Please critique my purchase plan.

[jlnten17]

We intend to start with 100-150 points at the Polynesian. After reading threads here I intend to purchase say 75-100 at $135-140 per point resale then add on another 25-50 points direct at $176 per point so we will have access to discounts on annual passes and access to special DVC previews and events (I understand these can be taken away at anytime). We already have a trip to Disneyland planned for the beginning of 2018 so we have time to be patient and wait for the right listing because we will likely not return to WDW for another year or so. When I do the math this averages our total purchase price to approximately 145-150 per point and there are several listings available at that rate for 100-150 points resale. So the downside to adding on direct is the second closing cost. I am hoping the discounts on passes, dining, merchandise from buying direct will make this up fairly quickly as a family of 4 and that is my reasoning to make the two separate purchases as opposed to just buying one larger contract resale. So for all you DVC experts please let me know, am I correct? Way off? Somewhere in between?

 

[supersnoop]

I think your price target is unreasonable in the current market. I think you’d be better off buying the whole thing direct. I think it will cost you about $1,500 more, but save you a lot of time and give you some extra points. You could probably rent the extra points and make that back.

 

[ziravan]

I’d buy the whole thing direct. If UY doesn’t matter buy Dec UY before Dec 1 and bank. Then, rent out 2016 and 2017 points and that’s effectively a $25 discount on top of the fact that there’s still an incentive for Poly points.

You’ll have an account immediately and will be in just about the same boat as your current plan.

There’s normally not enough heft to make buying a currently selling resort resale a great deal.

 

[jlnten17]

I think your price target is unreasonable in the current market. I think you’d be better off buying the whole thing direct. I think it will cost you about $1,500 more, but save you a lot of time and give you some extra points. You could probably rent the extra points and make that back.

When I look at resale sites there are poly points going for 145-150 or at least that’s how it’s listed on the resale site. Am I missing something?

 

[jlnten17]

I’d buy the whole thing direct. If UY doesn’t matter but Dec UY before Dec 1 and bank. Then, rent out 2016 and 2017 points and that’s effectively a $25 discount on top of the fact that there’s still an incentive for Poly points.

You’ll have an account immediately and will be in just about the same boat as your current plan.

There’s normally not enough heft to make buying a currently selling resort resale a great deal.

Can you explain a little more the figures behind renting out 2016-2017 points? How much do they typically rent for (would that be 12.50/point rent x 2 years)? I could def do that since we have Disneyland planned for 2018. If that brings it to $151/point it would be worth it to me to buy direct. Now I just have to decide if I want to go up to 175 points to get the $1250 discount which would make it more like $145/point before closing costs.

 

[ziravan]

Can you explain a little more the figures behind renting out 2016-2017 points? How much do they typically rent for? And what does sites like Davids charge? I could def do that since we have Disneyland planned for 2018.

About $15/point. You’d owe about $6/point for MFs 2017 points and I think the rental companies will rent Poly for $13 if you don’t want to do it yourself.

So. Two years worth of points would be about $24/pt deduction from sale price if you did the leg work ($30 for two years’ worth minus MFs for one of those years)

Or

$26 for two years rented through a company minus a years’s MF or about $20/pt off sales price.

 

[jlnten17]

About $15/point. You’d owe about $6/point for MFs 2017 points and I think the rental companies will rent Poly for $13 if you don’t want to do it yourself.

So. Two years worth of points would be about $24/pt deduction from sale price if you did the leg work ($30 for two years’ worth minus MFs for one of those years)

Or

$26 for two years rented through a company minus a years’s MF or about $20/pt off sales price.

Thank you! Any thoughts on the 1250 discount offered at 175 points? I’m sure if we had the extra points we would use them. Or renting seems fairly easy now that I’m browsing that forum as well.

 

[ziravan]

Math, 2 scenarios:

1 Poly 175 points (developer credit of $1250 avail for minimum 175 points).

A. Direct - 175x$176 = $30,800 plus closing right at $31,000 minus a credit of $1275 if you buy at least 175 direct = $29,750.

