Are 2042 Resorts Worth it?

[CVG]

I'm a 3 and done, gigantic 14 day 2 Bedroom villa vacation person. 3 trips between now and 2030. I'm not bothered about special times of year. Just looking now, I could book a BLT 2 Bed for Aug (within 7mo window) for 14 days - using 2042 OKW points.

I'll be saving so much on rack rates that I don't even care whether or not I get anything back for my OKW points when I sell in 2030.

So, no, you don't need to go every year to make 2042 contracts worth it. Everyone has to do their own due dilligence.

 

[Bearval]

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)

Most likely, VB and HH are sold off. BCV, BRV and BWV will be teardowns, one at a time and the other two will be rented out as cash rooms until their turn for teardown and rebuild.

 

[CarolMN]

It's not just about the $$ for many of us. How do you account for the price of regret? Savings/Future Value considerations are soon forgotten when you are staying somewhere wishing you were somewhere else! If you can afford it, buy where you want to stay.

 

[heynowirv]

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.

Some of us at15.PP

 

[havoc315]

I'll look at "worth it" as whether it can save the buyer money over paying for approximately the same vacation annually.
The answer depends on the resale price and some other unknowns.

But generally speaking, at the higher end of the resale pricing market, it will save money versus rack rate but it will NOT save money versus just renting points. At the very high end of the resale market, it won't even save much versus cash rooms in some scenarios (depends on room type, depends on cash room discounts).

As re-sale pricing has fallen, there are more scenarios where it may save a bit versus renting points. But the savings will be much smaller than with longer contracts.

My advice to those who really want Beach Club and Boardwalk -- Just play it be ear for each trip, either renting points or cash rooms each year. It won't really cost any more than DVC but will give you far greater flexibility.

 

[Jayunit09]

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.

The cost for us to stay in a 2 bedroom every other year when you add two years of MF is still half off if not more than renting points and I wanted control Over my Bookings.

We look at the trip as a whole. So flights from NH, car rental, park tix (the main cost) would be double if we went every year.

I also am of the opinion everyone’s situation is different though so I can see your side too!

 

[thanxfornoticin]

A lot of comparisons in here for own vs renting. For me, renting is a bit of an unknown that I don't have control over. If I own, I make the decisions and don't rely on some stranger to finalize our vacation. I'm sure renting works well most of the time, but with all the planning and stressing around some WDW vacations these days, I don't want to add to it (potentially) with having someone else responsible for my resort stay. I'm sure many of you have had great experiences - just our preference to not deal with that. We'll enjoy our 2042 resorts for now - maybe in 2042, we'll look at the possibility of renting!!

 

[havoc315]

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.

Problem is, it's not that simple. You ignored the rime value of money (lost opportunity cost)... Paying $108 up front is NOT the same as paying $6 per year over 19 years. You also ignored closing costs.
Let's assuming that closing costs drives up that $108 per point to an upfront payment of $113 per point.
Now, let's calculate time value of money with a 6.5% discount -- You're really paying $10 per point per year. Plus the dues of about $8 per point -- So on a $108 per point 2042 resale contract, you're paying about $18 per point per year -- About the same as current rental rates.
For 2042 contracts, you really need to get below $105 per point before you start seeing any real savings.

 

[BamaGuy44]

A lot of comparisons in here for own vs renting. For me, renting is a bit of an unknown that I don't have control over. If I own, I make the decisions and don't rely on some stranger to finalize our vacation. I'm sure renting works well most of the time, but with all the planning and stressing around some WDW vacations these days, I don't want to add to it (potentially) with having someone else responsible for my resort stay. I'm sure many of you have had great experiences - just our preference to not deal with that. We'll enjoy our 2042 resorts for now - maybe in 2042, we'll look at the possibility of renting!!

Yeah renting is cool, we've done it here and there, on both sides of the transaction. But planning to rent every year for many years and planning expensive vacations around that? Nah, not for me.

Renting year after year vs owning calculations are not interesting to me, because I don't consider them to be even close to the same thing. YMMV as always but I'd rather pay more (within reason) and book using my own points

 

[AdamsMum]

Depends on what you can get it for resale.

