Help with VGF Purchase

[DisneyMimiUSMC]

My point of view is to buy the least amount of direct, unless they give you a reason to do otherwise. Given VGF resale prices, there are strong reasons to consider a direct purchase. But is there a reason to buy 300+ points?

From your base purchase price of $67,270 it sounds like you're looking at 310 points?

You should do the following exercise - take the price after all incentives for each of the following point cases (i) 310 point (ii) 300 points (iii) 250 points (iv) 200 points and (v) 150 points and then divide by the number of points relevant to the case. This will give you a price per point (each case can also deduct $22 for Magical Beginnings). You're likely to find that 150 gives you the best price per point. And if that's the case, maybe 150 at VGF may be sufficient for now (it should generally be enough for 1 week in a studio each use year, and studios sleep 5). If you decide you need more you can consider a cheaper resale contract of 150 points at a second resort. Or maybe you go back in 2 months and buy another 150 points direct if they give you the same price.

If you do end up getting 300+ points, you should consider splitting that into 2-4 separate contracts (e.g. 2x150, 3x100, or 4x75). It will make it easier to sell down the road and you can also sell fractions of what you own.

So incredibly helpful. Thank you! This group is great.

 

[RoseGold]

To book for December, you are probably too late anyway. But it's a dangerous idea to buy points for someone else to use, especially overpriced direct points. There is story after story on these boards of family members not going for whatever reason.

Disney as a hotelier, and DVC in particular, have limitations. It's hard to recommend anyone spend 60K on something they don't know if they like. All DVC rooms have minimal housekeeping, cheap TP, no real service to speak of. Many have bad views, some of them are really showing their age and are among the worst in the Disney portfolio. IMO, as hotel rooms, it's hard to reconcile many DVC rooms with the cash rates they (and the cash equivilant) demand. And then there's the booking system.

There's a lot between spending 60K and not seeing your family. You could rent DVC. You could rent an Airbnb. You could go somewhere that isn't Disney. Heck, you could rent a confirmed reservation for this trip and start there.

I view this whole plan as a lot less risky if you are just buying resale SSR points. If it doesn't work out, you sell. But if you're buying SSR, you better know how to work the system, which is a job in itself.

 

[DisneyMimiUSMC]

To book for December, you are probably too late anyway. But it's a dangerous idea to buy points for someone else to use, especially overpriced direct points. There is story after story on these boards of family members not going for whatever reason.

Disney as a hotelier, and DVC in particular, have limitations. It's hard to recommend anyone spend 60K on something they don't know if they like. All DVC rooms have minimal housekeeping, cheap TP, no real service to speak of. Many have bad views, some of them are really showing their age and are among the worst in the Disney portfolio. IMO, as hotel rooms, it's hard to reconcile many DVC rooms with the cash rates they (and the cash equivilant) demand. And then there's the booking system.

There's a lot between spending 60K and not seeing your family. You could rent DVC. You could rent an Airbnb. You could go somewhere that isn't Disney. Heck, you could rent a confirmed reservation for this trip and start there.

I view this whole plan as a lot less risky if you are just buying resale SSR points. If it doesn't work out, you sell. But if you're buying SSR, you better know how to work the system, which is a job in itself.

We already have a rez made by our guide when I reached out about DVC. I'm not buying points for my kids to potentially use. If they don't come with us, we will still go with or without them. I was a passholder for years, so we will definitely use it as a couple. We've also traveled the world and have the experience to know what we'd like to do over the next couple of decades and Florida is a large part of that equation.

 

[RoseGold]

We already have a rez made by our guide when I reached out about DVC.

LOL, nice. I'd be interested what they booked to reel you in. That's a big sale.

If you're buying this much DVC, IMO it's worth a discussion with your estate lawyer about probate. There are a lot of ways to hold DVC, and this matters more when you are talking about a direct purchase that (historically) also inherits direct perks -- and with an asset that is worth this much, generally speaking. And Blue Card is a strange bird, for example the board of an LLC holding DVC gets Blue Card under current rules.

To compare, you could buy 600ish points for this cost, if you were buying resale SSR. You have to decide if paying twice as much for direct points is worth it to you. 600 SSR points can go a long way as well.

A point I agree with in this thread is splitting a direct buy this big into smaller contracts.

 

[SkampyOne]

My point of view is to buy the least amount of direct, unless they give you a reason to do otherwise. Given VGF resale prices, there are strong reasons to consider a direct purchase. But is there a reason to buy 300+ points?

From your base purchase price of $67,270 it sounds like you're looking at 310 points?

You should do the following exercise - take the price after all incentives for each of the following point cases (i) 310 point (ii) 300 points (iii) 250 points (iv) 200 points and (v) 150 points and then divide by the number of points relevant to the case. This will give you a price per point (each case can also deduct $22 for Magical Beginnings). You're likely to find that 150 gives you the best price per point. And if that's the case, maybe 150 at VGF may be sufficient for now (it should generally be enough for 1 week in a studio each use year, and studios sleep 5). If you decide you need more you can consider a cheaper resale contract of 150 points at a second resort. Or maybe you go back in 2 months and buy another 150 points direct if they give you the same price.

If you do end up getting 300+ points, you should consider splitting that into 2-4 separate contracts (e.g. 2x150, 3x100, or 4x75). It will make it easier to sell down the road and you can also sell fractions of what you own.

THIS

Also, not only will smaller contracts be easier to sell, they tend to sell for more...

As for Magical Beginnings, you may actually want to keep your 1st year of points to pay for the big family vacation this year. While other times of year you may be able to rent for cheaper than $22pp, doubt you could do that in December, though others might have had luck and can better guide you.

 

[DisneyMimiUSMC]

LOL, nice. I'd be interested what they booked to reel you in. That's a big sale.

