Direct CCV purchase vs resale

[sky2823]

New owner directly purchased at CCV. I admittedly purchased with emotion more so than math (by not going resale), but as I am going back over the numbers, thepurchase doesn’t scare me as much.

Can someone with more experience with DVC numbers sanity check this for me....

CCV : 250pts @ $182 per point
CCV: $5K discount brings it down by $20 per point
CCV: $2k additional discount brings it down about $8 per point. 2% disney dollars on disney credit card, 6 months 0% financing, lower closing costs. (Just estimates on the interest)

Am I looking at this wrong? I paid $154 per point for full 50 year contract and full membership benefits as well as full 2017/18/19 points.

When I compare that to the resale’s for other properties and then discount those prices for having less years and not to mention zero benefits and sometimes less points (2017/18/19), I’m not sure I see this tremendous value for a “new buyer” on resale (ignoring the intangibles preferred resort and room sizes).

Thoughts? Thanks!

 

[Bing Showei]

I felt Copper Creek offered a lot of great reasons to buy when I toured the resort last year. I actually really liked the rooms (not big on theming - actually like BLT's look, there I said it). Boat ride to MK? Yes, please. And VWL is arguably the place to be during the holidays.

Copper Creek is a great buy if you're just getting into DVC and love that resort. If you're looking to stay anywhere outside of CCV, buying SSR would save you significantly against Copper Creek points, extra CCV years notwithstanding.

250 points @ $154 ppt is roughly $40,000.00 with closing
250 points @ $100 ppt is roughly $26,000.00 with closing

Some will point to the opportunity cost lost in tying up the additional $14,000 over the 36 years (which based on historical data in an index fund has yielded 7% annually, adjusting for inflation).

Copper Creek is a great home resort, and given the choice between "being stuck" at CCV vs SSR, most would probably choose CCV. But at 7 months, your $154/point are the exact same as a $100/point SSR for booking purposes.

The bulk of your lifetime costs will come from paying ADs as opposed to the initial buy-in. Copper Creek also has the 4th highest Annual Dues (behind VB, HHI, and Aulani) at $7.26/point vs SSR at $5.86/point. On a 250 point contract, you'll presently pay $350 more on ADs than SSR. No one knows how those AD differences will deviate (e.g., how much quicker CCV dues will go up after selling out - which tends to happen)

This of course ignores the membership extras which we're reminded should not factor into buying a real estate interest in DVC (but as new buyers, we all do). That's a much more personal matter, of course.

ETA - more seasoned DVCers (@Dean) have pointed out that if you're new to DVC, there's a high likelihood you don't know what you don't know. And in that situation, it will always make more sense to buy cheap (or rent) and test the waters and learn how you are with DVC before diving in. Others will also say that buying direct while on vacation is probably one of the biggest impulse buys you'll make in your life. Some have been ok with it, and have never regretted it.

 

[disneynutz]

IMO most won't benefit from a 50 year contract, next time you might want to break up your buy into a 150 contract and a 100 point contract, easier to sell later. Is CCV your favorite resort or did you buy there because that is what they sold you?

Bill

 

[_auroraborealis_]

The questions I would ask, backing up from the financials:

• When do you plan to travel? If in fall, that needs to be a big factor.
• What size units do you want? If studios, I expect them to be a challenge in fall even at 11 months for many weeks because of how points are being sold at CCV.
• Can you regularly plan 11 months out? Is home resort useful to you?
• Do you want CCV to be your home resort? Are you happy staying there most of the time?

 

[sky2823]

WL is our favorite resort so that is where the emotion came in a bit. In the short term I wish CCV slept 5 in the studio, but we will be out growing that soon and I can get 2 studios at CCV for less than a 1BD.

It’s just when I first compared resale and direct I was blown away by the savings, but with all of the discounts direct seems close.

I think the 150 direct and 100 resale is good strategy, however, you only get the $5K discount (it escalates) on the 250 plus so my second 100 points is probably cheaper than the resale market.

As I have analyzed it, I think the resale markets are great from a liquidity perspective or if you want a specific resort. But purely numbers wise for “new owners”, Disney is using the promotions to basically make the resale a wash once all of the numbers are crunched. I agree on the 50 year horizon being pie in the sky, however it does increase the exit value in 10 or 15 years ago so I think that it does help in the valuation

Again, I am probably wrong as I am a rookie at this stuff.

Regardless, we are happy to be members and thanks for the response

 

[_auroraborealis_]

I can get 2 studios at CCV for less than a 1BD.

I would worry about this plan, frankly. CCV has a max availability of 84 studios, assuming every lock-off 2BR books as a studio and a 1BR. Meanwhile, they are selling over a million points against the cabins, most of the contracts of a size that a cabin is a 1-night indulgence, not a real booking. Depending on season, getting 2 studios may not be realistic, much as it isn't certain seasons at VGF - which has 47 studios, but no exorbitant cabins and the points sold against them.

 

[sky2823]

Thanks about the 2 studio strategy being flawed, I guess those are advance strategies I haven’t even thought about.

It worked for me for 1 of my reservations during a busy time, but not the other two (waitlist) so that makes sense. I assume it will only get harder over time.

 

[Bing Showei]

But purely numbers wise for “new owners”, Disney is using the promotions to basically make the resale a wash once all of the numbers are crunched

I would agree that the 2nd class membership status alongside some membership benefits make direct more appealing, but it would be a stretch to call it a wash (as in they net out). Excepting small contracts at any resort or contracts specifically for CCV, resale savings are significant.

It worked for me for 1 of my reservations during a busy time, but not the other two (waitlist) so that makes sense. I assume it will only get harder over time.

Over time, more people will buy enough points on their contract to stay in smaller rooms (studios), and over time, DVD will continue to sell more and more small contracts against the Cabins. Probably aren't a whole lot of people buying contracts to stay in Cabins annually.

