Debating DVC Purchase

[4luv2cdisney]

RIV 1BR PV is available but out of our range
BW 1BR PV is available for 170 points vs. RR Studio for 89 points.

It's not a good sign for the future if I cannot find many options as I am currently outside of 7 months from the trip. And, this is with 35% park capacity...

I have limited options given I can't make a 2nd trip by Sep 2022. Wife wants 1BR but it doesn't make sense to me. Argh. The headaches is what I didn't want to deal with.

You are seeing why your home resort is extremely important. Most people will have some luck swapping out at 7 months, some of the time. But your home resort should = the place you are always happy to stay.

I always calculate my reservations to dollars. If your per point cost is $12:

Riv Studio: $1068
BW 1 bed: $2040

If the BW price is something you'd be willing to pay in cash, book the room. If it's not, don't.

People start thinking differently when they buy DVC. If your goal is to stay within a budget (even if it's a self-imposed budget - not really a limited by finances budget) you have to translate everything to dollars IMO and stick to it.

 

[sagosto]

You are seeing why your home resort is extremely important. Most people will have some luck swapping out at 7 months, some of the time. But your home resort should = the place you are always happy to stay.

I always calculate my reservations to dollars. If your per point cost is $12:

Riv Studio: $1068
BW 1 bed: $2040

If the BW price is something you'd be willing to pay in cash, book the room. If it's not, don't.

People start thinking differently when they buy DVC. If your goal is to stay within a budget (even if it's a self-imposed budget - not really a limited by finances budget) you have to translate everything to dollars IMO and stick to it.

100% agree. Just because they are points doesn't change the fact that they are related to dollars. Yes, 1BR is great but NOT at 2X the rate, IMHO. How do you calculate per point cost?

BTW, I just got RIV @ 200 points. My guide said he could not reserve from Hotel Inventory but said I could call Member Services tomorrow and 'Welcome Home' a split stay at RIV studio/1 BR as I was having a hard time finding use for the 200 this year. I hope he wasn't fibbin

 

[4luv2cdisney]

100% agree. Just because they are points doesn't change the fact that they are related to dollars. Yes, 1BR is great but NOT at 2X the rate, IMHO. How do you calculate per point cost?

BTW, I just got RIV @ 200 points. My guide said he could not reserve from Hotel Inventory but said I could call Member Services tomorrow and 'Welcome Home' a split stay at RIV studio/1 BR as I was having a hard time finding use for the 200 this year. I hope he wasn't fibbin

The basic, simple, not accounting for "if you had invested your $ instead of buying DVC" way is to add your initial buy in cost per point to the current years dues. Some people will use the simple $ per point paid for the contract divided by the # years on contract, some will take total $ paid including closing costs divided by # points and # years

You can tweak it how you'd like, but that's the basic way.

 

[sagosto]

Whoa. I just realized that if the maintenance stays static at $8.38 (which it will not), the total out of pocket is $126,500. So, $126,500 / 200 / 50 = $12.66. Is that right?

 

[Ruttangel]

Whoa. I just realized that if the maintenance stays static at $8.38 (which it will not), the total out of pocket is $126,500. So, $126,500 / 200 / 50 = $12.66. Is that right?

It will be nearer $12 as 200pts at $180pp is $36k and you might get 2020 points but no dues payable.
As a range that puts in the middle of the economical charts but as @4luv2cdisney said, this is just a base number which you can use to get rough cost per stay.

 

[Sandisw]

100% agree. Just because they are points doesn't change the fact that they are related to dollars. Yes, 1BR is great but NOT at 2X the rate, IMHO. How do you calculate per point cost?

BTW, I just got RIV @ 200 points. My guide said he could not reserve from Hotel Inventory but said I could call Member Services tomorrow and 'Welcome Home' a split stay at RIV studio/1 BR as I was having a hard time finding use for the 200 this year. I hope he wasn't fibbin

He is not. Just mention that you are new and would like to book your welcome home visit at RIV. It won’t be a problem because that is the resort they can pull DVD inventory for you.

 

[EM Lawrence]

I’m sure this is personal preference but does it make more sense to stay at RIV for 5 days in studio at 89 points and bank remaining to be rented or 1BR BWV pool / garden view for 170 points. My wife likes 1BR but I can’t swallow the 2x points.

id rather push the free 4 AOA day and revisit next year but she won’t do multiple visits in a year. I tried late august proposal but the heat is too much

Beware, once you stay in a 1BR, it is going to make your wife even grumpier to go back to studios!

