Buy DVC resale...good deal but still very hesitant! WWYD?

[SDSorority]

I would look at it this way...

How much would you spend on accommodations alone over 15 trips? Assuming that dues remained the same over the entire 30 years, you would be shelling out $11300 over that time period for the purchase price and maintenance fees. That comes to $754 per vacation, in what I assume would be a studio. But of course, maintenance fees will go up over time. So $754/trip is the lowest cost you would be paying.

Now think about what it would cost you to rent points every visit, no obligations and no upfront costs. I just stayed 5 nights in a studio at AKV Kidani. It was 55 points. I paid $13/pt. for a total of $715. I could rent points again at any time without having to front the thousands of $$$ that it takes to buy into DVC.

Yep, this is exactly our mindset, too.

 

[Judique]

I based my calculations on two things: the OP would not even have enough points in one use year to rent a std. view studio at AKV for 5 nights during a low season. Those were weekday nights. Weekend nights are almost double the amount of points, so to stay for a week it would cost around 81 points at the time that I went. .

I compared your reservation. You rented 55 points.

The OP can do the same reservation as you for $247 less.

Apples to apples comparison.

You keep harping on what the OP can't do or can't get. What is the point of that? The point is what they can get - the same thing you got for considerably less cash.

First of all, the OP bought at Old Key West and would have enough points to get the 5 nights weekdays as you said for a September through 1st of February Vacation at their home resort every year.

In addition, AKV has value studios that are 9 or 10 points per night for almost 10 months of the year. Those are a bargain and would be hard to get at 7 months, but nothing lost in trying. The wait list works. You can hold a reservation at your home resort and waitlist at another.

Hilton Head and Vero are also options for OP for a five night vacation, as is Boardwalk Villas standard view studio. 10 points per night or less for portions of the year.

Why do you feel the OP wants a 7 night vacation?

Also, since reallocation, weekends are not double - they are higher but not doubled.

OP has the option also of renting up to 24 points from Disney to complete a vacation if they were to be a few points short.

 

[LoriKutchey]

OP, I say go for it! we also own a small point contract at OKW and have many vacations off of it. We also have gone to Vero Beach and this spring we are going to the big island for two weeks and am breaking up the stay by flying over to Oahu and spending a few nights at Aulani. If you outgrown your studio when your children are older, you can always add on. Easy, peasy.

 

[ValpoCory]

OP has the option also of renting up to 24 points from Disney to complete a vacation if they were to be a few points short.

At what cost per point can owners rent additional points?

 

[Judique]

At what cost per point can owners rent additional points?

$15 per point up to 24.

 

[Avonlady1001]

We bought a 50 point resale contract at BLT last year. We just used our points for the first time for 3 nights at BCV & loved it! We did 4 nights in a moderate then switched over to a studio in BCV. We will either do split stays or bank & use our points every other year.

We bought small to see if we like it...and we do! Some day, we'll have the funds to add on (won't finance), but for now, we'll just enjoy what we have!

You're gonna love it, OP. Sounds like you've thought it through & it's the right contract for you for what you need. Now you just have to take the leap...

 

[Marionnette]

I compared your reservation. You rented 55 points.

The OP can do the same reservation as you for $247 less.

Apples to apples comparison.

You keep harping on what the OP can't do or can't get. What is the point of that? The point is what they can get - the same thing you got for considerably less cash.

First of all, the OP bought at Old Key West and would have enough points to get the 5 nights weekdays as you said for a September through 1st of February Vacation at their home resort every year.

In addition, AKV has value studios that are 9 or 10 points per night for almost 10 months of the year. Those are a bargain and would be hard to get at 7 months, but nothing lost in trying. The wait list works. You can hold a reservation at your home resort and waitlist at another.

Hilton Head and Vero are also options for OP for a five night vacation, as is Boardwalk Villas standard view studio. 10 points per night or less for portions of the year.

Why do you feel the OP wants a 7 night vacation?

Also, since reallocation, weekends are not double - they are higher but not doubled.

OP has the option also of renting up to 24 points from Disney to complete a vacation if they were to be a few points short.

