50 points or under

[brota]

Hello
I was thinking of trying to do a buy into DVC with a very small contract maybe 50 (resale) or below.
Is it worth it just for the membership benefits?
Maybe I can fill can borrow and buy extra points if needed.

Thank you
Brian

 

[Savagekids]

We started with 50 points last year and before we even got to use them I added on another 100. I like having several small contracts. It's a good way to start to see what will work for you. They should be relatively easy to sell. My plan is to have a contract to give to each of our three kids that they choose to sell or keep as they see fit when they are older. I also like having different home resorts to choose from. This gives me more options but more to manage. They only thing I would do different so far, is pick a use year that is common to all the resorts I want to own at. Finding matching use year contracts can be tricky.

 

[disneynutz]

Small contracts cost more but should sell for more too. IMO you will be buying additional contracts to get you up to a useable number of points and the small contract isn't worth buying just for the benefits.

Bill

 

[Savagekids]

Thanks Bill, I was hoping someone would counter my thoughts. There are pros and cons to everything. So far, I'm happy with my choices, time will tell the rest of the story.

 

[supersnoop]

What "benefits" are you hoping for? None of the "benefits" are guaranteed. The only guarantee is that your points will be valid for lodging.

 

[Sharon526]

I started with 50 and added on 25 more, but now I am selling both contracts and buying one 100 point contract because the use years are different on the two small contracts which got super confusing.

 

[Tunseeker1]

I like small contracts at 3 resorts.

50 points at 3 resorts means every third year you go "home" with 150 points.

It means you can get into a better resort a bit cheaper then 150 points at a single resort.

50 points is the smallest contract Disney will finance, and about the money for somewhere like monera to finance.

Getting 50 points this year and adding on might be easier to bite off then 150 for a lot of people and the dues are easier

 

[Tunseeker1]

I started with 50 and added on 25 more, but now I am selling both contracts and buying one 100 point contract because the use years are different on the two small contracts which got super confusing.

That's the trick, same/close use years.

 

[ldo]

50 points can get you sun-fri in a studio with a little banking/borrowing at AKV and OKW. We used our 50 VWL points for summer stays before going to the beach and for a 3-4 day add on prior to a cruise. Sometimes, I did a few days @ a value over the weekend and then moved to DVC to make it a full week. We tried SSR, OKW, VWL, BWV, and AKV, and then found we loved AKV the best, so after 7 years we bought a larger AKV contract. Sold the 50 VWL for more than we paid in 1 day.

 

[Dean]

IMO it's rare that buying in for just 50 points is reasonable but there are a few situations where it is though mostly where the perks themselves add real value. I agree with Bill that one should buy the points they want up front if they know that's the case. While I generally recommend underbuying in terms of resorts or units, that assumes a full sized contract of 150 min. If one only thinks 50 is what they need, I'd buy more in the 150 range and rent the points not needed. Generally it's not worth it due to limited savings otherwise unless the perks add true value for a given person. While one can buy then sell later, there are real costs associated. One would lose roughly 20% or around $1000 doing so. Buying multiple 50 points contracts is generally not a good choice either. Generally the potential savings on just 50 points isnt' worth the risk and hassle.

 

[JWG]

We started with 75 points because we only wanted to pay cash and that was what we could afford (at the time 75 points cost a lot less than they do today). We've only added on as our cash position has allowed and we've made due growing either size of accommodations, length of stay, or number of trips in line with that. It's worked well.

 

[zavandor]

I like small contracts at 3 resorts.

50 points at 3 resorts means every third year you go "home" with 150 points.

It means you can get into a better resort a bit cheaper then 150 points at a single resort.

50 points is the smallest contract Disney will finance, and about the money for somewhere like monera to finance.

Getting 50 points this year and adding on might be easier to bite off then 150 for a lot of people and the dues are easier

Using 3 contracts every third year for the home resort advantage may not be that smooth.
If you need to book a reservation which is just less than 150, then the remaining points would go wasted or would need to be used at 7 month.
If you need to book a reservation just above 150, you can use one time use points, but then you need to book at least one night at 7 months (OTUP can be bought only at 7 months).

 

[Tunseeker1]

It is the same as having a single 150 point contract at SSR if you want to stay anywhere else. You use 11 month when you want to stay in a 11 month premium resort.
If you can use 1 use points its the same as anywhere else.
At 7 months the 3 contracts are just like a single 150 point contract.
It matters when you buy a 50 point contract at somewhere like BW,AKV,BL.
If you have a single 150 point contract at somewhere like SSR then you have very little choice at 11 months except waitlisting.

