Confirmed:Classic Resorts To Increase to $130/pt. On March 20th

[BWV Dreamin]

DVC Guide called back today to follow up (Marlene Levin). She confirmed again the $130ppt for all older resorts, except VB and HHI are going up to $105/pt. and GCV and BLT to $165/pt., Aulani and AKV $145/pt. She again confirmed the date of March 20.

I asked if she could fax over these figures and she is forbidden to do so. She said members will be getting an official email soon? She said if anyone wants to call her to verify these figures feel free to call her (I have her number). I told her I wanted to verify that these facts were true and she said her phone calls are recorded and she would not risk 9 years of RE licensure for telling lies.

So that is the latest. If anyone wants her number, PM me.

 

[bobbiwoz]

Well, to me this indicates a pretty high initial cost for the GF! Right now, that's my desired resort.

 

[Breyean]

DVC Guide called back today to follow up (Marlene Levin). She confirmed again the $130ppt for all older resorts, except VB and HHI are going up to $105/pt. and GCV and BLT to $165/pt., Aulani and AKV $145/pt. She again confirmed the date of March 20.

I wonder if this could explain the recent increase in the asking prices for most VGC contracts on TTS. After being in the $90s for a long time, now they are around $108-$115 and usually sell pretty quickly.

I also wonder what all this means for the VGF opening price. I know some have been speculating on a price around the BLT's, I've always maintained these increases were setting up a $200 price point before incentives.

 

[tjkraz]

DVC Guide called back today to follow up (Marlene Levin). She confirmed again the $130ppt for all older resorts, except VB and HHI are going up to $105/pt. and GCV and BLT to $165/pt., Aulani and AKV $145/pt. She again confirmed the date of March 20.

I'll be curious to see if that price increase is coupled with incentives on the older properties. DVC has been selling BWV for $115 for many, many months now. But thanks to the modest Park Hopper pass incentive offered in the webcast, suddenly buyers are lining up to add BWV direct.

Reselling the older resorts will never be a huge profit center for DVC but it is a necessary evil--a way for them to get rid of the foreclosures and ROFRs. They've had success with discounts and incentives on the "new" properties. Perhaps that philosophy is now trickling down to others.

I've always maintained these increases were setting up a $200 price point before incentives.

Perhaps but I don't know why DVC would feel compelled to hit that number. They will get there eventually.

If Hope's info is correct and BLT is staying at $165, I don't see VGF going much above that.

 

[dwight16]

i am on the wait list for BWV but my guild told me i was locked in at 115 but he would not tell if i would get the contract extension if they do that after the 20th

 

[BWV Dreamin]

i am on the wait list for BWV but my guild told me i was locked in at 115 but he would not tell if i would get the contract extension if they do that after the 20th

Did your guide confirm the price increase on March 20? Why would he say you are locking in the price?

 

[tjkraz]

Why would he say you are locking in the price?

Historically, if DVC does not have points readily available and buyers are forced to go on a waitlist, they will lock-in current pricing to those who provide credit card info for the (future) down payment.

As soon as points are available, they charge the 10% down payment and mail the paperwork.

 

[DeeCee735]

WHAT RESTRICTIONS ARE COMING??

LOL sorry, but that is just funny after reading all these pages of thoughts and speculation
Thanks for the laugh

 

[WilsonFlyer]

I guess it's none of my business but I would never disclose my Guide's name here, especially if I were re-posting information from him that was yet to be formally disclosed.

Those guys get called out pretty quickly. I know. Mine got in trouble one time for something I said and I never even called him by name. They read here and figured it out.

 

[CMOORE185]

But it can make sense if you consider the current rack rates charged by Disney for these villas. At $130 a point, a person buying BWV or BCV can still save money over rack rates, even though it may take about 10-12 years to recover the initial purchase. Since the lease continues for another 17-19 years after the initial costs have been recovered, it can still make sense for a buyer to purchase these resorts.

Keep in mind that for some purchasers the number of years remaining on the leasehold is an insignificant factor. Instead, for some buyers the key variable is their perceived "window of use", which might be only 10 to 15 years in length. I bought BLT and AKV in 2009, and due to my age I know I'll expire before either lease expires. However, I knew when I bought that I could get at least 10-15 years' worth of use out of by deeds. I crunched the financial numbers on buying into the DVC and decided I could come out ahead by becoming a member versus paying cash rates.

