Brian Noble
Gratefully in Recovery
- Joined
- Mar 23, 2004
- Messages
- 18,107
Don't under-estimate the marketing power of The Mouse. Mickey spends huge sums of money each year reminding us that the only way to visit WDW properly is to stay in a Disney-owned resort. He also spends a good chunk reminding us that a "better" resort means a "better" vacation.Regardless of your definition of on-site, I am surprised at Bonnet Creeks rental prices given its location.
Conversely, Bonnet suffers a little bit from its size. It's so large, and there are so many owners trying to rent time there, that the competition just at that venue is fierce. There has been a growing interest in rentals there as more folks have discovered it, but the property has grown faster than the potential pool of rental guests. Now that the timeshare property is fully built-out, that might change going forward---there has been a *ton* of interest over on the offsite resort board just in the last six months or so.
But, there's an equally good chance that some other new location will displace it as the darling of the offsite crowd. Back in the day, the most popular place to stay close and get a good deal was Vistana. Then, as Vistana fell a little behind in upkeep and Windsor Hills was built out, the latter displaced the former. A year ago, maybe two, Bonnet took over for Windsor Hills as "the place to be". Someone else may well be next.
Finally, even at those prices, some owners are still making money. It depends on what weeks they are booking, how they are booking them, and what their cost basis is. I rented an '09 Easter week 2BR out for $950, but that was still an ROI of about 30%---in comparison, most DVC rentals at $10/pt have ROIs in the single digits. The cash-flow income is better with DVC, but the cost basis is just too high for it to pay off well.