Poly questions?

[rymahoney]

We are considering DVC. We have been thinking on it for years. Still a few things to take care of first. I'm wondering what the trends are for re sale market on new resorts when they start to fill up? Also any clue how close it is to filling up? Thanks guys.

 

[hakepb]

DVC should never be purchased for future resale value.
In general, DVC keeps the value high due to its use of ROFR (right of first refusal) to buy contracts with too low of a price.

It is true that overall, DVC has retained value better than the general timeshare market...but that can always change.

I believe during the 2008 crash, there were some DVC contracts bought in the $70-90/point selling in the $30/point range...and DVC didn't seem to ROFR many contracts during that time of declining values.

You can look at the ROFR thread http://www.disboards.com/threads/ro...ost-for-instructions-formatting-tool.3551378/
to see how resales seem to be trending for other monorail resorts ... but no other resort is all studio like Poly, so it's not an exact science.

 

[rymahoney]

DVC should never be purchased for future resale value.
In general, DVC keeps the value high due to its use of ROFR (right of first refusal) to buy contracts with too low of a price.

It is true that overall, DVC has retained value better than the general timeshare market...but that can always change.

I believe during the 2008 crash, there were some DVC contracts bought in the $70-90/point selling in the $30/point range...and DVC didn't seem to ROFR many contracts during that time of declining values.

You can look at the ROFR thread http://www.disboards.com/threads/ro...ost-for-instructions-formatting-tool.3551378/
to see how resales seem to be trending for other monorail resorts ... but no other resort is all studio like Poly, so it's not an exact science.

I was actually referring to resale market for us to buy poly points as it gets closer to selling out or actual sold out. For instance what was the resale market like on blt and vgf leading up to being sold out or sold out.

 

[_auroraborealis_]

To be honest, there aren't a lot of Poly contracts on the resale market. While many of them are making it through ROFR, the limited umber of contracts on offer is very limiting for contract size/UY.

Are you truly interested in owning at Poly, or are you thinking of Poly because it's the current for-sale or you're hoping for some kind of deal?

 

[rymahoney]

I truly am interested in owning the poly but willing to hold out if resale price will become reduced as Markets sees more contracts being sold. It is actually my first choice of places to stay but seems really high priced.

 

[miTnosnhoJ]

Let's say you buy Poly direct before January 17 and the price goes up. Price for 150 points is $171 plus you get a bonus 10 points making the effective price $160/point.

I have seen recent resales in the 140's so let's say you could find one at $145 in your use year. Your savings is $15 per point, or about $2450. At that level, I would go ahead and buy direct to get the AP discounts and perks.

 

[supersnoop]

I truly am interested in owning the poly but willing to hold out if resale price will become reduced as Markets sees more contracts being sold. It is actually my first choice of places to stay but seems really high priced.

I wouldn't hold out too long.

After PVB sells out, I'd expect prices on the resale market to be similar to BLT. PVB will still have a few extra years, but also have higher annual maintenance fees, so it should be pretty close to balancing out.

That said, a BLT contract is around $110 now, and a PVB contract can be had on the resale market for $130 or so. You'd make up the difference in two years. So, if you think the resale market would take more than two years to level off, then you should buy PVB resale right now.

 

[gdrj]

With the newer resorts there doesn't not seem to be substantial savings on the secondary market when we looked.