There is another way to look at price increases that we, as members, sometimes ignore. Even if DVD doesn't sell a single BWV or BCV point at $130, it doesn't mean those points go to waste. Unsold points controlled by DVD are converted into cash reservations. According to the Disney website, a 7-night cash stay in a one-bedroom villa at BWV from 6/16/2013 to 6/23/2013 will cost $573/night excluding tax. The point cost for that stay is 220 points. Thus, DVD is getting about $18.23 gross revenue on each point. If DVD can get the same revenue for the next 29 years, each BWV point could generate $528 in gross revenue to TWDC.

I think comparing to rack rate is misleading as I would think very few people pay rack rate for a room. I remember when I bought at $65 per point my guide figured break even point to be around 7 years. I think at $130 per point you are just breaking even at your 10-15 years of use. Better off just to rent points or go with the best deal you can find at Disney. I would never buy at these current prices.

 

[sandieb]

We bought our points in 2001 presale for BVC (450 points in 3 contracts) and HH 200 points resale for a total of $45,000. We worked VERY HARD to pay for this and haven't regretted it. Now the same number of points would be $84,000 which would be prohibitive. I'm not saying the price stucture is too high - it may be worth it in today's economy, I dont know. It would just be too much money for us to spend on a luxery like a timeshare.

However, the memories are precious and I don't regret buying at all.

 

[dwight16]

Did your guide confirm the price increase on March 20? Why would he say you are locking in the price?

OK here is my email to him and his response what do you think?

Hey ***** hope your having a good weekend. i heard some rumors and rumblings that there is price increase coming end of march and or they might be extending the life of the contracts passed 2042. any of these rumors possibly true?

His Response:

****** –

I cannot confirm nor deny these …


You are protected for the price in the event of an increase …

 

[tjkraz]

I think comparing to rack rate is misleading as I would think very few people pay rack rate for a room. I remember when I bought at $65 per point my guide figured break even point to be around 7 years. I think at $130 per point you are just breaking even at your 10-15 years of use. Better off just to rent points or go with the best deal you can find at Disney. I would never buy at these current prices.

As long time owners, we have the luxury of looking back on prices which were nearly half of what they are today. But many of the people discovering DVC for the first time in 2013 were teenagers when BCV went on sale.

$70-80 per point direct would have been nice...but it wasn't an option back then. And even at $130+ per point with a breakeven of 10 years, DVC is still far preferable to paying cash prices for the next 4-5 decades.

We bought our points in 2001 presale for BVC (450 points in 3 contracts) and HH 200 points resale for a total of $45,000. We worked VERY HARD to pay for this and haven't regretted it. Now the same number of points would be $84,000 which would be prohibitive. I'm not saying the price stucture is too high - it may be worth it in today's economy, I dont know. It would just be too much money for us to spend on a luxery like a timeshare.

2001 was 13 years ago. Unless your financial situation has changed for the worse, I bet the $45K was a shock to the budget back then, too. Today's economy may not be all wine and roses but most people are making substantially more in 2013 than they did in '01.

For a moment, forget the availability of resale and forget the 650 points you already own. If your love of Disney and discovery of DVC had occurred 13 years later, wouldn't you be willing to work just as hard to afford the $84K today?

IMO, most current owners perceptions are tainted by the points they already own (don't need more), the prices they paid years or decades ago (less) and knowledge of the resale market (which many do not have.) I bet most of us would make similar buying decisions today, even with the higher prices.

 

[CMOORE185]

As long time owners, we have the luxury of looking back on prices which were nearly half of what they are today. But many of the people discovering DVC for the first time in 2013 were teenagers when BCV went on sale.

$70-80 per point direct would have been nice...but it wasn't an option back then. And even at $130+ per point with a breakeven of 10 years, DVC is still far preferable to paying cash prices for the next 4-5 decades.

2001 was 13 years ago. Unless your financial situation has changed for the worse, I bet the $45K was a shock to the budget back then, too. Today's economy may not be all wine and roses but most people are making substantially more in 2013 than they did in '01.

For a moment, forget the availability of resale and forget the 650 points you already own. If your love of Disney and discovery of DVC had occurred 13 years later, wouldn't you be willing to work just as hard to afford the $84K today?