 

[Dean]

It is the same as having a single 150 point contract at SSR if you want to stay anywhere else. You use 11 month when you want to stay in a 11 month premium resort.
If you can use 1 use points its the same as anywhere else.
At 7 months the 3 contracts are just like a single 150 point contract.
It matters when you buy a 50 point contract at somewhere like BW,AKV,BL.
If you have a single 150 point contract at somewhere like SSR then you have very little choice at 11 months except waitlisting.

Not quite. It's maybe $25 maybe even #30 a point more and you would have to do a split stay to use more than 150 points at 11 months out. You're looking at 3 reasons for a higher cost. Those are that smaller contracts are currently more expensive (but may not be worth more long term), the other resorts will be more expensive (but likely have a higher future value) and the addition two closings adds another $1000. A better comparison might be VB or HH for WDW. With SSR you'd still have an 11 month window at WDW. And while I can see situations where it'd work for split stays or alternating stays in a studio, I think that's a very specialized situation. And even when it does work on paper, it's a much higher risk option due to the fact you're always dealing with a large % of banked/borrowed points. It does make the UY FAR more important than it usually is.

 

[DVCDisneyRunner]

Hello
I was thinking of trying to do a buy into DVC with a very small contract maybe 50 (resale) or below.
Is it worth it just for the membership benefits?
Maybe I can fill can borrow and buy extra points if needed.

Thank you
Brian

To answer your specific question. IMO, No it is not "worth it just for the membership benefits". However, depending on what you want to do and your long term plans, it might not be a bad plan. Just not worth getting for the benefits that are not guaranteed (as others have also pointed out)

 

[Tunseeker1]

Not quite. It's maybe $25 maybe even #30 a point more and you would have to do a split stay to use more than 150 points at 11 months out. You're looking at 3 reasons for a higher cost. Those are that smaller contracts are currently more expensive (but may not be worth more long term), the other resorts will be more expensive (but likely have a higher future value) and the addition two closings adds another $1000. A better comparison might be VB or HH for WDW. With SSR you'd still have an 11 month window at WDW. And while I can see situations where it'd work for split stays or alternating stays in a studio, I think that's a very specialized situation. And even when it does work on paper, it's a much higher risk option due to the fact you're always dealing with a large % of banked/borrowed points. It does make the UY FAR more important than it usually is.

I agree to disagree with some parts, and agree with a bunch of parts!

If you go to a studio at Christmas (December 24-31), akv value is 118 points. Not bad for the most expensive season. You can't get those rooms at 7 months. Standard view is 146 points.
Bay lake is 183 points for standard, also hard to get.
SSR is 159.

I can either book something as split stay, or bank/borrow at 11 months for Christmas. You can't do that with VB,HH points.
At 7 months I can wait list or book something better, which many do. I just like knowing I can get the resort I want at 11 months.

Something to remember about small contract premium and closing costs are the value in use of points.
Look at the cost for points if you bought 1 50 point contract a year for 3 years. The cost average would be lower then buying a single contract today, or if you had to wait 3 years to buy.

 

[Dean]

I agree to disagree with some parts, and agree with a bunch of parts!

If you go to a studio at Christmas (December 24-31), akv value is 118 points. Not bad for the most expensive season. You can't get those rooms at 7 months. Standard view is 146 points.
Bay lake is 183 points for standard, also hard to get.
SSR is 159.

I can either book something as split stay, or bank/borrow at 11 months for Christmas. You can't do that with VB,HH points.
At 7 months I can wait list or book something better, which many do. I just like knowing I can get the resort I want at 11 months.

Something to remember about small contract premium and closing costs are the value in use of points.
Look at the cost for points if you bought 1 50 point contract a year for 3 years. The cost average would be lower then buying a single contract today, or if you had to wait 3 years to buy.

I'm not sure there's really much to disagree with here. It's a fact that 50 * 3 at higher demand resort is dramatically more expensive than 150 at SSR, even at $30 a point estimate, that's likely the low end, it's really likely to be more in the $40-50 more a point range more plus you'll have higher dues. I don't think there's much arguing with the thought that it's a very specialized situation, with your added information not only does it require some combination of split stay and studio only situations to take advantage, it takes requiring something consisitently you can't gt other ways such as standard at BLT or value at AKV to take advantage. I'm not where I can run the numbers but I'd be confident in feeling that this approach will not save money for BLT standard or AKV value compared to buying SSR. I have run the numbers for SSR used for AKV standard compared to owning the lower points required for AKV value for regular sized contracts and one has to use the ponts at AKV almost all the time AND buy the lower points to come out ahead. So the more proper comparison in this situation is to SSR at a slightly larger size but then you still own more points with SSR. When you add the additional cost of the smaller contract, you'll lose that savings. As for the long term value of smaller contracts, I know some seem to think it's written in stone they'll be worth more but there are many things DVC could do to change that if they change resale rules. It's also factual that the risk is more if you're doing more banking/borrowing which your stated plan would encourage. OTOH this approach for more normaly sized contracts can be a very solid approach for some people but even then it's still a higher cost option than buying SSR resale. One just has to decide whether the higher cost is worth it, obviously you feel it is for you.