DVC wasn't a financial consideration for me. I didn't give a thought to resale value. When I first visited the Boardwalk, I decided I wanted to stay there. As soon as I got home I started looking at resale listings and badgered then DH into letting me offer. That said, this was in 2007 when there was still over 30 years left and I didn't have to sell my first born to afford it. 2042 resorts definitely don't make financial sense, neither do rack rates (even discounted rack rates) but if it makes you happy, there's your value.

 

[BamaGuy44]

DVC wasn't a financial consideration for me. I didn't give a thought to resale value. When I first visited the Boardwalk, I decided I wanted to stay there. As soon as I got home I started looking at resale listings and badgered then DH into letting me offer. That said, this was in 2007 when there was still over 30 years left and I didn't have to sell my first born to afford it. 2042 resorts definitely don't make financial sense, neither do rack rates (even discounted rack rates) but if it makes you happy, there's your value.

Maybe we're weird....We're fairly frugal and live well below our means, and are very measured with most purchases. But when it comes to frivolous luxury purchases like WDW vacations, I'm not looking to squeeze every penny out of it or do it the cheapest way possible. Kind of the opposite, to me it's WAY too much money to spend if you're not getting exactly what you want out of it.

Is me buying a BWV contract a poor use of money in absolute terms vs a different DVC purchase, or renting, or staying at the Kissimmee Holiday Inn, or tent camping in a National Park or just staying home and putting the money in an index fund? Yes. Am I still going to do it when I find the right contract? Also Yes.

Because to us, dropping this much money needs to mean staying exactly where we want every time. When we bought in, we didn't know where that was. We had never stayed at most of the DVC resorts. I thought I would enjoy the "game" of seeing what we can get at 7 months, but not so much. I want to get set up for 11 month advantage on the monorail and an Epcot resort, book at 11 months, done. I know a lot of people enjoy the game, or don't have strong preferences about where they stay, or go at times when they can always get what they want. So cheap SAPs are perfect for them. Plenty of "right" ways to do DVC

 

[AdamsMum]

Epcot resort, book at 11 months

We always seemed to end our days at Epcot. Not having to wait for a bus with thousands (seemed like) of other tired parents was a real bonus for me.

I know a lot of people enjoy the game, or don't have strong preferences about where they stay, or go at times when they can always get what they want. So cheap SAPs are perfect for them. Plenty of "right" ways to do DVC

Exactly right, I get stressed even approaching the 11 month window. I totally understand the concern about costs but it's too big a purchase to make if it's not going to make you happy. Everyone has their own priorities, what works for one doesn't necessarily work for all.

 

[jason423]

I think it is still worth it for the Epcot resorts if that is where you want to stay each time especially with BWV as it gives you a chance at times to land a standard room to stretch some points. There really is not another option to compare for those two resorts. Riviera's location is not the same as those two resorts and for me I would probably buy that direct so I could at least maintain an option of using those points elsewhere, so its much more expensive. If you dont plan on staying in the resorts almost every time then it would be better to buy elsewhere and take your chances every now and then at 7 months.

I think when you get into BRV the option of CCV makes that less appealing even if the initial buy in is low and that is essentially the same location. Similarly I think there are better alternatives to OKW with a longer time on the contract and I can always book myself into OKW at 7 months if that is where I wanted to stay.

 

[Golfguy120]

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.

Please remember to factor the point cost to stay at your resort vs cost to acquire. BW is still a good investment because it’s has cheap (point cost) studios.

 

[tom1944]

I think it is still worth it for the Epcot resorts if that is where you want to stay each time especially with BWV as it gives you a chance at times to land a standard room to stretch some points. There really is not another option to compare for those two resorts. Riviera's location is not the same as those two resorts and for me I would probably buy that direct so I could at least maintain an option of using those points elsewhere, so its much more expensive. If you dont plan on staying in the resorts almost every time then it would be better to buy elsewhere and take your chances every now and then at 7 months.

