$95 per point, anyone else think that's kinda high?

[Kick it up a notch!]

I am all for increasing the value of the club, it makes mine worth more, but don't you think that the price is a little high? I love my DVC, but if I was looking now, I don't think I would spend the $95 point. That is a lot of dough. I have 600 points and the only reason I have that many is because I came into a little cash and expanded our membership. I purchased at $62.75 and $58 respectively and that was in the last 5 years. I would not sell unless I had no choice, I am not looking at it as an investment, I just don't think I could spend $95 per point, that's all.

What does everyone else think?

Are they selling SSR at that price? Will it be inventory that will sit on the shelf until they have to offer enticements?

 

[Happy Birthday Cat]

Here are the results of a recent poll on this topic. A lot of people feel it is over priced.

http://www.disboards.com/showthread.php?s=&threadid=526823

HBC

 

[Maistre Gracey]

As I said in an earlier, similar thread, I do not think it is too much money. Why? Basically two reasons--

1) If folks are still buying at that price, by definition it is not too expensive (for the masses).

2) By far the most costly part of a DVC purchase are the maintenance fees, not the initial purchase price.

Just my opinion....

MG

 

[Desperado]

Originally posted by Kick it up a notch!
I am all for increasing the value of the club, it makes mine worth more, but don't you think that the price is a little high?

I like the thought of our points being worth more. I personally wouldn't buy at that high a price, but if the markets there and people are buying, it seems it's supply and demand.

 

[dcfromva]

I am glad that I purchased my points back in October (it makes them seem a real bargin )

Are they overpriced? Well, it will be interesting to see if buyers will support that pricing level.

My first thought was they are putting the SSR points on par with the other resorts.

Here's what I mean: Consider a purchase of BCV at $84.00 per point. With 38 years left, the price per point per year is around $2.21.

SSR with 50years on the contract even at a price of 95 per point is $1.90 per point per year....

When I purchased at $79 per point (with 51 years--I was able to get a Dec 03 UY), my price per point per year was about $1.55... I really hesitated about the add on because I had just done a BWV add on, but I now I'm really glad I did it!

-DC

 

[Doug Wolfe]

Personally, I think it is too high. But from a pure business stand-point, I think DVC is going to be able to sell their inventory at $95. Various incentives will bring it down a little bit.

But as I stated in a post a week ago....I suspect $100+ is just down the road and $95 might look like a bargin.

 

[Disney4ever4569]

I just bought SSR at current prices $89 per point minus the $5 per point incentive. I can tell you when I made my decision, I was not thinking about what other people paid or how much it might have gone up in the last few years. I broke down the numbers and it just made sense to buy considering my wife and I go down 2-3 times per year and we were starting to stay at value properties (All-stars, POP) to save money. Now we'll stay at some of the best resorts for a cheaper price in the long run. In my mind its a no-brainer. I would have bought at $95 per point, but I'm glad I got the $84.

 

[Pa@okw95]

DVC has been under-priced for years. They should have hit that price along time ago, that way they would start to be in line with the costs of staying at a non-DVC resort, creating a more exclusive DVC instead of what we have going on now. People have been buying into this club thinking it is one big savings with higher prices this thinking should go away in time. What good that would do after years of under=pricing is beyond me.

 

[mikesmom]

Too much? Yes, but then I also think my car was too much, and our house was too much. As with anything you buy and keep over a long period, after a few years that price looks pretty cheap.

Besidesfrom an economics standpoint, as long as people keep buying at that price, it's not too high.

 

[vernon]

Ask someone who's been renting an apartment for $500 a month in New York city for the last 15 years if they think the apartment next door is overpriced because the "fair rent" for that is now $1500 a month , the chances are they will say yes, the reality is their $500 is cheap but because of legal reasons the landlord can only raise the rent with a new tenant. IMHO DVC is similar to that, as Pam says the fact that DVC was ridiculously cheap in the past doesn't mean it's overly expensive now because the price has increased.

I don't think that poll shows anything other than people, having bought a commodity at $A moan/baulk at paying $2XA for the same product in the future.

The important people in this argument are those that are looking to buy in to DVC at it's current price and from the look of the sales record they do not think it's overpriced.

 

[joepoe]

I think so, but then again I thought 62.75 was high back in 1998.

 

[RLAlden]

People are willing to pay it, so I assume in their minds it still makes sense. It's tough to put a price on what it's worth to stay on the grounds at WDW, not to mention in a villa. I know most people I talk to usually stay off property and think I'm crazy for paying such a premium to stay on the grounds. But, over the years, we've allowed some of those same people to stay on the grounds with us and now they're hooked and would never think of spending a week at WDW without staying onsite. I just wish my state would have allowed me to get some kind of referral fee for them...

 

[tvwalsh]

When I bought in at $52 a point, 6/92, with free admission tickets for eight years everyone I knew thought I was crazy (including me!)

With my apologies to Nike, just do it!

 

[HookdonWDW]

As long as people are buying, it's not too expensive.

However, the price is high enough that I'm glad that we just added on. We have no plans of adding on in the future, unless it's through resale. The cost-benefit just isn't there for us at the new rates.

But the price increase is just good old fashioned American economic theory at work: supply and demand. I'd rather see this than to see the value of DVC plummetting a la Westgate. JMHO-YMMV.

 

[poohj80]

I agree that price is determined by what the market will bear, but I know we had a hard enough time justifying the $79/pt when buying into SSR so there's no way we could have justified $95/pt if we had waited.

 

[sgtpet]

It is absurd.

 

[Sabor]

I second the Absurd point.

I can stay in in moderate or $74 a night (ap rate)
I can stay AKL or WL $139.00

These rates are no more or even less than I could get 6 years ago when I overpaid for my $57 a point resale with passes.


I love DVC wouldnt give it up for the world but I cannot fathom anyone paying that price. I viewed it as a prepaid vacation package when I bought but it does not make financial sense to those buying now unless room rates start increasing and I do not see that happening.

Simple Example 150 points = $14 ,250
150 points get you about 8 or 9 nights in a studio
Maint fee 150 *4 = $600 a year
9 nights at AKL/WL AP rate = 739.26 (incl tax)

Where is the savings You are prepaying almost $15,000 to save a $150 a year. Personally I would rather stay in those rooms than a DVC studio (I only stay in 1br or larger).

Even taking into account inflation and time value of money I do not see it making sense. If you have a stockpile of Cash so you not need to finance and can buy 300 points or more to stay in larger accomadations than the finances do not matter and you will have a lifetime of great vacations.

 

[doubletrouble_vb]

Is it overpriced? Obviously not because people are still buying. Would I buy at $95? No. Too many other interesting options at WDW to take advantage of at affordable prices. I thought $65 was high when my friends bought BWV...a year later I ran screaming to pay $72 for VWL because it was going up to $75. The other thing is that the prices for resales is still low enough that I'd buy one of those before I bought SSR...even with the extra 12 years.

 

[Richyams]

I think that the first two buildings are sold out and they are out of points for the June opening. I think that you can only become a member in July now.

Obviously not overpriced.

 

[MELSMICE]

$95 per point is a lot but consider what you are getting and where you're getting it. When you want the best you'll pay the price.