906 point listing for VWL!

[DebbieB]

I wish I would have split up my 250 point contract into 150/100. I would then have sold the 100 and bought VGC when it opened. I can't imagine the buyers remorse for buying 900 in one contract! Someone should have suggested it.

 

[APiratesLifeForMe2]

Surprise surprise the 1313 vgf is still on the market but they just reduced it to 134/pt.

 

[CarolMN]

Surprise surprise the 1313 vgf is still on the market but they just reduced it to 134/pt.

$175,942

If it's still available when I win the lottery, I will probably buy it.

 

[mustinjourney]

I could see a broker buying it. But it still needs to get below $130 to have a chance.

 

[ziravan]

I could see a broker buying it. But it still needs to get below $130 to have a chance.

Broker won't buy it because that would be commercial renting. So long as a broker is using YOUR POINTS, he's just a matchmaker for a fee. If he's using HIS points, he's the renter - and would be shut down by Disney.

 

[mustinjourney]

Broker won't buy it because that would be commercial renting. So long as a broker is using YOUR POINTS, he's just a matchmaker for a fee. If he's using HIS points, he's the renter - and would be shut down by Disney.

That would explain why the brokers don't rent out their own points.

 

[Mousewerks]

$175,942

If it's still available when I win the lottery, I will probably buy it.

I hope I win the lottery before you..

 

[CarolMN]

I hope I win the lottery before you..

Ok with me, LOL!

 

[DVC Doctor]

I can not see anyone paying over $110pp for the VGF contract as it is so large. If Disney exercises ROFR, then so be it.

For me, I would rather have the first week of Dec than week 51, but I get why someone would want this.

I personally think a Corporation is better suited to buying this and using it for executive vacations than a family.

 

[Dean]

I can not see anyone paying over $110pp for the VGF contract as it is so large. If Disney exercises ROFR, then so be it.

For me, I would rather have the first week of Dec than week 51, but I get why someone would want this.

I personally think a Corporation is better suited to buying this and using it for executive vacations than a family.

I can see it for the right person. Someone who's more of a GF person and who normally goes that time. I can also see it for someone who wants that many points and wants VGF as their home. Maybe someone who does a suite for that time anyway. One could "invest" in it and rent it out and easily stay within the rules on commercial rental and likely come out as well. I suspect it'll pass at most any price because I don't think DVD can split it up and break up the fixed week guarantee. I know some feel they can and that they can generate fixed weeks sales after the fact which I also don't believe to be true.

 

[skier_pete]

This is really just because I am curious, I can't afford 1000 points.. However, is there really any benefit of buying say, one 1000 point contract vs maybe 5 200 point contracts. I would think a savvy buyer who had that kind of money would buy numerous smaller contracts originally, if only because of the ability to divest yourself of them in the future. Unless maybe back in they day Disney gave "volume discounts?"

Just because you are rich doesn't make you a savvy buyer. In fact it often makes for just the opposite - "I can afford it who cares." But I would agree with you, a smart buyer would buy all their contracts in 150-250 point increments. (Smaller contracts only if you are buying direct.)

 

[Nikisha421]

this is a crazy purchase

 

[blueferral]

Buy 1000 points. Use 300. Sell (I mean rent out) 700. No dues and eventually get your initial investment back.

 

[kapicka]

Buy 1000 points. Use 300. Sell (I mean rent out) 700. No dues and eventually get your initial investment back.

Ok - I'll do it - do you have $100k I can borrow?

 

[DVC Doctor]

Buy 1000 points. Use 300. Sell (I mean rent out) 700. No dues and eventually get your initial investment back.

Just using round numbers:

Buy 1,000 points @ $100pp = Spend $100,000 cash with no financing (that is not something that many people can or would be willing to do)

Pay $6,000 per year in annual dues and Rent for $13,000 = $7,000 per year profit

$100,000 / $7,000 = 14 years to pay yourself back and your profit would be the value of the DVC in 14 years.

However, if you simply invested $100,000 @ 5% you would get $5,000 per year and in 14 years, you would have about $200,000

 

[Dean]

Just using round numbers:

Buy 1,000 points @ $100pp = Spend $100,000 cash with no financing (that is not something that many people can or would be willing to do)

Pay $6,000 per year in annual dues and Rent for $13,000 = $7,000 per year profit

$100,000 / $7,000 = 14 years to pay yourself back and your profit would be the value of the DVC in 14 years.

However, if you simply invested $100,000 @ 5% you would get $5,000 per year and in 14 years, you would have about $200,000

While I feel it's foolish to buy DVC just to rent, I do think there is some variations to your numbers to consider. Using your numbers, if one invested the profit of $7000 at the same earnings rate, they'd have over $135K at the end of that 14 years or one would "break even" at the end of 11 years using these numbers. Personally I'd use a higher rate of return of 8% after taxes which would shorten the rate of return but would also broaden the gap in favor of normal investing over investing in DVC. I also think one can get more renting but the numbers you posted should be pretty close after taxes. If I were going to do this, it'd have to be a situation where buying VGF made sense anyway and where a volume of points were needed, which is a very limited situation anyway. But I believe one would need to reserve the easier to rent times in standard view villas mostly studios and 2 BR.

To a degree this is the argument against buying DVC in general, esp at higher points volumes and would apply directly to those who have bought multiple home resorts with the intent of renting routinely to be able to swing the volume. While I don't think it makes sense to buy just to rent or speculate, I do think it could make sense for the family who wanted VGF routinely at higher points levels. The problem is that to get the price one needed on this size contract would almost certainly push it to ROFR since DVD doesn't have the same constraints on the contract and should be able to easily dispose of the points.

 

[rothesay]

Just using round numbers:

Buy 1,000 points @ $100pp = Spend $100,000 cash with no financing (that is not something that many people can or would be willing to do)

Pay $6,000 per year in annual dues and Rent for $13,000 = $7,000 per year profit

$100,000 / $7,000 = 14 years to pay yourself back and your profit would be the value of the DVC in 14 years.

However, if you simply invested $100,000 @ 5% you would get $5,000 per year and in 14 years, you would have about $200,000

Wouldn't the math works better if one were to buy into SSR in the low to mid 70s range, or OKW in the low to mid 60s range?

I think in today's market, finding something that will cash flow at 5% is sort of tough, whether it is dividend paying stocks, bonds or even real estate.

 

[Paula Sedley-Burke]

Maybe it is a wealthy person or family who is feeling very confident tonight they are moving to a large white house and might be too busy for the next 4 years to go on vacation....

 

[Dean]

Wouldn't the math works better if one were to buy into SSR in the low to mid 70s range, or OKW in the low to mid 60s range?

I think in today's market, finding something that will cash flow at 5% is sort of tough, whether it is dividend paying stocks, bonds or even real estate.

Maybe, a lower return but an even lower investment so one might end up with more. But more work and more difficult to rent in all likelihood. I don't think it's difficult to find something that'll cash flow at 8-12% with less risk. Certainly rental real estate bought for cash and for an appropriate price should well exceed that as should a good mutual fund portfolio over time.

 

[kapicka]

DVD doesn't have the same constraints on the contract and should be able to easily dispose of the points.

What do you mean by this? Do you mean that a buyer would be stuck with the big contract but Disney could break it up into smaller contracts to resell?