Aulani - with current incentives......

[Paul Stupin]

Whatever Disney might or might not be losing on Aulani, it would pale in comparison to the hit on the Disney/DVC Brand by selling Aulani to another developer.

And with building DLT and just getting ready to sell VGF2, Disney is firmly committed to DVC and won’t tarnish the brand by selling off Aulani.

I think you’re right. Consumer awareness and trust in the Disney brand is a priceless commodity, and aside from the usual cutbacks which never thrill any of us, they’re very protective of the brand. And, call me crazy, as an Aulani owner who enjoys trading thoughts and opinions about the resort in a generally good natured way with other Aulani and potential Aulani owners, I’m more interested in constructive ideas and suggestions.

 

[DVChris]

For the last couple of weeks, I have been going back and forth: 1) be patient and try to find 300-350 subsidized points since they would primarily be used at Aulani and save about $30k over the life of the contract (about $750/year) assuming we held it all the way to the end which I think we might... or 2) buy direct now at $129pp (military) so that we will have the flexibility to use at new resorts and can break down the points into smaller contracts to split for our kids. We are renting points for our Aulani trip next summer so we have time to try to find subsidized points but the current direct incentives end in three weeks. Back and forth...

 

[Gothemi]

For the last couple of weeks, I have been going back and forth: 1) be patient and try to find 300-350 subsidized points since they would primarily be used at Aulani and save about $30k over the life of the contract (about $750/year) assuming we held it all the way to the end which I think we might... or 2) buy direct now at $129pp (military) so that we will have the flexibility to use at new resorts and can break down the points into smaller contracts to split for our kids. We are renting points for our Aulani trip next summer so we have time to try to find subsidized points but the current direct incentives end in three weeks. Back and forth...

I was in exactly the same spot as you a few weeks ago before buying direct. I had reached out to DVCResaleMarket and they had a few contracts available, but nothing that fit exactly what I wanted. Plus, secretly I wanted the blue card (direct benefits) and wanted to use my points at the DLT when that is completed, if I couldn't afford the direct buy in prices there. Ultimately I purchased direct because I had the money to do so and I've never seen a price that low for direct. Also, I split my over 300 points into two smaller contracts in case I decided to offload one down the road. Something else to consider is like mentioned on today's ROFR update on the DVCFan youtube show, DVC isn't buying back Aulani resales, so you might be able to snag a great deal from a motivated seller. I would E-mail or use the chat feature on DVCResaleMarket, let them know what you're looking for and see what they might have that's still coming in and maybe not even posted yet.

 

[HIRyeDVC]

If you plan on never selling your direct Aulani contract and live to it's termination in 2062, I say maybe go for it. But I don't think anyone can ever predict life changes. Aulani is and will be very hard to sell in the future IMO, especially as newer DVC resorts get built and a resale buyer will be unable to use these points at future resorts. And the operating cost in Hawaii will only go up faster than the rest of the mainland, impacting annual dues. I know the incentives look great right now. But I think Disney realizes they're in trouble trying to sell Aulani when Riviera, VGF2 and DLT is going to all compete against it in the next couple of years.

 

[DVChris]

If you plan on never selling your direct Aulani contract and live to it's termination in 2062, I say maybe go for it. But I don't think anyone can ever predict life changes. Aulani is and will be very hard to sell in the future IMO, especially as newer DVC resorts get built and a resale buyer will be unable to use these points at future resorts. And the operating cost in Hawaii will only go up faster than the rest of the mainland, impacting annual dues. I know the incentives look great right now. But I think Disney realizes they're in trouble trying to sell Aulani when Riviera, VGF2 and DLT is going to all compete against it in the next couple of years.

This is exactly my dilemma.
Once VGF2 and DLT go on sale, do you think Aulani direct prices would decrease further?

 

[Great3]

This is exactly my dilemma.
Once VGF2 and DLT go on sale, do you think Aulani direct prices would decrease further?

No, it will only continue to go up in line with the increases for direct at the other DVC resorts. Incentives will just be larger to make it about the same price for a while when the jack up the price, but price won't stay still or go down.

Great3

 

[HIRyeDVC]

This is exactly my dilemma.
Once VGF2 and DLT go on sale, do you think Aulani direct prices would decrease further?

Hard to say, but maybe Disney will HAVETO increase the incentives for those wanting to buy 150 points or less. I mean, who the heck is going to buy 300+ direct points?! Especially at a resort so far away from everything and with such high dues? IMO, there really is no incentive in owning Aulani and getting stuck with the high dues, when you could EASILY find availability at 7 months using much cheaper resale SAP points. Be patient everyone! Disney will HAVETO start slashing prices even more to sell Aulani out as they are only 2/3 sold at the most.

 

[DVChris]

No, it will only continue to go up in line with the increases for direct at the other DVC resorts. Incentives will just be larger to make it about the same price for a while when the jack up the price, but price won't stay still or go down.