 

[Tunseeker1]

The parts that are getting missed are the difference 3 years can make on DVC prices.

In 2012 a 50 point contract at SSR was $68, AKV was $68, and BLT was $99.
https://web.archive.org/web/20120711031821/http://www.dvc-resales.com/dvclisting-P.cfm

in 2013 a 50 point contract was 80ish at SSR and AKV and $115 at BLT.
In 2014 a 50 point contract was about the same prices.
In 2015 50 point contract is about $95 for ssr, $90 for SSR and $125 for BLT.

Today 150 points at SSR is about $85 a point, with many stripped. Previously the contracts came even to loaded, almost none were stripped or delayed closing.
Non premium would be $14,000 and limited points until 2016
Premium would be about $17,000 with limited points.

2012 50 points would cost about $4000 for non premium or $5000 for premium
2013 would be $4500 and $5500.
2014 would be the same.
you could get premium contracts with points for about $15,000 or non premium for about $13,000

You also get to use the points for 3 years, and you can save on dues until you decide what your vacation style is.

There are financial benefits to small contracts the same as large contracts.
The prices on 160 point non premium contracts has been steady, but small contracts anywhere are always going up.

It may not be for everyone but it can be worth it for many.

Worst case, you can buy an OKW extended loaded contract from disney for $125 a point!

 

[Dean]

I think it's unrealistic to think that prices over the next few years will track the last few. There are other reasons for those increases. I think the best case scenario is the current spread will carry forward. Small contracts are currently around $20 a point more than a comparable full sized contract at the same resort plus the extra $1000 in closing is not recoverable. I'm not where I can do much indept financial analysis at present so forgive me it I'm rough on the information. So SSR resale at roughly $12500 up front plus yearly dues around $775 increasing at inflation. 3 times 50 with AKV, BLT & either BWV or BCV will be more in the range of $18K up front with higher dues going forward. The increased banking/borrowing will add potential cost and risk as well, to try to quantify it I'd say at least another 10-20% minimum. Plus it's much more difficult to both find the smaller contracts and to get a good contract. So by the time you end up with contracts that are both more expensive and not as good on points accounting it might be another $1000-1500 in addition. Then you've got the trouble and aggravation of trying to match them up to find all 3 in the same UY and a UY that's a good choice. If one has to go retail to do it, the costs are even more. IMO for this small it's only reasonable for an extemely small group and basically for none that are new to the system. Likely far better to buy just one of the higher demand resorts than to take the approach in question.

 

[jnjhuddle]

I think a lot of people on this board assume that everyone joining DVC should do so to stay in a 1 or 2 bedroom villa for a week(therefor needing a ton of points), but this is not the case for everyone. I bought my first contract (loaded 50 point OKW) in April this year at $71/pp before the small contract price got out of hand. For ME, this was worth it. I calculate it this way...using the 4 leftover 2014, and all 2015 and 2016 points we got 1 night in an OKW studio (anniversary trip we would NOT have done otherwise) and 3 nights in a 2 bedroom villa during F&W before our cruise. Those 4 nights total would have cost us ~$2400 at rack rate. I would NEVER have rented, have no desire to do that, not worth the hassle for me. I like to have full control of my reservation ALWAYS. My mother in law is giving me $500 towards the 2 bedroom (what she would have spent for the 3 nights at PORS). In my mind, not factoring all the extra things that people on these boards talk about, this contract has come 2/3 of the way to paying for itself with just 2 years worth of points. (Plus the 4 leftover bonus points). Not too bad. I would not have invested this $$... it is for vacation use, so those that include time value of money, etc on this-don't judge. I put FAMILY time at a much higher value. Could we have stayed for somewhat cheaper at a value or moderate on these 2 trips? Absolutely!!! But we were ready to try something different so with cost I'm comparing apples to apples, not the cost of value resort to deluxe villa. Have we invested our life savings into this? Nope! Have we already got Addonitis?? yep!! But that's because we have found DVC works well for us.