Are 2042 Resorts Worth it?

[Brittleebee]

In your personal opinion, are 2042 DVC resorts worth the resale purchase in 2023 for an every other year vacation strategy?

 

[beldred]

Worth it is very subjective.
Is it the best value of points to dollars, absolutely not even close. If you want value of money, you want to look at SSR, AKV, CCV.
However, is a 2042 resort THE one you WANT to stay at? Then it might be "worth it" to YOU. And you are the only person that can answer that.

My husband fell in love with BCV when we stayed there on rented points a couple years ago. We decided to finally buy in last year and that's where we want to stay. BCV is very hard to get in without owning so in spite of all the math being against us (I know, I ran it several times), we bought a small resale contract there. Enough to spend the nights we want there once a year if we split stay (I love BLT/BCV split stays, he tolerates them) or the whole week there if we reduce to every other year. It was not the value driven choice. But it was worth it to us.

 

[Chili327]

I think it’s definitely worth it. Even if you dont sell it before it expires, but even more so if you do.
Add up how you would otherwise use the money and see how it compares.

 

[Matty B13]

Depends on what you can get it for resale.

 

[Chili327]

I wonder at what point do they start selling new contracts or decide to teardown the resort and build something new? (That could and most likely would change the value in the last 5-10 years)

 

[Sandisw]

If having one of those resorts is where you want to stay, then yes.

But I personally would not buy a 2042 resort unless I was going yearly and really wanted that resort to stay at every time.

Now, if prices continue to come down under $100, then maybe.

 

[AnnaKristoff2013]

I think it’s definitely worth it. Even if you dont sell it before it expires, but even more so if you do.
Add up how you would otherwise use the money and see how it compares.

Anyone buying a 2042 resort should not assume they are getting much if anything on the resale market. Maybe it will still hold some value in 5-10 years, but there’s no guarantee.

 

[TinkAgainU]

We bought a 2042 contract because it was our only option in the location we preferred. We're fans of the Buy-Where-You-Want-To-Stay club due to priority booking, and hedging bets in case we are ever limited to our Home Resorts by changes in the DVC/DVD program. Our intent was Always to use ours until the end of the contract, so resale value was not a huge factor, and the purchase price seemed to reflect that already - so the value TO US was there. We also have a more expensive, longer term contract to "pass down" to the kids if they want it.

 

[Nabas]

In your personal opinion, are 2042 DVC resorts worth the resale purchase in 2023 for an every other year vacation strategy?

Keeping the calculation simple, let's assume a contract has 18 years left. At $6 per point per year, that's a purchase price of $108 per point ($6/year X 18 years). (Yes, I am ignoring closing costs but I'm keeping this simple.)

The current average Maintenance Fee is $8.22 per point. Add that to the purchase price and you will pay in 2024 about $14.22 per point to rent a DVC room. Some on this discussion forum rent their points out as low as $17/$18 per point.

Whether it's once a year or once every other year doesn't matter much. (Again, keeping it simple). You'll pay a bit less than you would if you rented points from someone else.

 

[Craho]

We recently bought 2 BWV contracts and I researched and thought about it for 2 years. Here were our thoughts….

We are ok with the expiration because we want to be guaranteed no MF’s after 19 years. We don’t plan on selling. We paid cash for both contracts. We bought 2 really great, low resale contracts. BWV point chart is so good. We can stay for 2 weeks on points that we could only stay a week on at some of the other resorts (we were also looking at VGF and Riv). We love the Epcot area and want the 11 month advantage to get a 2-Bedroom BW view. We LOVE the theme and so do our teens who have so much freedom around the Crescent Lake area.
So all of these reasons make it worth it for us. DVC is not an “investment” whatever way you look at it. A lot of it is an emotional investment to prioritize vacations and plan Disney vacations on rotation. I say buy where you want to stay.

 

[Chili327]

Anyone buying a 2042 resort should not assume they are getting much if anything on the resale market. Maybe it will still hold some value in 5-10 years, but there’s no guarantee.

Agree, Definitely do not assume anything, they could become extremely hard to sell for any amount with a much worse (little to no) resale value beyond that point. At some point, the fees/dues could be equal to renting point price, so why purchase.

 

[Cfabar1]

My opinion is DVC is not worth it for an Every Other year vacation strategy, and that is especially the case with the 2042 resorts.

You’re paying dues every year… so even if your “sunk costs” are the same, you’re paying for your hotel visit over 24 months with maintenance fees… hard to feel like a win there…

Additionally, given the longer amortization time-horizon of the resorts further in the future, your price per stay is way higher given the current price points….

The 2042 resorts are an advantage if you really want to stay in the EPCOT IG area, Hilton Head, or VB… otherwise, they are tough to justify for me, but maybe your use case is different.

