Never buying direct again

[papertraveller]

I'm thinking about picking up a Marriott week resale. From what I've read in learning about Marriott in general, and more specifically their direct vs. resale, Marriott owners are as disappointed about the resale values as us DVC owners are. Bottomline, it's a good time to be a timeshare buyer rather than a seller, and overall I'm not convinced that buying direct adds any value other than retaining a few 'excluded' perks that most likely aren't going to be missed anyway.

We are Marriott owners also -- and all I can recommend is research the heck out of your proposed purchase. Review the resort, its ownership structure, and the week you're thinking of buying. Get the highest quality you can in week and unit type and resort, especially if you are thinking about trading in the future. It's the smaller units in the less attractive resorts in the poor weeks that, no surprise, have very little value. I'd also recommend reading up as much as possible about the spin-off that's underway, including reading all the documents on EDGAR.

 

[Mtnman44]

This seems like somewhat flawed logic because the amount of available inventory is directly tied to the amount of points sold. Thus, more new members = more inventory for everyone to booki.

As an owner, who wants to see their point value decline. But someone like me who has no intention of selling gives little attention to the current resale price. To put a positive spin on the surging resale market, I see things this way. When new contracts are sold, they go to new members. That means more members viing for reservations with you during peak vacation periods, that means more members ahead of you on waitlists, that means more members on hold ahead of you to member services. As for the resale market, the torch is being passed from one owner to a new owner which in turn keeps the membership pool the same.

 

[Sandisw]

This seems like somewhat flawed logic because the amount of available inventory is directly tied to the amount of points sold. Thus, more new members = more inventory for everyone to booki.

True, but if the new inventory is not the inventory others want to be at, then it can cause an imbalance in some of the resorts.

For example, all the new Aulani owners will be adding to the system. If there are more of them that decide they want to trade in to WDW, then there are WDW DVC owners who want to trade to Aulani, there will be more competition at the WDW resorts at the 7 month mark.

 

[Mtnman44]

Good point. All bets are off at 7 months.

True, but if the new inventory is not the inventory others want to be at, then it can cause an imbalance in some of the resorts.

For example, all the new Aulani owners will be adding to the system. If there are more of them that decide they want to trade in to WDW, then there are WDW DVC owners who want to trade to Aulani, there will be more competition at the WDW resorts at the 7 month mark.

 

[dvcbrad]

We are Marriott owners also -- and all I can recommend is research the heck out of your proposed purchase. Review the resort, its ownership structure, and the week you're thinking of buying. Get the highest quality you can in week and unit type and resort, especially if you are thinking about trading in the future. It's the smaller units in the less attractive resorts in the poor weeks that, no surprise, have very little value. I'd also recommend reading up as much as possible about the spin-off that's underway, including reading all the documents on EDGAR.

All good thoughts ... thanks traveller. We've gained a pretty good perspective on Marriott - stayed at Kaui Beach Club and at Canyon Villas, have a couple of neighbors who are owners, and have done the tour/sales pitch at Waiohai. I've read a lot on tug boards, too. It's interesting ... I know much more about Marriott now before buying than I did about DVC before buying ... and that's worked out pretty well (despite the fact I don't like the DVC strategy of continuing to develop at WDW vs off-site. I feel like they're over-saturating that market, but that's another topic for another thread!)

 

[Breyean]

True, but if the new inventory is not the inventory others want to be at, then it can cause an imbalance in some of the resorts.

For example, all the new Aulani owners will be adding to the system. If there are more of them that decide they want to trade in to WDW, then there are WDW DVC owners who want to trade to Aulani, there will be more competition at the WDW resorts at the 7 month mark.

Yep. I said this a few weeks ago. Until now, with the small exceptions of VB and HHI, the DVC was pretty much a closed system. Most people owned SOMEWHERE within the DW resort chain, so even when they tried out resorts other than their home resorts, the net effect was just a reshuffling of what rooms w/b available at what resorts.

With Aulani there is now a BIG off site resort, with a lot of potentially new buyers into DVC. We live in AZ, have been members of DVC since 1993, and recently added on at Aulani. During that sales pitch, on an Alaskan cruise, the ability to use the Aulani points for trips to DW was a big selling point stressed by the guides.

That's what DVC has to offer over other timeshares - the parks and really nice resorts to stay in while visiting them. As more resorts get built outside that previously closed system (as it seemed to be specifically mentioned in the recent DVC reorg press release) these new resort owners will eventually, some more often than others, of course, be staying at DW. And there's not going to be a big empty DVC resort sitting there waiting for them.

Will that be offset by current DVC people using their points to go to Aulani or other new DVC resorts not at DW? That's the question. Otherwise home booking advantage at DW will become a lot more critical than it is today, because at 7 months things could get hairy.

 

[DenLo]

i was looking to add 50pt direct myself, but looking at the going rate, gonna have to check resale. Unfortunately the 50pts currently listed dont have any points till 2013. bummer.

Seeing what's passing ROFR these days I'm never buying direct again. Now I just keep checking the Timeshare store for a 50 pt BLT for under 95/point.

In fact thoughts go to just renting points. I have a timeshare at a nice Mexican resort (Paradise Village) that I can't give away because the resort didn't protect the value of the timeshare.

But I love my DVC - no doubt about it

I think both of you might see why some still buy DVC points direct. You both want a small contract and probably a specific use year and I would think unless it's a real bargain you'll want it fully loaded. Those contracts aren't really easy to find. I know we wanted a BLT contract like that and finally gave up and bought direct. Of course we bought before BLT was increased to $140 price with no incentives and we didn't have to pay closing costs either when we purchased last year.

This seems like somewhat flawed logic because the amount of available inventory is directly tied to the amount of points sold. Thus, more new members = more inventory for everyone to booki.

Actually the inventory is not directly tied to the amount of points sold but the number of units declared. When a declaration is made those villas listed in the declaration are opened to the membership for reservations. It might take years for the points to be sold but the villas can still be reserved. For example BLT has declared 99% of resort but only 89.4% has been sold. Members can book 99% of the resort at BLT.

 

[teamtilt]

Can't use your points on cruises! we're on cruise #5 7 years in More options with buying direct

 

[Jason@dvcstore]

Now I just keep checking the Timeshare store for a 50 pt BLT

Jason

 

[Buckeye Fan]

Can't use your points on cruises! we're on cruise #5 7 years in More options with buying direct

I have never done this before, but now with various options to rent points (Disboards, eBay, TTS, etc.), would it cost you less to rent out your points and pay cash? We are thinking of going on a cruise in a year or two and was going to look into that option.

For those purchasing resale that have lost the flexibility to use points for cruising, this may be a good option.

 

[mickeyc]

DVC has gotten so expensive it maybe cheaper to buy a condo or home in the area.

 

[DVC Dude]

DVC has gotten so expensive it maybe cheaper to buy a condo or home in the area.

Yep

Here is a 2 bedroom HOME for $80,000

http://www.zillow.com/homedetails/5330-Warrior-Ln-Kissimmee-FL-34746/46276582_zpid/#{scid=hdp-site-map-bubble-address}

Here is a 2 bedroom condo 1.5 miles from Disney for $42,000

http://www.zillow.com/homedetails/3004-Parkway-Blvd-APT-111-Kissimmee-FL-34747/63507854_zpid/#{scid=hdp-site-map-bubble-photos}

**********************

$42,000 = 420 DVC points
$80,000 = 800 DVC points

 

[nunzia]

Cute condo!! I wanted to move to Florida that would do for me.

 

[cheezNE1]

Looks like BLT went up to $150. That is crazy.