It's Almost 2026, Would You Buy a 2042 Resort?

[zavandor]

It's all a matter of price.
If you pay so much that the breakeven is in 12 years for 15 years left, then it doesn't seem like a good idea.
If breakeven is in 8 years, then it's a great deal.

Those are beloved resorts, so they've hold their prices high. Make your calculations, be ready to haggle the price and good luck!

 

[808blessing]

$10000 contract for 100 pts at $100 a point
(left out closing and rounding for easy calculation) you could rent out the pts for $20 a point for the first 5 years and just pay dues for your stays the remaining 10 or so years. If you don't compare to others you are still in good shape.

 

[pzw90]

$10000 contract for 100 pts at $100 a point
(left out closing and rounding for easy calculation) you could rent out the pts for $20 a point for the first 5 years and just pay dues for your stays the remaining 10 or so years. If you don't compare to others you are still in good shape.

Still have to pay dues on the first five years too. So at $20 a point you maybe clear $10, pushes your break even a bit further out

 

[atthebeachclub]

I would price compare buying a contract at a 2042 and maintenance fees vs expected cost to stay as per WDW’s website over the next sixteen years. If you are close, maybe just plan to stay on the hotel side or “rent” directly from Disney. If you aren’t close, buy the contract. The middle ground, of renting from another owner, is always there…but it lacks the same flexibility as owning or reserving from Disney.

My kids are young and loved Beach Club, so I bought a contract there with just enough points for us. I would do it again at the right price. 16 years is a lot of memories, and my kids are growing up fast. I do have other points now too. I know BCV will expire and we will eventually have to fondly say farewell, but I hope I have gotten a lot of mileage from my BCV points by then.

I would only buy a 2042 contract if you LOVE the resort and anticipate it being difficult to reserve there in your preferred room otherwise.

 

[Brian Noble]

My gut reaction would be no, but when I actually looked, it's not terrible.

Beach Club is currently averaging just shy of $140. Amortizing that across the remaining 15 years at 3% (the after-tax rate of a money market right now) is just about $11.50/year. Dues are currently $9.12. So, the first-year total is under $21. That's close enough to the rental price that it is probably worth doing if you are going to treat it like a restricted resale and use every last point at BCV. You lose the flexibility of renting, but you gain control and certainty over your trips. You could argue that 3% is too low given where inflation is right now, and you might be right, but it's within spitting distance.

Boardwalk might be a tougher case to make, because home resort priority might not be quite as critical, but it's also $12pp cheaper, so that works out to probably just about right.

This all assumes an all-cash purchase. FInancing puts you under water; you'd be better off renting.

Full disclosure: I wanted to own in the Epcot-ish area, but imagine having several years' worth of "healthy life expectancy" after 1/31/42, so I did not seriously consider '42s.

 

[HeyJanet]

My gut reaction would be no, but when I actually looked, it's not terrible.

Beach Club is currently averaging just shy of $140. Amortizing that across the remaining 15 years at 3% (the after-tax rate of a money market right now) is just about $11.50/year. Dues are currently $9.12. So, the first-year total is under $21. That's close enough to the rental price that it is probably worth doing if you are going to treat it like a restricted resale and use every last point at BCV. You lose the flexibility of renting, but you gain control and certainty over your trips. You could argue that 3% is too low given where inflation is right now, and you might be right, but it's within spitting distance.

Boardwalk might be a tougher case to make, because home resort priority might not be quite as critical, but it's also $12pp cheaper, so that works out to probably just about right.

This all assumes an all-cash purchase. FInancing puts you under water; you'd be better off renting.

Full disclosure: I wanted to own in the Epcot-ish area, but imagine having several years' worth of "healthy life expectancy" after 1/31/42, so I did not seriously consider '42s.

Thanks for doing the math! I’d want to control my own booking but maybe renting wouldn’t be too bad.

The plan is bank/borrow on three small contracts and use each every three years.

I want to go in early December which has been increasingly hard to book.

 

[Brian Noble]

The plan is bank/borrow on three small contracts and use each every three years.

I don't like this plan. At all. It means every point has only one trip into which it can fit, so you have to hit the total exactly.

I'd like it better if you were trying for two resorts, with an every-other-year cadence.

 

[atthebeachclub]

My gut reaction would be no, but when I actually looked, it's not terrible.

Beach Club is currently averaging just shy of $140. Amortizing that across the remaining 15 years at 3% (the after-tax rate of a money market right now) is just about $11.50/year. Dues are currently $9.12. So, the first-year total is under $21. That's close enough to the rental price that it is probably worth doing if you are going to treat it like a restricted resale and use every last point at BCV. You lose the flexibility of renting, but you gain control and certainty over your trips. You could argue that 3% is too low given where inflation is right now, and you might be right, but it's within spitting distance.

Boardwalk might be a tougher case to make, because home resort priority might not be quite as critical, but it's also $12pp cheaper, so that works out to probably just about right.

This all assumes an all-cash purchase. FInancing puts you under water; you'd be better off renting.

Full disclosure: I wanted to own in the Epcot-ish area, but imagine having several years' worth of "healthy life expectancy" after 1/31/42, so I did not seriously consider '42s.

