BLT - as investment?

[Boardwalk III]

Just curious - am a long term BWV owner - go once per year on average and love staying at BWV. I was thinking of buying 100 BLT points to have on the rare occasion that I want to stay near MK (kids are college age, so that won't be often However, I could definitley rent out the points to friends/family, and/or on the DIS Boards. There must be someone out there who has done this calcualtion - what do you think - positive or negative from a $$ standpoint?

 

[hakepb]

Just curious - am a long term BWV owner - go once per year on average and love staying at BWV. I was thinking of buying 100 BLT points to have on the rare occasion that I want to stay near MK (kids are college age, so that won't be often However, I could definitley rent out the points to friends/family, and/or on the DIS Boards. There must be someone out there who has done this calcualtion - what do you think - positive or negative from a $$ standpoint?

Think, The first OKW owners paid $50/point + annual dues and can could rent out GV's for near the same cost you'd be renting a 1BR when you paid 2.5X as much per point.
At current rental rates, your profit margin would be very, very low unless you could really rent out BLT at (I'm guessing) $15/point+ which would be difficult when the Contemporary is the lowest demand monorail resort.

I would not recommend buying unless you plan on actually using your points from 4 out of 5 years.

 

[moredisneyplease]

My guess is that the price per point (rental price, that is) will be higher.....especially if you start renting out during the 7-11 month window.

However, I would never buy w/ the intention just to rent out...invest.

 

[ktbugsmom]

I think if you have the cash to pay for the points (not finance) - it would not be all bad. It is against the rules to be a commercial renter, but I think renting to friends and family is allowed... I will admit, we rent out half of our points probably every other year to friends that want to come along to Disney with us. (I don't make enough to pay for friends accomodations - so I rent them at $10 a point and they are thrilled at the bargain). When we do this, it pays for my dues for the year - so my trip is free - they get a great vacation at a great price - so I think it could work.

However, remember renting to friends and family can be more problematic than it is worth... they don't understand booking 11 months out. They don't understand the cancellation policy. They don't understand the no housekeeping etc. I am very clear with my guests and explain they are getting a deluxe resort at half price - and to get that, they must deal with these issues. So far - it has worked for me.

 

[keishashadow]

im considering it an investment from another viewpoint

we bought in the mid $80 range (cash), am told we could sell any of our small contracts 'easily' by various TS companies for at least $90 (potentially higher ); then add on @ BLT with proceeds, min contract

we're not getting any younger, unless my DSs decide to take it over, will probably start selling in 15 years or so; expect BLT will hold it's value/increase due to limited size, proximity & longer contract

the way the market is going, could do a lot worse than put down some $ here imo

 

[dwelty]

I think the high initial cost of points and the higher point requirements for reserving, combine to creat a very expensive purchase. For example, Standard room rentals at the Yacht and Beach club cost about the same as a stay at the Contemporary, and yet, the Yacht & Beach Club typically is booked up when you can still find rooms at the Contemporary.

It makes much more sense (IMO) to buy BCV points and rent those out. You could command the same price for your rental, but you would pay less for the points, and would need less points to reserve the units.

 

[TSMIII]

My guess is that the price per point (rental price, that is) will be higher......

I wouldn't be so sure. Consider a 1BR MK view in Magic Season (i.e. School Summer Vacation).

AKV Savanna View is 268 pts / week x $10 rental cost /pt. = $2680

IF BLT MK view was the same # of points you could charge a premium, maybe $13 a point, due to location, monorail, etc. and get $3483.

However, with the higher point cost for the week based on the BLT point charts it is actually 360 points. If you charge the premium $13 / pt., the cost is $4680! $2000 more for the week than AKV SV!

Now if you charge the same $10 / pt. as for AKV rentals, there is still a premium being paid from the renter's standpoint as they're paying $3600 vs. $2680 for AKV.

Now will someone pay $4680 for a MK view villa instead of the roughly $2900 for a Contemporary Tower - MK view rack rate hotel room for the same week?? Maybe. Maybe the kitchen and extra space is worth that much more.

But the great unknown here is what will CRO charge for the same villa?? Has DVC increased the point chart to the level that CRO villa rack rates are now on par with or cheaper than renting points??

