DVC for $66/pt -- what's wrong with this picture?

[AllieV]

I see DVC contracts for sale on resale sites (including this one) for $66 - $70 a point if you buy at Vero Beach or Hilton Head. I haven't read anywhere that it's treated differently than if you buy at SSR for example. You can still get the 7 month advance buy, etc. So why are these off-disney properties so much less? And why aren't people scooping them up for such a savings? Is there something I'm missing?

 

[1000th happy haunt]

Vero Beach has the highest maintenance fees. Over time, the maintenance fees will far outweigh the purchase price.

Personally I prefer to book my WDW vacation between 7-11 months. If you own at either VB or HHI, you'll only be able to book a WDW vacation within the 7 month window.

 

[salmoneous]

1) Don't forget that over the life of your contract you'll pay more in maintenance costs than you do upfront. So far, maintenance costs at Vero have been higher than at the WDW resorts; it's more than enough to offset the lower buy-in costs.

2) Although points are points at the 7-month window, there are times when you will need the 11-month window to get in. Right now, that usually only happens at the very busiest times - Christmas, Spring Break, etc. Many of us suspect that this will grow as DVC expands.

3) Any of the resorts can be spun off from the DVC system. The possibility is tiny, but probably greater at HHI and Vero than at the WDW resorts. This alone is enough to keep me from thinking about buying there, but many here think there change is so tiny that it best ignored.

I honestly think the best advice is to buy where you most want to stay. The difference in cost (measured over the life of the contract) just isn't that great, and none of us know how important the 11-month window will become.

Even if you don't believe the "buy where you want to stay" mantra, think about "buying where you wouldn't mind getting stuck". If you are buying to go to WDW, consider OKW, which just isn't that much more than HHI or Vero.

 

[buck4568]

Location, location, location!! Vero and Hilton Head are beautiful resorts but your not at Disney World!
I think and hope that these prices for resales at these resorts will rise a bit as the points at the Disney World resorts are over $100 per point now.

 

[AllieV]

Ok, let me do the math. If I buy for $10 less per point at VB for 100 points, that's $1000 in savings up front. If the per point maint is $1.50 more, that's $150 per year more, or about $5k over the next 35 years. Huh. Yep, I see.

 

[dvc7680]

On the flip side you have 1000 dollars (up front savings) that you could invest.

You may or may not obtain 150 dollars of intrest/gain per year on those funds.

 

[AllieV]

Actually, I did my math wrong. It's about $20/pt less, so at a 100-pt purchase, the up front savings is $2000. If the maint fees are as follows:

Saratoga Springs - $4.12
Old Key West - $4.39
Beach Club Villas - $4.63
Wilderness Lodge Villas - $4.72
BoardWalk Villas - $4.85
Hilton Head - $4.98
Vero Beach - $5.62

Then HH and VB are about $1 more on average. So that's $100 per year more in dues, or $3500 more over 35 years. Considering I'm only looking for a 50-pt contract, it's about $50 per year more but much less to buy in.

I guess my main concern would be what a previous writer said, that Disney might disconnect these non-disney resorts, though maybe certain governing laws would prevent that. I don't mind a 7-month window.

 

[El&Asmom]

Actually, I did my math wrong. It's about $20/pt less, so at a 100-pt purchase, the up front savings is $2000. If the maint fees are as follows:

Saratoga Springs - $4.12
Old Key West - $4.39
Beach Club Villas - $4.63
Wilderness Lodge Villas - $4.72
BoardWalk Villas - $4.85
Hilton Head - $4.98
Vero Beach - $5.62

Then HH and VB are about $1 more on average. So that's $100 per year more in dues, or $3500 more over 35 years. Considering I'm only looking for a 50-pt contract, it's about $50 per year more but much less to buy in.

I guess my main concern would be what a previous writer said, that Disney might disconnect these non-disney resorts, though maybe certain governing laws would prevent that. I don't mind a 7-month window.

That's where we were at. We only bought a small HH contract, so the extra MF are negligible. We also actually really want to stay at HH probably more than at WDW in the next 20 years, so we wanted a contract there. We'll buy a larger contract at WDW for stay's that we want there so we can have the 11 month window.

 

[sjdisneywedding]

its not only location, location, location

its also years, years, years

AKV has a full 50 year deed

whereas SSR is down to about 47 and the rest are down to what 35ish

 

[mjy]

its not only location, location, location

its also years, years, years

AKV has a full 50 year deed

whereas SSR is down to about 47 and the rest are down to what 35ish

But the years, years, years only matter if you are young, young, young. For someone like me, a 47 year or full 50 year contract are not selling points because even if the other resorts are down to 35ish, I will be deadish.

 

[tjkraz]

But the years, years, years only matter if you are young, young, young. For someone like me, a 47 year or full 50 year contract are not selling points because even if the other resorts are down to 35ish, I will be deadish.

Still, the DVC contracts remain an asset until their ending date. Resale values will inevitably favor the longer contracts. For example, which of these will have a greater value twenty years from now:

OKW, BWV, etc. with 15 years remaining
SSR with 27 years remaining
AKV with 30 years remaining

My money says that SSR and AKV will be getting almost double the older resorts on the resale market.