Let's assume that the OP wants to take the same vacation I did...5 nights at 11 pts per night. She can't do it on 50 pts. She needs to borrow from next year in order to do it this year, or else bank the points and skip vacation this year.

Each year, as long as the allocation stays the same, she will either have to bank or borrow points in order to take that same 5 day vacation. Not really that big of a deal but at some point she will run out of points to borrow and will have to skip another year of vacation or transfer points into her account from another source (either Disney or another DVC owner). So your calculations are off. It doesn't matter what the cost per year is if you cannot use your points that year.

You also keep comparing your calculations to what I paid for 5 nights. I already stated that I paid way too much for those points. The going rate of $10-$11 per point would have brought that reservation in the range of $550-$605, which is $110-$165 less than what I paid. If I had stayed using distressed points, the reservation would have been closer to $440-$495. And there are always distressed points available.

My overall point remains the same, however. I can book a DVC stay by renting points for at or near the amount that the OP will be spending on her contract and dues. She will have the advantage of being able to sell her contract at any time and she can recover some of that money. I, OTOH, will have nothing to show for my financial output except my photographs. But I don't have to worry about reallocated points, changes in maintenance fees and rising taxes. I also retain the ability to take my vacation dollars anywhere I choose without having them tied up with Disney or any other vacation club.

I don't get why some DVC members defend ownership so rabidly. I'm not making a judgement on your decision. It works for you. Hooray for you. It doesn't work for me. Hooray for me.

 

[delmar411]

I'd suggest that the OP stay at OKW instead of other resorts since that studio has 2 actual beds instead of a bed and a pull out couch. Also just to keep in mind, you aren't going to want to stay in an AK value studio with 4 ppl. The studio is so much smaller since they insisted on putting all the same huge furniture in it. There is little space to move around in there. If they just put proper sized furniture it would be fine but that's not my call! LOL

 

[Crazy4Disney06]

Thank you all for your replies.
Even though there are a few naysayers here, after much thought we have signed our contract and will be mailing it in later this afternoon. Hoping we pass ROFR. We got 50 points listed at $60 per point and offered $55 and seller accepted! We found our ideal UY and CAN/WILL get many vacations at LEAST every other year off our DVC ownership, since we already vacation to WDW or DL that much now anyhow! Not everyone vacations for 7 night, actually of the 9 trips in the past 12 years our longest was only 8 nights and that included a 3 night cruise on the Wonder. Even as much as I LOVE Disney at this point in time our jobs only allow us 1 week vacation at a time......flying from Oregon that only leaves us 5 nights at WDW. Our thoughts are to buy small and make sure that DVC is right for us. We are able to pay cash upfront so no debt will be made by the purchase, and we can always add on later or even sell as one poster said 50 point contracts sell FAST!

 

[Avonlady1001]

Let's assume that the OP wants to take the same vacation I did...5 nights at 11 pts per night. She can't do it on 50 pts. She needs to borrow from next year in order to do it this year, or else bank the points and skip vacation this year.

Right now, (and of course, this could change at any time...) members can rent up to 24 points from Disney for $15/pt once a year. SO, she wouldn't have to borrow those 5pts to make up the 55, she could easily pay Disney to rent them that year & keep all 50 for the next year. Now there are restrictions, like it can only be done at 7mths out & cannot be waitlisted, but still a very wonderful option to make up those few missing points without dipping into the future.

 

[Avonlady1001]

Thank you all for your replies.
Even though there are a few naysayers here, after much thought we have signed our contract and will be mailing it in later this afternoon. Hoping we pass ROFR. We got 50 points listed at $60 per point and offered $55 and seller accepted! We found our ideal UY and CAN/WILL get many vacations at LEAST every other year off our DVC ownership, since we already vacation to WDW or DL that much now anyhow! Not everyone vacations for 7 night, actually of the 9 trips in the past 12 years our longest was only 8 nights and that included a 3 night cruise on the Wonder. Even as much as I LOVE Disney at this point in time our jobs only allow us 1 week vacation at a time......flying from Oregon that only leaves us 5 nights at WDW. Our thoughts are to buy small and make sure that DVC is right for us. We are able to pay cash upfront so no debt will be made by the purchase, and we can always add on later or even sell as one poster said 50 point contracts sell FAST!

