Just purchased VGF 160 pts - Good move?

Discussion in 'Purchasing DVC' started by dis79tim, Jun 30, 2013.

  1. dis79tim

    dis79tim Earning My Ears

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    Hi everyone. First post here, so please pardon if this is the wrong spot.

    We just purchased 160 pts at $150 a piece for the Villas at the Grand Floridian while on our recent Disney Cruise.

    We are financing, but will most likely have the contract rate paid off within two years.

    I along with my wife and two children are disney fanatics. We have only stayed onsite once and that was at All-Star Music. We would never stay off-site again.

    We plan on doing one or two 4-5 day trips to WDW each year.

    We've contemplated DVC for years, and I know about the resale options out there. VGF isn't available through resale yet and I am thinking when it does it may be more than the $150 a point I am paying for the contract.

    Thoughts on this? I'm thinking the clout of the Grand Floridian Villas at the $150/point rate I paid will be good looking back in a few years.

    We still have a few days left before the contract is set in stone to back out, so I wanted to reach out to see what the community thought.

    We want to own a piece of the mouse and am wondering if this seems like a smart move...

    Thanks for your replies.

    -Dis79Tim
     
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  3. Dean

    Dean DIS Veteran<br><a href="http://www.wdwinfo.com/dis

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    If you want to stay most trips at GF, that might be a good choice. IF you just want in the system, I think it's a poor method to do so. I also doubt your assumption that GF will never be below $150 resale, I'd bet it is in a couple of years. If you just want in the system you might be better served buying resale, hopefully for an amount of points you won't have to finance or finance a lot less.
     
  4. ptlohmysoul

    ptlohmysoul Mouseketeer

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    If you're doubting, it doesn't hurt to back out now, then decide later (you can still buy VGF later). VGF is good if you want to stay primarily there or if you want a guaranteed week there. Otherwise, why not resale?
     
  5. dbs1228

    dbs1228 DIS Veteran

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    I agree with both PP, if VGF is where you want/ must stay then it is a good choice to get in early at those prices. I do not believe resale will be higher then 150.00 even if direct prices go up. When I looked to add on to BLT direct prices were 108.00 with incentives resale was between 95.00 - 100.00 pp not much of incentive to buy resale. BLT resales got much more active when prices (resale) went to the low 80.00's and direct pricing hit 165.00. Right now resale prices are at all time high vs. the past 4 years because it is a sellers market - that too shall pass.
     
  6. disneynutz

    disneynutz DIS Veteran DIS Lifetime Sponsor

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    They got ya!

    You were excited and bought without doing much, if any homework. Because you financed, my guess is that you aren't wealthy and you care about your purchase.

    IMO there are 3 choices, keep what you bought and be ok with settling if things don't work out.

    Rescind the contract and buy at a less expensive resort with the plan to sell it and buy where you really want as a home resort later.

    Rescind the contract and rent from an owner until you learn the lay of the land and can decide where you want to live.

    Do the numbers before you decide what to do.

    There are many things to learn about your ownership and reading the DIS is a good place to start.

    Good luck.

    :earsboy: Bill
     
  7. ELMC

    ELMC DIS Veteran

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    I think it's great that you came on here to ask these questions before anything is finalized. I'm going to take you at your word that you want honest advice and hope that I can deliver that in a nonpartisan, respectful manner. :)

    In my opinion, without a doubt, you should cancel your contract. There are a ton of red flags in your post (which I will address individually). Keep in mind that my advice comes from a maximization of resources position. If you are super wealthy and don't really care about getting the most from your dollars and are more interested in owning, my advice might change a bit. But given the fact that you are financing, I would think that money is a bit of an issue in this purchase and will advise based on that assumption.

    Red flag number one. Purchasing on a cruise can be great, but more times than not, it's not a well informed decision based on your lack of access to information.


    Red flag number two, sort of. The fact of the matter is that with the projected trajectory of VGF prices, you will probably pay the same now with financing as you would in two years, and you'd have the benefit of two year's worth of points. So that might not be awful. But this is a very, very expensive purchase and if anything changes and you don't pay it off in two years, the finance charges will quickly eliminate any of the value that could possibly be achieved by purchasing DVC. There are entire threads dedicated to this topic, but I'll sum them up in one sentence. Financing a timeshare purchase is an incredibly risky proposition that greatly alters the cost/benefit ratio of owning said timeshare.