Great3

Yes, thank you for the correction. I meant incentives and overall price per point.

 

[cmrdgrs]

Never would I thought that going direct will almost be the same price as resale. Unless you can find a subsidized Aulani contract, there's almost no reason to buy Aulani resale right now over direct given this small price difference.

Great3

If you could find a subsidized contract -- what do you think the value of that is over direct? I have seen some of the subsidized contracts from time-to-time, but usually they are on the larger end 300+ points. Thoughts on the value?

 

[cmrdgrs]

For the last couple of weeks, I have been going back and forth: 1) be patient and try to find 300-350 subsidized points since they would primarily be used at Aulani and save about $30k over the life of the contract (about $750/year) assuming we held it all the way to the end which I think we might... or 2) buy direct now at $129pp (military) so that we will have the flexibility to use at new resorts and can break down the points into smaller contracts to split for our kids. We are renting points for our Aulani trip next summer so we have time to try to find subsidized points but the current direct incentives end in three weeks. Back and forth...

I'm thinking of the same thing. What do you think a subsidized 300-350 contract is worth? $130pp direct with no restrictions is appealing.

 

[poofyo101]

Aulani is a good deal direct if you are using your points and are purchasing 300+. Period

 

[HIRyeDVC]

I'm thinking of the same thing. What do you think a subsidized 300-350 contract is worth? $130pp direct with no restrictions is appealing.

AUL subsidized dues contract is now the only DVC property with dues below $7pp. It would be the unicorn of unicorn contracts and would probably garner a hefty price tag, considering the long term savings. A subsidized contract has always been around $2 less per point in dues. At that rate, with 41 years left in the contract, a 350 point contract will save you around $31,000 over the life of the contract just in annual dues.

If you buy a direct 350 point contract now at $130pp, that will cost $45,500 minus closing costs. If you were to buy a 350point resale subsidized contract at $150pp, that would cost $52,500, which is $7k more, but still save $24k in dues. You would haveto buy a subsidized resale contract at around $218pp to zero out the $31k in savings. So anything below $218pp would a 350 point subsidized contract would be the same in monetary value. But that's all only if you keep the contract till it expires. Of course, this doesn't account for the resale restrictions and the inability to book at all future resorts.

 

[DVChris]

I'm thinking of the same thing. What do you think a subsidized 300-350 contract is worth? $130pp direct with no restrictions is appealing.

Tough to say the value price per point since it’s a smaller cost relative to the maintenance dues. Seems like the subsidized contracts are selling between $120-135 on average.
If you hold long term and don’t care about resale restrictions then I think subsidized is a good way to go. If you may not hold long term then there’s less savings in the subsidized dues so direct might be a better way to go for future flexibility and the ability to breakdown into smaller contracts.
The purchase cost between subsidized vs direct is pretty close so I think the difference comes down to how long you might hold and if you want flexibility for future resorts.

 

[Great3]

If you could find a subsidized contract -- what do you think the value of that is over direct? I have seen some of the subsidized contracts from time-to-time, but usually they are on the larger end 300+ points. Thoughts on the value?

Value is truly in the eyes of he beholder. I happen to own two subsidized Aulani contracting totaling 300 points. If I were to sell, I would be asking $150+ / point. Why? Because I am not in need to selling, and would rather use for myself anything below that amount. So, that's the value to me.

If I were to buy, I won't be looking to pay more than $135 / pt. And in the current situation with the huge direct incentives, I would want to pay $130 max. Why, because buying resale is supposed to save you money over buying direct, and when direct is $133/pt, it's hard to justify anything more, except for the fact if the resale contract is subsidized. Mainly, the value to me is I currently don't need more than the 300 points I own (not that I don't want more and wish for more ), so I am not willing to pay top dollars like $150 / pt as a buyer like I probably would be if it was my 1st DVC contract.

That's what I mean, value as a buyer is how much patience do you have as a buyer? It all depends on the person's situation involved in the negotiation for price. It look me like 8 months to find and buy the 2 subsidized Aulani contracts. I could have gotten subsidized Aulani contracts really fast and right away if I was willing to pay $20 more per point, but I am a patience person to find a motivated seller. But when I become the seller some day, I won't be a motivated seller, instead being patience for a sale at a price I want.

That's what make the market. But if you just looking for a simple number of what price for subsidized, I would say $150 / pt. max is fair if you are willing. Wish you the best of luck finding a subsidized Aulani contract at the price you willing to pay!!!

Great3

 

[Great3]

AUL subsidized dues contract is now the only DVC property with dues below $7pp. It would be the unicorn of unicorn contracts and would probably garner a hefty price tag, considering the long term savings. A subsidized contract has always been around $2 less per point in dues. At that rate, with 41 years left in the contract, a 350 point contract will save you around $31,000 over the life of the contract just in annual dues.