I guess it depends on how good one's crystal ball happens to be. I'll be about 70 when the first wave of DVC resorts is retired. That MAY have been sufficient for my lifetime needs. But owning at SSR gives me the additional flexibility of either continuing to use my points as long as my health permits, or if there's a Florida relocation or more permanent vacation home in my retirement plans I'll still have 20+ years left on my SSR contract giving it much greater value than others.

 

[sjdisneywedding]

But the years, years, years only matter if you are young, young, young. For someone like me, a 47 year or full 50 year contract are not selling points because even if the other resorts are down to 35ish, I will be deadish.

Thats fine for you and others in your boat, unfortunately sales and sale prices are based on majority rules.

Most people equate those extra years as a benefit. Even if not for their own use then for the children or for resale

 

[mikesmom]

You think you don't mind the 7 month window, but it is an issue. If you buy at SSR or AKV and want, for instance, BWV during the Food & Wine Fest or the first week of December, you can book your resort at 11 months and try to switch over to your desired resort at 7 months. If it doesn't work, no biggie, you still have a reservation onsite for your desired dates.

On the other hand, if you want onsite during Food & Wine or the first week of December, and you can't get it, it's a LONG drive from HHI or Vero to take your desired vacation. As more and more members join DVC, it could get more difficult to get into a non-home resort at busy times of the year. And unless you have done a LOT of hanging around these Boards, you don't know when busy times are. If I had a nickel for every time someone posts " I thought WDW wasn't busy at (fill in the blank), but I can't get a reservation!". I would have enough nickels to add on!!

Don't get me wrong, I LOVE both Vero and HHI, but they won't cut it if I want to be onsite.

 

[dvcnewgirl]

My first purchase was at HH and I have had no problems getting reservations at WDW with these points. I have only stayed 1 night at HH to check it out. It is lovely there and if it ever was not part of DVC I would be fine because it is a nice relaxing vacation spot. I do not regret buying at HH at all. On the other hand I have become one of the DVC'rs that is in love with going in early december. So I have done an add on at BWV. Without my add on I would not have much of a chance getting in those early december months. Let me add as well when I go to WDW I really do not care where I stay and actually prefer SSR to many of the other resorts so this is also why I do not have difficulty with reservations. But I have stayed at all of them except BCV. Good Luck!

 

[vwlvette]

Don't forget that the extra years are not cost free if they are willed. You would be bringing a burden on to your heirs that they may not want, I know, they can sell it, but that is something else to do.

I am 46, and my 35 years at VWL are plenty for me, DW is 36, Our daughter is 7 months, boys 12 & 10, We would not want to impose our decision regarding DVC on any of our kids, If they want in when they are old enough to manage their account & pay MF I would be more then glad to purchase DVC points for any of them!

Enjoy your DVC Vacation!

 

[Anthony1971]

HH is a great resort but the only reason to buy there is if you intend on vacationing there. If price is the issue look at OKW as it is very reasonable you will be much happier as you will never be shut out. Another consideration with HH is hurricane damage... if it does sustain any there will be an assesment. What your post asks is if you should buy here to stay at at WDW and the answer is no. We can only warn of what may happen that does not mean it will..... If you are happy with thise risks than... But plane and simple what is wrong with this picture is if you want to stay at WDW than buy at one of those resorts. If you like HH and want to stay there than buy there a there is good reason to own at HH but price is not it.

 

[girt25]

Don't forget that the extra years are not cost free if they are willed. You would be bringing a burden on to your heirs that they may not want, I know, they can sell it, but that is something else to do.

If your children find it to be too much of a hassle to sell a DVC contract for whatever they'll be worth with 15 years left. They're probably well off enough to not have to worry about the MFs.

 

[RobDoc]

... Another consideration with HH is hurricane damage... if it does sustain any there will be an assesment. ...

This is NOT true. VB sustained heavy damage from hurricanes and has not had any assessment of the owners. Insurance covered all of those expenses. To suggest that HH is somehow different is completely incorrect. All DVC resorts are covered by insurance and all DVC resorts have a clause in the contract documents spelling out that there are circumstances where the resort could sustain damage where it might not be rebuilt and the owners would not have a resort. In the unlikely situation where that could happen, the onwers would share in any insurance proceeds in lieu of rebuilding their resort.

 

[tjkraz]

Don't forget that the extra years are not cost free if they are willed. You would be bringing a burden on to your heirs that they may not want, I know, they can sell it, but that is something else to do.

Sorry, but I don't buy that logic.

A DVC contract is just a drop in the bucket of what we all will leave behind when we depart this earth. Your heirs will have to deal with real estate, cars, clothing, jewelry, furniture, photographs, baseball card collections, rare coins, and so on.

If undesired, the DVC contract is one of the easiest assets to sell from the estate.

 

[Anthony1971]

This is NOT true. VB sustained heavy damage from hurricanes and has not had any assessment of the owners. Insurance covered all of those expenses. To suggest that HH is somehow different is completely incorrect. All DVC resorts are covered by insurance and all DVC resorts have a clause in the contract documents spelling out that there are circumstances where the resort could sustain damage where it might not be rebuilt and the owners would not have a resort. In the unlikely situation where that could happen, the onwers would share in any insurance proceeds in lieu of rebuilding their resort.

Sorry for the incorrect info...
I do realize this is true of all resorts...
I thought I read HH had an assesment recently????? (NOT relating to huricane damage)