Pros and Cons of Aulani Sub contracts for Sleep Around Points

[atthebeachclub]

Highest AKV and Aulani with VDH in 3rd.
Lowest RIV and POLY

VDH high again you think? I was hoping some other resort would take a turn!

I do think dues will always be higher in CA for pay reasons and because of shorter stays/more housekeeping costs.

 

[airjay75]

View attachment 1009081

Any guesses on which resorts have the highest and lowest 2026 dues increases?

I think this post is worthy of a new thread!

I know one question I have as a new DVC owner is to what degree and when refurbishment costs potentially affect dues. I assume a certain amount of refurb costs are baked into operating reserves, but I imagine they tend to come in either under or over budget at times. Could BLT or CCV see impacts as a result of that this year? With AKV refurb getting under way, will there be some impacts there or would any impacts be more likely to filter through next year?

 

[VGCgroupie]

VDH high again you think? I was hoping some other resort would take a turn!

I do think dues will always be higher in CA for pay reasons and because of shorter stays/more housekeeping costs.

Yeah I think so, it's CA but I dont think it will raise enough to make me regret owning there.

 

[intamin]

I am out of the point buying business, so definitely not me. With that said, I absolutely love Aulani subsidized dues AT THE RIGHT PRICE because we use them as a combo of at Aulani 11m and as a SAP war chest.

There are a LOT of Aulani contracts on the resale market…. I’d probably see if I could get some smaller contracts in the low $80s first… but if I ended up with 400 subsidized points at $119pp I would feel pretty good owning those points as a cornerstone of a DVC portfolio.

I really do love my AUL sub dues too. It's a tough balance sometimes though because on one I hand I know these are the best value points I have so whenever I'm booking an O14 resort I try to grab them second after my resale AKV points but at the same time I also use the 11 month priority quite a bit to book the hotel rooms and with us being on the West Coast long term I'm so glad we purchased these instead of SSR.

 

[DanCali]

Anyways it was $119 so a good price in my opinion. What were your thoughts?

I don't like the idea of owning 400 in one contract, but Aulani is the most we own at any single resort (by far).

We definitely use those for SAP since availability at 11 months is less of an issue for us given the number of resorts where we own.

Obviously paying less is better, but whether it's $109, $119, $129 or even $139 it really doesn't matter in the grand scheme of things, especially if you plan to keep the contract into the 2060s. All of those would be underpriced relative to what the subsidy is actually worth financially...

 

[emchen]

I just got off the phone with my guide. Here's my DVC Math

150 Points at VDH
$35/pt Welcome Home incentive
$500 D23 Discount
$20/pt Magical beginnings

$186 per point DVC math.

Sweet! DVC Math for the win!

11 month priority quite a bit to book the hotel rooms

...I noticed how Aulani Hotel Rooms is more walker prone than even Standard View Studios! Can someone explain this phenomenon? Is it simply the value proposition, like a duo studio but sleeps 4?

Obviously paying less is better, but whether it's $109, $119, $129 or even $139 it really doesn't matter in the grand scheme of things, especially if you plan to keep the contract into the 2060s. All of those would be underpriced relative to what the subsidy is actually worth financially...

..I couldn't remember which A-Sub lover (you or @VGCgroupie) had this conclusion based on spreadsheets and calculations. Now I know! @DanCali this thread was resurrected for you...

 

[intamin]

...I noticed how Aulani Hotel Rooms is more walker prone than even Standard View Studios! Can someone explain this phenomenon? Is it simply the value proposition, like a duo studio but sleeps 4?

I think it's because it's the cheapest DVC rooms there are at Aulani and it also has 2 actual beds in the room. My wife and I use one bed for midday naps and the other for sleeping at night LOL

 

[VGCgroupie]

...I noticed how Aulani Hotel Rooms is more walker prone than even Standard View Studios! Can someone explain this phenomenon? Is it simply the value proposition, like a duo studio but sleeps 4?

They are a much better value for what you get for the amount of points, sadly especially for commercial renters.

 

[JackosinDIS]

They are a much better value for what you get for the amount of points, sadly especially for commercial renters.

They are amazing value! I’ve got 10 nights next year, which I was originally going to do in a 1br, but then i would still only be getting 1 proper bed, and 1 bathroom. At least with the hotel room we get a bed each without folding sofas down. Plus it saves me nearly 300 points - that’s a whole other holiday!

 

[emchen]

I think it's because it's the cheapest DVC rooms there are at Aulani and it also has 2 actual beds in the room. My wife and I use one bed for midday naps and the other for sleeping at night LOL

Fall seems hopelessly walked…

They are a much better value for what you get for the amount of points, sadly especially for commercial renters.

I noticed after doing a quick confirmed ressy search…

They are amazing value! I’ve got 10 nights next year, which I was originally going to do in a 1br, but then i would still only be getting 1 proper bed, and 1 bathroom. At least with the hotel room we get a bed each without folding sofas down. Plus it saves me nearly 300 points - that’s a whole other holiday!

That really is value! Was it during off-peak season or did you have to walk?

 

[JackosinDIS]

Fall seems hopelessly walked…

I noticed after doing a quick confirmed ressy search…

That really is value! Was it during off-peak season or did you have to walk?