CONGRATS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! You are gonna be so happy with your DVC. Doesn't seem like Disney is using their ROFR very often these days, so you should be good! What a great price! I wish you many years of magical vacations!!

 

[LauraLouLovesPooh]

Sounds like you got yourself a good deal, pending you do actually plan to use it every year (which is sounds like you will). I just got an offer in the mail to get a $40 gift card if I talked to a Cast Member about DVC and buying one new would cost around $11,000, which is a big number! I hope you went through with the purchase and look forward to using your new DVC points!

 

[Crazy4Disney06]

CONGRATS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! You are gonna be so happy with your DVC. Doesn't seem like Disney is using their ROFR very often these days, so you should be good! What a great price! I wish you many years of magical vacations!!

Sounds like you got yourself a good deal, pending you do actually plan to use it every year (which is sounds like you will). I just got an offer in the mail to get a $40 gift card if I talked to a Cast Member about DVC and buying one new would cost around $11,000, which is a big number! I hope you went through with the purchase and look forward to using your new DVC points!

Thank you both! We are very excited and "hope" to use our points the first time in either September or December!

 

[Judique]

Let's assume that the OP wants to take the same vacation I did...5 nights at 11 pts per night. She can't do it on 50 pts. She needs to borrow from next year in order to do it this year, or else bank the points and skip vacation this year.


You also keep comparing your calculations to what I paid for 5 nights. I already stated that I paid way too much for those points. The going rate of $10-$11 per point would have brought that reservation in the range of $550-$605, which is $110-$165 less than what I paid. If I had stayed using distressed points, the reservation would have been closer to $440-$495. And there are always distressed points available.

My overall point remains the same, however. I can book a DVC stay by renting points for at or near the amount that the OP will be spending on her contract and dues. She will have the advantage of being able to sell her contract at any time and she can recover some of that money. I, OTOH, will have nothing to show for my financial output except my photographs. But I don't have to worry about reallocated points, changes in maintenance fees and rising taxes. I also retain the ability to take my vacation dollars anywhere I choose without having them tied up with Disney or any other vacation club.

I don't get why some DVC members defend ownership so rabidly. I'm not making a judgement on your decision. It works for you. Hooray for you. It doesn't work for me. Hooray for me.

No, she doesn't have to bank or borrow. She can buy one time points from Disney.

Distressed points - the reason points are usually distressed is that there is a very short time left in the use year to use them, and the owner is past their banking deadline. Those 8 or 9 dollar points probably won't get you that 55 point room at AKV because it has already been booked by an owner who planned months earlier. Distressed points will pick up a night here or there, but finding a vacation of 5-7 days with them at almost any time of year is pretty impossible. DVC occupancy runs between 95-99% year round, unlike the rest of the timeshare world. That's why they are cheap. I wouldn't count on getting many vacations at that price point.

It's not that I feel the need to defend DVC rabidly.
I just see a non owner who is a fount of deliberate misinformation.
I think that deserves a counterbalance.

 

[Marionnette]

No, she doesn't have to bank or borrow. She can buy one time points from Disney.

Distressed points - the reason points are usually distressed is that there is a very short time left in the use year to use them, and the owner is past their banking deadline. Those 8 or 9 dollar points probably won't get you that 55 point room at AKV because it has already been booked by an owner who planned months earlier. Distressed points will pick up a night here or there, but finding a vacation of 5-7 days with them at almost any time of year is pretty impossible. DVC occupancy runs between 95-99% year round, unlike the rest of the timeshare world. That's why they are cheap. I wouldn't count on getting many vacations at that price point.

It's not that I feel the need to defend DVC rabidly.
I just see a non owner who is a fount of deliberate misinformation.
I think that deserves a counterbalance.

Yes, she can rent points from Disney at a rate of $15/pt., which would add another $75 to her annual cost for a 5-night vacation. But you seem to have glossed over that in your haste to prove me wrong on comparing the costs of a trip.

Let's compare apples to apples, shall we?

