posted 01-04-2005 09:50            

Thanks in advance!

Willow

posted 01-04-2005 22:37               

quote:

---

Originally posted by Willowjoi:
A friend of mine was almost bamboozled by the developer at the Royal Sands. They actually wanted to purchase on the resale market but were promptly told by the developer that if they purchased from an outside source that they would NOT be entitled to the residual rights even if the contract went through ISCO. Have you heard of such a thing?? They are very confused as am I as I have purchased three through private parties..

Thanks in advance!

Willow

---

Willow,

This just sounds like a sales person trying to get the sale using pressure. Scare tactics are a technique used by sales people who don't possess better selling skills. If you can't convince them scare them!

The residuals stay with the Villa no matter who owns it. It is written into the ownership agreement signed by the owner and the resort. VCI is different and there are many threads addressing why that is.

Mike

posted 01-06-2005 11:17               

quote:

---

Originally posted by JEFF H:
VCI,Mayan,Carribean and Islander residual values all transfer with the membership contract to the New owners.

---

While this may be correct, there's a secondary aspect to this - the amount/value of the residual that gets transferred.

I've seen some Royal Mayan beachfront and oceanfront units for sale with lower residuals than my Bldg H unit ($9,500). I can't imagine beach and oceanfront units going for less than Bldg H units originally unless Bldg H was built later.

It seems to me that getting the full residual on a re-sale is not automatic under any and all conditions.

posted 01-06-2005 21:17               

quote:

---

Originally posted by X-ring:
While this may be correct, there's a secondary aspect to this - the amount/value of the residual that gets transferred.

I've seen some Royal Mayan beachfront and oceanfront units for sale with lower residuals than my Bldg H unit ($9,500). I can't imagine beach and oceanfront units going for less than Bldg H units originally unless Bldg H was built later.

It seems to me that getting the full residual on a re-sale is not automatic under any and all conditions.

---

The residuals from the Mayan and the Caribbean always transfer in their full amount as long as the Villa is purchased from an owner. If a Villa went back to the developer and the new sale price was lower than the origional the residual would change to the new sale price. That could account for any confusion is this area. As the resort gets older the sale prices will go down and subsequent developer sales will result in lower residuals. Thus a beach front could easily have a lower residual than an H building.

VCI Villas did not have residuals origionally and the owners were allowed to participate "after" the origional sales. The formula is unknown to me but it is not the same as the Mayan and Caribbean.

Islander and Sands are identical in that all Villas have the same residual and it is unstated. It will be based on the actual proceeds from the ensuing sales of the resorts. It makes no difference what week or Villa you own.

posted 01-07-2005 02:40               

quote:

---

Originally posted by doggiesdad:

If a Villa went back to the developer and the new sale price was lower than the origional the residual would change to the new sale price.
Mike

---

Have you ever seen this happen?

Resales purchased thru the developer normally have a higher residual value than the original contract. At the Mayan they have a formula they use to determine how much the Owner must pay to raise the residual value to match the higher new resale price.
This fee gets deducted from the sales proceeds. If what your saying is thru and residual value goes down then the seller should get a refund for the decreased residual value.

It was my understanding however if the unit was sold for less than the original sales price the residual value would never go down and would just retain the higher residual it had on the original contract.
Thats what I was told atleast by my sales rep when shopping thru the developer resale listings.

posted 01-07-2005 02:53               

quote:

---

Originally posted by X-ring:
I've seen some Royal Mayan beachfront and oceanfront units for sale with lower residuals than my Bldg H unit ($9,500). I can't imagine beach and oceanfront units going for less than Bldg H units originally unless Bldg H was built later.

---

Its all depends on the the sales price when purchased originally from the developer. Resales thru the developer have also had there residuals increased to match the new sales price.

I have seen a Royal Mayan Membership contract that sold originally for $3800 when it was first built and sold.
It would have only a $3800 residual value if it was not resold thru the Royals sales staff.

posted 02-13-2005 05:59               

I think there MUST be an exception to this rule - I'm going to guess that it is for forced sale units which forfeit the residual entirely.

While at the Royals last week the salesperson assigned to me took me into their membership office and allowed me to look at all of their resale inventory - talk about a kid in a candy store! Anyway, they had different classifications listed on the screen at each resort including why the unit was being sold ie. unsold, owner resale, forced resale. I noticed that all the forced resale units had $0 residuals, there were also several owner resales without residuals. I asked the salesperson how/why this would be as I would have expected all the units to have a residual. She didn't have an explanation for it but a bit of a leap of faith might suggest that these were owners selling weeks that had previously been forclosed on by the resort for non-payment of mf's.

