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View Full Version : Golden Oaks: Another Pricey Place??


baby1disney
06-14-2011, 09:19 AM
Hello. I was reading about this place and while it does sound like a wonderful and awesome place to live at/in...I couldn't help but wonder why Disney is aiming for such a high clientel.

I mean with sooo much of the visitors being the average middle class/incomed family..I would think that Disney would provide or want to..build an area for families that could afford it. I know I would!!:thumbsup2

It just seems like they're focusing too much on the upper class lately and was just expressing my views.

I mean...am I the only one who sees it that way?? Please share your thoughts and views about this. Maybe I'm not seeing it and would love for someone to point out different things to me!!:goodvibes

Terrie:cutie:

k5jmh
06-14-2011, 09:47 AM
Disney is making a smart business move. There are some folks that can afford to own "on property" and are willing to pay a premium for it. It is a similar business philosophy to Adventures by Disney. Also, there is a large demand for second homes from Foreign guests looking to go to WDW and live close to Disney. I think they can offer a premium product and command top dollar for that product. Disney wants to keep those folks and their money on property. I think it has the potential to be a great money maker for Disney.

I mean with sooo much of the visitors being the average middle class/incomed family..

That is an assumption. Disney sees a demand for the products and is providing the products. I would like to see more Deluxe resorts. The last of the non-DVC deluxe resorts would be AKL.

I would think that Disney would provide or want to..build an area for families that could afford it. I know I would!

Disney is building an area for people who can afford it. It is called Golden Oaks. Remember, these homes are primarily built as Second/third homes.

It just seems like they're focusing too much on the upper class lately and was just expressing my views.

Disney is adding more value resort rooms and family suites. It seems to me that they are focusing on getting more folks on property. Everyone's money is green.

roomthreeseventeen
06-14-2011, 09:51 AM
Yeah, with Art of Animation coming in, I think Disney is covering its bases. They have tons of people employed there that do exhaustive marketing surveys, and know exactly who to target for what purpose. Disney is a lot of things, but stupid isn't one of them.

baby1disney
06-14-2011, 09:58 AM
I didn't even think about it being a second home for some folks!! Thanks for pointing that out!! I guess they are covering all bases.

firemanx
06-14-2011, 10:05 AM
waiting to see how disney responds when a brazilian tour groups wanders thru these peoples back yards

mshoo1
06-14-2011, 10:08 AM
It's simple economics. By building a limited number of large multi-million dollar homes, Disney can ensure a significant profit margin on the sale of each house without exposing the company to lots of financial risk. From Disney's perspective, why build 1,000 modest single family homes when you can generate the same amount of profit from the sale of 200 mansions? In addition, those upper-income owners will likely spend much more money in Disney parks and restaurants, on average, than the owners of a modest-sized home.

Given current home loan requirements, the number of people with sufficient assets to purchase a second home solely for vacation purposes is limited--particularly since owners of these homes will be prohibited from offering them as short-term rentals (i.e. any rental period less than 6 months in duration).

k5jmh
06-14-2011, 10:21 AM
It's simple economics. By building a limited number of large multi-million dollar homes, Disney can ensure a significant profit margin on the sale of each house without exposing the company to lots of financial risk. From Disney's perspective, why build 1,000 modest single family homes when you can generate the same amount of profit from the sale of 200 mansions? In addition, those upper-income owners will likely spend much more money in Disney parks and restaurants, on average, than the owners of a modest-sized home.

Given current home loan requirements, the number of people with sufficient assets to purchase a second home solely for vacation purposes is limited--particularly since owners of these homes will be prohibited from offering them as short-term rentals (i.e. any rental period less than 6 months in duration).

:thumbsup2

It is all about risk! And the $$. Disney was able to carve out that section and de-annex it from Reedy Creek, just as they did to Celebration. Golden Oaks is now in unincorporated Orange County. The Four Season's property was also de-annexed.

