posted 07-28-2004 06:45               

What is going on at this resort? Does it simply pick a number out of a hat to assign levys? How can anyone have confidence in buying there?

posted 07-28-2004 12:35               

quote:

---

Originally posted by king1:
After I purchased my first few SS weeks, I asked the same questions about the wide variance in the levies. It was explained that the developer originally set the different amounts based on the desirability of the individual units. There are 1BR white weeks there with levies still in the R514-R678 range(mine), so I doubt that you are getting bad info, just that the weeks you are pricing have higher levies. As for inflation, my SS levies started out at about R425-R575, but the exchange rate was MUCH better then, so one of mine cost only $37 in our currency! Colleen DeKlerk at the resort(silversands@worldonline.co.za) is very helpful and will, I'm sure, be glad to promptly answer all your questions. It's easy to pay levies at SS, and they respond quickly to emails.

---

King,
How much inflation per year, in Rands, have you seen in your SS levies? The Seapointer has been going up close to 15% per annum. Don't factor in the devaluation of the dollar.

Phil

posted 07-28-2004 14:53               

Phil

posted 07-29-2004 14:53               

Orange Lake 2 bedroom units are slightly over $550.

I'm not sure what Sheraton Vistana charges but it's expensive.

Vacation Village at Parkway is close to $600 MF per year.

Summer Bay in Orlando is expensive.

Hilton's in Orlando are expensive.

I could list TONS of others in Orlando...they are ALL expensive. Silver Lakes, Sunterra, Cypress Pointe...

There are MANY MANY Orlando resorts that have very high maintenance fees.

If someone enjoys going to Orlando, and doesn't mind some resorts having 1-in-4 or 1-in-3 stipulations, then they can EASILY rotate nice resorts each year, and exchange into a top resort with their South AFrican unit.

You can probably find a handful of resorts with less than $200 MF's. That's very easy.

And let's assume 10% inflation over the next 5 years... that will bring you up near about $300 if that happens.

After 5 years of exchanging, you will STILL only be paying $300 for an exchange into a resort with MF's that are probably $600 or more.

What's my point? If you bought 1 unit in South Africa for a MF of $200, you could probably trade that unit every year for ANY one of the above resorts and NOT ONLY save thousands on purchase price...but also save enough on MF's each year to rent a nice car each week.

Then again, if you hate Orlando, you just lost 3 minutes of your life reading my post.

posted 07-29-2004 15:53               

quote:

---

Originally posted by ron1:
On this question of levies .... how do SA levies compare with USA comparative resorts? - Ron

---

I have a GC, 1BR, unit in Utah and the levy is $480. I also have a 1BR at an RID resort in TX and the levy is $380. Definitely higher than my 2 SA units which are abt. $200 and $300/yr. Hope this helps. I'm guessing the cost of living is lower, overall, in SA too. Yes?

Phil

posted 08-03-2004 12:57               

What makes them unattractive are a) high average annual increase in MF (10-15% per year), b) historically poor exchange rate from USD to ZAR and c) the unknown future of points for deposit and trading power of SA resorts.

posted 08-03-2004 22:20               

quote:

---

Originally posted by skimble:
From what I can assertain from reading these pages for years now, the average levy for a SA resort is around R180. There are people who own resorts with R65 levies, and some who own at over R380. Translate that into dollars and you're looking at between $100 and $500 in levies.
In the US, the average resort is around $400 in maintenance fees. You can find some around $200, and there are others that breech $1200, and the occasional $1800 (Aviara.)
On average SA is better, but you suffer in trade value, risk, and the fluctuation in dollar value.
When you consider the fact that you can pick up a resort in the US that has a mf of about $200, a US purchase may be a better option for the new timeshare buyer.

---

Where in the US can you get $200 MF's for a 1BR? I've heard about them but do you have a resort in mind?
Thanks,
Phil

posted 08-06-2004 04:56               

The way I figure it, if you have about $800-1000 in the purchase which includes all costs & fees, and, you pay $150/yr in MF, and $139/exchange/yr - that's not bad!

And then let's look at a worst case scenario: MFs increase 25%/yr over the next 4 yrs, your MFs & exchange cost/yr would be:

Yr 2 - $189 + $139 = $328
Yr 3 - $235 + $139 = $374
Yr 4 - $295 + $139 = $434
Yr 5 - $370 + $139 = $509

So now, you've had 5 great vacation @ real nice resorts & you're absolutely feed up w/ the increase and you've had it with the decrease in trade power (you know how our "friends" at RCI are always messing with soemthing), so you decide to dump your SA TS.

What have you lost - even if you give it away to charity?

Even if you dump the SA TS at the end of 5 yrs, your average annual cost for those resorts was roughly: $550

I can live with that risk/enjoyment! Is there something wrong w/ me? Should I seek professional help (please don't ask my wife or kids that question)?

Mark

posted 08-06-2004 07:27               

Over a longer term horizon, there are better alternatives depending on the type of trading and program you want.

posted 08-06-2004 09:23               

I forgot to mention that the exchange fee you are using is incorrect. To do an international exchange, I believe it is $179, not $139.

In addition, even using the numbers that you describe above, you can get a better deal per week if you buy into Australia at the right price which I know is possible because I just did it.

RCI points has far superior trading power than a normal SA week. And, using points that are bought at the right price can get you a 2 Br Red week in Gold Crown for around $479. And, that includes amortizing the upfront capital fee which you didn't do in your analysis.

So, don't underestimate how much MF inflation will impact the value of the TS over time.

posted 08-06-2004 17:40               

Marina is correct on the exchange fees. Also, while not disputing your point, the impact of amortizating my capital over that period is relatively miniscual in the scope of an $800 expenditure.

I would however, be interested to know more about Aussie points. Definitely sounds worth investigating for my next purchase (if I really need one). Can you emial me your experience or point me to some quality Aussie posts/threads.

Thanks,
Mark