Help me out

[Nocheeba20]

Love Vero beach, if I buy 100 points my wife and I can stay a week every year in a studio. I can buy 100 points for 40$ a point. So, 4,000 dollars over 16 years is 250$ a year and maintenance fees are 1500$ a year. Why would anyone frown on a property as beautiful as Vero beach when you get one week in a studio for 1750$ a year no tax. What am I missing?

 

[Chili327]

Love Vero beach, if I buy 100 points my wife and I can stay a week every year in a studio. I can buy 100 points for 40$ a point. So, 4,000 dollars over 16 years is 250$ a year and maintenance fees are 1500$ a year. Why would anyone frown on a property as beautiful as Vero beach when you get one week in a studio for 1750$ a year no tax. What am I missing?

I’m not sure.
The dues will increase each year, but you’re right that’s not terrible sounding as long as that studio is available and you don’t have to book a higher point room.
Maybe I’m missing something as well?

 

[intamin]

Love Vero beach, if I buy 100 points my wife and I can stay a week every year in a studio. I can buy 100 points for 40$ a point. So, 4,000 dollars over 16 years is 250$ a year and maintenance fees are 1500$ a year. Why would anyone frown on a property as beautiful as Vero beach when you get one week in a studio for 1750$ a year no tax. What am I missing?

I think what you're missing is most people don't have that strong of a connection to Vero with it being not adjacent to a Disney park. It really is a shame because it was really is a nice resort. The food at Wind and Waves was and such a good value. The other thing too is it has a "short" lifespan left and the dues are more volatile due to the possibility of assessments for damage from hurricanes and covering for insurance. This is compared to purchasing a WDW resort that has much lower/more stable dues, longer duration and is actually close to a Disney park.

 

[AstroBlasters]

Love Vero beach, if I buy 100 points my wife and I can stay a week every year in a studio. I can buy 100 points for 40$ a point. So, 4,000 dollars over 16 years is 250$ a year and maintenance fees are 1500$ a year. Why would anyone frown on a property as beautiful as Vero beach when you get one week in a studio for 1750$ a year no tax. What am I missing?

Because you can rent point for $1800 a year without having to shell out $4000 upfront.

The interest you can earn on $4k @ 4% is $160 a year.

So… you aren’t really saving any money when buying but you are taking on risk of the dues and cost of insurance.

Remember… you asked for the Con argument…. so I’m not bringing up any of the Pros.

 

[Nocheeba20]

Didn’t think about rentals, I see on one site vero beach is 20$ point making it a wash at 2000$ a year. There is a large demand for Vero beach in July and August. Do these requests all get filled or would you miss a year here and there. As far as insurance a maintenance fees constantly rising I would think rental fees would follow accordingly. Thanks for responding

 

[muppets3d]

There's no value proposition to owning Vero points versus just renting from an existing owner. The buy-in plus annual dues is pretty close to what you'd pay to rent points from an owner.

That ignores the value from owning though - easy cancellations if your plans change, etc.

 

[Nocheeba20]

My interest started when I saw posts about the 2042 resorts. Beach club being the most desirable and people defending its valuation at the same time saying they wouldn’t want vero beach if it were free. The maintenance fees destroy any value.I know you can’t compare Beach club and Vero beach but there are people that love each of them. If you buy beach club at 140$ a point that’s 14k up front and you get a studio for 16 years. If you buy Vero at 40$ a point that’s 4k upfront and you get a studio for 16 years. Take the 10 k you saved in up front costs and invest it in the market or cds say 5% a year now you maintenance fees are the same. After 16 years the Beach club owner has nothing and the Vero beach owner has 10k in the market or cds.

 

[airjay75]

I haven't run the numbers but you'd probably be better off buying SSR and using those points to stay at VB. Outside of the beach cottages, you don't really need home resort priority there most of the time. Then, in 2042, if you don't want the SSR points anymore, there will probably be enough contract life on it to have some residual value.

 

[muppets3d]

My interest started when I saw posts about the 2042 resorts. Beach club being the most desirable and people defending its valuation at the same time saying they wouldn’t want vero beach if it were free. The maintenance fees destroy any value.I know you can’t compare Beach club and Vero beach but there are people that love each of them. If you buy beach club at 140$ a point that’s 14k up front and you get a studio for 16 years. If you buy Vero at 40$ a point that’s 4k upfront and you get a studio for 16 years. Take the 10 k you saved in up front costs and invest it in the market or cds say 5% a year now you maintenance fees are the same. After 16 years the Beach club owner has nothing and the Vero beach owner has 10k in the market or cds.

Even if the new VB owner put that difference into their dues over the years versus just investing it and eating the dues, they'd probably still come out ahead. The difference in dues this year for 100 points at VB and BCV is right at $500. They could put that $10k into a HYSA and draw out enough every year to cover the dues difference between the imaginary BCV contract and the VB contract they bought. They'd probably still have a few bucks in there come 2042.

So I'm not really one of those who thinks owning a beach resort never makes sense. (disclosure I own 150pts at HHI)

It's still tough to justify the math of owning vs renting VB on a basic level, but that's true for a lot of resorts not just the beach resorts. We own because we want to control our own bookings among other reasons that renters don't access.

 

[muppets3d]

I haven't run the numbers but you'd probably be better off buying SSR and using those points to stay at VB. Outside of the beach cottages, you don't really need home resort priority there most of the time. Then, in 2042, if you don't want the SSR points anymore, there will probably be enough contract life on it to have some residual value.

