Original Message:
Re: Ripoff - Marriott Vacation Club Destinations Program - New Point System (by Bob P.):
Kathryn, I am sure that under the law what they are doing by offering owners a choice is legal. That said, there is nothing a class claim could do but make some attorney money. We just need to hope that whatever we purchased retains value.
As for what the worth is, is anyone's guess. As Dennis says we do have the comfort of knowing that as Deeded Ownership goes, we have the best. Many folks who simply own points as a vehicle to use without a deeded, undivided interest, have simply a promise. My daughter happens to own Disney for one, Great company who stand behind what they sold. Unfortunately not all did, Many sold point systems not supported by actual units and have simply gone away. Others built units that when they no longer were profitable were resold for pennies. Marriott is obviously not one of either.
My concern is really not for myself. I just believe that what is being charged new owners is greatly overpriced. As an example, I will use my 2BR Desert Springs unit. Which by the way I love, I bought a Winter week in 1993 for the top price of $16,900. When they were all sold out they were being sold by Marriott for about $31,000. Mind you, those units were available on the aftermarket for under $15,000. Than the bubble burst!
The new owners could no longer fool the public when so many were being resold, so the strategy was to change to points. These points, although still backed up by an undivided ownership in a physical unit that is subject to real estate taxes and annual maintenance fees, sell currently for $10.94 each. Given the fact that in order to use my particular unit will cost 3,750 points or about $41,000, I feel someone is getting ------.
As long as there are new buyers and maintenance fees keep going up, things will be just peachy.
Lastly, they tell new owners how they can use their points to stay at any one of their properties. I would like to hear from just one person who was able to book a Marriott Maui Lahaina Tower week in the summer for the stated 1BR rate of 3,100 points. Last I heard, they had none and were trying to buy some back at the Pre-Construction price.
If you want to see what the value really is, go to a resale site and see what they are actually selling for. Remember, that Marriott has the first right to refusal and will grab any that are too cheep before you can and that any resales by Marriott carry a 40% commission. Oh, They will only resell yours after they have exhausted their own resale inventory. That inventory being made up of units they took back because the owners stopped paying their maintenance fees or they DIED.
By the way Kathryn, Disney and Westin only ever sold points. Thus, my daughter who loves Disney now that her children are young, may rethink that when they are older. I know there is no way I want to spend a week at Disneyland at my age.
Have a good one, and remember that whatever you have, you will be happy as long as you can use it.
P.S. an Attorney friend of mine once told me that he does not include Timeshares in Will's because he feels they have no value and should not be subject to inheritance taxes.