Most Economical DVC resort

[Drewferin]

I know this has been discussed in the past, however I wanted to start a new discussion. SSR is the most economical resort as proved by the initial cost per point and by paying annual dues for the life of the contract. My premise to this discussion is which resort would be the most economical if a DVC contract was only held for 10 years? The attached picture shows all DVC resorts sorted by the most economical to the most expensive. I took the initial purchase price of 180 points and added in 10 years of annual dues (Yes, I know these change every year and they aren't the same % increase per resort).

 

[MooseBucks]

Do you have any assumptions for dues increases? Can you upload the excel file?

 

[Drewferin]

This forum system only allows uploads less than 2MB so I could only upload my lower resolution picture. I have heard annual dues go up on average 6.5% plus or minus.

My point to this posting is that the vast majority of DVC owners will not own for the life of the contract/resort. A 10 year look at costs associated with DVC membership might be something to consider. The 10 year ownership in my data could easily be replaced with 15 or 20 years.

 

[JETSDAD]

Another thing to account for might be the points required to stay at the various resorts.

 

[Drewferin]

You are correct the number of points purchased could also be another variable to consider. The 160 to 200 point contracts are the most commonly purchased so I used 180 points in my calculations.

 

[JETSDAD]

You are correct the number of points purchased could also be another variable to consider. The 160 to 200 point contracts are the most commonly purchased so I used 180 points in my calculations.

I meant more about the number of points required per night.....some of the older resorts would require less points per night so even if a point costs more it goes further. If someone is able to consistently book AKV Value studios then that is going to make AKV much more economical (though I wouldn't base an entire resort value on such a small category, I'm just making the point that the number of points required per night affects how economical a resort is).

 

[siren0119]

Another thing to account for might be the points required to stay at the various resorts.

This. Most economical is going to change based on the time of year you plan to travel and the size of a room you expect to book most often.

Also, it can't be said enough that you should buy at the resort you plan on staying in the most often, because you can book rooms at your home resort 11 months ahead of your trip but you have to wait until 7 months before to book at any other resort. Especially if you're pricing out expecting to book a value studio, your chances of getting them later than the 11 month window can be difficult-to-impossible.

 

[MooseBucks]

This forum system only allows uploads less than 2MB so I could only upload my lower resolution picture. I have heard annual dues go up on average 6.5% plus or minus.

My point to this posting is that the vast majority of DVC owners will not own for the life of the contract/resort. A 10 year look at costs associated with DVC membership might be something to consider. The 10 year ownership in my data could easily be replaced with 15 or 20 years.

Assuming a flat 6.5% increase on dues for 10yrs you're looking at a much closer number between SSR/Vero...$34,266 for SSR and $34,007.

 

[Drewferin]

The continuous compounding of 6.5% over 10 years would be 187.7137%. Then looking at annual dues you are correct this would heavily impact the more expensive due resorts as compared to the lower due resorts. I'll update my spreadsheet with compounding interest and see how that impacts everything.

 

[Drewferin]

It is pretty amazing even in my 10, 15 and 20 year calculations SSR is always #1. The compounded 6.5% on annual dues over my 10 year period was a nice catch

 

[kboo]

This is really cool! Another way to procrastinate on this Friday afternoon... LOL

 

[MooseBucks]

The continuous compounding of 6.5% over 10 years would be 187.7137%. Then looking at annual dues you are correct this would heavily impact the more expensive due resorts as compared to the lower due resorts. I'll update my spreadsheet with compounding interest and see how that impacts everything.

Numbers might still be a little off...here are my quick calcs for dues for Vero and SSR...If time allows I'll put something better looking together.

 

[Drewferin]

This is really cool! Another way to procrastinate on this Friday afternoon... LOL

Happy to help you procrastinate on a Friday!! Just started to think last night which DVC resort is the most economical if you dont own more than 10, 15, 20 years...

 

[Drewferin]

Third attempt but I spent more time on each resort to get the compounded interest correct. SSR fell to #2.

 

[MooseBucks]

Interested to get thoughts on this...used Compound Annual Growth Rate for the dues since first offered for sale to 2019 Proposed Dues. VGF comes in first and Vero Beach comes in last??? I'm assuming it is caused by Disney keeping most annual dues increases down while they are selling but still interesting to see this.

 

[skippytx]

Interesting exercise, but too many variables to really consider, including your exit/sell price. I'd focus on point cost for similar accommodations across the resorts. Like we planned on a week long trip in Magic Season in a 2 bedroom, at AKL that's 287 points. Bay Lake it's 354 points. SSR 294. Obviously SSR is the winner there.

Then again there's nothing economical about owning DVC or visiting WDW, it's a pure luxury so I don't really worry about it too much.

 

[Drewferin]

Interested to get thoughts on this...used Compound Annual Growth Rate for the dues since first offered for sale to 2019 Proposed Dues. VGF comes in first and Vero Beach comes in last??? I'm assuming it is caused by Disney keeping most annual dues increases down while they are selling but still interesting to see this.

After reviewing your compounded math for annual dues I dont think our numbers match. Something isnt right... Here is my 10, 15 and 20 year chart.

 

[JETSDAD]

After reviewing your compounded math for annual dues I dont think our numbers match. Something isnt right...

Did one start from today and the other from the beginning of each resort?

 

[Drewferin]

My updated chart above is from today into the future 10, 15 and 20 years. Had more time to work through the compounding annual due tables.

 

[MooseBucks]

After reviewing your compounded math for annual dues I dont think our numbers match. Something isnt right... Here is my 10, 15 and 20 year chart.

I switched to using the actual compound annual growth rate since all resorts don't increase at the same rate.