Newbie trying to figure it all out - VGC??

[Straulin]

Oh. So if I were to buy a contract of 100 points from a resale site for VGC....and then later on decide we want to be able to use more points each year, we'd need to find another resale contract for VGC since we can't just add points directly from Disney. Is that correct?

Then our membership would have 2 contracts for 2 different amounts of points that could be combined on one reservation for a villa at the Grand Cali?

Am I getting that right at all?

Use Year: This determines what 1st day of the month that points are added and also the deadline to bank any points you are not going to use.

If you are not going to use points that year you can save (bank) them until the following year. Banked points must be used the following year or they are lost. Once points are banked, you can’t use them until the next use year. “Using” is based upon reservation date rather than booking date.

For planned stays in February, June, and December, the best use year would be December as the banking deadline for a December use year is July 31st. That way you would have time to back any left over points without interfering with your trips.

Adding points: It works best if both contracts are for the same resort and use year. Different resorts have different booking windows so only the points at VGC could be used to book at 11 months. Different use years would have the same booking window but can complicate the banking process if you need to bank.

Borrowing: You can actually use up to three years points in a single year. For example, you bank year one’s points and borrow year three’s points to use them all in year two.

 

[Sandisw]

Use Year: This determines what 1st day of the month that points are added and also the deadline to bank any points you are not going to use.

If you are not going to use points that year you can save (bank) them until the following year. Banked points must be used the following year or they are lost. Once points are banked, you can’t use them until the next use year. “Using” is based upon reservation date rather than booking date.

For planned stays in February, June, and December, the best use year would be December as the banking deadline for a December use year is July 31st. That way you would have time to back any left over points without interfering with your trips.

Adding points: It works best if both contracts are for the same resort and use year. Different resorts have different booking windows so only the points at VGC could be used to book at 11 months. Different use years would have the same booking window but can complicate the banking process if you need to bank.

Borrowing: You can actually use up to three years points in a single year. For example, you bank year one’s points and borrow year three’s points to use them all in year two.

One small clarification for those new. All poi are in your account from the start…they are not added when a UY starts.

That is why when you book doesn’t matter..only when you travel.

The UY just defines when and which points can be used. But my 2023 June points are in my account right nkw.

 

[AstroBlasters]

CA Website Rabbit Hole:

So the contract was originally purchased direct from DVD in June of 2009 or 2010 (seller owned 2 contracts).

Original purchase of 200 points at ~$120pp= $24k

Sell 200 points at $235pp less 8% commission= $43k

Net proceeds after 15% LTCG, 3.8% surcharge, 8% CA state= $31.5k

Dues from 2010 to 2022: 14k total.

Total cost of contract after tax, commission and lifetime dues: $24k-$17.5k = $6.5k or $541/yr.

TVM: 12 years worth of magical family vacations.

Well done, sir. Well done.

 

[ClaraOswald]

How do you see how much they paid initially?

 

[AstroBlasters]

How do you see how much they paid initially?

It was purchased direct, so I can just see what the direct prices were at the time

 

[CarolynFH]

it doesn't show that anything was recorded last Friday or yesterday.

Last Friday was Good Friday, and yesterday was Easter Monday. Some governments have holidays then, and some employees like to take vacation then, especially if their kids were out of school for the long weekend like kids around here were.

 

[ClaraOswald]

It was purchased direct, so I can just see what the direct prices were at the time

Yeah, our sellers bought in November 2009.

Is there any significance to the unit number listed in their original deed?

 

[AstroBlasters]

Yeah, our sellers bought in November 2009.

Is there any significance to the unit number listed in their original deed?

Not that I am aware of.

 

[ClaraOswald]

I know you guys told me on another thread the other day but I can't find it now...

What time do I need to be up and ready to book my trip at the 11 month mark? Central time?

 

[HIRyeDVC]

I know you guys told me on another thread the other day but I can't find it now...

What time do I need to be up and ready to book my trip at the 11 month mark? Central time?

8am EST

 

[CarolynFH]

Is there any significance to the unit number listed in their original deed?