I think when you get into BRV the option of CCV makes that less appealing even if the initial buy in is low and that is essentially the same location. Similarly I think there are better alternatives to OKW with a longer time on the contract and I can always book myself into OKW at 7 months if that is where I wanted to stay.

On our August vacation we plan to look at both. I have concerns that since CCV is converted hotel rooms we might not like the rooms as much as BRV.

 

[TinkAgainU]

While I have, and love Boardwalk. Getting those " low point" rooms at 8am 11 months out is almost impossible. They are taken by Commercial Renting owners walking them. Very frustrating. I just checked - between today and 2/25/2024 (11 months and 6 days) there is NOT 1 NITE In a Standard "low point" studio" available. Commercial Owners renting for Profit are ruining DVC.

 

[thanxfornoticin]

While I have, and love Boardwalk. Getting those " low point" rooms at 8am 11 months out is almost impossible. They are taken by Commercial Renting owners walking them. Very frustrating. I just checked - between today and 2/25/2024 (11 months and 6 days) there is NOT 1 NITE In a Standard "low point" studio" available. Commercial Owners renting for Profit are ruining DVC.

Not sure how you come to the conclusion that it's all some 'commercial' owners doing it. I expect there are plenty of 'regular' owners walking these rooms (and certain other room types) to get the hard-to-grab rooms at 11 months for their own vacation needs. "Walking" has always been a bit of a loophole in the DVC reservation process that creates the situation. It's not against the rules and anyone can do it - but it might be nice if there was a way to eliminate it.

 

[Canchaser143]

While I have, and love Boardwalk. Getting those " low point" rooms at 8am 11 months out is almost impossible. They are taken by Commercial Renting owners walking them. Very frustrating. I just checked - between today and 2/25/2024 (11 months and 6 days) there is NOT 1 NITE In a Standard "low point" studio" available. Commercial Owners renting for Profit are ruining DVC.

Do you think the refurbishment is still affecting the room availability at that time?

 

[Sandisw]

While I have, and love Boardwalk. Getting those " low point" rooms at 8am 11 months out is almost impossible. They are taken by Commercial Renting owners walking them. Very frustrating. I just checked - between today and 2/25/2024 (11 months and 6 days) there is NOT 1 NITE In a Standard "low point" studio" available. Commercial Owners renting for Profit are ruining DVC.

SV rooms at BWV we all taken off line for January and beyond due to the refurb. So that is why you are not seeing them.

In terms of the others, still owners booking playing by the same rules as all other owners. Regardless, there just are not enough of those rooms for the number of owners who want them on most days.

 

[TinkAgainU]

Not sure how you come to the conclusion that it's all some 'commercial' owners doing it. I expect there are plenty of 'regular' owners walking these rooms (and certain other room types) to get the hard-to-grab rooms at 11 months for their own vacation needs. "Walking" has always been a bit of a loophole in the DVC reservation process that creates the situation. It's not against the rules and anyone can do it - but it might be nice if there was a way to eliminate it.

Of course, there are regular owners getting rooms too. But go look on Rental Sites and you'll see sooo many standard rooms being offered at a tidy profit, it's clear these are not being rented in volume by the DVC members for their own use. DVC is perfectly capable of limiting rentals to owners "first" (that is what the entire 11 month priority is supposed to accomplish - and it fails in many cases). They could limit reservations at the 11 month mark to only people checking in with a "listed owner" as the Primary checkin guest. Owners could even choose to add a few people to that "primary" list each year - much like the Associates linked to accounts. The capacity to do that already exists.

I'm not opposed to renting points (it is allowed by the DVC documents), but there ARE owners of thousands upon thousands of points (with so many loopholes! so no true limits) who literally make their living (commercial use) by grabbing prime rooms and re-renting them. DVC won't fix it unless it affects "Disney's" bottom line since they actually seem to care little about DVC members once they close on their Direct points. My two cents worth.

(Wyndham actually stepped in recently - see the Bonnet Creek threads - to cut down on their Commercial Use. We are researching Wyndham points as a very inexpensive alternative to DVC for that very reason).