If you buy a direct 350 point contract now at $130pp, that will cost $45,500 minus closing costs. If you were to buy a 350point resale subsidized contract at $150pp, that would cost $52,500, which is $7k more, but still save $24k in dues. You would haveto buy a subsidized resale contract at around $218pp to zero out the $31k in savings. So anything below $218pp would a 350 point subsidized contract would be the same in monetary value. But that's all only if you keep the contract till it expires. Of course, this doesn't account for the resale restrictions and the inability to book at all future resorts.

All true, but it also doesn't take account how much more you can sell the contract for when you do resale if you don't keep it to the end. I don't plan on keeping to the end, I think the time to get out is when there's 20-25 years left of life in the contract. I would not buy a contract with less than 20 years left, because there's no room for gravy leftovers after so many years of recouping the upfront costs versus just renting the points you need when you travel.

Great3

 

[HIRyeDVC]

All true, but it also doesn't take account how much more you can sell the contract for when you do resale if you don't keep it to the end. I don't plan on keeping to the end, I think the time to get out is when there's 20-25 years left of life in the contract. I would not buy a contract with less than 20 years left, because there's no room for gravy leftovers after so many years of recouping the upfront costs versus just renting the points you need when you travel.

Great3

you are obviously right in that true value is in the eye of the beholder. I was simply doing some math for fun to see at what price point it would be equivalent to buying direct when considering the difference in annual dues. I used to think that buying a contract with 20 years left would be a waste of money. But if I take BCV for example, true value would also be in the eyes of the beholder. A resort like BCV with that amazing location and pool sounds great to me at my tender age of 40's, since I'll be using the contract during the prime years of my children (6,4). Sure I would never recoup the initial cost. But the memories that would be made in those 20 years would be priceless IMO.

 

[Jimmy Geppetto]

you are obviously right in that true value is in the eye of the beholder. I was simply doing some math for fun to see at what price point it would be equivalent to buying direct when considering the difference in annual dues. I used to think that buying a contract with 20 years left would be a waste of money. But if I take BCV for example, true value would also be in the eyes of the beholder. A resort like BCV with that amazing location and pool sounds great to me at my tender age of 40's, since I'll be using the contract during the prime years of my children (6,4). Sure I would never recoup the initial cost. But the memories that would be made in those 20 years would be priceless IMO.

I'm right there with ya! I cringed when my wife fell in love with BCV. The economics were tough to swallow, but I don't regret it one bit. The memories are priceless and many of the non-park days at BCV are filled with more fun than some park days. I actually think if we tried to sell the contract today we would actually make a small profit.

 

[HIRyeDVC]

I'm right there with ya! I cringed when my wife fell in love with BCV. The economics were tough to swallow, but I don't regret it one bit. The memories are priceless and many of the non-park days at BCV are filled with more fun than some park days. I actually think if we tried to sell the contract today we would actually make a small profit.

You're right! And it doesn't even make sense! But that's the magic of Disney. It's products tug at our hearts and emotions like no other. Dang it! I really need me some Beach Club. My wife will get so mad if I spend the money I've set aside for DLT on a resort with only 20 years left. Make it stop!

 

[Great3]

you are obviously right in that true value is in the eye of the beholder. I was simply doing some math for fun to see at what price point it would be equivalent to buying direct when considering the difference in annual dues. I used to think that buying a contract with 20 years left would be a waste of money. But if I take BCV for example, true value would also be in the eyes of the beholder. A resort like BCV with that amazing location and pool sounds great to me at my tender age of 40's, since I'll be using the contract during the prime years of my children (6,4). Sure I would never recoup the initial cost. But the memories that would be made in those 20 years would be priceless IMO.

Well said, I couldn't agree more. Never say never, because I been known to do things that doesn't make sense financially .. like "investing" in timeshares that causes my vacation budget to expand at least 5x fold, but no regrets as we take vacations creating precious memories that otherwise wouldn't happen had we not brought the timeshares we have now.

In hindsight, I wished we got into DVC earlier than I did (that's the oxy-moron regret). I have previously written off DVC as too crazy expensive, and can't be worth it, when I first looked at DVC many years ago, and yet of all the timeshares I own now, it will be the only timeshare that will probably net some profit when it comes time to sell (not a reason to buy, just something that happens), while using the product for what it's for, priceless family vacations. So, profit or no profit, it already paid off handsomely in many other ways! All said, money very well spent!!!

Great3

 

[cmrdgrs]

Thank you everyone for your perspective on buying a resale Aulani contract with subsidized dues or a direct Aulani contract. I think in the end [for me] as much as there are times when I would love to own at Aulani for those hard-to-get times (Christmas/NYE and some summer months) -- it would mean I would have to sell my unrestricted (blue card points) points to pay for the Aulani (white card restricted) points and that doesn't seem like a trade that, in the end, makes a lot of sense. I could always look for a transfer or rent myself if I found myself having that need. Add-on-itis can be a strong force, but I think I'll just cross an Aulani purchase off my list for now.