B. Direct plus Resale - 150x$145 plus $600 closing = $22,350 plus 25x$176 plus $200 = $4600; 22,350 plus 4,600 = $26,950

C. Direct minus Renting

$29,750 - ($20 x $175) = $26,250

~~~~~~

2. Poly 150 points (No developer credit)

A. Direct - 150x$176 plus 200 closing = $26,600

B. Resale plus Direct - (125x$176 plus 600 closing) plus (25x$176 plus $200 closing) = $23,325

C. Direct minus Rental

$26,600 minus $3000 = $23,600.

 

[ziravan]

You’re not likely to get a fully loaded Poly contract (all 2016, 2017, and 2018 points intact) for $145.

Maybe if you got some of those points you could also rent some of them but the most likely resale scenario is the first points avail are going to be points you’re gonna use.

 

[ziravan]

In any case, the rule of thumb for timeshares in general is that resale is almost always a better deal.

With DVC, I think resorts still for sale and small point contracts are decent exceptions.

For the record, I bought Poly, direct. I’m happy with that decision.

 

[KAT4DISNEY]

You’re not likely to get a fully loaded Poly contract (all 2016, 2017, and 2018 points intact) for $145.

Maybe if you got some of those points you could also rent some of them but the most likely resale scenario is the first points avail are going to be points you’re gonna use.

It's not impossible. And resale is the only way to get a fully loaded contract that already has banked points. Direct comes with current and all going forward. If a December UY is a bad UY for someone it really doesn't make sense to buy it just to get point to bank right away either but if it did work then it would be as close as could be to a resale with banked points. But I could easily see someone realizing a $2000 savings with resale for PVB for a 100 pt purchase - and more for a larger purchase.

 

[KAT4DISNEY]

I think your price target is unreasonable in the current market. I think you’d be better off buying the whole thing direct. I think it will cost you about $1,500 more, but save you a lot of time and give you some extra points. You could probably rent the extra points and make that back.

For a PVB resale? It's very reasonable.

 

[jlnten17]

Math, 2 scenarios:

1 Poly 175 points (developer credit of $1250 avail for minimum 175 points).

A. Direct - 175x$176 = $30,800 plus closing right at $31,000 minus a credit of $1275 if you buy at least 175 direct = $29,750.

B. Direct plus Resale - 150x$145 plus $600 closing = $22,350 plus 25x$176 plus $200 = $4600; 22,350 plus 4,600 = $26,950

C. Direct minus Renting

$29,750 - ($20 x $175) = $26,250

~~~~~~

2. Poly 150 points (No developer credit)

A. Direct - 150x$176 plus 200 closing = $26,600

B. Resale plus Direct - (125x$176 plus 600 closing) plus (25x$176 plus $200 closing) = $23,325

C. Direct minus Rental

$26,600 minus $3000 = $23,600.

Thank you!

 

[supersnoop]

When I look at resale sites there are poly points going for 145-150 or at least that’s how it’s listed on the resale site. Am I missing something?

Smaller contracts are priced higher

For a PVB resale? It's very reasonable.

for that size contract? I think it’s gpong to be closer to $150 unless it’s completely stripped. Nowhere close to $135.

 

[cep101]

I would buy direct if you have your heart set on this resort.

If you can afford it I would get 175 points to get the developer credit. If you do buy direct I would request that your points be broken down into small contracts. This is an added bonus of buying direct because smaller contracts go for a higher rate.

 

[Henwen88]

I’d buy the whole thing direct. If UY doesn’t matter buy Dec UY before Dec 1 and bank. Then, rent out 2016 and 2017 points and that’s effectively a $25 discount on top of the fact that there’s still an incentive for Poly points.

Plus, the 2017 MFs are prorated to (roughly) 1/12 the cost since direct purchases charge by calendar year.

If you can afford it I would get 175 points to get the developer credit. If you do buy direct I would request that your points be broken down into small contracts. This is an added bonus of buying direct because smaller contracts go for a higher rate.

I wonder if DVC charges separate closing costs if you wanted to break down to say 50, 50, 75 pt contracts vs the 175 total? I know my purchase (CCV) was in the ballpark of 300something for 118 points, so not chump change.

I could absolutely buy direct on this one - looks like they're running low on certain use years already. Love the resort! The spread on resale vs direct prices are too close to futz around with resale hassle (which by no means am I anti-resale... I have 3 and will get more if the prices ever drop lol!)

 

[supersnoop]

Yes, they charge closing costs for each contract if you split them up. Buying direct, you also have the option of purchasing a fixed week, which can be a really good idea.

 

[Msidescooter]

Plus, the 2017 MFs are prorated to (roughly) 1/12 the cost since direct purchases charge by calendar year.

If you do get a Dec UY, being so late in the year, you'll probably get away with paying no MF for 2017. We just closed on a PBV direct contract this month and got away with no MF since everything won't actually close out until December at the earliest (at least that's how our guide explained it).

 

[DM3MD]

I think the 175 direct (with developer credit) in Dec use year and renting 2016/2017 points would be my pick. No need to go through the drawn out resale process, and it's pretty close to a wash financially.

Side question... if buying 175 points to reach a developer credit threshold, will DVC break the contracts up into 2 or 3 pieces if reqeusted? Would be nice to have them in 50-75 point chunks if/when it's time to resell them.

 

[mustinjourney]

also -- if you buy direct, they might be able to book you the Grand Californian using your points. If your first contract is a direct contract, they can sometimes make inventory available from other sources (e.g., cash inventory) and book it for you using your points.

So if you have a cash reservation at Disneyland and can cancel that hotel reservation -- it might make sense to buy direct and see if they can get you into the Grand Californian. Certainly not guaranteed -- but it's something else to consider.