Hilton Head is cheaper, so . . .

[kdzgon]

I think you are incorrectly assuming DVC exercises ROFR for the income directly related, this would be wrong. They do it to drive potential purchases to retail. They make little money overall doing this. Why would they go through this to make a combined $10-20 p when they can make $40-50 pp on the retail. And at the same time compete with those more lucrative sales when they resell them. Also don't believe what some do, that they're doing it for the benefit of the members who want to add on. They do it for themselves and the profit therein.

No, the incorrect assumption is yours. I did not say "continued strong DVC resales", but rather "strong DVC sales ". I did not assume (nor did I imply) ROFR was for direct profits, but rather I recognized this is an effective marketing strategy. ROFR unequivocally props up the prices, including retail sales. Market price is that which a willing buyer will pay to a willing seller - right or wrong, perceived value is often relative to cost. In fact, one (often effective) market strategy when faced with sluggish sales is to increase prices rather than decrease them. People are also often willing to pay a premium to belong to what they believe is an "exclusive" club - the higher the (perceived) exclusivity, the higher the price. The "Welcome Home" marketing is another example of fostering perceptions, buying back contracts requested by existing members is another.

 

[Dean]

No, the incorrect assumption is yours. I did not say "continued strong DVC resales", but rather "strong DVC sales ". I did not assume (nor did I imply) ROFR was for direct profits, but rather I recognized this is an effective marketing strategy. ROFR unequivocally props up the prices, including retail sales. Market price is that which a willing buyer will pay to a willing seller - right or wrong, perceived value is often relative to cost. In fact, one (often effective) market strategy when faced with sluggish sales is to increase prices rather than decrease them. People are also often willing to pay a premium to belong to what they believe is an "exclusive" club - the higher the (perceived) exclusivity, the higher the price. The "Welcome Home" marketing is another example of fostering perceptions, buying back contracts requested by existing members is another.

Sorry if I misunderstood and glad we agree.

 

[salmoneous]

Nobody knows for sure. Buying HH means saving some money now and taking some risks. Here are the risks I'd be worried about:

Spin-off: Any of the DVC resorts can be spun off from the system. The risk of this happening is pretty small. But I believe - and this is just a belief - that the risk is significantly higher at the non-WDW world resorts. To me, this would be enough to keep me from buying HH/VB

7/11 Tightening: It's possible that the 11 month window will become more important in the future than it is today

Resale: If you think you might ever need to sell - especially in the next 10 years or so, resale on HH will probably be lower than the other resorts. Anything you gain now will be lost then. Note - look at all the contracts up for sale. I bet most of those people bought thinking they would keep DVC until it expires. Things change.

Best of luck with whatever you decide to do,
Sal

 

[kdzgon]

Nobody knows for sure. Buying HH means saving some money now and taking some risks. Here are the risks I'd be worried about:

Spin-off: Any of the DVC resorts can be spun off from the system. The risk of this happening is pretty small. But I believe - and this is just a belief - that the risk is significantly higher at the non-WDW world resorts. To me, this would be enough to keep me from buying HH/VB

7/11 Tightening: It's possible that the 11 month window will become more important in the future than it is today

Resale: If you think you might ever need to sell - especially in the next 10 years or so, resale on HH will probably be lower than the other resorts. Anything you gain now will be lost then. Note - look at all the contracts up for sale. I bet most of those people bought thinking they would keep DVC until it expires. Things change.

Best of luck with whatever you decide to do,
Sal

I definitely agree with your assessments, which is why I said it's OK for a small add-on, but personally I would be more leery of a solo (and/or large) contract IF the only goal was WDW.

We absolutely love the beach environment, and have family members that adore HH, so even if spun off we'd be OK. The small size (of HHI) actually contributed to our decision to buy a small contract - we're hoping to sneak in short trips now and again - with several military family members nearby, odds are some will be "in-season" and/or busier times (leave is not always available, but they will get 4-day weekends on some federal holidays).

Plus, golfers are nearly as fanatical as Disney nuts followed closely by beach fanatics, so as long as we could hold off to high season to sell, selling our contract should be less difficult (as compared to this time of yr).

I think all the 2042 contracts are going to decrease in value within the next 10 yrs or so, not just HHI. Again, smaller contracts will hold value better, unless Disney decides to block access in that way (begin to require higher minimums to qualify as member). IMO, this change is much more likely to occur than the selling off of HH and VB.

