Is there a strategy to buying DVC?

[bisney]

In terms of "strategy", it all depends. If you don't really care where you stay and are just happy to be in a deluxe onsite, then SSR is really the best value. If you always stay at a certain resort and you cannot fathom being happy unless you stay at that resort, then you really should buy at that resort.

IMO, buying GFV points really only makes sense if you intend to use those points exclusively at that resort. Otherwise at 7 months a GFV point is worth the same as an SSR point in terms of booking so paying for that premium is worthless.

Another option would be renting out your OKW points for extra cash and then renting GFV points for yourself if you really wanted to get in periodically. But if your heart is set on staying at the GFV time after time then it would make sense to buy at the GFV.

My advice is to read as much as you can before you buy. Don't make an impulse decision based on a magical week at Disney. Don't stretch yourself beyond your means financially. Buying DVC will likely mean taking more Disney vacations than you otherwise would have if you didn't buy DVC. So factor in whether or not you can see yourself vacationing at Disney year after year after year.

 

[MountainMouse]

The common notion is that BLT will continue to raise faster than the others as the taxes raise with the improvements of the area so will the MF.

So you're thinking that it's not necessarily that BLT will be more expensive to operate, but that the taxes will raise more on it than SSR. If I'm remembering correctly, this past years fees had significant tax increases at BLT and SSR. What improvements do you think will drive higher taxes at BLT over other resorts?

 

[dsnydaddy]

So you're thinking that it's not necessarily that BLT will be more expensive to operate, but that the taxes will raise more on it than SSR. If I'm remembering correctly, this past years fees had significant tax increases at BLT and SSR. What improvements do you think will drive higher taxes at BLT over other resorts?

Construction of the Poly

 

[MountainMouse]

Construction of the Poly

In the grand scheme of everything that is there I would think it wouldn't be a great impact. The poly is basically 20 new bungalows and a refurb of existing structure. Also, where do you draw the area line? Do improvements at MK have an impact? Do Downtown Disney improvements affect SSR? I'm really not sure what rules the assessors are playing by or even what the current assessments for each property are.

 

[Dean]

Are you assuming that BLT will surpass SSR in MF cost? Is this just because of the BLT steep trend or do you see other reasons why BLT should cost more to maintain?

My thinking, for what it's worth, is that BLT WILL pass SSR eventually but remain on the lower side of the fee curve, likely the second lowest over time. But let's assume the long term fees are the same as SSR (about the best one can hope for I believe) then BLT costs X amount of $$$ per point more than say SSR, AKV, OKW, etc. When you consider that and the lost earnings, that is a significant cost over 40 yrs or so, with no savings involved compared to SSR except possibly for the standard view options. Whether any extra value is gained by having those points at BLT and/or getting the standard view and saving a few points is worth depends on individual. I don't believe those extra 6 yrs adds much assumption or value wise at this point. It might give one savings, it might cost one money depending on many factors. So if the question is what's cheaper to get into the system, SSR wins hands down. When you look at value and other options, it's more variable on the individual circumstances. Just like VGF is a horrible choice just to get in the system but a reasonable one is one is going to stay almost exclusively at GF and can afford it otherwise.

 

[MountainMouse]

My thinking, for what it's worth, is that BLT WILL pass SSR eventually but remain on the lower side of the fee curve, likely the second lowest over time. But let's assume the long term fees are the same as SSR (about the best one can hope for I believe) then BLT costs X amount of $$$ per point more than say SSR, AKV, OKW, etc. When you consider that and the lost earnings, that is a significant cost over 40 yrs or so, with no savings involved compared to SSR except possibly for the standard view options. Whether any extra value is gained by having those points at BLT and/or getting the standard view and saving a few points is worth depends on individual. I don't believe those extra 6 yrs adds much assumption or value wise at this point. It might give one savings, it might cost one money depending on many factors. So if the question is what's cheaper to get into the system, SSR wins hands down. When you look at value and other options, it's more variable on the individual circumstances. Just like VGF is a horrible choice just to get in the system but a reasonable one is one is going to stay almost exclusively at GF and can afford it otherwise.

So are you thinking taxes will raise the fee cost at BLT above SSR as well? Are there other factors or things that you see at BLT that you believe are going to be more expensive? I'm asking because this seems to be most folks opinion and I'm wondering if it's the recent fee increase trend that's just put them in that mindset or something more tangible.

I wholeheartedly agree that if a person is looking for the lowest long term financial commitment then buy SSR. As you pointed out buy in and maintenance aren't the only factors to consider in a value calculation. Some can be assigned a dollar value such as the cost savings of a standard room over lakeview and some such as the convenience of booking at 11 months and just general availability at busy times are difficult to assign dollar amounts to. It's all what a person is willing to pay and in the case of DVC it's the difference in buy in and yearly maintenance. Each persons decision on what's valuable to them and what that value translate to with respect to a purchase. For myself, there isn't enough of a current cost difference between any of the resorts that would influence my decision and I subscribe to the buy where you want to stay philosophy. If costs change over time so could my opinion.