"past performance does not predict future results"

Nobody knows what a post-2042 DVC will look like, not even DVC. (or if they do, they're understandably being very tight-lipped about it)

 

[airjay75]

"past performance does not predict future results"

Nobody knows what a post-2042 DVC will look like, not even DVC. (or if they do, they're understandably being very tight-lipped about it)

Agreed, but I think I'd prefer to take my chances with SSR than VB. We know what the value of a VB contract will be in 2042, if not sooner.

 

[Sandisw]

If you want them to use at VB every year, then it guarantees you the room you want every year until Jan 2042.

I personally look at getting it tor cash and not rentals because rentals rely on you finding an owner every year.

But, many want DVC for visits to the parks and not the beach which is why it’s not a first choice even if you can get it for that price.

There are less expensive options with longer contract lengths for stays there.

 

[gvel]

I haven't run the numbers but you'd probably be better off buying SSR and using those points to stay at VB. Outside of the beach cottages, you don't really need home resort priority there most of the time. Then, in 2042, if you don't want the SSR points anymore, there will probably be enough contract life on it to have some residual value.

This is exactly what I was thinking. You can even do a simplified "catch up" analysis on when the savings will be offset by the dues and you will be substantially better off with SSR. Long story short you will break even around the 8-9 year mark. Making your last 6 years of VBR cheaper plus you will still have some residual value in the contract given that it still has 12 years left at 2042.

VBR ppp= $40
SSR ppp= $90
Difference = $50 (SSR more expensive)

VBR dues= $14.89
SSR dues= $ 9.19
Difference= $5.70 (SRR cheaper per point)

Now if you take the $50 ppp that SSR is more expensive and divide it by the savings of $5.70 in dues, you will recoup the difference in 8.7 years. This is not even taking into account the compounding effect of the which will likey result in catching up a lot quicker.

All of this being said, I do get the attractiveness of buying 100 points for $4k. Depending on your financial goals it might still make sense to you, but long term I think the SSR play is way better.

Good luck!

 

[eticketplease]

My interest started when I saw posts about the 2042 resorts. Beach club being the most desirable and people defending its valuation at the same time saying they wouldn’t want vero beach if it were free. The maintenance fees destroy any value.I know you can’t compare Beach club and Vero beach but there are people that love each of them. If you buy beach club at 140$ a point that’s 14k up front and you get a studio for 16 years. If you buy Vero at 40$ a point that’s 4k upfront and you get a studio for 16 years. Take the 10 k you saved in up front costs and invest it in the market or cds say 5% a year now you maintenance fees are the same. After 16 years the Beach club owner has nothing and the Vero beach owner has 10k in the market or cds.

Yes you really can’t compare the two.

VB I would not to spend a week there in a studio or inn room.

Say you booked last years points into this year but discovered you won’t be able to go this year either. There is always people that want to rent beach club points even in colder weather but VB not so much. You may have to grab a WDW property at 7 months to try and get something from those banked points.

 

[eticketplease]

I personally look at getting it tor cash and not rentals because rentals rely on you finding an owner every year.

With the beach resorts it’s just as hard going through Disney I believe. It does look to be a little easier for Vero than Hilton head but a lot of times the dates you actually wanna go are not available with cash.

 

[Sandisw]

With the beach resorts it’s just as hard going through Disney I believe. It does look to be a little easier for Vero than Hilton head but a lot of times the dates you actually wanna go are not available with cash.

That makes sense…but rentals still rely on an owner so in that case, I’d say that owning makes even more sense.

 

[AstroBlasters]

Didn’t think about rentals, I see on one site vero beach is 20$ point making it a wash at 2000$ a year. There is a large demand for Vero beach in July and August. Do these requests all get filled or would you miss a year here and there. As far as insurance a maintenance fees constantly rising I would think rental fees would follow accordingly. Thanks for responding

Check on this forum; https://www.disboards.com/forums/dvc-rent-transfer.29/

 

[disneylandtour]

Love Vero beach, if I buy 100 points my wife and I can stay a week every year in a studio. I can buy 100 points for 40$ a point. So, 4,000 dollars over 16 years is 250$ a year and maintenance fees are 1500$ a year. Why would anyone frown on a property as beautiful as Vero beach when you get one week in a studio for 1750$ a year no tax. What am I missing?

The other downside here is that this resort and HHI are both open to quickly rising insurance premiums, which can really hurt yearly MFs.

 

[PlutoNotPlanet]

If you want them to use at VB every year, then it guarantees you the room you want every year until Jan 2042.

Easiest way to own where you want to stay for sure.

the value from owning though - easy cancellations if your plans change, etc.

buying SSR and using those points to stay at VB

I personally look at getting it tor cash and not rentals because rentals rely on you finding an owner every year.

Financially, owning VB now is likely not the best option. But considering the convenience of booking and managing your own reservation(s) without finding a renter, it makes sense to own DVC.
Then, depending on how popular the season you typically go, you need to know if you need home resort priority (booking 11 months ahead instead of 7 mo). If you do need 11 mo, owning VB will give you peace of mind; otherwise, owning SSR will do better financially.

 

[Nocheeba20]

I do believe if VB is available in July at seven months it makes sense to own elsewhere at this period in time. However, my luck they’ll be a sea turtle boom with turtles everywhere and VB becoming Disney’s hottest property. I’ll be sleeping at Saratoga. True story I did see turtle tracks my last visit. Amazing for me growing up in NY. Don’t tell me cast members make the turtle tracks every night to make member trips more memorable I won’t allow myself to believe you.