Newbie... thinking about Aulani!

[sugliac]

Hi, folks!

Brand new poster. Looking to buy an Aulani contract. See on on the DVC resale market that is about 1400 points, and I’m wondering how much I should be offering. They’re asking for $99/point but I feel like I can low ball a little because of (a) how many points are being offered and (b) the fact that Aulani will 99% def pass ROFR.

Thoughts on a good offer pp?

 

[Ben E N]

Is it a subsidized contract or not? That will make a big difference with that many points.

 

[jerseyduke]

You are buying 1400 points?

I see one 1417 pointer out there. 99 a point - it seems like you could get the same number of points by multiple smaller contracts at about the same price, and that would be MUCH easier to sell should you ever need to.

Considering how hard I think it would be to sell that, I do not think I would offer over 90 per point.

Otherwise I would just go with smaller ones.

But I admit, I can not offer a great opinion, its hard as I do not have those financial resources.

 

[sugliac]

Is it a subsidized contract or not? That will make a big difference with that many points.

I have no idea what subsidized is haha. It’s $7.86 dues and expires 2062.

 

[sugliac]

You are buying 1400 points?

Yes I am looking for a large contract.

 

[sugliac]

To look at it a different way, I’ve seen larger contracts here selling for low 80s. Is that a reasonable offer?

 

[jerseyduke]

I have no idea what subsidized is haha. It’s $7.86 dues and expires 2062.

That is not subsidized. Subsidized dues would be a little less that 2$ less per point.

 

[sugliac]

That is not subsidized. Subsidized dues would be a little less that 2$ less per point.

Good to know. So what does it mean/matter that it isn’t subsidized?

Apologies for the rookie questions!

 

[jerseyduke]

To look at it a different way, I’ve seen larger contracts here selling for low 80s. Is that a reasonable offer?

And I am not trying to be rude with this question and I understand some families don’t have the financial ability to pay 6 figures for a DVC contract. I just want enough points for my family and I to have a 2br in Aulani/Orlando. Also this many points will allow us to offset dues every year without any issue.

That was my point. You do not want a large contact - you want a lot of points. Sure one contract is easier, I get that, but because it is going to be hard to sell, I would want a steep discount.
Offer in the low 80s, worst case is they say no. (I was wondering if there was some odd reason someone would want a large contract specifically - outside of convenience - but did not think it was my place to ask)

Subsidized contracts will be more expensive since the dues are lower. you save 2$ per point the first year alone - so figure a subsidized contract will go for at least 10 - 20 $ more per point

You have no idea what the sellers situation is. Obviously they at least had some significant financial means when they purchased the contract. If they are still in that boat, they might not wiggle much. If they need the money 'badly' they might wiggle a lot, as there are not going to be too many potential buyers, and that contract has been up there since March.

 

[_auroraborealis_]

Good to know. So what does it mean/matter that it isn’t subsidized?

Apologies for the rookie questions!

When Aulani opened Disney set the dues lower than was actually necessary for upkeep. State of Hawaii found it to be deceptive, and shut down sales for a while. Anyone who bought before that time received subsidized dues for the life of the contract, so pay less per point than other buyers after that date.

Aulani's been a hot mess since day one, really. If you're buying Aulani because that is where you travel with family, just be aware that ongoing development in Ko'Lina is likely to change views and resort feel long-term. If you're buying Aulani for any other reason, I'd strongly suggest reconsidering resort choice.

 

[sugliac]

That was my point. You do not want a large contact - you want a lot of points. Sure one contract is easier, I get that, but because it is going to be hard to sell, I would want a steep discount.
Offer in the low 80s, worst case is they say no. (I was wondering if there was some odd reason someone would want a large contract specifically - outside of convince - but did not think it was my place to ask)

Subsidized contracts will be more expensive since the dues are lower. you save 2$ per point the first year alone - so figure a subsidized contract will go for at least 10 - 20 $ more per point

Good to know.

 

[jerseyduke]

Even with a series of smaller contracts, certainly get the same UY!

 

[Matty B13]

I would stick to contracts, under 200 points each, just make sure they are the same UY and your account will work as if it is all one big contract.

Finding someone to buy a 1400 point contract is very difficult and usually goes for a lot less per point.

 

[sugliac]

Great info, thanks all! I guess the biggest point is the “insurance” of whether or not I may need to re sell it down the line. It’s certainly a lot to consider.

Thankfully, I probs don’t need to worry about ROFR so it makes getting many contracts even easier.

 

[BillPA]

$99 is too much for that large of a contract. I would not pay more than $80. Actually I would never buy 1 contract with that many points.
Do you know contracts can not be split, so this would always be a 1400+ point contract.

 

[Great3]

Personally I wouldn't offer any more than $70 per point for unsubsidized Aulani above 1400 points, as it will be hard to resell if need be. Even than, I rather pay $90 - $100 per point for multiple 200 points contracts with same UY, as I can sell the contract as needed and still have some DVC points left. Obviously, it doesn't matter if you know you are going to hold to 2062, but I am betting needs and wants will change within the first 20 years of ownership.

Of course, just because I feel it's worth at most $70 doesn't mean seller will be willing to sale. Seller wants market price, I understand, but market price of about $100 / point for Aulani, I believe is for 500 points and less contract, not for Aulani 1400 points contract. Than again, if the seller can purchase 1400 points in one shot, I doubt seller will ever be distress enough to ever need to lower asking price. So, I would way, just give it a shot, make the offer you feel is fair, and let the seller(s) respond how they will respond.

Good Luck.

Great3

 

[Fred M]

I just want enough points for my family and I to have a 2br in Aulani/Orlando.

If you want to do both Hawaii and Orlando, at least look into getting two 700 point contracts, one at Aulani and the other in whatever resort you'd like to stay in Orlando. Since you need a 2 BR, if you're competing with everyone else for a 7 month reservation in Orlando, you're going to short yourself on inventory. Generally about half the 2 BR DVC units are dedicated 2 BR while the other 2 BR units are 1 BR + studio lock offs. Studios always go first, so you'll have less selection when you go to Orlando if you don't have an Orlando home resort.

 

[AaronEuth]

I assume this is the 1417 Aulani contract on dvcresalemarket? That contract was listed on March 22nd, almost 5 months ago. That shows you how hard it will be for you to sell in the future and also how much leverage you have in your offer. Also, given the size of the contract, I assume you have children. What would happen to it in the event of it needing to be passed on? That contract can't be split up, so which child (if any) gets a huge contract with a 10k yearly bill? Liquidating it quickly would require Disney take it at probably 40% market rate.


I would suggest going through the resale sites, and searching by resort and use year. Any points bought with the same resort and use year would effectively become one large contract when using the points. But in the event of needing to sell, they would be able to be sold piecemeal with a larger cost per point. For example right now BLT February has almost 2000 points listed, in contracts ranging from 100 to 400 (and 5-160 pt contracts if you want uniformity).

 

[stuartsong]

If this is your first DVC contract, I would not purchase one with so many points. Start out smaller, then add on.

 

[sugliac]

To give some context too we wouldn’t be using the 11 month window (ever) just because it’s not how our employers operate. Especially because I’m in litigation, I take vacations when we aren’t dealing with a big case. So because of that, we don’t care if we have a home resort in Orlando, to be candid.