best dvc deal

[rsinj]

And if we took the $10,000 purchase price invested for the 30 years, there's $100,000. $1000 a year with nominal 2% a year increase for dues at your approximate 7% per year return is another potential $100,000+. So would you rather have your DVC for the next 30 years, or the possibility of $200,000+ in cash? Obviously we're not accounting for potential tax savings or costs or the additional expenses involved in conjunction with DVC ownership (required travel, etc.). But, fussing over a $2000 difference in purchase price today if you're going to get 30 years use out of it is silly in my mind.

I don't think your future value exercise is really useful, because applying it to anything, you can justify never buying anything - especially things which are discretionary purchases.

Again, I'll point out that not even 2 years ago, the $60 points were selling for $80. If we were to apply your same potential investment return logic, and look at the probability of a real estate rebound in time, paying the extra $2000 now could be a good move when prices go back up as there's always the potential that the buyer waits and waits and never gets that rock bottom price for the points.

Over time, the difference in the initial buy-in price makes little difference in terms of the full price of ownership.

 

[Dean]

And if we took the $10,000 purchase price invested for the 30 years, there's $100,000. $1000 a year with nominal 2% a year increase for dues at your approximate 7% per year return is another potential $100,000+. So would you rather have your DVC for the next 30 years, or the possibility of $200,000+ in cash? Obviously we're not accounting for potential tax savings or costs or the additional expenses involved in conjunction with DVC ownership (required travel, etc.). But, fussing over a $2000 difference in purchase price today if you're going to get 30 years use out of it is silly in my mind.

I don't think your future value exercise is really useful, because applying it to anything, you can justify never buying anything - especially things which are discretionary purchases.

Again, I'll point out that not even 2 years ago, the $60 points were selling for $80. If we were to apply your same potential investment return logic, and look at the probability of a real estate rebound in time, paying the extra $2000 now could be a good move when prices go back up as there's always the potential that the buyer waits and waits and never gets that rock bottom price for the points.

Over time, the difference in the initial buy-in price makes little difference in terms of the full price of ownership.

IMO none of the rest matters. The only variable here is a price differential for the exact same thing. My point is that $2000 is a large difference that has a significant future impact, your's is it's (I believe) a small difference that one shouldn't worry about. I think we'd all agree that there are other variables (delay, risk, effort, time, etc) and those other variables might or might not affect one's decision to spend more money. Otherwise everyone should just buy retail and finance if cost doesn't matter.

 

[rsinj]

IMO none of the rest matters. The only variable here is a price differential for the exact same thing. My point is that $2000 is a large difference that has a significant future impact, your's is it's (I believe) a small difference that one shouldn't worry about. I think we'd all agree that there are other variables (delay, risk, effort, time, etc) and those other variables might or might not affect one's decision to spend more money. Otherwise everyone should just buy retail and finance if cost doesn't matter.

It's my experience, whether in real estate, stock investments, buying a car, or pretty much any purchase/sale - you rarely if ever purchase at the absolute lowest price and you just as rarely sell at the highest. Most people who fuss over the last few dollars in either direction generally end out making a mistkae (not getting or selling a stock or property) or put themselves through unnecessary bother.

 

[Dean]

It's my experience, whether in real estate, stock investments, buying a car, or pretty much any purchase/sale - you rarely if ever purchase at the absolute lowest price and you just as rarely sell at the highest. Most people who fuss over the last few dollars in either direction generally end out making a mistkae (not getting or selling a stock or property) or put themselves through unnecesary bother.

Agreed, essentially said as much. Also, in all of those areas, there are those who dramatically overpay when they could have just as easily paid far less. And there are those that didn't spend any money that should have, been there a number of times myself as well. Beer's on me, next time we're at the world together.

 

[Donald duk]

Any ideas what 2057 Old Key West Resale contracts are going for, in about the a 250-300 points size?
Thanks,
Jamie

 

[arthur06]

There is a 300 point contract on Ebay that is at (with no bids) $49 per point and a buy it now of $54 per point...

 

[Donald duk]

I didn't see that one on ebay, was it an okw 2057?

 

[crisi]

Buy where you want to stay makes sense when a) The price difference doesn't make a big deal to you and b) your heart is set on staying at that resort. But nobody should put themselves in a tight financial position because they want to use SAB once in a while.