 

[eliza61]

im considering it an investment from another viewpoint

we bought in the mid $80 range (cash), am told we could sell any of our small contracts 'easily' by various TS companies for at least $90 (potentially higher ); then add on @ BLT with proceeds, min contract

we're not getting any younger, unless my DSs decide to take it over, will probably start selling in 15 years or so; expect BLT will hold it's value/increase due to limited size, proximity & longer contract

the way the market is going, could do a lot worse than put down some $ here imo

That's the double edge sword. After yesterday and todays market news people are petrified for their investments especially with so many people having their retirements locked up in the market. I'm not sure how many folks in a few years will be brave enough to purchase vacation homes/timeshares. I'm waiting before buying any add ons

 

[5forDiz]

That's the double edge sword. After yesterday and todays market news people are petrified for their investments especially with so many people having their retirements locked up in the market. I'm not sure how many folks in a few years will be brave enough to purchase vacation homes/timeshares. I'm waiting before buying any add ons

Excellent point Eliza61. Timing probably could have been better for BLT announcement. Wonder how this will impact sales and if perhaps better purchase incentives will be offered in upcoming months ? I know there is alot of interest in BLT here on the DIS but how will sales be re first time buyers ?

. . . time will tell. Could be interesting to see if DVC will need to offer additional incentives.

 

[keishashadow]

That's the double edge sword. After yesterday and todays market news people are petrified for their investments especially with so many people having their retirements locked up in the market. I'm not sure how many folks in a few years will be brave enough to purchase vacation homes/timeshares. I'm waiting before buying any add ons

agree...im trying to be rational, yet the allure of BLT (that sounds just absurdas though im jones'ing for a sandwich ), CR our fav resort is strong enough to make me consider it; even now in this market

Excellent point Eliza61. Timing probably could have been better for BLT announcement. Wonder how this will impact sales and if perhaps better purchase incentives will be offered in upcoming months ? I know there is alot of interest in BLT here on the DIS but how will sales be re first time buyers ?

. . . time will tell. Could be interesting to see if DVC will need to offer additional incentives.

as i recall, haven't seen any incentives over last couple of years for small add-ons thinking at least 100 points before any gimmies...anyone recall?

 

[hakepb]

Yes, earlier this year DVC had incentives on 50 point add-ons at SSR and AKV.
(Although that seemed to be a unique program taken in a slow DVC sales cycle to take advantage to Tax Incentive checks)

 

[eliza61]

agree...im trying to be rational, yet the allure of BLT (that sounds just absurdas though im jones'ing for a sandwich ), CR our fav resort is strong enough to make me consider it; even now in this market

The view alone is making me look at my kids college fund really funny...
as i recall, haven't seen any incentives over last couple of years for small add-ons thinking at least 100 points before any gimmies...anyone recall?

I do remember getting a post card when AKL starting selling. I think the incentive was a couple of park passes.

 

[keishashadow]

hee-hee...1st thing youngest DS said to me was "don't forget my class trip to Germany is in 2 years " told him he could just hang in Epcot

 

[CarolA]

Timeshares should NOT be considered investments. The "Disney" effect is that ROFR has traditioanlly kept the prices high. That said there is NOTHING that gurantees Disney is going to keep this up forever. Even as bad as Wall Street is today over the long run it's a better "investment" then DVC.

(I love my DVC, but it's not funding my retirement LOL!)

 

[keishashadow]

Timeshares should NOT be considered investments. The "Disney" effect is that ROFR has traditioanlly kept the prices high. That said there is NOTHING that gurantees Disney is going to keep this up forever. Even as bad as Wall Street is today over the long run it's a better "investment" then DVC.

(I love my DVC, but it's not funding my retirement LOL!)

not funding lol i'm willing to wager $4 or $5 K that it will hold value another 10 - 20 years until i need it

i'll call it diversification of my portfolio (or a very bad week in vegas)

otherwise i'll hope to have @ least broken even on the room charges over the same period of time

 

[CarolA]

not funding lol i'm willing to wager $4 or $5 K that it will hold value another 10 - 20 years until i need it

i'll call it diversification of my portfolio (or a very bad week in vegas)

otherwise i'll hope to have @ least broken even on the room charges over the same period of time

I actually think that you have BIG risk in the 15 to 20 year window that it will drop like a rock and be hard to dump. That's getting VERY close to the end of some of these contracts. Why would someone pay a good price for something with a very limited shelf life?

 

[keishashadow]

I actually think that you have BIG risk in the 15 to 20 year window that it will drop like a rock and be hard to dump. That's getting VERY close to the end of some of these contracts. Why would someone pay a good price for something with a very limited shelf life?

actually im thinking of dumping either BW or WL & replacing with BLT w/longer shelf life

 

[DisFlan]

I guess it could be a good investment. But just buy it for what it is - a prepaid vacation. DVC has worked well for us. We paid cash, and we've saved a bundle over what we'd been spending on accommodations. It's "performed" as we wanted it to - we recouped our initial "investment" several trips ago. (Which is more than I can say for a couple of our *&%# equity funds.) We're confident our DVC value will hold up for a few more years, and if/when it begins to slide, we'll still feel we've gotten our money's worth out of it. We'll be in our 90's in 2042, so....what the heck. Our BWV's "shelf life" will probably be better than ours.

DisFlan