Price Increase Coming

[HookdonWDW]

Just received:

Dear Hookdonwdw Family,

If you act fast, you can take advantage of our current pricing, plus get extra Vacation Points with this special offer when you add on to your Membership at Aulani, in beautiful Hawai'i, or Disney's Polynesian Villas & Bungalows*. But hurry, before the price-per Vacation Point increases from $171 to $176 on January 18, 2017.

 

[WDWNY]

Just received:

Dear Hookdonwdw Family,

If you act fast, you can take advantage of our current pricing, plus get extra Vacation Points with this special offer when you add on to your Membership at Aulani, in beautiful Hawai'i, or Disney's Polynesian Villas & Bungalows*. But hurry, before the price-per Vacation Point increases from $171 to $176 on January 18, 2017.

We bought in February so this will be 2 price increases within the year. jeez

 

[ThisIsJason]

Jeez...I must have been under a rock, I didn't even know it was over $170/pp to begin with.

At this price point I should be able to talk my wife out of wanting to buy direct at Aulani or Copper Creek.

 

[HookdonWDW]

We bought all of our points at around $70/pt. Talk about sticker shock!

 

[BillPA]

Our 1st purchase, direct was $57.50 a point, I can't find any way to make todays prices worth it. $176 a points + dues, one would have to a math moron to buy now. DVD you have out priced any advantage ownership could offer.

 

[disneynutz]

DVD is positioning to release copper creek for sale which will be around the poly's high price. It's all a game designed to increase sales.

 

[Matty B13]

Man..... I was hoping copper creek would be reasonable..... guess not.

 

[TheGecko]

I saw that announcement and just shook my head. It will be interesting to see where Cooper Creek lands. I was considering buying in about 150 pts when first offered but will probably hold off. Too much of a spread from the original VWL at this point in time.

 

[Brian Noble]

I can't find any way to make todays prices worth it. $176 a points + dues, one would have to a math moron to buy now. DVD you have out priced any advantage ownership could offer.

It does, but only because the rack rates of these rooms have gone through the roof.

My "typical" week is the end of February/beginning of March. A rack-rate Standard view studio at PVB is $4945.50, including taxes, for that full week. You'd need to buy 169 points to book that studio. At $176/pt, that's a purchase price of $29,744, with a developer credit dropping that to $28,494. Dues for 2017 are $6.1355, for a total dues component of $1,036.90 for that year. If you amortize the purchase price across the remaining 47 years at 5.25%, you get an annual purchase cost of $1,632. Add them together, you get an annual ownership cost of $2,668.90, which is a discount of about 46% off of rack.

 

[BillPA]

You can rent points for less, have no long term risk and 27K plus in your pocket. What ever floats your boat. And who would ever pay rack rates.

 

[tjkraz]

You can rent points for less, have no long term risk and 27K plus in your pocket. What ever floats your boat. And who would ever pay rack rates.

Assuming one values the 50 year ownership, renting will end up costing far more in the long run.

Poly points rent for about $16 each, of which $6 goes to cover the dues. $10 per point is profit for the owner. Pay that extra $10 for 17 years and you've covered the purchase price. (Probably more like 20-21 years factoring in time value of money.) Still, in years 22-50, the habitual renter is paying tens-of-thousands of dollars more than the owner.

The owner can sell at any time and get a handsome return on the purchase. The renter owns nothing.

Plus renting leaves you with limited control over the reservation and virtually zero cancellation policy. And no member perks (admittedly the value is debatable.)

And who would ever pay rack rates.

Discount by a modest percent if you wish. Doesn't change the numbers dramatically.

For much of the last 3-5 years, Disney has been reporting hotel occupancy percent in the upper 80s - low 90s. I suspect much of that demand comes in the Value, Moderate and family suite accommodations. However, many view DVC as a way to upgrade the quality of their accommodations while staying within a reasonable budget.

 

[Minniesgal]

Jeez they must be close to having priced themselves out of the market

 

[drusba]

With another price increase coming, I guess it's time that I finally take the plunge and buy what I really need, enough points for a week annually during magic season in a Poly Bungalow. It would cost only $200,000 now, and if I wait it will go up to a whopping $206,000.

 

[Matty B13]

I'm sure copper creek will be easy to book at the 7 month mark just like the Poly is right now, since it isn't sold out.

 

[Brian Noble]

You can rent points for less, have no long term risk and 27K plus in your pocket. What ever floats your boat. And who would ever pay rack rates.

Well, a market-rate rental for PVB is going to be at least $14/pt. That's $2,366, a shade less than the first-year costs, but awfully close and over time owning will beat renting, because the only bit subject to cost increases are dues, not the amortization.

The point was not that people pay rack rates, the point was that owning *does* make financial sense if you know you'll be staying in those rooms frequently over the next many years. That's true even though the sales price has gone up, because the rental price has gone up as well. And, I say this as someone who does not own (and never has owned) DVC---my decision was driven by the belief that I would not consistently want to stay in DVC rooms as frequently as necessary.

Of course, the break-even point is a lot easier to reach if you are willing to go the resale route, and either "settling" for one of the other great resorts or waiting until PVB's resale market matures a little bit.

 

[_auroraborealis_]

I don't think anyone can say anything about how easy or hard CCV will be to book, ever. We know it'll be smaller than Poly, unless the big surprise for the Lodge rooms is that they're doing them as a Japanese capsule hotel-style room arrangement, only more "American campsite" in theme (logs and sleeping bags!). We know there are going to be "cabins," but we don't know if they are going to be 2BR, 3BR, hybrid accommodation a la a Treehouse Villa, or one big room like a diseased yurt with hard walls.

For all we know, it ends up being kind of like VGF, only with cabins -- i.e., everyone only buys points enough for a studio room, there are ~35 of them, and booking those studios is a slug-fest, and if you want that first week in December buy the fixed week por dios.

(No, I'm not saying there are 35 studios. We don't know. I'm saying that if they are heavily volume constrained, it could make certain bookings interesting.)

 

[DougEMG]

As long as DVC can show buyers that there are savings over the long term and buyers can get low monthly payments they can afford, you'll have people buying. The fact that many of us bought at much lower prices and would not buy at these prices doesn't matter. I'm old enough that the savings over the long term doesn't work out for me any more!

 

[mel&me]

With another increase, if I was to add more points, safe to say I would be going thru resale.

 

[LAX]

I thought sales at AUL and PVB haven't gone as well as DVD had initially hoped, so how would yet another price increase help the cause? I know DVD has been running promos to drive up sales, so are they essentially going the route of some retailers? Basically, raise the "regular/sticker price" while offering discounts/promos so that potential buyers feel like they are getting a discount and good deal??

LAX

 

[BillPA]

The problem is they have nothing worth buying right now. Hawaii, as beautiful as it is, is 5,000 miles for the east coast. And the Poly only has studios that are very over priced already. I just don't get a price increase when you can't sell what you have now.