 

[Dean]

So are you thinking taxes will raise the fee cost at BLT above SSR as well? Are there other factors or things that you see at BLT that you believe are going to be more expensive? I'm asking because this seems to be most folks opinion and I'm wondering if it's the recent fee increase trend that's just put them in that mindset or something more tangible.

I wholeheartedly agree that if a person is looking for the lowest long term financial commitment then buy SSR. As you pointed out buy in and maintenance aren't the only factors to consider in a value calculation. Some can be assigned a dollar value such as the cost savings of a standard room over lakeview and some such as the convenience of booking at 11 months and just general availability at busy times are difficult to assign dollar amounts to. It's all what a person is willing to pay and in the case of DVC it's the difference in buy in and yearly maintenance. Each persons decision on what's valuable to them and what that value translate to with respect to a purchase. For myself, there isn't enough of a current cost difference between any of the resorts that would influence my decision and I subscribe to the buy where you want to stay philosophy. If costs change over time so could my opinion.

I used to hold the buy were you want to stay opinion but have evolved to a buy the cheapest that fulfills the need. For someone who only wants VGF for example, they are the same but for someone who just wants in and to try many things over time, they are far different. It is my opinion that many get caught up in the emotion (like buying a new car) and can't bring themselves to settle for something lower and not new. In reality DVC is all used all of the time. To buy VGF and then use for this and that dramatically increases the cost. A few of those will need something periodically they couldn't get otherwise (3 BR for example) then they must decide whether the additional costs are worth it. For VGF for example, it's often cheaper to buy a lower resort and possibly less points and pay OOP for the occasional trip if you can't get it otherwise.

My opinion on BLT is the same as when it came out and some were conning themselves into buying there at a higher price thinking the lower fees would be worth it over time. I believe BLT was underpriced in the MF department up front, whether this was intentional or poor planning is difficult to know. My belief is that the fees will cont to rise slightly faster than SSR and it will pass SSR in the next few years. I still believe it will stay on the lower side but not to the degree some touted up front. I believe the reasons are several but include upkeep, transportation and poor quality of materials used. In part it's because I believe the build of SSR is inherently cheaper to maintain. I can't speak for everyone of course, but there was/is a core group of us who voiced this opinion from the start. I believe this should make people nervous about VGF MF.

 

[Minniesgal]

I am firmly in the buy where you want to stay camp. Sure in the early days when you want to try all the resorts SSR is fine but eventually you (or at least I) have got to the point I can't be bothered with scrambling to swap at 7 months I want to be locked in to where I want to be at 11 months so we stay where we bought. We have three home resorts AKV which is our first love, a few points at VGF for 2 to 3 nights before we leave to go to our favorite restaurants easily and to have some time on .bay Lake which we love, and thirdly VGC for when we are on the .west Coast which we also like to visit, buying to stay all over the place in my opinion wears thin and eventually it is relaxing to just be able to book easily at 11 months what you want.

 

[DVCjuggernaut]

There definitely is some strategy involved, but I tend to think its more on the sellers side. As a buyer, the best advice I received was to keep in mind that everything is negotiable. If the price per point is a bit high, closing costs can probably be pushed to the seller. Negotiating cost is always worth a shot, but even if you've got an eager seller, there's only so low you can go before ROFR will getcha.

 

[steves100]

Just got back from Christmas week. 12-20 / 12-27

Was able to book Grand Floridian using OKW points.....

We stayed 4 nights at Boardwalk 3 at GF...

 

[dsnydaddy]

Just got back from Christmas week. 12-20 / 12-27

Was able to book Grand Floridian using OKW points.....

We stayed 4 nights at Boardwalk 3 at GF...

Great score!

 

[Missyrose]

Just got back from Christmas week. 12-20 / 12-27

Was able to book Grand Floridian using OKW points.....

We stayed 4 nights at Boardwalk 3 at GF...

Congrats on the reservation, but newbies need to note a few things. Until VGF is officially sold out, Disney still has a sizable chunk of VGF points to sell, which means availability is looser at the resort right now than it might be a year or two from now. Also, attempting to book one, two or three nights will always be an easier proposition than booking a full week. So if you're someone who is okay with split stays and only getting the resort you want for a night or two, then taking the seven-month gamble could work out better for you.

 

[Dean]

Congrats on the reservation, but newbies need to note a few things. Until VGF is officially sold out, Disney still has a sizable chunk of VGF points to sell, which means availability is looser at the resort right now than it might be a year or two from now. Also, attempting to book one, two or three nights will always be an easier proposition than booking a full week. So if you're someone who is okay with split stays and only getting the resort you want for a night or two, then taking the seven-month gamble could work out better for you.

