Direct or Resale (yes it’s one of those)

[Ruttangel]

Haha, This thread was a trap, you were always going to buy direct.
Just to reiterate, all the information we have indicates that the additional rooms at VGF will be available to resale owners too.
So really it’s DLH and RIV you are talking about. If you can get them at 7 months.
Good luck to you though

 

[aleh021]

There are RIV booking categories that are already tight at 9-10 months: all the studios, 2BR standard view, all the lockoffs. That's with not much of the resort declared and no significant resale presence.

The trapped resale buyers will not help this. We just don't know how RIV is going to book in the future. That's a lot of assumptions for a commitment in the thousands of dollars.

BLT has about 5% foreclosure, and that's with a crazy escalating value that made it difficult to lose money. Resale would have almost always been the correct exit path for BLT. RIV is most expensive buy in for DVC history. High point requirement and crazy point pricing. Many direct buyers are underwater on RIV, and will have to bring money to the table to sell. We don't know how it's going to churn into resale, or how resale will change booking patterns.

I agree. Those RIV prices are just extreme. I know the AKV prices aren't magically any better but, direct at $182 doesn't sting as much as contracts over $200 price mark. & AKV resale has been on the up and up.

But - I will say sometimes we like booking somewhere just for 1-2 nights to try it, I love resort hopping lol.

 

[aleh021]

Haha, This thread was a trap, you were always going to buy direct.
Just to reiterate, all the information we have indicates that the additional rooms at VGF will be available to resale owners too.
So really it’s DLH and RIV you are talking about. If you can get them at 7 months.
Good luck to you though

hahaha a nasty trap. lol no no, I was about to make an offer on a resale contract, and then started comparing, which led me down a dark tunnel.

 

[Ruttangel]

hahaha a nasty trap. lol no no, I was about to make an offer on a resale contract, and then started comparing, which led me down a dark tunnel.

There’s quite a toll charge on that tunnel

 

[RoseGold]

I know the AKV prices aren't magically any better but, direct at $182 doesn't sting as much as contracts over $200 price mark. & AKV resale has been on the up and up.

Sure, AKL resale has held great, if you started buying resale. If you buy direct now, you have to make up Disney's spread. That may never happen. The cool thing about resale is that you can just sell if it isn't for you. Historically, you make a little money. Maybe you break even or lose a little. Direct is a much bigger commitment.

 

[Grumpy by Birth]

Haha, This thread was a trap, you were always going to buy direct.

 

[Brian Noble]

saving money is 100% important but I want to look at this long term vs short term savings if that makes sense

There are two ways to go here.

(1): buy direct and forget about it. Done.

(2): buy resale, and do a point-rental-swap whenever you want to use your points at a resort you can't book directly.

Option #2 will save you something in the $6K-$8K range. Put that savings in a low-cost index fund. Then, when you want to stay at a resort you can't book, rent out the number of points you would have used to book, and rent the stay you want. If you have to pay more than you get, take the difference from that index fund.

I'll bet you a mickeybar that that fund will have money left in it when you sell.

The other advantage of Option #2: if you are renting from an owner at e.g. RIV, you get to take advantage of their 11-month rights, rather than having to wait until 7 months, so you have a better shot at the room you want. That may be particularly important if you want an in-demand room type (and I'm guessing the lower-point rooms are going to be the ones in demand.)

To me, Option #2 is an easy call.

 

[RoseGold]

The other advantage of Option #2 is exit strategy. Everyone talks like they're going to hold DVC until they die, because that's how it's sold. That isn't everyone's plan.

I like knowing that at any time, I can unload my DVC in weeks, make a little money, and it's not a burden on anyone.

 

[brazzledazzler]

It sounds to me like future resorts are important, so you should purchase direct. AKV has better direct pricing than most other DVC resorts, and doesn't expire until 2057, so that's a bonus too.



Hmmmm, I'm not a lawyer, and I can't find all the provisions in the contracts at the moment, but this is now making me wonder... is it true that they could introduce a new restriction? After all, they have to amend the condominium agreement to add the new building and units. Is it possible that in so doing, DVC can introduce the resale restrictions to VGF once it goes on sale? (Asking because I honestly don't know. Any real estate/timeshare lawyers out there who can comment?)

While I have a law degree, I’m not a practicing lawyer. But, I’ve mentioned my suspicions about restrictions on VGF2 on other threads. The contracts to owners stipulate the restrictions, not the condominium association covenant or bylaws. So, I imagine VGF condo association can have both types of purchasing interests (VGF1- unrestricted, VGF2 - restricted).

I look at it similarly to how COAs and HOAs don’t govern individual sales of homes but instead the entire community upkeep.

Again, it’s all speculation! But, lately I’ve found Disney to make financial decisions that benefit them and disappoint guests —so, I base my VGF conjecture on that trend.

