Opinions on resale purchase: How much do you weigh contract exipiration?

[mustinjourney]

We must have taken the same stock trading courses!

I used to joke that if there was a fund that shorted whatever I did, you would have made a killing.

Point in case, I sold all my stocks end of January 2016. So everyone that made money since then can thank me for getting the stock market back.

 

[MouseOfCards]

That's why I don't buy individual stocks other than situations where I get other benefits or have inside knowledge (not illegal). Currently the only individual stock I own is RCCL for the added onboard credits.

What benefits exactly does owning RCCL get you? And how many shares do you need to buy?

Also, are there any benefits at all to owning Disney stock now?

 

[mustinjourney]

What benefits exactly does owning RCCL get you? And how many shares do you need to buy?

Also, are there any benefits at all to owning Disney stock now?

http://www.rclcorporate.com/investors/shareholder-benefit/

 

[Dean]

What benefits exactly does owning RCCL get you? And how many shares do you need to buy?

Also, are there any benefits at all to owning Disney stock now?

Cabin credit that varies with the length of the cruise on RCCL, Celebrity and Azamara. $50 for 5 nights or less, $100 6-9 nights, $200 above that and $250 14 nights or more. I think it's 100 shares and if jointly, 100 shares for each credit but only one credit per cabin.

 

[BillPA]

No offense intended, with my understanding of math comment. It's just many post the simple divide by 50 and think that is the cost. It's not, just trying to point out an error in math that may cost you thousands of dollars over the life of your contract. And help in the decision to purchase. As long as you're happy with DVC, and as I said we have been members a long time and are very happy with out purchases. It's just with the current prices I can't justify a direct purchase. I was trying to help other see the real cost. Sorry if my comments offended anyone.

 

[glamdring269]

Can't believe this is happening but somehow BLT has made it into my consideration list. It offers the perk of walking to a park, monorail(ish), longer contract term, decent dues (today), and of course those points would still allow me to book AKL assuming nothing changes.

FYI, I've tried offering on a couple of BCV contracts and the asking price is just too much. I can't rationalize $140/pt for that resort. I know it works for some but feels so much more like I'm basically buying direct given the length of contract.

 

[Dean]

Can't believe this is happening but somehow BLT has made it into my consideration list. It offers the perk of walking to a park, monorail(ish), longer contract term, decent dues (today), and of course those points would still allow me to book AKL assuming nothing changes.

FYI, I've tried offering on a couple of BCV contracts and the asking price is just too much. I can't rationalize $140/pt for that resort. I know it works for some but feels so much more like I'm basically buying direct given the length of contract.

Long term it's going to be the second cheapest after SSR when you consider dues so it makes sense given your other stated preferences.

 

[Ben E N]

No offense intended, with my understanding of math comment. It's just many post the simple divide by 50 and think that is the cost. It's not, just trying to point out an error in math that may cost you thousands of dollars over the life of your contract. And help in the decision to purchase. As long as you're happy with DVC, and as I said we have been members a long time and are very happy with out purchases. It's just with the current prices I can't justify a direct purchase. I was trying to help other see the real cost. Sorry if my offended anyone.

The internet can be hard to communicate clearly, as actual words are only 30% of a total intended message, with facial expression and tone making up the other 70%. If I understand your point now, it makes sense and is important to consider when buying a contract.
Something like $176/pt over 50 years for CCV sounds like a good deal compared to $100/pt for BRV ($3.52/year vs. $4.16/year) assuming that maintenance fees were equal for both. However, for 100 points, you are investing an initial $17,600 vs. $10,000. Investing that extra $7,600 over 24 years would get you approximately $50,000 if it grows at 8% per year. This is money that could then be spent on other leisure expenses as your interests change, and the odds of being able to sell a 100 point CCV contract, with only 26 years remaining, for the same value is extremely low.

With that said, it does make more sense to buy something like BLT resale for $135/pt vs. something like BCV for $130/pt, as the $5 difference would not gain much over time, and your odds of making an equal amount via resale when interested are much more likely.

 

[mustinjourney]

With that said, it does make more sense to buy something like BLT resale for $135/pt vs. something like BCV for $130/pt, as the $5 difference would not gain much over time, and your odds of making an equal amount via resale when interested are much more likely.

....unless of course your goal is to regularly stay at BCV in a studio during F&W in Oct/Nov. Owning at BLT ain't going to help you much there.

 

[Ben E N]

....unless of course your goal is to regularly stay at BCV in a studio during F&W in Oct/Nov. Owning at BLT ain't going to help you much there.

Absolutely. That is where you accept that you are paying 20% more or greater and enjoy the benefits of it, knowing full well that it cost you more.

 

[glamdring269]

Frankly speaking I don't think the extra 15-20 minutes of travel time is worth the price premium on the front end for a shorter contract (for us). I'm having a lot of trouble rationalizing that.

Anyway, I'm also having trouble rationalizing something else. BLT looks great other than the fact that for whatever reason the majority of the point distribution is in Feb UY. I think finding the contract we would want is going to be akin to finding a real world unicorn (low point, Oct UY). We're definitely going to need to continue with the balancing act of getting exactly what we want at a premium (direct) vs. getting something close to what we want at a discount (resale).

 

[kniquy]

I would take the price of comparable contracts, divide them by the years remaining, and find the per year cost of each contract. Even if you do not use the whole difference in years, it can be assumed that you could resell a contract with the 15 remaining years vs. one that has expired.

This definitely was part of our decision making process. First we needed to decide what we could afford - which put us with contracts in the $80-90's per point and then once that eliminated a number of resorts, we prioritized by length of contract. Like this poster mentioned, even if we keep the contract for 10-15 or 20 years (we bought in 2015) - if we needed or wanted to get out say in 20 years (so 2035) a resort with a 2057 expiration and 22 years remaining will have more value than one with only 7 years.

