Is your DVC "In the Money" or Not

[montrealdisneylovers]

We purchased our BLT resale at $95 a point when our CDN was at par (actually even slightly above par with the USD). We are definitely "in the money" at the moment but have no plans to sell. The annual dues are more costly now but at least we can still enjoy deluxe resorts instead of returning to values.

 

[DVC Doctor]

Disney has sold all the resort and made a good margin on them.
The lesson is for buyers: don't buy overbuilt resorts!

Yep, that is good advice, but the ORIGINAL plans for SSR were much smaller that they are today

Also, resale prices have had lower prices for the larger resorts and increased prices at smaller resorts

OKW owner:
Originally bought direct in '93.

After more than 20+ years and 150+ DVC points based vacations I am way ahead. I could never have taken so many trips if I had to pay cash for the rooms.

Congrats, the early bird certainly gets the worm

 

[DougEMG]

I'm "in the money", but I bought resale, not direct.

 

[DVCjuggernaut]

Great to see this analysis and also great to know that almost all of us appear to be "in the money". I had some fun comparing these to Fidelity's guaranteed sale program at http://www.fidelityresales.com/sell-your-disney-vacation-club. Seems that some of their offers are pretty close to current market value estimates, which is nice but I'm sure they'll vary with market fluctuations. Also interesting is that a lot of their guaranteed sales prices are beyond the prices they quoted about resale values in one of their articles from earlier this year. Let's hope the trend continues!

 

[HookdonWDW]

Great to see this analysis and also great to know that almost all of us appear to be "in the money". I had some fun comparing these to Fidelity's guaranteed sale program at http://www.fidelityresales.com/sell-your-disney-vacation-club. Seems that some of their offers are pretty close to current market value estimates, which is nice but I'm sure they'll vary with market fluctuations. Also interesting is that a lot of their guaranteed sales prices are beyond the prices they quoted about resale values in one of their articles from earlier this year. Let's hope the trend continues!

Yeah, I bet that if I offered one of my 100 pt. BCV contracts someone WOULD buy it within 14 days for $83/point, lol

 

[DVC Doctor]

28 votes for - In The Money

2 votes for - Not In The Money

 

[got4boys]

I was one of the lucky ones that purchased BLT under $100 per point with the Black Friday Special in November of 2010 - I think I paid $97 per point. I wish I purchased more points.

Yes. I am ahead, but do not consider it until I sell (which my other half says "NEVER")

 

[DVC Doctor]

I was one of the lucky ones that purchased BLT under $100 per point with the Black Friday Special in November of 2010 - I think I paid $97 per point. I wish I purchased more points.

Yes. I am ahead, but do not consider it until I sell (which my other half says "NEVER")

Congrats, that is definitely the lowest Disney charged for BLT and I am pretty sure the same deal applied to VGC for that special as well.

In addition, Disney threw in one or two years of points depending on your use year.

 

[Rochester Disney Fan]

I would consider myself in the break even although your analysis has me at a loss. All my points were purchased direct at AKV to keep it simple. I averaged 100.00 pt for my purchases.
I consider it a break even considering all the money I have saved over the last 7 or so years and selling today at 84.00. I of coarse have no plans on selling at this time.

I did not vote on the poll so I wouldn't mess up your numbers.

 

[DVC Doctor]

I would consider myself in the break even although your analysis has me at a loss. All my points were purchased direct at AKV to keep it simple. I averaged 100.00 pt for my purchases.
I consider it a break even considering all the money I have saved over the last 7 or so years and selling today at 84.00. I of coarse have no plans on selling at this time.

I did not vote on the poll so I wouldn't mess up your numbers.

AKV is around $85-90pp and if you paid $100, then you are NOT in the money in terms of making a profit IF you sold today, however you have had outstanding use that saved you considerable money and 7 years of savings of about $6pp per year equals $42 in savings

Thus, your adjusted and true cost is $100 - $42 = $58

So, you too are IN THE MONEY!