I suppose it is off-peak (end of August). I picked up the first day no problem right at 8am, so the hotel rooms are definitely not as difficult as BWV standard view, which often take many attempts to get the first day to even start a walk.

 

[DanCali]

...I noticed how Aulani Hotel Rooms is more walker prone than even Standard View Studios! Can someone explain this phenomenon? Is it simply the value proposition, like a duo studio but sleeps 4?

There are only 8 of them. Only AKVJ Club level studio has fewer room types.

But if you look at the points chart, most of the time a standard view studio is really not that much more points (depending on time of year could be as low as just 1-2 extra points, and goes as high as 4 extra points but only for about 8 weeks in the year). Sometimes having that dedicated kitchenette area may make it worth paying a tiny point premium. For a couple with no kids, I would totally prefer the studio.

 

[stat]

I don't like the idea of owning 400 in one contract, but Aulani is the most we own at any single resort (by far).

We definitely use those for SAP since availability at 11 months is less of an issue for us given the number of resorts where we own.

Obviously paying less is better, but whether it's $109, $119, $129 or even $139 it really doesn't matter in the grand scheme of things, especially if you plan to keep the contract into the 2060s. All of those would be underpriced relative to what the subsidy is actually worth financially...

Using a 4% discount rate to calculate the present value of the subsidy through the life of the contract gets me something like ~$47, meaning that the biggest premium I'd pay for sub relative to a non-sub AUL contract before the subsidy was no longer worth it. Seems like people around here get non-sub for ~$90, so paying up to $139 for sub is actually spot on! That's on the high end but makes some financial sense.

 

[DanCali]

Using a 4% discount rate to calculate the present value of the subsidy through the life of the contract gets me something like ~$47, meaning that the biggest premium I'd pay for sub relative to a non-sub AUL contract before the subsidy was no longer worth it. Seems like people around here get non-sub for ~$90, so paying up to $139 for sub is actually spot on! That's on the high end but makes some financial sense.

With a 4% discount rate, the subsidy is worth a lot more than what you got...

What % did you use for the increase in dues?

For example, if you use a 4% annual increase in dues with a 4% discount rate, they cancel each other out. So the value of the (discounted) subsidy each year is worth same as in 2025 (~$2.50) for another 36 years - which is around $90/pt

To get to your number, I suspect you used 0% increase in dues? Obviously the less dues increase over time, the less the subsidy is worth. The more dues increase over time, the more the subsidy is worth (and the lower/higher the discount rate the more/less the subsidy is worth). Under what I see as reasonable assumptions (dues increase 3-4% per year and discount rate of 4%-6%, the subsidy is worth $55-$90/pt.

 

[dvc lover 1970]

Maybe not, but it is important...at least I think it is...for people to understand exactly when we get to trade, why things are done the way it is, and what things DVC/DVD could do in the future, no matter how unlikely it is.

But, I can certainly see when we get within 5 years of 2042 for BVTC to decide to remove VB and HH from trading if Disney doesn't plan to redevelop them as DVC. I can actually even see it happening with BWV and BCV a few years out.

Bcv and bwv will remain dvc - i cant see those two being removed from dvc inventory as those are cash cows. I think they will add on to bcv or just refurb and up the point charts and sell.

 

[stat]

With a 4% discount rate, the subsidy is worth a lot more than what you got...

Yeah I messed up my quick calculation a while back, you're right. Dues for sub and non sub always go up by the same %, right? Crazy that the gap could exceed $10 near the end of the contract!

 

[VGCgroupie]

Yeah I messed up my quick calculation a while back, you're right. Dues for sub and non sub always go up by the same %, right? Crazy that the gap could exceed $10 near the end of the contract!

Yes, the subsidy remains the same flat amount each year

 

[DanCali]

Yeah I messed up my quick calculation a while back, you're right. Dues for sub and non sub always go up by the same %, right? Crazy that the gap could exceed $10 near the end of the contract!

Yes, the subsidy remains the same flat amount each year

The subsidy is a 25% discount, so the dollar amount of the subsidy increases each year if the dues increase. They both will increase by the same percentage and so will the delta between them.

When nonsubsidized dues are $10, subsidized dues are $7.50 ($2.50 less).

If/when non-subsidized dues are $12, subsidized dues will be $9.00 ($3.00 less). All numbers are 20% higher.

 

[VGCgroupie]

The subsidy is a 25% discount, so the dollar amount of the subsidy increases each year if the dues increase. They both will increase by the same percentage and so will the delta between them.

When nonsubsidized dues are $10, subsidized dues are $7.50 ($2.50 less).

If/when non-subsidized dues are $12, subsidized dues will be $9.00 ($3.00 less). All numbers are 20% higher.

Really? Wow, I for sure thought it was a flat amount of 2.50 ish. I love my sub points even more now.

 

[VGCgroupie]

Really? Wow, I for sure thought it was a flat amount of 2.50 ish. I love my sub points even more now.

Just did some searching. The subsidy was $1.42 in 2011.
I am super pumped, not sure how or why I thought it a was flat amount of 2.50 forever, but I am doing a happy dance.