Help, Aulani Can't Decide

[gskywalker]

Ok I had put in a lowball offer in before I decided to scrap getting a 2nd DVC contract because of all the cuts to the Disney Magic. I just found out the offer is accepted and I need other opinions on whether I should go forward. I think it is too good to say no to. $70 a point for Aulani, 150 pt contract(perfect amount of points for me). No banked points, full 21 points. I am CDN(Toronto) so they mainly are being bought for bounce around points. I figure that if it becomes difficult to use them later on in years I will likely have grandkids getting married then and I could set them up for a honeymoon at Aulani with the points come 2058 onward when the resorts I can use the points at are more limited. Disney to my knowledge has never taken Aulani back, so I if I go forward I have them and after 4 straight contracts being taken it would be nice to know that I would get it at least. Thanks.

 

[RoseGold]

I passed on a subsidized Aulani contract because of Hawaii's laws and the complications with owning a timeshare in Hawaii in general.

For SAP, I would not mess with a whole new state of complication. I'd just stick to good, old fashioned SSR, an awesome all around SAP choice for many years. I would imagine there will be some excellent listings here pretty soon.

If you're on the fence right now, back out.

Oh, and JMO, but I'd never plan any kind of Disney honeymoon -- and I'm a Disney fanatic on DIS boards. Plenty of time for that when you have kids and can't go to the adult places anymore.

 

[gskywalker]

I passed on a subsidized Aulani contract because of Hawaii's laws and the complications with owning a timeshare in Hawaii in general.

For SAP, I would not mess with a whole new state of complication. I'd just stick to good, old fashioned SSR, an awesome all around SAP choice for many years. I would imagine there will be some excellent listings here pretty soon.

If you're on the fence right now, back out.

Oh, and JMO, but I'd never plan any kind of Disney honeymoon -- and I'm a Disney fanatic on DIS boards. Plenty of time for that when you have kids and can't go to the adult places anymore.

Thanks for the input RoseGold. I have asked the broker what extra will be required for closing the contract with it being a Hawaii timeshare, especially as a Canadian. We will see what they can advise. As for SSR my difficulty with it is that it is 8 years shorter, the contracts get taken all the time and I would have to pay $30-$35 more a point. I have already had 4 contracts taken over the last months. I understand what you are saying. My greatest concern is that pretty much universally people have said don't do it and while they aren't me, often don't think or approach like I do(finance guy) but when people almost universally say it, it gives me a lot of pause.

 

[RoseGold]

I have asked the broker what extra will be required for closing the contract with it being a Hawaii timeshare, especially as a Canadian.

The buy is easy. It's the exit that is hard. If your estate isn't prepared to probate land in Hawaii and FL, then you aren't ready.

Also, Hawaii has changed timeshare laws over time, added fees, and so on, in a way that FL has not. Hawaii timeshare taxes are much more complicated than FL. I wouldn't even mess with this if you aren't even going to Aulani. IMO, FL law is more stable. Your crystal ball may be different than mine.

Maybe SSR costs a little more, but you know it's easy to get out of.

 

[Where'sPiglet?]

Your other 4 attempts were all at WDW, if I recall. Another downside to Aulani is that you have no home resort advantage at any WDW resort. You'll be relying on the 7-month window just to get something on site. At certain times of the year, this would likely be a non-issue, but could be challenging at times.

Also, I don't believe I saw that this is a subsidized contract. Over the course of the contract, you may come out roughly even to a WDW resort that costs a bit more upfront, given the higher dues at beach resorts.

 

[poofyo101]

Buy aulani. Its a good buy if the price is right

 

[corgi_monster]

The buy is easy. It's the exit that is hard. If your estate isn't prepared to probate land in Hawaii and FL, then you aren't ready.

Also, Hawaii has changed timeshare laws over time, added fees, and so on, in a way that FL has not. Hawaii timeshare taxes are much more complicated than FL. I wouldn't even mess with this if you aren't even going to Aulani. IMO, FL law is more stable. Your crystal ball may be different than mine.

Maybe SSR costs a little more, but you know it's easy to get out of.

I live in Hawaii, worked in land development for years before becoming a SAHM, and have to second this. My guess is that the difference in SSR and Aulani dues will widen significantly as time goes on.

Property taxes are the only source of revenue for the city and county of Honolulu and property tax rates are ridiculously low. Property values are unreasonably high. There is a push to increase property taxes for beachfront and other high-value parcels. Like other cities, Honolulu's finances have taken a hit from the pandemic, and with only one source of revenue . . . what else can they do?

The state's TAT will likely rise as well, but that's not of too much concern if you're not planning on staying at Aulani.

As a beachside resort, Aulani will need large and more frequent repairs as time goes on. I worked on renovations for the Sheraton, Royal Hawaiian, and Outrigger chain in Waikiki and what I saw was that the time between major repairs went from 20 year to 12 years to 7 years and so on. The rate of deterioration dramatically accelerates over time and I imagine that's why HHI and VB have such high dues that keep on going up and up. Inland building see accelerated repair schedules as well, but the acceleration is nowhere near as dramatic as buildings exposed to corrosive salt water air/mist.