She did confirm that the stated residual was supposed to be equal to the original sale price.

I purchased a resale unit for less than 50% of the stated residual while in Cancun from the developer. The higher residual stays in place despite the fact I purchased at a much lower figure. The salesperson indicated that this does happen from time to time.

quote:

---

Originally posted by doggiesdad:

The residuals from the Mayan and the Caribbean always transfer in their full amount as long as the Villa is purchased from an owner. If a Villa went back to the developer and the new sale price was lower than the origional the residual would change to the new sale price.

---

posted 02-14-2005 03:02               

quote:

---

Originally posted by Heron:
I noticed that all the forced resale units had $0 residuals, there were also several owner resales without residuals. I asked the salesperson how/why this would be as I would have expected all the units to have a residual[This message has been edited by Heron (edited 02-13-2005).]

---

Unless they were pre-residual VCI units I suspect they were just not showing the residual value because it was a lower amount than they would actually sell the weeks for.
When and If they are sold the Residual value will match the selling Price. This is the way Royal developer resales have been handled in the past.

want to share what resort and week you purchased?

posted 02-14-2005 04:48               

Unfortunately, I couldn't make a list of the weeks for later review so I was trying to absorb as much as I could in about a 5 minute time span and I wasn't focusing on the residual so much as the selling prices and weeks available.

I have no experience with Royal resales other than this one occassion so it could well have been what you are suggesting. I did ask about the absence of a residual on the units and was told point blank that there wasn't one (take that FWIW though). I was also told that the residual, at least for the Mayan, reflected the initial sale price.

I bought week 13 in unit K1142(penthouse) at the Mayan.

quote:

---

Originally posted by JEFF H:
Unless they were pre-residual VCI units I suspect they were just not showing the residual value because it was a lower amount than they would actually sell the weeks for.
When and If they are sold the Residual value will match the selling Price. This is the way Royal developer resales have been handled in the past.

want to share what resort and week you purchased?

[This message has been edited by JEFF H (edited 02-14-2005).]

---

posted 02-14-2005 07:45               

Quote:

"I bought week 13 in unit K1142(penthouse) at the Mayan"

posted 02-15-2005 03:23               

quote:

---

Originally posted by Heron:

I bought week 13 in unit K1142(penthouse) at the Mayan.

---

Nice week and unit!!!

I have purchased Two resale units thru the Developer and have sat down at the computer termianls with my sales rep to go thru resale inventory about 5 times during past visits.

Things do Change and there might have been a policy change.
I know Mexican resorts have been known to do some shady things in the past but Royals managment have always been first rate. I don't want to think they would use there position to strip residual value from some previous contracts for any reason.

posted 02-15-2005 06:43               

quote:

---

Originally posted by Heron:
Thanks Mike and Jeff, frankly I was a bit shocked that the price was as good as it was - write it off to good timing I guess.

I hope you didn't think I was suggesting that there was something shady going on because that wasn't my intent. Given the costs involved in foreclosing on units for unpaid mf's eliminating the residual sounded perfectly reasonable to me and please keep in mind that this was MY opinion based on what I observed not a representation of the Royals. Sorry if that wasn't clear.

---

Carl,
No problem. I understood what you were saying and I'm certain Jeff did also.

Mike

posted 02-16-2005 01:02               

No problem and Im happy for your good fortune.

I just couldn't see how the residual value could be stripped from the contracts based on my own past experience.

posted 02-16-2005 12:23               

Redweek has the same unit K1142 for sale for week 37. Residual $6700.00, I'm not sure how much your's is.. it just caught my attention

posted 02-17-2005 08:02               

quote:

---

Originally posted by Heron:
I had checked Redweek before buying and I saw the one you refer to. The residual on the one I purchased was >$10k and I paid <$5k so with 8 years of vacations if I get even 25% of the residual those are pretty cheap vacations, if I get 50% it didn't cost anything (leaving aside the time value of money) and any amount >50% is money in my pocket so no matter how it goes I figure I come out just fine.

Even at $0 residual I'm only paying at most $200-$300 more that I otherwise would have if I'd rented the unit every year so it's pretty much a no lose situation.

---

Carl,
Not trying to rain on your parade but you must remember to factor in MF's when figuring your cost of ownership. Like you we paid $5000 and have a pretty high residual (13,000). When I figure the cost of my vacations I also add in the money spent on MF's over the time of the ownership and add that to the cost. I suppose a person would also want to add any interest the moneys might generate over the time period and that would then be divided by the years and a true cost figure would arise. No matter how you do the math it's a great deal by any reasonable standard.