Buying Resale at Vero Beach I, don't see any cons. What am I missing?

[JSagitas]

We have 75 points at Poly purchased direct from Disney. We are looking to purchase 100-150 additional points resale. In looking at the price per point, it seems to be a no-brainer to buy Vero Beach. Buying SSR or OKW would be the most reasonable add-on's on property, but it would still give us the same chance at 7 mo. window to book (or not) at Poly/BC/BWV, etc. But the fact that it is not a DVC property is making me wary about buying there. What am I missing??

 

[Disney Dad ADL]

The $8 per point annual fees makes Vero Beach one of the most expensive DVCs you can own.

If you want the cheapest, get SSR.

 

[_auroraborealis_]

You aren't calculating the math of the annual dues.

Vero Beach is a poor value compared to either SSR or BLT for on-property bookings.

VB expires in 2042. At $60/pp with 26 years left, you're at $2.31pp, which sounds okay. But then, figure in annual dues per point, currently $8.09. That's now $10.40 per point, and assuming 3% per year on dues increases it goes up with time.

Meanwhile, a similar Saratoga contract is about $90pp, and expires in 2054, making it $2.37pp. Dues are 5.44. So your annual cost per point right now, independent of annual dues increase, is $7.81 per point.

Over 10 years, for 100 points, the difference becomes significant in cost-per-point. Obviously, the math gets more complex as you figure dues increase potential, but that will be largely proportionate to today's dues, and it won't be sufficient to wipe out the cost differential.

 

[JSagitas]

Thanks! I knew I could count on my Dis'ers to help me figure out what I was missing. SSR it is! (this DVC ownership has so many variables, it will make your head spin!) lol

 

[_auroraborealis_]

BLT at $115ish per point is also a good value. Expires 2060, annual dues of $5.28. Puts you at a current cost of $2.61+5.28pp, or $7.89pp.

One advantage of BLT over Saratoga is that when renting the points, you can get a better 11-month booking price for BLT points. Brokers pay less for Saratoga points.

 

[BillPA]

You need to understand the points required for the different resorts. All studios, 1 BR... are NOT priced the same, that is points per night.
A standard studio at the poly in summer is 23/27 points a night, where BLT is 19/22 for a standard view. SSR standard studio is 14/18 a night.
Run those numbers and see where you come out, both purchase price and dues per night stay. And to get a real cost you should look at the cost of money calculations. If you can't plan long range, i.e. more than 7 months ahead, just buy the lowest cost. And keep the end date of the resort in your numbers.

 

[JSagitas]

BLT at $115ish per point is also a good value. Expires 2060, annual dues of $5.28. Puts you at a current cost of $2.61+5.28pp, or $7.89pp.

One advantage of BLT over Saratoga is that when renting the points, you can get a better 11-month booking price for BLT points. Brokers pay less for Saratoga points.

Another great point, but I'll be 100 in 2060, so that just made it a whole lot more expensive! lol. But, seriously, I see that would make it a much better value for resale.

 

[Dean]

BLT at $115ish per point is also a good value. Expires 2060, annual dues of $5.28. Puts you at a current cost of $2.61+5.28pp, or $7.89pp.

One advantage of BLT over Saratoga is that when renting the points, you can get a better 11-month booking price for BLT points. Brokers pay less for Saratoga points.

Yes, SSR is the cheapest long term and BLT second. HH is a better off property than VB to use at WDW. For off property I'd only buy if one plans to use it part of the time for a high demand options like summer HH or for a specific VB vacation periodically. Now if one can get a good deal on a subsidized contract at VB or Aulani the numbers might be different.

 

[JSagitas]

How does a subsidized contract work?

 

[Disney Dad ADL]

How does a subsidized contract work?

Back when Aulani was created, Disney messed up the annual dues calculations and undercharged everyone. While that sounds great, it's actually a big problem because it wouldn't have been enough money to cover the expenses. The problem was fixed by substantially raising dues, some high level DVC executives were fired. However, DVC owners who purchased with the lower annual dues have their dues partially subsidized by Disney, so they pay lower annual dues than "normal" Aulani owners. If you buy a subsidized contract, you will pay lower dues. I wasn't aware that VB also had subsidized contracts.

 

[MIALIAS]

It would be great if someone would make a side by side list of all the Dvc properties with the total points per property?

Anyone want to do it?

 

[Disney Dad ADL]

It would be great if someone would make a side by side list of all the Dvc properties with the total points per property?

Anyone want to do it?

What do you mean by total points per property? You mean the total number of points that were sold at each resort?

 

[MIALIAS]

What do you mean by total points per property? You mean the total number of points that were sold at each resort?

No the cost of BLT being $7.61 etc etc

 

[MIALIAS]

No the cost of BLT being $7.61 etc etc

7.89

 

[_auroraborealis_]

Someone did a while back. The estimate on cost per point per year really depends on contract size, though. My numbers were based on 100 point contracts I could find on the market. For a 50 point contract, it'd be higher; for a 300 point contract, lower. At least, via resale.

 

[Deb & Bill]

Buy VB is you want to stay at VB during summer months, especially if you want a Beach Cottage. Otherwise, buy something else. If you want to use the points to visit WDW, buy a WDW DVC resort, not an offsite resort.

 

[KAT4DISNEY]

How does a subsidized contract work?

At VB the initial plans included more units. When sales were slow DVC cut back on the size of the resort (and sold off some of the land they had I believe). Because the costs were not going to be spread out over the same number of units as originally planned they now subsidize the dues of the original contracts that were sold as part of a larger resort. Those who bought after the downsizing are not subsidized. In 2016 this meant that subsidized contracts had dues calculated at $6.32/pt and non-subsidized at $8.08/pt.

 

[Disney Dad ADL]

It would be great if someone would make a side by side list of all the Dvc properties with the total points per property?

Anyone want to do it?

Obviously it's heavily dependent on what assumptions you use.

The chart below assumes no increase in annual dues, which obviously will not happen and they will almost certainly increase. I didn't put that much effort into determining the buy-in price, so it could be off.

You can see, though, that the annual dues have a much bigger impact than the buy-in price, which makes sense because the annual dues you pay over the life of a contract is much more than the buy-in price. VGF 100 pts @ $145 per point is $14,500, but annual dues is $27,417. And this is vastly underestimating the actual annual dues because they will increase over time.

Also, if you're financing, the math becomes very different and more complicated.




As noted previously, VB is among the most expensive. SSR is the cheapest per point, followed by BLT.

 

[Dean]

The difference between buy in and dues is much less if you account for the real value of the up front money. And while this is favorable to VB, the dues difference is so great (and will increase more) that the dues will over take the up front savings.