 

[DebbieB]

I bought BWV in 1999 @ $65. Without even looking at resale numbers, I consider it a great buy. I bought with 42 years left, so $1.55 a point. Add dues this year (6.08), it's worth $7.63 a point. I have a 6 night studio res in early December for 91 points, so $694 or $116 a night vs $454 rack rate. That's where the value is. Resale price is only important if you are selling.

 

[rangermom]

I voted before reading OP initial post. I took it as do I feel I made a good buy for my vacation needs and not if I tried to resale. We love DVC and hands down it has been the best financial decision we have made regarding how we spend our vacation funds. We have been members for 8 years and have stayed at several resorts at DL and WDW. If we paid rack rate for the rooms we have stayed in so far we would have paid more total than we paid for our two contracts. Like previous posters have stated resale is only important if you plan to sale.

But very cool post once I read the OP. Thanks for starting this interesting thread.

 

[Paula Sedley-Burke]

We bought direct SSR and are well in the money. You have not taken into consideration the vacations we have had and what that would have cost to book rack rate. We paid cash and broke even year 4. Now for the mainenance dues we have 2.5 weeks a year. Wat cheaper than rack rate.

 

[bethifoody]

We bought our BLT points resale in '12, for $89/pt. I'm good!

 

[cjb-nc]

If I recall correctly, paid $68 for BWV points in Oct 2000. You value BWV points at $95. That's 39.7% increase in numeric value. But...

39.7% split over 15 years is really about 2.25% compounded annually. Not quite so impressive compared to other investments.

An online inflation calculator tells me that: points costing $68 in 2000 dollars would cost about $94.24 in 2015 dollars, reflecting a cumulative rate of inflation of 38.6%.
That's as close to break even as it gets, in my figuring.

Regardless, as you said at the start, I didn't buy into DVC for the investment.

 

[DVC Doctor]

We bought direct SSR and are well in the money. You have not taken into consideration the vacations we have had and what that would have cost to book rack rate. We paid cash and broke even year 4. Now for the mainenance dues we have 2.5 weeks a year. Wat cheaper than rack rate.

You are 100% correct and I did not account for that as this thread was specifically looking at buying direct from Disney and the resale value today. Similar to buying a home and selling years later for (hopefully) a profit, you at least had a place to live. DVC is definitely much more than a a simple buy and sell exercise, but that only confirms to me that just about anyone that buys DVC either from Disney or resale, uses it for at least 5 years will be well within the profit zone even if they sell for breakeven or a slight loss.

39.7% split over 15 years is really about 2.25% compounded annually. Not quite so impressive compared to other investments.

2.25% compounded interest is a WAY better return on investment than 99.99% of all timeshare purchases

Bravo DVC!

 

[dizfan]

Congrats, that is definitely the lowest Disney charged for BLT and I am pretty sure the same deal applied to VGC for that special as well.

In addition, Disney threw in one or two years of points depending on your use year.

I don't think VGC was part of that Black Friday 2010 DTD promotion. By then, I believe VGC was sold out. AKV and SSR were part of that promotion.

Black Friday 2010 wasn't the lowest for BLT. Spring 2009, BLT was $96/pt for around 160 points. For 270 points, I think it was $91/pt.
Spring 2009, VGC was $87/pt (maybe lower for even more points).

Amazing comparing things today to the days of the economic collapse. Some incredible bargains back then.

 

[silmarg]

In early 2013 we bid $52.50 on a 160pt August UY SSR contract (it was listed at $60. I offered $50. They countered w $55 and we met in the middle). And it passed ROFR! It had no 2012 points, but it had all 2013 points and forward.

In late 2009/ early 2010 we attempted to buy nearly fully loaded 160pt August UY SSR contracts at $65 and got ROFRd twice. We then got one at $67.

So at $59.75 average... I am in the black!

 

[DVCnewB]

Contents removed by me (wrong thread)

 

[sanibel93]

Happy with my purchase. Bought OKW at $50 a point, Bought 2 add-ons at $75. Have not regretted any of the purchases.