BigDawgTUG
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- Jul 10, 2019
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Hello. I am the purchaser of GRCTahoe's quarter share at GRC. Since there were some questions about this bundled purchase, I just wanted to update everyone on the transaction now that it has closed.
After confirming the information provided by GRCTahoe with Marriott, I contracted to purchase the GRC quarter share for $65,755. As a side note, you must use one of the now three Marriott approved brokers in order to make the GRC quarter share eligible for enrollment. We decided to gross up the purchase prince by the closing costs (which the Seller paid) in order to better position the sale for success for ROFR. We were informed by escrow that Marriott originally exercised the ROFR, but Marriott sales reps apparently intervened as Marriott would have lost the enrolling purchase of St. Kitts - see below. Marriott then waived ROFR.
Enrolling purchase was Marriott's St. Kitts Platinum Plus-New Years, 2BR, EXT for $56,965.27 (inclusive of closing costs). Further, as noted above, we had to pay Marriott's $5,000 enrollment fee. Purchase also included 6,875 bonus Destination Points to be used over two-year period after closing. The entire process took over three months, mostly due to some very unresponsive persons at Marriott's end on the St. Kitt's purchase.
Average annual Destination Points for GRC quarter share is 32,875 and 5,650 for St. Kitts. So, all in, we purchased 38,525 Destination Points for a total purchase price of $127,720.7, or $3.32 per Destination Point. Annual maintenance fees and property taxes for GRC and St. Kitts is $11,498, or $0.30 per Destination Point.
Prior to this purchase, I had just over 10,000 Destination Points, including 3,000 Destination Points, and enrolled weeks in Canyon Villas, Custom House and Newport Coast (all resales or gift from family member). Average maintenance fees for the prior portfolio are approximately $0.60 per Destination Point.
I had always wondered why anyone would use Destination Points to book cruises, landtours, etc., as use of Destination Points would typically be more expensive than simply paying cash. With Destination Points at essentially one-half my current annual cost, and given 30% disocunts on bookings within 60 day window, adding these properties to the portfolio makes these options more cost-effective, albeit it many instances it may still be more cost-effective to rent the points and use the cash. In the alternative, playing off the concept noted by GRCTahoe, I can rent 20,000 points at $0.60 per Destination Point in order to cover all of the maintenance fees for this purchase and essentially have maintenance fee free access to the remaining 18,000 Destination Points per year.
By way of background, I am close to retirement and my wife and I are looking forward to making great use out of the program going forward. Further, really excited about the prospect of my children inheriting these properties from us (that is, no up front costs for them), and positioning them to have the opportunity to use as many as 18,000 Destination Points per year for no cost.
After confirming the information provided by GRCTahoe with Marriott, I contracted to purchase the GRC quarter share for $65,755. As a side note, you must use one of the now three Marriott approved brokers in order to make the GRC quarter share eligible for enrollment. We decided to gross up the purchase prince by the closing costs (which the Seller paid) in order to better position the sale for success for ROFR. We were informed by escrow that Marriott originally exercised the ROFR, but Marriott sales reps apparently intervened as Marriott would have lost the enrolling purchase of St. Kitts - see below. Marriott then waived ROFR.
Enrolling purchase was Marriott's St. Kitts Platinum Plus-New Years, 2BR, EXT for $56,965.27 (inclusive of closing costs). Further, as noted above, we had to pay Marriott's $5,000 enrollment fee. Purchase also included 6,875 bonus Destination Points to be used over two-year period after closing. The entire process took over three months, mostly due to some very unresponsive persons at Marriott's end on the St. Kitt's purchase.
Average annual Destination Points for GRC quarter share is 32,875 and 5,650 for St. Kitts. So, all in, we purchased 38,525 Destination Points for a total purchase price of $127,720.7, or $3.32 per Destination Point. Annual maintenance fees and property taxes for GRC and St. Kitts is $11,498, or $0.30 per Destination Point.
Prior to this purchase, I had just over 10,000 Destination Points, including 3,000 Destination Points, and enrolled weeks in Canyon Villas, Custom House and Newport Coast (all resales or gift from family member). Average maintenance fees for the prior portfolio are approximately $0.60 per Destination Point.
I had always wondered why anyone would use Destination Points to book cruises, landtours, etc., as use of Destination Points would typically be more expensive than simply paying cash. With Destination Points at essentially one-half my current annual cost, and given 30% disocunts on bookings within 60 day window, adding these properties to the portfolio makes these options more cost-effective, albeit it many instances it may still be more cost-effective to rent the points and use the cash. In the alternative, playing off the concept noted by GRCTahoe, I can rent 20,000 points at $0.60 per Destination Point in order to cover all of the maintenance fees for this purchase and essentially have maintenance fee free access to the remaining 18,000 Destination Points per year.
By way of background, I am close to retirement and my wife and I are looking forward to making great use out of the program going forward. Further, really excited about the prospect of my children inheriting these properties from us (that is, no up front costs for them), and positioning them to have the opportunity to use as many as 18,000 Destination Points per year for no cost.
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