IMO, most current owners perceptions are tainted by the points they already own (don't need more), the prices they paid years or decades ago (less) and knowledge of the resale market (which many do not have.) I bet most of us would make similar buying decisions today, even with the higher prices.

I'll disagree with you. I had trouble justifying the purchase at $65 per point and the MF's at the time, there is no way I would buy today. It is my feeling the cost of DVC has far outpaced inflation and increase in hotel prices. Remember it is not just the initial buy in price that hurts but the increase in MF's as well.

 

[BWV Dreamin]

You would think he would flat out deny the info if he was not privy to some information. The fact that he/she obstains from making comment one way or the other leads me to believe there is SOMETHING coming.

Question, when is the end of the current sales cycle and the beginning of the next?

OK here is my email to him and his response what do you think?

Hey ***** hope your having a good weekend. i heard some rumors and rumblings that there is price increase coming end of march and or they might be extending the life of the contracts passed 2042. any of these rumors possibly true?

His Response:

****** 

I cannot confirm nor deny these &


You are protected for the price in the event of an increase &

 

[bgraham34]

I spoke to my guide today and she said that nothing has been mentioned about a price increase. But maybe she is not privy to that info

 

[intertile]

2001 was 13 years ago. Unless your financial situation has changed for the worse, I bet the $45K was a shock to the budget back then, too. Today's economy may not be all wine and roses but most people are making substantially more in 2013 than they did in '01.

For a moment, forget the availability of resale and forget the 650 points you already own. If your love of Disney and discovery of DVC had occurred 13 years later, wouldn't you be willing to work just as hard to afford the $84K today?

IMO, most current owners perceptions are tainted by the points they already own (don't need more), the prices they paid years or decades ago (less) and knowledge of the resale market (which many do not have.) I bet most of us would make similar buying decisions today, even with the higher prices.

I 100% agree with this. I purchased in 2006. At the time I bought retail at SSR. $86-$89/pt with the incentive at the time. In that time we have seen prices on ALL hotel rooms jump up, and DVC go up to $145-$165/pt depending on the resort. The price per point goes up, because so do the rack rates...If you plan to vacation at WDW regularly for the next 30-40 years it makes sense to buy at DVC. If you don't , then it doesn't.

 

[tjkraz]

I'll disagree with you. I had trouble justifying the purchase at $65 per point and the MF's at the time, there is no way I would buy today. It is my feeling the cost of DVC has far outpaced inflation and increase in hotel prices. Remember it is not just the initial buy in price that hurts but the increase in MF's as well.

As intertile pointed out, the cash cost of Disney hotel rooms has far outpaced inflation, too. If you want to visit Disney, you will find a way. And DVC is still a better deal than paying cash year-after-year.

 

[sandieb]

As long time owners, we have the luxury of looking back on prices which were nearly half of what they are today. But many of the people discovering DVC for the first time in 2013 were teenagers when BCV went on sale.

$70-80 per point direct would have been nice...but it wasn't an option back then. And even at $130+ per point with a breakeven of 10 years, DVC is still far preferable to paying cash prices for the next 4-5 decades.

For a moment, forget the availability of resale and forget the 650 points you already own. If your love of Disney and discovery of DVC had occurred 13 years later, wouldn't you be willing to work just as hard to afford the $84K today?

IMO, most current owners perceptions are tainted by the points they already own (don't need more), the prices they paid years or decades ago (less) and knowledge of the resale market (which many do not have.) I bet most of us would make similar buying decisions today, even with the higher prices.

OK - I see your point that inflatrion has increased the price of housing, hotels, well - everything. It was that we could save enough back then to buy our points by being frugal, not buying new cars, and working some overtime. We really wanted these points and made it happen. However, I can't imagine saving $84K now - it seems that prices have outpaced our ability to save. Maybe it's the $300+ in maintenance fees that has an edge.

Anyway, for the average family buying DVC points today (as well as back then) has to be something they really want in order to carve this amount out of their budget.

 

[mnra]

I haven;t run all the numbers so maybe this doesn;t make sense but it would seem to me that at the current price of points Ie 115 to 130 I was wondering when you could buy a second house (ie house or condo) in the area and never have an expiration to deal with. I know you have the maintenance of the house and insurance and maybe condo dues but it would seem that the real estate market might make this worth while to look at.