 

[sky2823]

And yes, I am definitely in the bucket that I don’t know what I don’t know. Thanks for the responses!

 

[pineapplepalms]

I'm also newer to DVC (bought CCV last year) but I think CCV direct can be a great purchase if it makes sense for your situation. Buying direct means a contract with all points available and we got them right away, which means we could use them and take advantage of the "welcome home" booking to book our planned trip in <5 months and cancel our cash reservation at a deluxe resort. We were able to split our contract into 2 but still get the incentive for the total number of points, and were able to choose the UY we wanted (we matched our subsequent resale contracts to the same UY). We could also put the entire purchase on credit cards to earn rewards. The 50 year contract is valuable to us, and also means that if we sell any of our other resale contracts, we still keep any direct benefits as long as we keep CCV since that has the longest contract length. We bought planning for 1BR or 2BR stays at CCV every other year, often for the holidays (which we think is an important time to have home resort priority), and bought SSR resale points to stay elsewhere (so far we're using those at VGC and BWV, but plan to use them at all the resorts, including SSR, over time - we're not booking studios for the most part, so this is a bit easier to do). For some CCV can be a bit limiting since the studios and 1BRs sleep 4 rather than 5, but it works out well for us as a family of 3 (soon to be 4). So far we've stayed at VGC, Poly, and VGF on our points and have no regrets about our purchases.

Congrats and welcome home! CCV is our favorite for the holidays and I think it's a wonderful home resort to have if you love WL.

 

[disneynutz]

WL is our favorite resort so that is where the emotion came in a bit. In the short term I wish CCV slept 5 in the studio, but we will be out growing that soon and I can get 2 studios at CCV for less than a 1BD.

It’s just when I first compared resale and direct I was blown away by the savings, but with all of the discounts direct seems close.

I think the 150 direct and 100 resale is good strategy, however, you only get the $5K discount (it escalates) on the 250 plus so my second 100 points is probably cheaper than the resale market.

As I have analyzed it, I think the resale markets are great from a liquidity perspective or if you want a specific resort. But purely numbers wise for “new owners”, Disney is using the promotions to basically make the resale a wash once all of the numbers are crunched. I agree on the 50 year horizon being pie in the sky, however it does increase the exit value in 10 or 15 years ago so I think that it does help in the valuation

Again, I am probably wrong as I am a rookie at this stuff.

Regardless, we are happy to be members and thanks for the response

For you and others reading, DVD will still apply the $5000 discount even if you split the 250 points purchased.

Bill

 

[sky2823]

Interesting, so I could have split the contract with DVC and bought 100 at a different resort and still got the discount. I wish I had known that. Thanks!

 

[The Jackal]

My one issue with CCV is how much high the dues are. It’s brand new and they are higher than any WDW DVC resort. It just over $1.00 more than Poly, the last DVC resort sold. Granted they went down a little for 2018 from 2017. Just remember you will pay many times more in dues than you will pay for the contract before it expires. CCV is on pace to being the most costly WDW DVC and it has no access to the monorail, or ability to walk to any parks. We can only wait and see what Riviera will bring for selling price and dues.

 

[Gilbert Loo]

Good to know. So you were able to get the 2017 points without having to pay the 2017 annual dues and the 2018 points with only the prorated dues?

 

[Bing Showei]

Interesting, so I could have split the contract with DVC and bought 100 at a different resort and still got the discount. I wish I had known that. Thanks!

Bill is suggesting you could split up one large purchase into two smaller contracts, and still maintain the developer credits of the larger purchase, not that you can combine different resorts.

If you are within your 10-day recission period, you can ask your guide to rewrite the contracts accordingly. Most guides suggest the smaller contracts approach. Two different guides I spoke to about a bulk of direct points made the same suggestion (framed around estate planning - not ease of resale, of course).

 

[striker1064]

I think if you love CCV, buying direct makes the most sense. Comparing CCV resales, there's just not a lot out there that's worth buying. The contracts are stripped, expensive, and it's a pain trying to find the UY you want. With Disney, after incentives, you'll pay $10-20/pp more and get the exact UY and number of points you want, you'll get the perks (if that's important to you), and you'll have the points the next day. That's not even a comparison.

If you're comparing direct CCV to any other resale, that gets a lot more muddy. I think as long as you plan to stay most of the time at CCV, and it's important to you to stay there, you did the right thing.

 

[disneynutz]

Interesting, so I could have split the contract with DVC and bought 100 at a different resort and still got the discount. I wish I had known that. Thanks!

Don't know if a different resort will work, I meant the same resort.

Bill

 

[sky2823]

Got it. Thanks Bill. It’s a great idea. I contacted DVC to see if I can still modify, it might be too late...

 

[sky2823]

Bill, i was able to get the paperwork redone. Thanks. You saved me a lot of money if I ever do resale.

Any thoughts on how you would split 250, 125/125 or 150/100?

 

[4luv2cdisney]

Bill, i was able to get the paperwork redone. Thanks. You saved me a lot of money if I ever do resale.

Any thoughts on how you would split 250, 125/125 or 150/100?

Do you have kids? I have 2 kids, so I'd consider equal contracts for estate planning.

Unless you have an idea (guess) of how your needs may change (buying for a 2 bedroom now, but if the kids stop coming happy staying in a studio). You may want to think about what you would likely need to sell off and what you'd like to keep.

Also, I don't think you're limited to a 2 way split. You can do 150, 50, 50. Small contracts sell at a premium. So, a combo of the above thoughts, I could keep my 150 and gift my kids each a 50 down the road, etc. Or make mine a 100 and split 2 75's......

I think the only rule is one has to be at least 100 points but I'm not even sure they always enforce that....could be as low as 75.