55 points rented at the going rate of $10/pt. would cost a renter $550.

A 50-point contract plus annual fees as per your calculations would come out to around $452 in annual costs. But then, the owner would need to make up those other 5 points somehow. If they choose to rent them from Disney for a single reservation, it comes to another $75. $452 + $75 = $527. The DVC owner wins by a whopping $23, doesn't have the stress of dealing with renting points and gets the DVC perks. The also have the ability to sell their ownership at a later date, thereby recovering some of their investment if they wish.

The renter gets none of those perks, pays an extra $23 and has to worry about whether the DVC owner that they are renting from is on the up & up. However, they do have the advantage of keeping the $3700 in the bank while the DVC owner paid it upfront for their contract. The non-owner doesn't have to concern himself with recurring fees, nor increases in taxes nor maintenance fee increases. Plus they have the ability to take their vacation dollars wherever they wish.

The point is moot since the OP has made her decision and seems to be happy with it. I wish her many pleasant stays in her new DVC home.

 

[Judique]

Yes, she can rent points from Disney at a rate of $15/pt., which would add another $75 to her annual cost for a 5-night vacation. But you seem to have glossed over that in your haste to prove me wrong on comparing the costs of a trip.
QUOTE]

I actually mentioned that several times during this thread, as did another poster. No glossing necessary.

 

[Crazy4Disney06]

Yes, she can rent points from Disney at a rate of $15/pt., which would add another $75 to her annual cost for a 5-night vacation. But you seem to have glossed over that in your haste to prove me wrong on comparing the costs of a trip.

Let's compare apples to apples, shall we?

55 points rented at the going rate of $10/pt. would cost a renter $550.

A 50-point contract plus annual fees as per your calculations would come out to around $452 in annual costs. But then, the owner would need to make up those other 5 points somehow. If they choose to rent them from Disney for a single reservation, it comes to another $75. $452 + $75 = $527. The DVC owner wins by a whopping $23, doesn't have the stress of dealing with renting points and gets the DVC perks. The also have the ability to sell their ownership at a later date, thereby recovering some of their investment if they wish.

The renter gets none of those perks, pays an extra $23 and has to worry about whether the DVC owner that they are renting from is on the up & up. However, they do have the advantage of keeping the $3700 in the bank while the DVC owner paid it upfront for their contract. The non-owner doesn't have to concern himself with recurring fees, nor increases in taxes nor maintenance fee increases. Plus they have the ability to take their vacation dollars wherever they wish.

The point is moot since the OP has made her decision and seems to be happy with it. I wish her many pleasant stays in her new DVC home.

As mentioned before I can stay at my home resort at OKW in a studio on 50 points a year. No need to rent any extra! My annual fees will be around $260 a year. Even 5 nights off site or at a value will run me more then that.
I also have the option of banking/borrowing and going every two/three years and then I have 150 points to do as I wish.
We mainly vacation between September to February so we have several options for lodging that fall within our point range without having to borrow from the next year or rent.

 

[North of Mouse]

CrazyForDisney06, just couldn't get past the first page when I read your post - So you can't see yourself going to Disney much in your 60's, eh?? Well, let this little "old" lady and DH tell you a thing or two We are in our 60's, retired, and love Disney, and can run circles around you "youngsters" We have been going to Disney since the year after MK opened and for several years it was only every 5 or so years that we could afford it but now we go up to 3 times a year - AND we're not hobbling, on crutches, in scooters, but on our two very fit feet and bodies We have "raised" our 3 children on Disney and other vacations, especially the Great Smokey Mountains. Not trying to make you feel bad, but reading your post just struck me funny - our next 10 day trip is in April for the F & G show. We're full of life, so maybe you'll see us passing by you there on to the next country - hope you have as many fun-filled Disney trips as we have and hope to continue having

 

[Judyat]

A week at OKW in the Adventure cheapest season (January, September and Dec 1 - 14) for a studio is 76 points. For 50 points you can get 5 nights. A week at Aulani is 126 points for a studio and 18 points get you one night for a standard view.

 

[North of Mouse]

Crazy4Disney06, didn't mean to get it wrong Sorry!