 

[IceSkatingPrincess]

100% agree. Just because they are points doesn't change the fact that they are related to dollars. Yes, 1BR is great but NOT at 2X the rate, IMHO. How do you calculate per point cost?

BTW, I just got RIV @ 200 points. My guide said he could not reserve from Hotel Inventory but said I could call Member Services tomorrow and 'Welcome Home' a split stay at RIV studio/1 BR as I was having a hard time finding use for the 200 this year. I hope he wasn't fibbin

He is not. Just mention that you are new and would like to book your welcome home visit at RIV. It won’t be a problem because that is the resort they can pull DVD inventory for you.

The welcome home stay is definitely a thing! I got mine booked last week at Riviera.

Don't book anything online on your own prior or it becomes very difficult and requires escalation to get your welcome home visit booked (learned the hard way). Also be prepared to be pretty flexible with dates, I got my 3rd choice.

I'm still thrilled to be at Riviera this September though and am very grateful they could help me secure a reservation.

 

[RoseGold]

100% agree. Just because they are points doesn't change the fact that they are related to dollars. Yes, 1BR is great but NOT at 2X the rate, IMHO. How do you calculate per point cost?

This math has many limitations, straight line depreciation, future value of money, dues uncertainty in some resorts, blah blah, but it's a ballpark. This is just cost per point. A resort with a favorable chart, like BW, can flip the math even though the per point cost is more.

https://www.dvcresalemarket.com/blog/best-economical-dvc-resort-to-purchase-fall-2020/

 

[sagosto]

Beware, once you stay in a 1BR, it is going to make your wife even grumpier to go back to studios!

I'd love that 1BR too but not at 2X the price. That didn't go over well.

 

[sagosto]

I called 800-800-8900 instead of 9800 and some woman asked me if I liked to my *** to be spanked. Not gonna lie -- I was debating to see where that would lead as I have a ton of funnies but it's too early and my wife was on the phone. So, on hold waiting with Member Services. I just realized my free 3 year old is now 4 and no longer free so I need another ticket. The 4 + 2 deal is for September and not November blah.

 

[havoc315]

Whoa. I just realized that if the maintenance stays static at $8.38 (which it will not), the total out of pocket is $126,500. So, $126,500 / 200 / 50 = $12.66. Is that right?

Approximately. And yes dues will increase, but likely total costs will not increase much faster than inflation. So $12.66 per year is a good way at looking at it in 2021 dollars.

 

[havoc315]

Welcome Home visit in the 1BR is available but more than my points allowed so I am not sure. I need access to the system so I might just join and then cancel if I don't get what I need. Reminds me of Lord of The Flies.

You bought direct? With what use year?
If you have 400 points available, you should easily have enough for your 1 bedroom. Remember, you can also borrow half your 2022 points, AND buy up to 24 1-time use points (though not until the 7 month window).
So you have up to 500 points available, 524 at the 7 month window, if you bought 200.

And if you're a little short, you can always cut 1-2 days off your trip, or opt to pay a cash room somewhere for a couple of days.

 

[sagosto]

Approximately. And yes dues will increase, but likely total costs will not increase much faster than inflation. So $12.66 per year is a good way at looking at it in 2021 dollars.

So, renting at 14-16PP isn't a 'loss'? But, the contract seems to indicate the owners are liable??

 

[sagosto]

You bought direct? With what use year?
If you have 400 points available, you should easily have enough for your 1 bedroom. Remember, you can also borrow half your 2022 points, AND buy up to 24 1-time use points (though not until the 7 month window).
So you have up to 500 points available, 524 at the 7 month window, if you bought 200.

And if you're a little short, you can always cut 1-2 days off your trip, or opt to pay a cash room somewhere for a couple of days.

OCT -- I am trying to avoid going over 200 per visit as I'd like to go once per year.

 

[havoc315]

So, renting at 14-16PP isn't a 'loss'? But, the contract seems to indicate the owners are liable??

Liable in what way?

If you're able to rent your points at $14-$16 without having to pay commission, then you're doing slightly better than break-even.

When using your points yourself, you'll find you typically will get between $16 and $25 value per point.

For example, my next trip is RIviera 8/14-8/22 (we actually love August for longer hours and fairly low crowds, just have to avoid the sun midday)
1 bedroom preferred view is rack rate of $9187. It would be 422 points. So that's $21.77 per point. BUT, summer room discounts will likely be available. So if there is a 30% discount for Riviera.. then it's just $15.23 per point in value.
We are actually doing a 2 BR preferred view: $13151, 525 points, so $25.05 per point -- If there is a 30% discount, then $17.53 per point.