Finally, hurricanes. Ugh. If a hurricane hits (and we are due for one) the insurance rates rises significantly even if you don't file a claim on your property.

As much as I would love to own a small Aulani contract so that I can use the 11 month window to book a stay for my son's June birthday stay every year, the prospect of dues skyrocketing in the next 7-12 years pushed me to buy an AKL contract (buy where you want to stay) to use at both Aulani and WDW.

 

[TeamRiley]

That is a great deal. You should buy

 

[Ginamarie]

At $70/point, it seems like a no brainer to me. You seem to find some of the best lowball deals!

And honeymooning in Aulani sounds amazing. I did have my honeymoon at WDW and DCL and it was WONDERFUL. I'm dying to get to Aulani (my sister went a couple of years ago and raved about it). 2022 will be the year I get there, since we finally have DVC points a-plenty!

 

[KAT4DISNEY]

I agree - you find the low prices! JMO but if you want points to use wherever and whenever you get a chance that's a tough deal to beat. If you've decided no more points then pull back. That's $10.5K for 150 points for a resort that has a lot of years left. Wow.

 

[Budzooka]

$70 is a good price, but don’t know that I would purchase if only for SAP points. If you plan to mix in occasional trips, I would do it.

 

[gskywalker]

$70 is a good price, but don’t know that I would purchase if only for SAP points. If you plan to mix in occasional trips, I would do it.

I plan to for sure use it for our 25th in 2025. Maybe one other time for our whole family, maybe if we enjoy it, maybe go another time. I don't see the appeal of Hawaii when I have the Caribbean which has all inclusive trips for 25% of the cost.

 

[Where'sPiglet?]

@gskywalker Did you decide what to do? It's a fantastic price for a resort you don't particularly want...tough choice.

 

[gskywalker]

@gskywalker Did you decide what to do? It's a fantastic price for a resort you don't particularly want...tough choice.

I did some calculations on what I can make investing the difference between $70 a point at Aul vs $105 approx at AK or SS and with the investment gains make it just about a no brainer. Just trying to find out whether or not there are extra headaches with a Hawaii contract for a cdn. I thought I read on the boards here one time that a CDN has to get the contract notarized at the US consulate which would be a nightmare. I think I am going to do it but am really considering the many good pieces of feedback everyone has given.

 

[Where'sPiglet?]

I did some calculations on what I can make investing the difference between $70 a point at Aul vs $105 approx at AK or SS and with the investment gains make it just about a no brainer. Just trying to find out whether or not there are extra headaches with a Hawaii contract for a cdn. I thought I read on the boards here one time that a CDN has to get the contract notarized at the US consulate which would be a nightmare. I think I am going to do it but am really considering the many good pieces of feedback everyone has given.

Good luck with your decision!

At your (amazing) price point, there's a very good chance that if you decide to sell it down the road, you'd at least break even.

 

[gskywalker]

For those curious investing the $5300 difference, it came to just under $27100 with a modest 6% return. Which works out to $180.16 per point. So it means that I can pay that much more in dues (comparing to another property) over the 42 years of the contract, plus I get 5 more years compared to AK and 8 more years than SS. Ie it will very likely be cheaper(probably by a fair bit actually)to buy this AUL contract compared to buying a SS, AK or OKWE.

 

[osfd36]

i just bought 100 AUL points last week at $80pp to use at the 7 month mark at WDW. although the dues are higher, I believe it can be a good deal. $70pp is amazing.

 

[FinnFogg]

I responded on your other thread, but if you have any other questions let me know. You will have to get the docs notarized, which means making and appointment and attending at the US consulate. The last time I checked, they were back up and running for those services, but I would double check with the consulate in your area.

I would totally go for the contract, but I am in Vancouver and Hawaii is an easy (and frequent) trip for us. I’m not sure that I would be as keen on buying them for SAP.

We are actually in the market for another contract now, but are considering AKL over Aulani. I’m torn, but if the right contract can along I would probably go for for AKL over Aulani just to mix things up a bit. But if you decide to pass on your Aulani contract feel free to send it this way!!

 

[gskywalker]

I responded on your other thread, but if you have any other questions let me know. You will have to get the docs notarized, which means making and appointment and attending at the US consulate. The last time I checked, they were back up and running for those services, but I would double check with the consulate in your area.

I would totally go for the contract, but I am in Vancouver and Hawaii is an easy (and frequent) trip for us. I’m not sure that I would be as keen on buying them for SAP.

We are actually in the market for another contract now, but are considering AKL over Aulani. I’m torn, but if the right contract can along I would probably go for for AKL over Aulani just to mix things up a bit. But if you decide to pass on your Aulani contract feel free to send it this way!!

Funny enough I have had a few messages already with people saying that if I decide to pass please let them know so they can buy it. I lived all over the Vancouver area when I was young but not now so going to Aulani would definitely be less frequent. The bright side would be is maybe by the time we go the restaurants may be open downtown Toronto and my wife and I can have a date night after we sign the docs. Easy to convince our teenager to watch the kids for an afternoon if they think they are getting years of disney out of it.

 

[gskywalker]

Thankyou everyone for your time and feedback. I was leaning towards signing the contract and once I ran the numbers I posted above it became a no brainer. Hopefully my wife will be surprised(and happy)with it