The amazing part about DVC is after running all the numbers myself, I find that in general the resale market seems to value contracts quite appropriately. An individual contract can of course be priced inappropriately, but in general terms, the invisible hand of the market works pretty well for DVC.

 

[Judique]

My gut reaction would be no, but when I actually looked, it's not terrible.

Beach Club is currently averaging just shy of $140. Amortizing that across the remaining 15 years at 3% (the after-tax rate of a money market right now) is just about $11.50/year. Dues are currently $9.12. So, the first-year total is under $21. That's close enough to the rental price that it is probably worth doing if you are going to treat it like a restricted resale and use every last point at BCV. You lose the flexibility of renting, but you gain control and certainty over your trips. You could argue that 3% is too low given where inflation is right now, and you might be right, but it's within spitting distance.

Boardwalk might be a tougher case to make, because home resort priority might not be quite as critical, but it's also $12pp cheaper, so that works out to probably just about right.

This all assumes an all-cash purchase. FInancing puts you under water; you'd be better off renting.

Full disclosure: I wanted to own in the Epcot-ish area, but imagine having several years' worth of "healthy life expectancy" after 1/31/42, so I did not seriously consider '42s.

I like that you are considering age. One of my problems with the old timeshare model was that it did not expire, per se.

So, 2042 put me at 86ish for my possible last trip on those points. Leaving any timeshare behind was never in the plan and not something I wanted to pass on. As it is, my contracts have my DD's name as well as mine so I violated that idea. She's not invested so hopefully I will be able to 'fix' that issue. Three kids with families, loved going to Disney but now have only a little interest and they can afford it if they want on their own. The plus is my granddaughters can have annual passes if they come with me.

I've been watching the sales and crunching the numbers just for me. And a cash sale may be in my future but I take a long time to make these commitments. I came to the same bottom lines for both BW and BCV. Nothing like when I bought both resorts in 2000 and I think 2002, but the old days are gone and my 'old' bottom line also moved along. One difference, I would sell 2 contracts and buy one slightly larger than both combined to increase my points at BWV. Sell - BCV! Everybody raves but I don't like it all that much and I've had 23 years to figure that out. The other small contract to sell would be Vero. Minimal return but I could still go if I wanted. That would end up saving me money over 15 years.

 

[kilik64]

The amazing part about DVC is after running all the numbers myself, I find that in general the resale market seems to value contracts quite appropriately. An individual contract can of course be priced inappropriately, but in general terms, the invisible hand of the market works pretty well for DVC.

Seems like that Adam Smith guy was onto something...

 

[HeyJanet]

I don't like this plan. At all. It means every point has only one trip into which it can fit, so you have to hit the total exactly.

I'd like it better if you were trying for two resorts, with an every-other-year cadence.

could one time use points help then so no points are wasted?

 

[Brian Noble]

Not during the Home Resort period.

 

[clbielick]

Do the math. When you factor in the incredible point charts (especially if you can snag a resort view at boardwalk)-it makes sense if that is where you want to stay, and you can plan 11 months in advance. My kids also, have decided they love the epcot/HS area. Theres no way to get a resort view BWV room without home resort advantage. I currently have a 6 night 2 bedroom resort view booked for august for 209 points-same time period and cheapest 2br PIT view is 342 points, and 345 at GF.
(that said, doing the math for a higher priced contract, when its only divisible by 15, really impacts your bottom line/calculations, more than slightly overpaying on a contract that still has 40 years left, so price point i think is more important for these contracts)

 

[Girlstar30]

For me personally:

Because its going to be worth zero in 16 years.

If I want out of any of my other contracts during that time, I may get all of my money back or even more. Possibly less but not less than zero.

Id also feel obligated to stay at that hotel every year to get the "value." Since i dont plan to do that with any 2042 resort, id rather just get a pool and garden room at bwv when I want to stay there and wl a resort view if its not avail at 7 months.

BWV is the only 2042 that I really care about. As much as I hate renting if I REALLY wanted a studio one year I would rent so im not locked in with MF's there every year. The MF on BWV are on the higher side and I dont see that changing as the years pass. And I like one bedrooms better anyways and the one bedrooms at bwv are less points than the newer hotels and can easily be justified. Its unrestricted and there for me to book and very easy to get a one bedroom pool and garden even in the fall.

There are just too many other hotels i like to choose from for that to be a good move for me. Other people got to enjoy these hotels for years and years for the same buy-in price im paying, just doesnt seem like a good deal for me. If I was older id think differently.

 

[Patmcpsu]

I would buy a 2042 resort if the price was right, but their prices have been pretty sticky over the years. I think they're currently overpriced due to that, and are due for a correction.

 

[808blessing]

Still have to pay dues on the first five years too. So at $20 a point you maybe clear $10, pushes your break even a bit further out

I was thinking resale.

 

[Tatebeck]

I was thinking resale.

We know, but your math is still off. Buying a $100 per point contract ($100/15 years) = $6.66 per point per year
Then add dues ($9.06 for 2025) = $15.72 per point for the 2025 points, if you rent those out at $20 you are netting 4.27 per point (before taxes)

$4.27 per year net x 15 years remaining is only $64 you make back. You would never make the money back.