Is AK really cheaper than BLT in the long run

[djohn06]

I'm happy to debate it. The maintenance fees made the difference. Think of it this way:
At BLT, you're committing to pay maintenance fees for the next 45 years. At today's price, that's $227.25 per point.
At AKV, you're committing to pay maintenance fees for the next 42 years. At today's price, that's $264.60 per point.

That $37.35 difference per point covers the spread, plus you're getting three more years out of BLT. Plus, I bet the asset value of BLT remains higher than AKV, so you'll come out even further ahead if you ever need to sell.

You are totally ignoring the value of money today vs tomorrow. The upfront costs of BLT is nearly double AKV for a weeks stay. A person can easily save that difference in a mutual fund and cover the difference in fees, while having a significant balance in the end that will be at least twice the value of BLT. Also, have you seen the run in pricing lately on BLT? This is probably the worse time to buy it. It's up 50 percent in 3 years.

 

[supersnoop]

You are totally ignoring the value of money today vs tomorrow. The upfront costs of BLT is nearly double AKV for a weeks stay. A person can easily save that difference in a mutual fund and cover the difference in fees, while having a significant balance in the end that will be at least twice the value of BLT. Also, have you seen the run in pricing lately on BLT? This is probably the worse time to buy it. It's up 50 percent in 3 years.

No, I'm not ignoring the time value of money. In order to earn interest at the current rate of inflation, you'd need to put the equivalent of 4x years of maintenance fees in your investment account in today's dollars; assuming maintenance fees increase at the rate of inflation. If you think your investments will outpace inflation, then we're talking about opportunity cost. And if we're talking about opportunity cost, then no timeshare would every make financial sense.

And, second, every resort has increased 50% in the past 3 years. The recession really took a toll on all contracts, and they're finally appreciating.

 

[suebeelin]

Sorry to be ignorant, but 50%?

Were prices that low in 2012? I recall BWV in the 50s, BLT in the 70s, AKL in the low 60s... Did I miss the absolute lows?

 

[Tunseeker1]

For me every point has a value based on my life. Its not about the selling price its about the way i use them.

I own at OKW,VB,AKV and PVB.
The points for AKV,VB and PVB have some of the highest MF of the resorts.
They were expensive to buy 11 month windows at that resort so I didn't have to try and find rooms when I wanted to go to the beach,Monorail or Value Rooms.
OKW were cheaper but have the cheapest points for rooms consistently.

that said the most expensive points for me are the shiny new Poly points. I have them because my wife wanted a MK resort, VGF has problems getting studios and I HATE the doors on the bathrooms in the studios at BLT.
I spent $65 a point to not have the doors that won't close on the dang bathroom correctly!

I did get my OKW points a little while ago direct from disney. (1996,$62!)
VB was $75 a point direct.
AKV was I think $65 Resale.
and Poly was $165.

I have no idea how much my dues have been up to today but its way more then the cost to buy.
I have used my membership for 18 years and sent everyone I can think of to disney as a good Son/Brother/Uncle/Friend.
If you are looking at the rental revenue or the MF you shouldn't buy.

I added on because we did a split stay then added 2 nights for cheaper airfare. The 2 more nights were at pop century. It was not what we like to have for a hotel, but I didn't want to borrow points.
It was a dumb reason but the kids will get bigger and I know we will need points later!

 

[KAT4DISNEY]

Sorry to be ignorant, but 50%?

Were prices that low in 2012? I recall BWV in the 50s, BLT in the 70s, AKL in the low 60s... Did I miss the absolute lows?

In early 2013 BLT was often going for around $80 per the ROFR thread. If you estimate it's around $120 now that's a 50% increase in 2 1/2 years.

 

[suebeelin]

In early 2013 BLT was often going for around $80 per the ROFR thread. If you estimate it's around $120 now that's a 50% increase in 2 1/2 years.

Thx. My math stinks . Yes... BWV is now at least $75, BLT at least $105, but AKL has not increased as high but still a decent jump. I bought my first contract in 2011, and have been tracking the resales since.

I bought BLT last December/this January just before the jump-- pretty much 2014 prices.

 

[dsnydaddy]

Thx. My math stinks . Yes... BWV is now at least $75, BLT at least $105, but AKL has not increased as high but still a decent jump. I bought my first contract in 2011, and have been tracking the resales since.

I bought BLT last December/this January just before the jump-- pretty much 2014 prices.

Blows my mind at what has happened to DVC prices over the last 6 months. I know they'll come back down, but it is fairly ridiculous.

 

[Dean]

You are totally ignoring the value of money today vs tomorrow. The upfront costs of BLT is nearly double AKV for a weeks stay. A person can easily save that difference in a mutual fund and cover the difference in fees, while having a significant balance in the end that will be at least twice the value of BLT. Also, have you seen the run in pricing lately on BLT? This is probably the worse time to buy it. It's up 50 percent in 3 years.

While I agree in principle that one should include the time value of money in the equation and I'm very comfortable assuming 8% after taxes for long term investments, I did see one component that seemed off here. IMO the room point cost differences between resorts are only applicable for one who will use the home resort most of the time, which is very few new buyers. And even if they'll use the specialty views like value or standard, it really only comes into play if they buy less vs more points to do so. That's why one has to take their own personal situation into account to make a final decision using the appropriate principles.