The Eagle Pines Golf Course was deannexed into Orange County and re-graded for the construction of a mixed residential and fractional ownership development.


http://www.rcid.org/PDF/RCID_Legislation.pdf

I find it fascinating that Disney is looking/planning for a 5th gate to be built in the next 10 years.

http://dl.dropbox.com/u/817135/Boards/10yearplan.jpg

baby1disney
06-14-2011, 10:44 AM
I understand what everyone is saying..but I guess I just don't see why they couldn't build a community of like 200-300 homes with prices starting out around the $300-$400,000 up to a million I guess for some people. I mean I understand that you want to appeal to a certain group of people/income and that's fine and all..but I guess people would say that is/was what Celebration was for. But..I thought that Celebration wasn't owned by Disney??:confused3

Idk..but thanks for the different point of views. I can certainly see Disney's side of it and it does make sense in a business point of view. Who knows...maybe a few years from now they may come up with something like that for middle class families!!! That would be cool!!:thumbsup2

k5jmh
06-14-2011, 11:04 AM
It looks like they are all ready making some progress on the home sites.

http://dl.dropbox.com/u/817135/Boards/GO1.jpg

http://dl.dropbox.com/u/817135/Boards/go2.jpg

The location of Golden Oaks also explains why WDW put the new Pet facility just down the road.

TrekBoy85
06-14-2011, 11:05 AM
I think Disney probably makes more money off of people who don't own a home nearby when they come and stay at a Disney resort. Middle Class families with homes near Disney (even if it's on Disney property) will not be staying and spending money at Disney resorts, and it would seriously cut down on the amount of money they spend at Disney restaurants when people can just "go home" to eat their meals. In some sense, Disney would start to lose control of the revenue that comes into the Parks and Resorts.

This is very similar to how Disney apparently views Collectible Pins - they make far more money off of the infrequent visitor's purchases than they do the regulars.

That being said, Disney does offer Premium services - Premium Collectibles, Deluxe Hotels, Dining Plans which include fireworks viewing and other extras, Premium Dining, DVC, Weddings, etc. These services are not intended for everyone...only those with the available funds, and when they do pay up for these services, Disney makes a bundle. It's probably at least several times what the average visitor spends and it makes it continually worth it for them to keep offering premium services.

BriarRosie
06-14-2011, 12:53 PM
I understand what everyone is saying..but I guess I just don't see why they couldn't build a community of like 200-300 homes with prices starting out around the $300-$400,000 up to a million I guess for some people. I mean I understand that you want to appeal to a certain group of people/income and that's fine and all..but I guess people would say that is/was what Celebration was for. But..I thought that Celebration wasn't owned by Disney??:confused3

Idk..but thanks for the different point of views. I can certainly see Disney's side of it and it does make sense in a business point of view. Who knows...maybe a few years from now they may come up with something like that for middle class families!!! That would be cool!!:thumbsup2

Celebration was created by the Walt Disney Company in the mid-1990's. They owned it for about 10 years before selling it to a private real estate company, I think.

Anyway, to help you put it further into perspective, think of the often quoted "location, location, location". The Deluxe resorts have the best locations and amenties (well, AKL being the exception to the "location" rule), and then there's "location" in terms of desirable properties.

Would beachfront homes be sold cheaply? No. Think of Malibu, CA. Those homes are pricey. As are places like Miami's South Beach. In terms of location, Golden Oaks is in prime WDW real estate location. Disney would be foolish to develop middle income housing there.

baby1disney
06-14-2011, 01:39 PM
OK..I get it..LOL:lmao: I feel like I'm getting called stupid..but I know I'm not!!;) Thanks everyone for your input and I can see why they are appealing towards the upper class incomed. It does make a lot of sense now that I've seen the pics and other documents(thanks k5jmh!!:goodvibes)together and I can see the appeal.

Who knows maybe one day I'll win the lotto and I'll buy a house there!! LMAO!!

This is a very interesting conversation and I Love everyone's input. Definitely wakes me up to look at things from a company's point of view sometimes instead of always looking at it from a consumer's point;)!!

CastawayJP
06-15-2011, 05:07 PM
If they built affordable homes for middle class families on property, the demand would be so great they would anger more people than they could please. It's all about exclusivity...

If you are looking for something more affordable go to Celebration... But most would argue that that is for the upper class as well...