Price Increases Mid January

[Jerry5788]

We'll see how they feel when they buy Riviera direct, the economy takes a down turn, they lose a job, they can't make a payment, they want to sell... oops.

Well that brings up the whole argument that most people say on here - you should not buy DVC with a mortgage. Any savings you get from DVC is absorbed by the mortgage interest.

 

[MommaBerd]

Well that brings up the whole argument that most people say on here - you should not buy DVC with a mortgage. Any savings you get from DVC is absorbed by the mortgage interest.

True, but the maintenance fees are on-going. So even if you don’t finance it, if you have a major hit to your personal finances, you still have to pay MFs.

 

[MJB62676]

Seems like a lot of worry, just to get the "opportunity" to stay at a resort no one has seen yet. I'm pretty happy with what we currently have. I've been debating whether to buy Aulani resale or direct (leaning resale)...and would like to buy OKW direct at some point to get 2057 due to location and value of points (lots of bang for your buck on that points chart).

They must be expecting Riviera to be amazeballs.

 

[Madame]

Someone just today on a FB group 3 payments away from paying off DVC and lives in Hawaii and has been affected by the volcanic activity. Going to lose her DVC... ANYTHING can happen.

 

[Jerry5788]

True, but the maintenance fees are on-going. So even if you don’t finance it, if you have a major hit to your personal finances, you still have to pay MFs.

You won’t lose the property or look to wel if something happens to personal finances. You could rent easy for $14pp to cover

I get if you need to sell assets but I wouldn’t be banking on a timeshare being a liquid asset if god forbid something happens in your life

 

[Jerry5788]

Someone just today on a FB group 3 payments away from paying off DVC and lives in Hawaii and has been affected by the volcanic activity. Going to lose her DVC... ANYTHING can happen.

Correct I was more stating this brings up arguements about mortgage for DVC as the discount that you get is often eliminated by interest payments. I know there are situations where it’s a bridge loan for a 1yr or 2 etc. Anyway just highlighting the fact of that arguement when considering buying riveria with a mortgage

 

[skippytx]

Any official list of price increases yet? I may have missed it as this thread moved quick. Curious as to what BLT is going to.

Beach Club isn't quite insane at 225 a point as the demand is clearly there, and there are still 22 years left on the contracts. I don't think they 2042 contracts will take a hit until sometime with 15 to 18 years left on them. They'll stay strong due to location for a while after SWGE opens. I haven't done the math, but I wonder how many years of points left on a contract vs rack rate at would be the breakeven point. Maybe 12 or so if I had to guess.

Many purchasers are comparing the DVC costs to rack rate at the same resort, 225 a point might still make sense when the least expensive room at beach club at the least expensive time is still 450 a night. I don't think I would pay it, but I can see why folks still are.

One I can't figure out is the VGC, those prices are nuts and there isn't a ton of benefit to staying on property in California like there is at WDW.

 

[Bing Showei]

Any official list of price increases yet?

I heard from a broker the rumor is $245 for VGF. Someone else on here posted $260 for VGC. $225 for BCV. All rumors of course.

Historically, resale prices have been driven more by direct pricing than anything else. Any speculation from anyone on how the price increases across the board at legacy DVC resorts will counter the new restrictions?

 

[MommaBerd]

You won’t lose the property or look to wel if something happens to personal finances. You could rent easy for $14pp to cover

I get if you need to sell assets but I wouldn’t be banking on a timeshare being a liquid asset if god forbid something happens in your life

As to point one, WE know that points can be rented (at least for now), but I don’t believe most owners are aware of that.

For the second point, in MOST timeshares you would not count on a timeshare as being a liquid asset. However, history has proven - until now - that DVC is an exception to that. Previous owners who had to unload in the recession likely didn’t recoup their costs, but at least they were able to sell their contracts and sell for substantially more than any other timeshare.

 

[Jerry5788]

As to point one, WE know that points can be rented (at least for now), but I don’t believe most owners are aware of that.

For the second point, in MOST timeshares you would not count on a timeshare as being a liquid asset. However, history has proven - until now - that DVC is an exception to that. Previous owners who had to unload in the recession likely didn’t recoup their costs, but at least they were able to sell their contracts and sell for substantially more than any other timeshare.

Agreed - the person before was highlighting risk or losing if something goes wrong. So yes riveria not having resale value should be strongly evaluated given this and means of making the large sum of money

 

[glamdring269]

You won’t lose the property or look to wel if something happens to personal finances. You could rent easy for $14pp to cover

I get if you need to sell assets but I wouldn’t be banking on a timeshare being a liquid asset if god forbid something happens in your life

You're entirely missing the point. This devalues the product relative to what it is today.