And by far, the best bang for buck is studios: Studio preferred view is $6035 or 194 points, for a whopping $31.10 per point. Even if they do a 30% discount for summer, that's still $21.78 per point value.

So renting at $14-$16 is about equivalent to the minimum value you'd get by using your points yourself.

 

[havoc315]

OCT -- I am trying to avoid going over 200 per visit as I'd like to go once per year.

I understand that.... but you have double points your first year, so the first year is the time to splurge.
You have your 200 2020 points and your 200 2021 points starting October 1st. If you're going once per year and your first trip is November? Then you have 400 points for November... and then can transition to 200 per year. Fun to splurge on that first trip.

 

[sagosto]

Liable in what way?

If you're able to rent your points at $14-$16 without having to pay commission, then you're doing slightly better than break-even.

When using your points yourself, you'll find you typically will get between $16 and $25 value per point.

For example, my next trip is RIviera 8/14-8/22 (we actually love August for longer hours and fairly low crowds, just have to avoid the sun midday)
1 bedroom preferred view is rack rate of $9187. It would be 422 points. So that's $21.77 per point. BUT, summer room discounts will likely be available. So if there is a 30% discount for Riviera.. then it's just $15.23 per point in value.
We are actually doing a 2 BR preferred view: $13151, 525 points, so $25.05 per point -- If there is a 30% discount, then $17.53 per point.

And by far, the best bang for buck is studios: Studio preferred view is $6035 or 194 points, for a whopping $31.10 per point. Even if they do a 30% discount for summer, that's still $21.78 per point value.

So renting at $14-$16 is about equivalent to the minimum value you'd get by using your points yourself.

Liable if they damage the room -- per the contract.

This is really good info though. I PUSHED for late August but 90F+ with masks and 2 young kids wouldn't fly. I believe Labor Day Day week is swamped too. The discount won't change the point structure of the rooms, correct? Or, you are just using that data to show value?

If you can only rent for $14-16PP, is there any purpose to buy direct @ $19PP?

 

[havoc315]

Liable if they damage the room -- per the contract.

This is really good info though. I PUSHED for late August but 90F+ with masks and 2 young kids wouldn't fly. I believe Labor Day Day week is swamped too. The discount won't change the point structure of the rooms, correct? Or, you are just using that data to show value?

If you can only rent for $14-16PP, is there any purpose to buy direct @ $19PP?

Yes, you are liable for damage to the room. It is your points, your room. If you rent it out to a stranger, you're still responsible. When you rent the points to a stranger, you're still the one in control: You have to book the reservation for them, etc.

So my last August trip, which was a while ago, my kids were 11 and 9. First late August trip was 2012, so my kids were 7 and 5.
The heat is unbearable.... and I don't want to imagine it with masks. Unknown what the mask situation will be like by this August -- they might not be required anymore.

That said, we very much enjoyed late August. We did the parks from rope drop to noon, and then more casually at night.
Dang... they were small back in 2012..

Untitled by Adam Brown, on Flickr

Anyway... sorry for getting sentimental...

No, there would be no purpose of buying direct at $19 per point per year, unless you think that resorts prices are going to rise so quickly that it will eventually become a value. But even then, you'd be better off preserving your cash.
That's why some of the direct pricing it some resorts is totally irrational.

 

[sagosto]

Yes, you are liable for damage to the room. It is your points, your room. If you rent it out to a stranger, you're still responsible. When you rent the points to a stranger, you're still the one in control: You have to book the reservation for them, etc.

So my last August trip, which was a while ago, my kids were 11 and 9. First late August trip was 2012, so my kids were 7 and 5.
The heat is unbearable.... and I don't want to imagine it with masks. Unknown what the mask situation will be like by this August -- they might not be required anymore.

That said, we very much enjoyed late August. We did the parks from rope drop to noon, and then more casually at night.
Dang... they were small back in 2012..

Untitled by Adam Brown, on Flickr

Anyway... sorry for getting sentimental...

No, there would be no purpose of buying direct at $19 per point per year, unless you think that resorts prices are going to rise so quickly that it will eventually become a value. But even then, you'd be better off preserving your cash.
That's why some of the direct pricing it some resorts is totally irrational.

Beautiful kids. Eve w/o the masks, I am not sure if summer even late August is doable given the heat. I might be May/Nov and deal with arguing with the wife to take the kids out or find an expensive/busy week. If I rent/buy a few points from another member at $14-16PP, there's no involvement on either end, the points just transfer right?