Yes, that is the actual “real estate interest” you own in that building. I don’t know how California timeshare law works, but in Florida’s records you can look up specific drawings of each DVC resort to see the Residential Units, which may consist of one villa or several villas, all the same kind (all studios, for instance) or multiple kinds, and may be different sizes. We have 2 contracts, each equivalent to 150 points, and we figure we own a doorknob in one and a faucet in the other.

 

[HIRyeDVC]

Yes, that is the actual “real estate interest” you own in that building. I don’t know how California timeshare law works, but in Florida’s records you can look up specific drawings of each DVC resort to see the Residential Units, which may consist of one villa or several villas, all the same kind (all studios, for instance) or multiple kinds, and may be different sizes. We have 2 contracts, each equivalent to 150 points, and we figure we own a doorknob in one and a faucet in the other.

Everyone owns a door knob. I like owning the lanai sliding door handle

 

[ClaraOswald]

Interesting. It says "unit **" (not sure if I should put the actual 2-digit number for privacy reasons?!) as if it's an actual condo unit or something...which obviously isn't the case.

 

[CarolynFH]

Interesting. It says "unit **" (not sure if I should put the actual 2-digit number for privacy reasons?!) as if it's an actual condo unit or something...which obviously isn't the case.

In this context, “unit” does not equal “villa” - your unit might be a 2BR lock off or a single Grand Villa or some other combination of villas.

 

[CarolynFH]

Interesting. It says "unit **" (not sure if I should put the actual 2-digit number for privacy reasons?!) as if it's an actual condo unit or something...which obviously isn't the case.

As an example, the most recent declaration into the Riviera condominium association consisted of 25 Vacation Homes (villas) of various sizes distributed among 9 Residential Units (https://www.dvcnews.com/wdw-resorts...-25-vacation-homes-to-riviera-s-dvc-inventory) while the VGF2 BPK addition consisted of 2 Residential Units of 101 studios each.

 

[Epcot Forever Forever]

CA Website Rabbit Hole:

So the contract was originally purchased direct from DVD in June of 2009 or 2010 (seller owned 2 contracts).

Original purchase of 200 points at ~$120pp= $24k

Sell 200 points at $235pp less 8% commission= $43k

Net proceeds after 15% LTCG, 3.8% surcharge, 8% CA state= $31.5k

Dues from 2010 to 2022: 14k total.

Total cost of contract after tax, commission and lifetime dues: $24k-$17.5k = $6.5k or $541/yr.

TVM: 12 years worth of magical family vacations.

Well done, sir. Well done.

As one of the leading advocates for using TVM or an alternative cost of capital system for your calculations when buying in, I will freely admit that if the value of the contract stays the same or goes up, *and you sell when it does*, you will win, no matter how or where you bought.

 

[AstroBlasters]

With inflation, I could easily see VGC going for $400pp in 10-15 years (3-5% inflation). It would still have 22 years left on it and possibly new Disney Forward Theme Parks in walking distance.

 

[ClaraOswald]

Obviously I would never plan on that but it would be a welcome 'surprise' if/when it comes time to sell. I'd love to keep this contract for as long as we can but it will all depend on our health and whether or not we want to continue going to Disney parks as we age. (For reference, I'll be 42 next month and my husband turns 45 this summer.) I have rheumatoid arthritis so on my bad pain days......I get pretty worried about these trips. Even ones now. It sucks. So I try not to think too much about 10+ years down the road or I'll drive myself nuts.

Where can I see what the cost of VGC was in November 2009? I'm curious what my seller's paid.

 

[AstroBlasters]

Obviously I would never plan on that but it would be a welcome 'surprise' if/when it comes time to sell. I'd love to keep this contract for as long as we can but it will all depend on our health and whether or not we want to continue going to Disney parks as we age. (For reference, I'll be 42 next month and my husband turns 45 this summer.) I have rheumatoid arthritis so on my bad pain days......I get pretty worried about these trips. Even ones now. It sucks. So I try not to think too much about 10+ years down the road or I'll drive myself nuts.

Where can I see what the cost of VGC was in November 2009? I'm curious what my seller's paid.

https://*******.com/dvc-information/financial/history-of-dvc-direct-sales-price/

 

[ClaraOswald]

Looks like it was $112 in March 2009. The next one I see listed is July 2010 for $120. So I'm guessing they got in at $112. I'm jealous! I don't know how to run all the numbers you did above but I think they came out pretty well!