If you're buying this much DVC, IMO it's worth a discussion with your estate lawyer about probate. There are a lot of ways to hold DVC, and this matters more when you are talking about a direct purchase that (historically) also inherits direct perks -- and with an asset that is worth this much, generally speaking.

To compare, you could buy 600ish points for this cost, if you were buying resale SSR. You have to decide if paying twice as much for direct points is worth it to you. 600 SSR points can go a long way as well.

A point I didn't see in this thread is that you should consider splitting a buy this big into smaller contracts, 75s, 50s if they will let you. If you want to sell some, it's no big deal.

If it were a house we were talking about, then maybe I'd consult with an attorney, but not for this smaller purchase. We own Airbnbs, so we have vast experience in asset risk/management. We will most likely pare down to 200 points direct and then a resale contract for whatever else we need.

 

[RoseGold]

If it were a house we were talking about, then maybe I'd consult with an attorney, but not for this smaller purchase. We own Airbnbs, so we have vast experience in asset risk/management. We will most likely pare down to 200 points direct and then a resale contract for whatever else we need.

It isn't that 60K is a massive deal, it's that probating it in (I assume) another state is. And that isn't something I would want to leave to my heirs with such a big holding. Lots of contracts that foreclose to Disney are from estates, probably from heirs who can't or don't want to figure it out. And there are plenty of threads here with how probating in Florida + home state goes.

This is easier to do now, at the buy, while you are (correctly) thinking everything through. And the Blue Card is important to preserve, IMO, if it's worth paying double for. The way to do that is local legal advice.

 

[DisneyMimiUSMC]

It isn't that 60K is a massive deal, it's that probating it in (I assume) another state is. And that isn't something I would want to leave to my heirs with such a big holding. Lots of contracts that foreclose to Disney are from estates, probably from heirs who can't or don't want to figure it out. And there are plenty of threads here with how probating in Florida + home state goes.

This is easier to do now, at the buy, while you are (correctly) thinking everything through. And the Blue Card is important to preserve, IMO, if it's worth paying double for.

I will leave that to our financial planner to figure out.

 

[PinkPixel]

LOL, nice. I'd be interested what they booked to reel you in. That's a big sale.

If you're buying this much DVC, IMO it's worth a discussion with your estate lawyer about probate. There are a lot of ways to hold DVC, and this matters more when you are talking about a direct purchase that (historically) also inherits direct perks -- and with an asset that is worth this much, generally speaking. And Blue Card is a strange bird, for example the board of an LLC holding DVC gets Blue Card under current rules.

To compare, you could buy 600ish points for this cost, if you were buying resale SSR. You have to decide if paying twice as much for direct points is worth it to you. 600 SSR points can go a long way as well.

A point I agree with in this thread is splitting a direct buy this big into smaller contracts.

What is difference in dues on 600 SSR vs the VGF purchase? How would this affect wanting to stay in a VGF grand villa or 2 bedroom for a week? Curious because I still can't figure it out.

 

[bholbert81]

I like the idea of getting enough points with DIS direct for the blue card then going resale with smaller contracts. VGF lowest price per point right now is at 150 per point, you cannot buy 1000 for less!

 

[Straulin]

The prices look accurate for the number of points you are buying. I do not think its too late for you to become part of DVC if you know that you are going to visit every year and will find value of staying on site.

In terms of UY, be sure that a Feb UY will work for your travel plans. When buying direct, guides will simply suggest the one they are pushing at that time, but you can request any UY that you want.

If you have a specific time to travel, you want a UY to start shortly before that because it gives you the most flexibility if you have to cancel or change a trip. When you can travel in your banking window---first 8 months of the UY....it is ideal when things happen.

If you are going to regularly travel in Dec, Feb UY is the worst one to have. Many people will buy direct at the minimum level and add on more points resale. However, any resale points bought now can not be used at RIV, VDH, or presumably any future resorts, which may include Poly tower and FW cabins.

Even owning direct points doesn't change this. Since you are considering VGF, they would be good there, and all the original resorts, just not the new ones. It may not matter for you, but it is important to be aware!

I would also make sure that your will be able to secure a DVC reservation for December as part of the deal. December is very popular and at this point a lot is booked up...but, new owners are given a chance to get a Welcome Home visit and while it may not be at the resort of your choice, they can usually find you something from inventory DVD has access to with the points they own, or for rooms not yet declared for DVC use (like RIV).

Good luck!

Agreed.

We bought in last year when I was 45. Added on this year.

Also you can get 2022 points if you go with an August, October, or December use year. Those could be banked and used for your December trip (for new purchases they will bank the points even after the banking deadline so long as you do that within the 10 day rescission period.). Alternatively you could use Magical Beginnings if you are eligible (I think all U.S. Citizens) to reduce your purchase price.

They will try to say you can only get a February use year. Be stern that you need whatever year you want and they will “go to their supervisor for approval” which seems to always be approved.

 

[Genie+]

I like the idea of getting enough points with DIS direct for the blue card then going resale with smaller contracts. VGF lowest price per point right now is at 150 per point, you cannot buy 1000 for less!

I think right now for VGF direct is going to be a better value over resale even if an extra $10 per point, even for buying more than 150 points. With over 40 years left on the contract, it’s a difference of about 25 cents using those points each year. On a 200pt contract it’s about $50 more per year. For that you will have decades of using these points at new resorts, which is already important and likely more so as time goes on.

 

[Rex1993]

I will leave that to our financial planner to figure out.

I'm going to agree with RoseGold that you should consider entity (trust) ownership when purchasing. There is no additional cost to doing so when buying but if you want to do it later, it's a hassle. It also may impact the legal ownership of certain direct purchase benefits.