There is the possibility that DVD will off an extension as those expiration dates come closer, although from everything i have read the previous offer to extend OKW was not successful. It will be interesting to see how they handle the 2042 resorts -- that is another whole debate, but i am happy to not be a part of that experiment.

Plus if we want to keep until expiration and hopefully can enjoy it well into retirement - a 2057 contract will put me at 82 when it expires at 2042 would be at 67 - I am hopeful that i will be able to enjoy it and if not at least i can see my kids enjoy it.

 

[Dean]

With that said, it does make more sense to buy something like BLT resale for $135/pt vs. something like BCV for $130/pt, as the $5 difference would not gain much over time, and your odds of making an equal amount via resale when interested are much more likely.

It is my feeling that BCV is the lowest vale on property DVC wise. But if that's where you truly want to be, the real cost is worth it to you and you can afford it; that's the cost of admission.

 

[4luv2cdisney]

Frankly speaking I don't think the extra 15-20 minutes of travel time is worth the price premium on the front end for a shorter contract (for us). I'm having a lot of trouble rationalizing that.

Anyway, I'm also having trouble rationalizing something else. BLT looks great other than the fact that for whatever reason the majority of the point distribution is in Feb UY. I think finding the contract we would want is going to be akin to finding a real world unicorn (low point, Oct UY). We're definitely going to need to continue with the balancing act of getting exactly what we want at a premium (direct) vs. getting something close to what we want at a discount (resale).

You're in a different position than me because you're already a member, but as someone who has been looking for a small BWV Oct UY contract for awhile, I can tell you it hasn't been easy! I threw in the towel. I've been seeing (if anything) $120 / pt and because closing costs via resale are higher that comes out to about $140/pt on a 50 pt contract.
Difference = $25/pt ($1250)
Now factor in that Direct may give you more points depending on your resale contract (say a value of $10/pt) and if you have a Disney Premier Visa you'll earn back over $3/pt plus get 6 mo free financing. Also, the way the MFs get charged direct -vs- resale contracts that aren't covering 2017 dues (though I'm a little fuzzy on that). So for me, a savings wasn't worth the hassle and I still have to buy some direct for benefits anyway. If Disney raises the direct price or resale drops again soon, things would be different!

Poly looked great to me at first, but the point requirements are so much higher than BWV if you can snag a standard. I think that was the biggest draw for me. You'd probably need more like 80 points at Poly to do the same stay that 50 gets you at Boardwalk. That being said, I still don't like the 2042 end date either and I'm gonna hope real hard they offer an extension!

Good luck!

 

[kboo]

It is my feeling that BCV is the lowest vale on property DVC wise. But if that's where you truly want to be, the real cost is worth it to you and you can afford it; that's the cost of admission.

Agreed. My DH loves SAB, but the rooms have next to nothing views, especially compared to the views at BLT from lake view and even standard rooms.

 

[Dean]

Agreed. My DH loves SAB, but the rooms have next to nothing views, especially compared to the views at BLT from lake view and even standard rooms.

LOL, I've often labeled it standard view at preferred points. Obviously this isn't as much of an issue for some as it is for others else it wouldn't be selling as high as it is.

 

[glamdring269]

if you have a Disney Visa you'll earn $4/pt plus get 6 mo free financing

Can you expand on this point a bit? I actually have a Disney Visa that hasn't been used in years but I'm pretty sure is still active. If we buy either resale or direct we were going to do so with cash and I figured they would force us to actually write a check and not use a card. If I can use the Disney Visa to charge this, and get a bonus for doing so, that would be awesome.

 

[4luv2cdisney]

Can you expand on this point a bit? I actually have a Disney Visa that hasn't been used in years but I'm pretty sure is still active. If we buy either resale or direct we were going to do so with cash and I figured they would force us to actually write a check and not use a card. If I can use the Disney Visa to charge this, and get a bonus for doing so, that would be awesome.

Disney Visa Premier gets you 2% in rewards and a standard (no fee) card gets you 1%.

I should probably go back and edit my original post. After adding in closing and mfs, it probably comes out to more like $3.40 / pt earnings for the premier (which is what I have).

You also get a 6 month 0% promo rate with either card. They can actually charge the deposit first and then the balance a few weeks later. So, if the timing is right, you end up with more like 7 months to repay.

 

[glamdring269]

Disney Visa Premier gets you 2% in rewards and a standard (no fee) card gets you 1%.

I should probably go back and edit my original post. After adding in closing and mfs, it probably comes out to more like $3.40 / pt earnings for the premier (which is what I have).

You also get a 6 month 0% promo rate with either card. They can actually charge the deposit first and then the balance a few weeks later. So, if the timing is right, you end up with more like 7 months to repay.

Do you know if they only allow you to charge using the Disney card? Or can you charge using any card? If the latter I'd probably use one of my other cards as I'm guessing buying something with "Disney" in the name would trigger my travel category. Would be awesome if this is actually a good option because I'm pretty sure I can't use a card on a resale (maybe the deposit).

But i like what you're thinking if this is an option. It does drive the per point cost down if you use a card and count the cash back (or equiv) reward as a rebate vs. the original purchase price.

 

[4luv2cdisney]

Do you know if they only allow you to charge using the Disney card? Or can you charge using any card? If the latter I'd probably use one of my other cards. Would be awesome if this is actually a good option because I'm pretty sure I can't use a card on a resale (maybe the deposit).

I think they take any credit card. But the 0% offer is for the Disney Visa.

Sorry for the repeated edits! Trying to do too many things at once!