 

[WendyinNC]

If HH is ever sold off, what would that mean? You wouldn't loose your ability to use your points there or to use your points at other WDW resorts would you? I'm also considering a purchase at HH since I can see traveling there occasionally and it is so much cheaper. If I do purchase DVC I would really like to try all the resorts except VB, SS, and OKW. Would I really have a problem staying at either BCV, BWV, WLV, or AK 7 months out if I was able to stay anytime in the Summer?

 

[Dean]

If HH is ever sold off, what would that mean? You wouldn't loose your ability to use your points there or to use your points at other WDW resorts would you? I'm also considering a purchase at HH since I can see traveling there occasionally and it is so much cheaper. If I do purchase DVC I would really like to try all the resorts except VB, SS, and OKW. Would I really have a problem staying at either BCV, BWV, WLV, or AK 7 months out if I was able to stay anytime in the Summer?

While unlikely, you would lose your access to the other resorts.

 

[WendyinNC]

While unlikely, you would lose your access to the other resorts.

I'm confused. Doesn't your contract state that you are a member of DVC? How can they take that away?

 

[Dean]

I'm confused. Doesn't your contract state that you are a member of DVC? How can they take that away?

Actually it states the reverse. You are a member of the DVC because you own at a member resort. The POS states that if the resort ceases to be a member of the club, so do you. This could happen at the end of the RTU term, major damage such as by hurricane, the members voting DVCMC out or DVCMC ceasing to manage of their own accord. I personally don't think it's a major concern but some would rather know the possibilities.

 

[dumbo71]

Actually it states the reverse. You are a member of the DVC because you own at a member resort. The POS states that if the resort ceases to be a member of the club, so do you. This could happen at the end of the RTU term, major damage such as by hurricane, the members voting DVCMC out or DVCMC ceasing to manage of their own accord. I personally don't think it's a major concern but some would rather know the possibilities.

Dean, hasn't this happened with a couple of the Marriott properties? If so, it can happen.

I wouldn't be completely shocked if it did happen. Unlikely, but legally possible.

 

[Dean]

Dean, hasn't this happened with a couple of the Marriott properties? If so, it can happen.

I wouldn't be completely shocked if it did happen. Unlikely, but legally possible.

Marriott has cut lose a total of 9 properties over the years if you count the sea pines units as one and the two components of Vail as separate. None were built by Marriott. IMO this is a different situation. I find it difficult to see how DVC could let either VB or HH loose unless there were a major problem such as a fire or hurricane. Realistically it'd be hard for the members to vote DVC out and I think Disney would see the hit on their reputation as too large to make it worth the gamble. The interesting thing will be what happens to both resorts in 2042. I can't see HH being worth keeping up given the construction type, I suspect it'll be sold and bought by someone else to raze and start fresh for wholly owned condo's. VB is a little different and my guess is it will be sold off and resold as a timeshare or condos. What could get real interesting would be if part of one of the resorts was badly damaged by a natural disaster. DVC might decide not to rebuild and that would cut lose those that owned in the units/buildings affected. They would cease to be a member of the club and would share in any insurance proceeds per the POS rules. However my guess is that Disney would offer them replacement points somewhere else. Frankly, I hope we never find out and get to have the discussion many times without knowing for certain.

 

[crisi]

Course, if Disney were to change ownership (like several years ago when they were targeted by Comcast), it is quite possible that the new owners would sell off or lease out management of all the Disney hotels/timeshares to a company like Hilton or Marriott. And we don't know where that would leave DVC.

 

[kdzgon]

I just looked on the timeshare store list, i can't find any thing under $73.00 per point for HH. I would rather buy at OKW for a little more. I think SSR with family and friends pricing with the extra years is a good deal.

Listed price is a little different than actual cost. The closest OKW contract I could find at the time was approx $8-9 more than my final cost at HH. If it were my only purchase I would agree OKW would have been my choice. However, as an add-on I liked the idea of being able to book a 4th of July trip at the beach. I was torn due to the GVs at OKW, but I couldn't afford a contract large enough to accomplish that, so I went with the beach Only time will tell if we made a good choice here!

 

[nuts]

you might find yourself only able to get ressies at OKW/SSR

And heaven forbid that you get stuck at those slums

 

[quentina]

On this board you hear alot about "buy where you want to stay". If you are planning on vacationing at WDW and that's where your heart is set on staying, then you should probably buy WDW points. However, I've never heard of anyone saying they couldn't get something at WDW at the 7 month window. Some times of year it might be harder than others however. Maybe some VB & HH owners will chime in to say if they've ever been unable to make a reservation at WDW.

I own HH and VB...never had any problem getting ressies. Where wer benefit is the HH studio which is close to impossible to get at 7 months.

I would buy HH again in a heartbeat.

Kim