direct vs resale - Old Key West

[skierrob]

Just some math for adding on 25 additional points to Old Key West. As a small contract, the per point cost is higher with resale. But was surprised that it seems a direct purchase appears to be actually cheaper on a "cost per point per year" basis than buying resale due to the extra years of ownership that you receive with Old Key West on a direct purchase (2057 vs 2042 for most resale contracts).

Here is my math:

RESALE:

Buy 25 OKW points @ $90 per point = $2250
$425 closing costs = $2675 total

$2675 / 25 points = $107 per point total cost.

You get 27 years of ownership (2042 - 2015).

$107 per point / 27 years = $3.96 per point per year cost plus dues.

NOTE: This assumes you are lucky and find a contract with 25 points for 2015 and 25 points for 2016 and that it is not a stripped contract where you don't have any points to use until 2017.

DIRECT PURCHASE:

Buy 25 OKW points @ $135 per point = $3375
$102.30 closing costs = $3477.30 total

$3477.30 / 25 points = $139.09 per point

You get 42 years of ownership (2057 - 2015).

$139.09 per point / 42 years = $3.31 per point per year cost plus dues.

NOTE: With direct purchase, you get 'backdated' 2015 points but at this point really don't pay dues for those 2015 points as 2015 is pretty much over so you only pay dues for 2016.

NOTE: Dues for 2016 are $6.01 per point.

 

[heynowirv]

And does DVC have the 25 points you"re looking for?

 

[skierrob]

Yes, DVC had OKW points available for my use year - no wait list required.

 

[Dean]

For 25 points I'd go direct, the dollars don't make sense otherwise. I'm not sure that getting the extra years is very helpful though in this situation since one would only have 25 points going forward. When I look at return of principle on timeshares, I look at it like I would a high risk investment (which it is) and use a 10 yr return window. In this situation I'd compare to selling and buying a larger contract resale than just doing the add on though I suspect the direct 25 pt option will still end up being the best choice as presented. Of course one might get a better contract resale than retail (loaded with all banked plus all current points) if one looked to sell and buy back in for a larger contract. Personally I doubt I'd buy just for 25 OKW points, I'd likely look at other ways to make the points I have work and extend including a transfer every few years, rental for more difficult to reserve resorts privately, cash stays where discounted and to try other things including not being on property or different locations. Or I'd buy more and get a second home resort even if I had to rent rarely to use up the other points.