 

[Brian Noble]

In your personal opinion, are 2042 DVC resorts worth the resale purchase in 2023 for an every other year vacation strategy?

I just looked at OKW, at $80, amortized over the life of the contract at 4%. That produced a per-point cost of just about $15 in the first year. That's still a bit under rental rates, so I think it could make sense. The other '42s have lower Dues but higher prices, but still might make sense.

 

[beldred]

Keeping the calculation simple, let's assume a contract has 18 years left. At $6 per point per year, that's a purchase price of $108 per point ($6/year X 18 years). (Yes, I am ignoring closing costs but I'm keeping this simple.)

The current average Maintenance Fee is $8.22 per point. Add that to the purchase price and you will pay in 2024 about $14.22 per point to rent a DVC room. Some on this discussion forum rent their points out as low as $17/$18 per point.

Whether it's once a year or once every other year doesn't matter much. (Again, keeping it simple). You'll pay a bit less than you would if you rented points from someone else.

I know you were just keeping things simple, but especially with a small contract (like someone going only every other year would be getting) closing costs make a difference.

OP didn't say what 2042 they want so let's assume BCV (because I know it's numbers off the top of my head and it's one of the few 2042's worth buying IMO). Let's say they want a studio week in summer so that's 116 points right now. We'll round up to 120 to allow for shifting and easy math. So they want to go every other year, they'll need a 60 point contract. For our scenario they get lucky and find one at 60 points with an accepted offer of $130pp. (a number I've seen passing in the ROFR thread this week). That's $7800. Then you'll almost certainly have closing costs and current dues. 2023 BCV dues are $8.17 a point ($490). Closing costs would be around $550. That takes us to about $8840. So your buy in cost per point is going to be $7.75. (8840 / 60 / 19 years remaining) assuming you can pay cash and don't finance (please don't finance a timeshare!). If you leave out the closing and fees expenses, you don't see the whole picture. That extra dollar per point you ignore adds up. It's different when buying like 300 points. Then I'm sure the closing fees of practically no consequence.
FYI, your "use cost" each year (your buy-in of 7.75 plus current dues) for this example is going to be close to $16 per point, going up slightly each year as dues rise.

 

[Craho]

Do still slightly less than renting.

 

[kristenrice]

I know you were just keeping things simple, but especially with a small contract (like someone going only every other year would be getting) closing costs make a difference.

OP didn't say what 2042 they want so let's assume BCV (because I know it's numbers off the top of my head and it's one of the few 2042's worth buying IMO). Let's say they want a studio week in summer so that's 116 points right now. We'll round up to 120 to allow for shifting and easy math. So they want to go every other year, they'll need a 60 point contract. For our scenario they get lucky and find one at 60 points with an accepted offer of $130pp. (a number I've seen passing in the ROFR thread this week). That's $7800. Then you'll almost certainly have closing costs and current dues. 2023 BCV dues are $8.17 a point ($490). Closing costs would be around $550. That takes us to about $8840. So your buy in cost per point is going to be $7.75. (8840 / 60 / 19 years remaining) assuming you can pay cash and don't finance (please don't finance a timeshare!). If you leave out the closing and fees expenses, you don't see the whole picture. That extra dollar per point you ignore adds up. It's different when buying like 300 points. Then I'm sure the closing fees of practically no consequence.
FYI, your "use cost" each year (your buy-in of 7.75 plus current dues) for this example is going to be close to $16 per point, going up slightly each year as dues rise.

Excellent example, and VERY well put...
...let me add one thing...do not underestimate the difficulty (near impossibility) of reliably renting BCV points or reservations. If BCV is a resort you want to stay at every other year for the next 20 years, then the cost analysis vs renting is moot because renting may not even be possible.

 

[Jlo85]

You basically have to own BCV, BWV, or BLT to stay there during busy times. Renting isn’t really an option.

And I don’t foresee a sudden price crash just for 2042. ROFR has propped it up, and although ROFR has suddenly stopped, it will power back up again.

 

[NVDISFamily]

I’m very reluctant to consider 2024 resorts as a somewhat younger family with young children as we could easily see our dvc use going well past 2042. With that said there is a threshold where if BRV fell below I’d be very tempted to get some. Enough to supplement our CCV points and allow joint trips with the family for a reunion trip every 2 to 3 years.

 

[Chili327]

I’m very reluctant to consider 2024 resorts as a somewhat younger family with young children as we could easily see our dvc use going well past 2042. With that said there is a threshold where if BRV fell below I’d be very tempted to get some. Enough to supplement our CCV points and allow joint trips with the family for a reunion trip every 2 to 3 years.

Not sure what that threshold is, but i just got a (50pt), $99 offer accepted.

 

[Isabelle12345]

Not sure what that threshold is, but i just got a (50pt), $99 offer accepted.

Was this on Fidelity?
I offered 100$ but was turned down… feeling jealous now