    Possible red flags here. I can totally understand your not wanting to stay offsite again. We stayed offsite for years until our desire to stay onsite led us to DVC. But we also had a track record of visiting Disney multiple times per year. There's a difference between doing it knowing that it is something you enjoy and "planning" on visiting once or twice a year. Only you can truly answer which best describes you. Also, if you are happy with staying at Values, that might be the way to go for you. It is highly unlikely that you can use DVC to stay at Disney for less than you would pay OOP for a Value resort.

    Also, have you seen the points requirements at VGF as opposed to other resorts? If you are planning on staying there for 4-5 days twice a year then 160 points won't be nearly enough. And if you're planning on using your points to stay elsewhere, why are you paying the premium to own at VGF?


    Nothing is certain, but I sincerely doubt it. My projections based on following the resale market is that resales will pop up within the next 6 months somewhere in the $130-$140 range. I doubt that they will eclipse the $150 mark. That being said, VGF pricing is in uncharted waters, so nobody really knows what will happen. I will say that it's a big gamble you're taking if you're banking that resales will be more than what you paid for it.


    Probably. But that's assuming that VGF is where you want to be. If you read the VGF purchasing threads they all have one thing in common...the buyers are absolutely blown away by either the rooms or the prospect of staying at the GF. Given that you bought on a cruise, I'm not sure if you saw a model room, and nothing you have said indicates the fact that you are a GF lover. I would love to stay at VGF, but I'm going to try to get in there at 7 months using my SSR points because it's somewhere I'll only want to stay once or twice and it's not that important to me. Unless you are madly in love with the GF, there are numerous ways for you to purchase DVC for much, much less money.


    Super red flag here. If you want to own a piece of the mouse, buy one of those souvenir framed stock certificates. If you want to own a timeshare, buy DVC. But please don't kid yourself in thinking that you own a piece of Disney by buying DVC. What you own is an obligation to pay maintenance fees for the next 50 years. And to be a bit blunt, I don't think what you did is a smart move based on the lack of research you did prior to acting. I think your coming on here and posting your questions was a smart move.


    You mentioned that you are aware of resale, but I'm not sure how aware you are. Although not at the VGF, there are resale options that could have you owning 160 points for one third the cost of what you are paying now. I strongly urge you to consider canceling your contract and really examine the math behind resales. Nothing you have said here convinces me that it is worth the extra $16,000 it is costing you to buy the VGF as opposed to a loaded resale contract at SSR or AKV.

    If you are truly interested in getting the best deal and the best fit, then you have a lot of research to do. If you just want to own and be done with it, then you really have no work to do. Just know that going that route is significantly more expensive and may not provide the ownership experience you are looking for. Good luck, and please come back and let us know what you decide! :)
     
  8. Daisyduck49

    Daisyduck49 Mouseketeer

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    I think you will be happy. We purchased all our points through Disney & recently Grand Floridian, I think it is great to buy now such a small resort & will be very hard to get in if it not your home resort. We have 530 pts & we enjoy them immensely! Do not let anyone ruin your vacation happiness:). As long as you are happy that's all that matters!!!!
     
  9. Sammie

    Sammie DIS Veteran

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    If you want to stay at VGF when you want to, then buying there is a good idea as you will need the 11 month booking advantage.

    If you just want DVC, then yes there are less expensive ways to get in.
     
  10. ELMC

    ELMC DIS Veteran

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    I agree that happiness is important. But how happy do you think the OP will be two years from now when he hasn't paid off his loan like he intended, is underwater on his contract, realizes that he could have saved $15,000 going another route and discovers that VGF is not the best resort for his family? Nobody is trying to ruin anybody's vacation happiness. On the contrary we are trying to maximize it by ensuring that the OP is making the wisest decision and not necessarily the most fun decision.

    I respect your opinion, the fact that it is different from mine, and your right to share it. But you don't need to insult others in order to make your point. Saying that we are trying to ruin his vacation happiness is insulting.
     
  11. Missyrose

    Missyrose DIS Veteran

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    OP asked if they did the right thing. Experienced owners giving their perspective is hardly "ruining" their "vacation happiness."

    OP, I will agree with Sammie, if VGF is where you want to be, then the purchase may not be a bad idea. But I would take a close look at the point charts and see if you've bought enough points to satisfy your needs.
     