Actually my experience and observations suggest that DVC resorts are busiest the from opening until about 2-3 yrs past sell out then ease up somewhat. For VGF it will likely always be hit or miss though.

 

[Missyrose]

Actually my experience and observations suggest that DVC resorts are busiest the from opening until about 2-3 yrs past sell out then ease up somewhat. For VGF it will likely always be hit or miss though.

Oh, my mistake. I'd been told that when Disney had declared large chunks of inventory but hadn't sold it all would be some of the easier times to get into a resort. I defer to you on this, you know better than I do.

 

[dsnydaddy]

For VGF it will likely always be hit or miss though.

LOL, I can't imagine the GF ever getting old.

 

[holden]

We bought at BLT for a few reasons, none of which have to do with MF or price per point:

1. Two bathrooms in a 1BR unit (yes, this is very important for us and AK is just too far from the action for us to buy there)
2. Proximity to MK
3. Convenience to several places to eat on the monorail (Poly, GF, MK, EP, and, of course, Contemporary)

I'm not a fan of BLT's decor and the units are showing wear, but for the reasons above, BLT makes sense for us. We are in the camp of "it might cost a little more, but it's worth it to us."

 

[disneynutz]

We bought at BLT for a few reasons, none of which have to do with MF or price per point:

1. Two bathrooms in a 1BR unit (yes, this is very important for us and AK is just too far from the action for us to buy there)
2. Proximity to MK
3. Convenience to several places to eat on the monorail (Poly, GF, MK, EP, and, of course, Contemporary)

I'm not a fan of BLT's decor and the units are showing wear, but for the reasons above, BLT makes sense for us. We are in the camp of "it might cost a little more, but it's worth it to us."

A informed decision and being happy is all that matters!

 

[bakerworld]

I am still trying to understand the importance of selecting a "Home Resort" .
I am looking at the resale market and notice that there is a wide variance in the per point cost between properties. I realize that the Grand Floridian is nicer than Old Key West. However, I'm looking at OKW at $60 per point but GF is coming in at $145 pp. It looks like I need 632 points to stay in a 2 bedroom villa at GF for XMas week. 632 x $145pp (GF) = $91,640. 632 x $60pp (OKW) = $37,920. Can't I buy my points utilizing OKW as my Home Resort and then use them at the Grand Floridian? What is the rub? Thanks for your advice...just trying to understand the most financially wise way to purchase DVC.

Christmas week is obviously busy with park closures due to max occupancy and discount programs blacked out. IMO a Christmas Week stay for longer that 5N is going to need the 11-month reservation window. IMO, it would be very hard to book into a regular hotel venue on points. This time frame is the 'perfect storm' for the argument to 'buy where you want to stay'.

If the OP had mentioned any other time frame I would endorse purchasing 'cheap' and trading up to your optimal location. We didn't purchase cheap but we did purchase with the strategy to trade up - which we do frequently from January to September.

BUT we finally had to purchase our optional location for our October stays because we couldn't trade in at the 7-month non-home time frame. So we purchased direct (which is at least 30% more expensive than resale) and then we had to purchase more to stay at our location of choice. Even purchasing direct, if we'd've purchased where we wanted to stay originally we would've saved $$.

 

[Dean]

Oh, my mistake. I'd been told that when Disney had declared large chunks of inventory but hadn't sold it all would be some of the easier times to get into a resort. I defer to you on this, you know better than I do.

Not right or wrong, a lot of people hold that theory, I just happen to have a different experience and observation. For resorts in active sales, undeclared and unsold villas won't be available. Declared but unsold will be reserved with points by DVD and offered for rent by DVD.

LOL, I can't imagine the GF ever getting old.

VGF is likely to have less of people owning there and staying elsewhere than most, it will happen far more than many think. It will vary a lot with the owners situation. A new owner who got roped in not being very educated at the time of purchase will likely trade down comparatively often. An experiences owner who added on at VGF likely won't unless they get stuck. VGF owners will be of all types just like all the DVC resorts have been. Some who buy there will end up hating it and always stay elsewhere or rent out.

 

[Msmithmd]

Not right or wrong, a lot of people hold that theory, I just happen to have a different experience and observation. For resorts in active sales, undeclared and unsold villas won't be available. Declared but unsold will be reserved with points by DVD and offered for rent by DVD.

I don't believe this is accurate. Declared but unsold inventory is not booked with points by DVD and offered for cash accommodations. Rather the UNdeclared inventory is offered for cash. Declared inventory for active sales is open to members at other resorts to book on points- otherwise the contracts DVD is selling wouldn't be whole with current UY points when sold.

Thus it should be easier to book the newest resorts right when they open, then get harder as they move toward selling out, and then gradually become easier again over time as demand moves on to the next big thing, or home resort owners decide to try something else.

I don't claim to be any definitive expert, but someone I would regard as such- Tim Krasniewski- says functionally the same thing here:

http://www.disboards.com/showthread.php?t=3363216