MORE HELP NEEDED with DVC point purchase!

[ColoradoBelle1]

HI all,
Thank you all for your help in educating me in the benefits of DVC ownership.
After a drought of listed resales in the small point category that I can afford, today brought 3 possibilities of listings and I need some more imput in making a decision.

Someone helped me last week by instructing me that a dollar cost value could be ascertained by adding up the cost per point, the maintenance, the closing costs to arrive at a NET cost to me for comparison purposes.

ONe new contingency came up....
in the 3 listing, 2 of them have no points available for 2005 but one has full points available for 2004 and 2005....and I think it reasonable that I include this extra benefit somehow in computing costs...cause this listing is more per point than the other two. But I don't know how to 'value' these 'extra' points .
Can someone help?

If I've confused everyone....I have a habit of doing that ,so let me give an example of how I was instructed to add in closing costs and consider maintenance costs of different resorts in comparisons.

If I could buy 100 points at $77 a point, the $450 closing would add an additional $4.5 to my point cost or net $81.5 . If a second property were for 200 points at $75 per point then my per point addition for closing costs per point would be $2.25 or $77.25( but a bigger totalcash outlay and higher total maintenance.

Disney includes closing costs, so SS could be had for 150 points for $85 total per pointusing incentives.

The last listing is for 100 points @ 80 per point plus $4.5 closing=84.50
BUT there are 100 points from2004 and 100 in 2005 with maintenance only on the 2005 points
So how to I adjust the 84.50 downward to reflect this 'bonus'?

There is a further property listing at HH for only $67 per point but lots more points and I'm just getting way overwhelmed and muddled.

HOpe you can offer some guidance and quickly...as these listings get bought up fairly fast, especially the 100 point ones!!!
Thanks,
Colorado Belle

 

[dianeschlicht]

I think you are over analyzing it. If 100 points is what you want, then this one is a good deal, because it has two years of points with one year of maintenance.

 

[bobbiwoz]

Some people rent out points, or transfer "extra" points for about $10 each. So, that's one way of looking at the '04 points that you're not paying maintenance on.

Best wishes, and pixie dust!

Bobbi

 

[Rpsemont]

I don't mean to further muddy the waters, but you have to allow for SSR being more years that other resales. When I was going through this, I did little excel spreadsheet. Don't know how well I can explain it here, but I would take number on contract points and muliply by 36 to get total points for years 2006-2041 (for all but SSR). Then I would add any 2005 points available. This would give me total points on the contract. If you were looking at 150 points, all 2005 in tact, total would be 5550 points - life of contract. Then I would take the list price, add in maintenance fees to be paid at closing (which is a negotiable item) and add in closing costs. So for the example above, let's assume $77 point sale price = $11550 plus you offer to pay reimburse all 2005 MF's ( was using BWV at $4.25 - may not be accurate now) -anyway that would be $637.50 plus closing of $450. Total is $2.28 per point over the life of the contract. Interestingly enough SSR at $85 for 49 years is $1.74 point - if you factor in paying DVD a year of MF's then it's $1.82 . This, of course does not factor in time value of money. But I found it helpful for comparing similiar point contracts.

Personally it really boils down more to what you want and what you can afford. IMHO

 

[TammyAlphabet]

I did a financial analysis of the cost differential between the boardwalk and Saratoga Springs and found that, even if i buy my BWV points through Disney at 89 dollars per point, it is still cheaper to stay there than at the SSR in some instances.

150 points at BWV for 36 more years yields 5400 points. Total initial cost of contract of 13350 divided by 5400 points is 2.47 per point. Now, add back 4.41 in maintenance fees per point at the BWV and you get 6.88 per point used for a BWV stay. Now, if you book a standard view, since you have the home resort advantage this is 9 points per night (adventure season) or 61.94 per night. for the standard view at the BWV (adventure season) for a one bedroom is 16 points or 110.12 per night.

Now, lets look at the SSR resort. 150 points with the 10 dollar per point incentive is 85 per points for 49 more years is 7350 points. Divide the 12750 by 7350 and the cost per point is 1.73. Now, add back the maintenance fees of 3.83 per point and the cost per point used would be 5.56 per point. Now, in the same dates (adventure season) a studio at SSR is 11 points or 61.21 per night (a little less than the BWV). the one bedroom at 20 points per night is 111.29, Actually a few cents MORE than at the BWV.

Bottom line, you can THINK you are getting a better deal with the incentives and so forth, but, pay attention to the real cost. Of course these calculations don't look at inflation nor do they factor in the possibility of saving even more for BWV by buying resale. And, I am not exactly sure that I calculated the maintenance fees correctly.

I was originally going to go for the incentives for the SSR but I am now on the waiting list for the BWV. Buy where you most want to stay. The best advice on the DIS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1

 

[ColoradoBelle1]

Thank you all so much...
You really have helped and you each explained your calculations so even my muddled head could understand!!!!

I've now narrowed it down to two, and using a combo of these different approaches when applied to my personal sitch, I have one additional question:

and I realize that none of us are probably psychics!!!!

In 10 years time, what would your best guess be as to the resale value of HH over SS. Assuming people got into HH at a significantly lower price than SS and assuming everything else equal, am I right in thinking that the resales of HH would probably be lower than the resales of SS?

Again, thanks you guys....you are the best! Can't wait until I'm part of the family!!!
colorado belle

 

[dizplanner]

Currently HH resells for less than the WDW resorts and I expect that to continue. The big question is that would the spread between them widen or not. Who knows?

 

[ColoradoBelle1]

Hi Karen,
Thanks for responding. I think that all things equal, the spread would widen even further when comparing HH to SS because of the extra years with SS.
Now it's not so relevant because we all may be dead by the time our DVCs expire (hope not!!!) but as for resales in 15 years...I know that if I were buying I'd want the longer usage at SS.

I've HEARD that Dis isn't buying back HH and that buy backs in order of liklihood would probably be: BCV, BWV, WL, then a tie for SS and OKW then HH.

So I'm going to think REALLY REALLY hard tonight and put in my offer in the morning. Wish me luck!!!

CB

 

[Rpsemont]

I did a financial analysis of the cost differential between the boardwalk and Saratoga Springs and found that, even if i buy my BWV points through Disney at 89 dollars per point, it is still cheaper to stay there than at the SSR in some instances.

Absolutely true! We actually did buy BWV at $89. Besides wanting to be able to stay in that location, those lower points values for SV really influenced our decision.

However, in considering whether to add on at SSR or OKW - trying to factor in points per night vs. price, it does not seem as important (at this time) to have the 11 month lead for OKW, and for ease of purchase, we'll probably go with SSR

 

[tjkraz]

I've HEARD that Dis isn't buying back HH and that buy backs in order of liklihood would probably be: BCV, BWV, WL, then a tie for SS and OKW then HH.

The supposition that DVC isn't buying back HHI is not correct. They will buy back ANY property if they feel the price is too low. Simply put, ROFR is used to keep people from getting properties like HHI for $50 per point while they (DVC) are still trying to sell SSR for $85-95 per point.

ROFR thresholds are certainly different for each resort based upon demand, but they do still exist. I don't think there is any global "likelihood" from one resort to the next, either. It all depends on how the terms of each individual deal stack-up against DVC's internal criteria for buying-back the contract.

In 10 years, I don't think there is any question that SSR will have a higher resale value than HHI. HHI contracts will have only 27 years left while SSR will have 39. SSR is on-site...HHI is not. Heck, if you look at the Timeshare Store website now, the SSR resales are listed in the $77-83 range. The HHI resales are in the $69-70 range. I can't envision a set of circumstances that might narrow that price gap in the next 10 years.