 

[Jerry5788]

We'll see how they feel when they buy Riviera direct, the economy takes a down turn, they lose a job, they can't make a payment, they want to sell... oops.

In regards to your early post - I agree it has no resale value. In the scenario presented I don't think you'd lose the property unless you had a mortgage as you could rent points out. I'd like to hope before people default on their DVC they google and can find out about renting.

If the scenario was laid out as they hate Riveria and never want to stay there and want to sell then I'd say....oops expensive mistake.

You're entirely missing the point. This devalues the product relative to what it is today.

Are you talking about DVC 1 (old resorts) or DVC 2 (new resorts)? Above I talk about DVC 2 resorts going forward. If we are talking about DVC 1 I do not think this has much impact on the resale value until we get closer until 2042.


From Disney's perspective I think they are trying to re-position DVC. DVC direct prices are so insanely expensive given the $ movement per point (since launched) that they are now true vacation luxuries as they cost a fortune upfront. I think they are trying to position as that and with luxuries they care little about resale value. They want to eventually be the sole place you buy similar to how luxury brands manage their distribution.

Not saying this is a right or smart move but only time will tell if they can shift correctly or it just blows up in their face. I honestly don't think they care if the resale market goes down the tube as they can ROFR them much cheaper and simply rent out the points. Then upon expiration they have the best locations building new DVC properties (similar to Riveria with no resale value) at massive $ prices again.

 

[4luv2cdisney]

Any official list of price increases yet? I may have missed it as this thread moved quick. Curious as to what BLT is.

I emailed my guide this morning wanting pricing and availability into. No word yet.

 

[glamdring269]

Are you talking about DVC 1 (old resorts) or DVC 2 (new resorts)? Above I talk about DVC 2 resorts going forward. If we are talking about DVC 1 I do not think this has much impact on the resale value until we get closer until 2042.

From Disney's perspective...

I wasn't originally responding to Disney's perspective. I was responding to a post where folks on a FB discussion were basically acting as if this isn't some big deal to them, nothing to worry about, they will never sell their timeshares, etc. My response to that is: You (FB group people) are not seeing the bigger picture if you're looking at it like that. Your ability to resell your asset from Riviera forward (assumed) is about to be devalued. How is that not a big deal?

I fully understand this does not impact me today, nor will it (hopefully) impact me in the future as I will never buy direct and will certainly never buy direct Riviera forward.

 

[Jerry5788]

I wasn't originally responding to Disney's perspective. I was responding to a post where folks on a FB discussion were basically acting as if this isn't some big deal to them, nothing to worry about, they will never sell their timeshares, etc. My response to that is: You (FB group people) are not seeing the bigger picture if you're looking at it like that. Your ability to resell your asset from Riviera forward (assumed) is about to be devalued. How is that not a big deal?

I fully understand this does not impact me today, nor will it (hopefully) impact me in the future as I will never buy direct and will certainly never buy direct Riviera forward.

Agreed with you I rather buy riveria in resale market only if I love it!

 

[_auroraborealis_]

To be precise:

DVC Neighborhood is full of misinformation, people who ODed on Kool Aid, and people who believe all resale buyers should have a scarlet R tattooed on their left cheek.

And anyone who rents points should be boiled in oil and served on the buffet at Chef Mickey.

 

[JenniferYoung44]

My first thought was “oh well, if I want to stay at the riviera, I’ll just rent points.” Then that got me to thinking... direct riviera buyers may be screwed when it comes to resale, but they may also be able to get a premium price when renting out their points. As I’m sure I’m not the only DVC owner with that idea.

 

[JenniferYoung44]

I wonder if during the flurry of resale buying before the Jan. 19th deadline Disney will up its percentage of buy backs in ROFR. Maybe this is a good way for them to grab up some points in order to turn around and sell them at the new price increase. For that matter, if Disney truly has these crazy long waitlists for VGF and BCV why don’t they always buy them back and then turn around and sell them direct at their outrageous prices?

 

[wishicouldgomoreofte]

To be precise:

DVC Neighborhood is full of misinformation, people who ODed on Kool Aid, and people who believe all resale buyers should have a scarlet R tattooed on their left cheek.

And anyone who rents points should be boiled in oil and served on the buffet at Chef Mickey.

To clairfy, do you mean members who rent their points out, or the people who enjoy the benefit of renting should be boiled in oil?
I don't believe I have ever seen you post anything like that before?
Is someone else posting in your name, or are you joking, Scrooge style?

 

[Phatscott25]

I believe she was referring to the attitude among those on the "DVC Neighborhood" and not her own.