Do make sure you understand what you are buying. Don't buy because you want a 'piece of the Magic.' DVC is a timeshare. You are getting (particularly resale) a pretty good deal on a room at Disney. DVC is not a great way to use the timeshare system - if you want to travel places other than Disney, someone else's timeshare is a better deal. DVC members do not get treated particularly special by Disney (and many members feel they get the short end of the stick). This isn't a program to get you perks and discounts. DVC membership means a soft obligation to go to Disney every year or every other year (maybe every three) - which people who really like Disney don't mind and generally people looking into DVC think is really great. But remember two things about this obligation 1) Disney isn't a cheap place to go even when the room is 'paid for' and 2) you may wish to do other things with your vacation time and dollars (especially if your kids are little right now - as families change, Disney isn't always where they want to be).

 

[Donald duk]

Thanks for the info. I currently have 300 point okw 2057 contract, and I was thinking about adding more through resale. I go to WDW at least every other year. I had a 11 night split stay at wdw last year 1 day bwv then 7 blt the 3 akl, and go to DL usually every other year for a lesser stay. I was just wondering what current pricing is on the resale for the different properties.

 

[csharpwv]

We have added on three times, and I figured out the minimal cost of ownership over the life of contract for each one -

Hope you can follow this:

Base purchase price (TOTAL - Figure A) ...... (divided (Figure C) by the number of years left of the contract

Yearly Maintenance Fees (TOTAL - Figure B) X number of years left on the contract = (Figure D)

C+B= Yearly Cost

A+D= Minimal lifetime cost

You can take the numbers further, and further, and further - and figure out the 'exact' statistics on ownership.

PLEASE bear in mind that this DOES NOT factor in an increase in maintenance at all - so this is the MINIMAL lifetime cost of a contract. It also does not include closing costs.

Let's say we are buying 100 points at Saratoga Springs for $75.00 per point.
The total is $7,500

There is 43 years of use left on Saratoga Springs contracts.
That is $174.41 per year

Maintenance fees: $4.51 per point
$451.00 per year

So the yearly cost is $625.41 X 43 = $26,892

So for 100 points at Saratoga Springs @ $75.00 per point, the MINIMAL yearly cost is $625.41

100 points gets you a studio every year in January, September, or Early December, with a few points left over. OR a Treehouse Villas every 3 years in Dream season through banking/ use/ borrow.

You have to LOVE Disney to own DVC. It is very very expensive - however, when you look at the cost of NOT owning, the cost of staying at Disney is completely out of control.

That same exact Studio at Saratoga Springs this coming January would be $2,363 - just for the room, for the same exact week (Sunday-Saturday)

Would you rather pay $625.41 or would you rather pay $2,363???


So, while it looks like a lot of money - but when you calculate the cost of ownership:

$26,892 DVC costs
or $101,609 Cash Reservation cost.

From my math - the average savings is about 26% off of regular rack rates.

Not a bad deal in my opinion!

 

[Dean]

Thanks for the info. I currently have 300 point okw 2057 contract, and I was thinking about adding more through resale. I go to WDW at least every other year. I had a 11 night split stay at wdw last year 1 day bwv then 7 blt the 3 akl, and go to DL usually every other year for a lesser stay. I was just wondering what current pricing is on the resale for the different properties.

If you have 300 points and want to do an add on, I'd suggest you consider a different home resort.

 

[NHTikiBeckie]

So you can negotiate prices for resales with the Timeshare Store? I feel a bit confused as to how soe people are getting some resorts for $55 when none of the listings show that price?

 

[DVCconvert]

So you can negotiate prices for resales with the Timeshare Store? I feel a bit confused as to how soe people are getting some resorts for $55 when none of the listings show that price?

TTS is "just" the broker. In this case they represent both the buyer and the seller. They are required to convey any and all offers to a seller. It's just like any other real estate purchase - you see something you like, make an offer....while you could just offer the full listing price, most seller's list at a number a little higher than what they'd truely take for it...therefore by making an offer you could save. The seller upon being an offer has 3 choices: accept, reject or makes a counter offer....to which you can counter their counter offer or accept it or reject it.

I just bot a VB contract for $39 per point...I've bot some others for less...in my mind (and experience) it pays to negotiate.

 

[icydog]

I think I got a super deal. I sold all my points and I bought more.

I sold my BCV with a years worth of banked points for $85 pp at the end of last year

I just bought a 350 point BCV Really loaded with all 2010 Banked points-- and all 2011 points intact-- for $72 per point.

 

[BigDaddySlick]

If you vacation every year.. DVC is a great deal...just locks your costs in for the future at present value!