  12. SpaceMountain77

    SpaceMountain77 Kidani Villager & Victorian Gentleman

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    I suggest that you cancel your current contract, read through the various DVC discussion threads, ask additional questions and then make a final decision before the next VGF price increase is announced.

    Unlike the other DVC resorts at WDW, I believe that VGF requires a greater understanding of the DVC system (e.g., number of villas, fixed-week option, December booking).
     
  13. KAT4DISNEY

    KAT4DISNEY Glad to be a test subject

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    I agree and would take it one step further to recind this contract and do more research of all options (unless they know they want and have to stay at VGF). There wasn't anything special about the price on the cruise so if the OP does decide it was the right thing for them they can sign again knowing that they really did their research.
     
  14. amypetecar

    amypetecar DIS Veteran

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    I think its pretty simple


    If you had your heart set on points at the grand Floridian AND you want to stay there in the next year..... You did the right thing. Direct prices will go up and resale prices will take a while until you can take advantage of the savings.....

    If you just want DVC, then rescind the contract and buy resale at the property you most want to stay at

    Quick story:
    I bought bay lake tower direct in january 2010
    Resale for blt was only a few bucks below direct prices back then
    By the time i bought resale, it would have been too late to book my 2010 trip.

    I am VERY frugal, but for what i wanted vs what was available..... Direct was my best option!
     
  15. spruce

    spruce DIS Veteran

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    Wow. You got some great advice but am surprised that the universal seems to be to cancel. All 4 of my contracts were bought direct and paid off well before loan maturity. That's what worked best for us. We bought in between ~62 and 75 dollars a point. I would never buy at todays prices and since I was an earlier buyer it's likely I'd never buy resale. 160 points for vgf doesn't seem like many, but, if it works for you, welcome home. If you're not sure what you want or bought then recinding might be better.
     
  16. Snurk71

    Snurk71 DIS Veteran

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    The red flag to me from the OP is only having stayed once in a value. That doesn't sound like the slam dunk deal for some who consistently have stayed deluxe for years or stayed at GF at least once and fell in love.

    OP, I'd cancel and do at least one rental trip (preferably at BLT, or maybe BCV to experience the DVC side of a deluxe close to a park) before buying in. the price won't be that much more at VGF in a year, or you might find yourself OK with a less expensive resort.

    Sent from my SAMSUNG Note2 using DISBoards
     
  17. SpaceMountain77

    SpaceMountain77 Kidani Villager & Victorian Gentleman

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    I thought the same thing; the leap from All Star Music to the Grand Floridian is huge. Moreover, I would think yearly 8-10 day stays in a value would be significantly less over time than a VGF purchase.

    When selecting a home resort, I think it is important for one to be able to clearly articulate why a given resort is right for them.
     
  18. Brownieone

    Brownieone Earning My Ears

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    We bought 60 points at VGF on the Disney Fantasy earlier this month and haven't looked back. Very nice resort (and I did see the model room before hopping on the Fantasy--simply amazing). Welcome home.
     
  19. ELMC

    ELMC DIS Veteran

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    Excellent point. The price just went up to $150, so it's not likely to go up again in the immediate future. Cancel, do the research, and if in a month you decide it's the right move, you've lost nothing.
     
  20. lovin'fl

    lovin'fl DIS Veteran

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    If you think you'll want to stay at VGF frequently, keep the purchase. I think it will be tough to get into VGF at 7 months out with other resort points (it's so small and much desired).

    If you think you'll use your points for DCL, keep the purchase as resale points cannot be used for DCL (though most people feel it's not the best use of points...some like to do it. Other folks will rent their points and use that $$$ to pay towards DCL).

    Just for reference...we just added 100 AKV points via resale and paid $66 pp. You can get AKV points direct from Disney for $145 pp (with the incentives right now, 100 points is about $120ish pp...our $66 pp is almost 1/2 price). But we won't be able to use them for Disney Collection, DCL or Concierge Collection (we can basically do all DVC resorts and trade into RCI)...which is fine with us.
     
  21. Missyrose

    Missyrose DIS Veteran

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    Make sure you look at the point charts for cruises, 160 points won't go very far for a family cruise. And there's no cap on those charts, so the points needed for cruises will likely go up each year.
     

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