 

[brazzledazzler]

Now I agree that SV rooms are booking fast with owners so as a non home resort owner, look at PV to get an idea of what you would pay to stay for those occasional visits. But that is the same whether you own AKV resale or direct.

A singular benefit of being a RIV owner has been access to the SV and Tower studios. They are basically impossible to get as non-owners.

I’m realizing this trend is true in other resorts (BLT, VGF, BWV). I feel bad for new DVC owners who assume they can book those at 7 months and find they don’t have enough points for other room views.

 

[Sandisw]

A singular benefit of being a RIV owner has been access to the SV and Tower studios. They are basically impossible to get as non-owners.

I’m realizing this trend is true in other resorts (BLT, VGF, BWV). I feel bad for new DVC owners who assume they can book those at 7 months and find they don’t have enough points for other room views.

I agree which is why non RIV owners need to plan on PV especially for studios. But I have had no issues booking RIV PV or 1 bedroom SV at 7 months using my SSR points for January through April as well as June and July.

Now it’s not going to be a resort easy to get in the fall. But I think there will be times of the year that non owners can stay there if they have flexibility with travel.

 

[aleh021]

I agree which is why non RIV owners need to plan on PV especially for studios. But I have had no issues booking RIV PV or 1 bedroom SV at 7 months using my SSR points for January through April as well as June and July.

Now it’s not going to be a resort easy to get in the fall. But I think there will be times of the year that non owners can stay there if they have flexibility with travel.

Yes. I have no hope of ever getting those tower studios! As fun as they look but I am totally okay booking PV or 1 bedroom at RIV on points.

 

[Grumpy by Birth]

While I have a law degree, I’m not a practicing lawyer. But, I’ve mentioned my suspicions about restrictions on VGF2 on other threads. The contracts to owners stipulate the restrictions, not the condominium association covenant or bylaws. So, I imagine VGF condo association can have both types of purchasing interests (VGF1- unrestricted, VGF2 - restricted).

I look at it similarly to how COAs and HOAs don’t govern individual sales of homes but instead the entire community upkeep.

Again, it’s all speculation! But, lately I’ve found Disney to make financial decisions that benefit them and disappoint guests —so, I base my VGF conjecture on that trend.

If VGF2 does come with resale restrictions, it would not change the fact that resale owners can book a VGF1 villa though, correct? We just couldn't book one of the "resort studios" in the new building? I'm not interested in those rooms anyway. But if they remove legacy VGF1 rooms from trading, that would stink (we haven't stayed at VGF yet and don't plan to do so often, but would still like the option).

 

[Sandisw]

If VGF2 does come with resale restrictions, it would not change the fact that resale owners can book a VGF1 villa though, correct? We just couldn't book one of the "resort studios" in the new building? I'm not interested in those rooms anyway. But if they remove legacy VGF1 rooms from trading, that would stink (we haven't stayed at VGF yet and don't plan to do so often, but would still like the option).

Yes, if that somehow became a reality, it would simply be a new resort for booking purposes.

They can not remove the current VGF from trading because it already entered into an agreement with BVTC and there are some guidelines for removing. But, say they did, it would now mean no one could trade into or out of that resort …direct or resale…it’d be basically a stand alone resort.

Definitely not going to happen.

 

[aleh021]

I appreciate everyone's responses & think we've come to a decision

 

[eMoneyBug]

I appreciate everyone's responses & think we've come to a decision

do tell.

Since you don't care about perks, buy resale and when you want to stay at RIV or DL or anything new, buy a points transfer from a resort owner there or simply just rent from a fellow DVC owner for that stay.

 

[aleh021]

do tell.

Since you don't care about perks, buy resale and when you want to stay at RIV or DL or anything new, buy a points transfer from a resort owner there or simply just rent from a fellow DVC owner for that stay.

I wish RIV didn't have those resale restrictions, otherwise after incentives/discounts $191.00 for 150 points wouldn't be an awful purchase.

 

[eMoneyBug]

I wish RIV didn't have those resale restrictions, otherwise after incentives/discounts $191.00 for 150 points wouldn't be an awful purchase.

Than make a promise / unbreakable contract to your kids/family, we will NEVER sell and go for RIV.

 

[Lumpy1106]

Just throwing in another monkey wrench - if you think you will want to stay at RIV, but it is difficult to get in at 7 mos there (or so others have said in this thread), why not buy RIV direct? Getting AKV @ 7 mos is easier.

Disclaimer;
Bought resale and would only buy resale myself.

 

[num]

I wish RIV didn't have those resale restrictions, otherwise after incentives/discounts $191.00 for 150 points wouldn't be an awful purchase.

of riv didnt have restrictions, i’d of thought twice too. the ease of buying direct isnt bad. ended up going resale though