know and are willing to accept the risks, it can be a great property to own. But knowledge is key, and just focusing on it being a current bargain is shortsighted, IMO.

Kurt

 

[Pathways]

Like I said previously, if you know and are willing to accept the risks, it can be a great property to own. But knowledge is key, and just focusing on it being a current bargain is shortsighted, IMO.

I think we are in total agreement. 'Knowledge is the key' IOW - Read the balance sheets and know how the numbers compare to other timeshare properties. I like to compare to Marriott because they refurbish and rehab on a luxurious level and continuous basis. Know what the worst case basis is - a total rebuild on a strictly cash basis. And compare to what you pay each year. If this was a Marriott property and I was paying a premium fee each year and then a report like this came out, I would be concerned. I pay over $500/yr in reserves in a couple of Marriott's. As you say, this is 'significantly' and 'way more than $150'. But of course when you are starting way down at $150 per year, and it has been there for years, it's all relative.

Also you are correct to not focus on it being a current bargain. That's why I pointed out your 2007 exchange rate example is an anomaly. Never look at one year like that. Look long term and see whether there is a trend or scattered data points in the exchange rate. One could extrapolate from the data that the current bargain is short term, but last years bargain is typical. And of course, another 2007 year may come along which will make ownership fees at Coylumbridge cost almost as much as numerous other HGVC properties.

 

[2travelinggoatz]

With the Brexit chaos, a substantial mf increase due to a high exchange rate is unlikely anytime soon. The effect of the US economy, slated for a recession approx at the end of 2019, would be the more likely trigger if...Brexit is successful. Although, it could balance out if the UK economy goes into a recession as well [which is currently their greatest fear]. In the meantime, ride the wave and enjoy!

 

[Anthony Schmid]

I downloaded the may 2019 annual meeting report and it shows that the maintenance fees are underfunded and it looks like we are due for a hefty increase. Attached are the 2 options in the report.

Sent from my SAMSUNG-SM-N910A using Tapatalk

 

[Cyberc]

I downloaded the may 2019 annual meeting report and it shows that the maintenance fees are underfunded and it looks like we are due for a hefty increase. Attached are the 2 options in the report.View attachment 12758View attachment 12759

Sent from my SAMSUNG-SM-N910A using Tapatalk

So the suggestion is to increase the reserve fee with either £30 or £50?

If that will ensure that the reserve fee is not underfunded it’s a good thing. An increase of £50 is IMO not that much.

Btw looking at the yellow numbers it seems that the increase is £60 and not £50?

 

[Tamaradarann]

I understand but personally hope the assessments to increase reserves will be minimal.

We all hope that assessments will be minimal or non-existent. However, that is why every year there is an amount that is placed in the reserve from your maintenance in addition to the cost of annual operation. If the Association of the Resort approves a budget to collect and place too little into the reserved every year for an extended period of time the reserve may not be sufficient to cover planned extensive maintenance and repairs that need to be done. So it is a case of you pay a little more maintenance each year over your course of ownership or at times you may have to pay a large special assessment to make up for the shortfall.

 

[Anthony Schmid]

The reserve study showed Coylumbridge is " Reserve fund is severely underfunded (currently, excluding VAT, 22% of maintenance fee)"
The 2 options given were to raise the maintenance fees from £530 in 2019 to £910 in 2020, £922 in 2021 and back down to £764 in 2022 and keep it steady from there. The second option is to raise it to £630 in 2020, £703 in 2021 and £763 in 2022.

Option 2

 

[Sky313]

Option 2 looks better. My concern with option 1 is that they may not decide to lower after 2021

 

[Anthony Schmid]

Attached is a copy of the Coylumbridge annual meeting from May 31,2019

 

[Sky313]

Attached is a copy of the Coylumbridge annual meeting from May 31,2019

thanks, i haven't received this yet in the mail

 

[Anthony Schmid]

thanks, i haven't received this yet in the mail

Actually, i found this on the coylumbridge owners site.
https://www.coylumbridge.info/
login as: chlcmember
password: inverness
all lowercase
lots of good information there for owners

 

[Anthony Schmid]

Here is a copy of the Craigendarroch meeting on April 27, 2019

 

[Pathways]

For those who follow the BOD and their plans, there are no surprises here. I have been nothing but impressed with the deep dive they take and the full disclosure they make about the resort issues/plans.

I have personally communicated to the management/BOD for a couple of years that I would not only support a dues increase, but felt it was needed to get the reserves in a position to keep the lodges up to HGVC standards. While I enjoy MF's virtually the lowest in the HGVC system, the long term is more important. Water cooler talk predicted the changes with the hotel sale, and the substantial changes and expenditures required this year were an anomaly.

I like the fact that more than one option was laid out to get the resort reserves where they need to be. The on-site HGVC inspection group must have been open with their recommendations. My guess would be very few owners will support a huge increase just to get the fund to 100% in just a couple of years. I supported the second option as it will get the fund where it needs to be to keep this resort as HGVC standards, and still keep the overall MF among the lowest in the system.

Some of the BOD is concerned about the delinquencies, but quite frankly every data point presented is under 2.5 % which I think is great. I could only dream that some other timeshares I own had numbers that good.

 

[Cyberc]

Anyone got an update regarding the potential increase of MF at the resort?

 

[Anthony Schmid]

Anyone got an update regarding the potential increase of MF at the resort?

I asked an owner who was at Coylumbridge for week 34. This is what she posted when I asked about a £60 increase next year.
that’s not accurate as such, no.

In the minutes from the AGM, section 7 -affect of sale of hotel - stated we are all facing and increase of £28.75 on our fees to cover the cost of the expenditure this year of the hotel ditching us - ie new check in etc for us.

Section 8 The reserve fund - this is low due to recent upgrades and bank erosion project. Discussion on that was a recommended to increase all fees by £50, but that will involve further consultation. That’s £5/month.

There’s nothing specific to 2 bed lodges that I’ve seen. Hope this helps.
The link I posted does mention that the concrete roofs do need replacing.
https://www.coylumbridge.info/wp-co...1XpQhXFRTsiBA95f8Fb2CIaSzB0kEuRgtDyhTV2bJePCw

 

[Cyberc]

I asked an owner who was at Coylumbridge for week 34. This is what she posted when I asked about a £60 increase next year.
that’s not accurate as such, no.

In the minutes from the AGM, section 7 -affect of sale of hotel - stated we are all facing and increase of £28.75 on our fees to cover the cost of the expenditure this year of the hotel ditching us - ie new check in etc for us.

Section 8 The reserve fund - this is low due to recent upgrades and bank erosion project. Discussion on that was a recommended to increase all fees by £50, but that will involve further consultation. That’s £5/month.

There’s nothing specific to 2 bed lodges that I’ve seen. Hope this helps.
The link I posted does mention that the concrete roofs do need replacing.
https://www.coylumbridge.info/wp-co...1XpQhXFRTsiBA95f8Fb2CIaSzB0kEuRgtDyhTV2bJePCw

ok thanks.

it seems that the approx £400 increase which was suggested didn’t materialize after all.

 

[Anthony Schmid]

ok thanks.

it seems that the approx £400 increase which was suggested didn’t materialize after all.

I was told from a board of director at Craigendarroch, that they also will have a nice increase in maintenance fees. Lodge 94, The 3 bedroom Plus lodge, will be over £1000 next year due to much needed maintenance.