Rejected Offers Thread

[thelionqueen]

Ok good to know. What are SAPs and VB?
So you make the reservations in advance or the request and you see if its available?
Thank you for sharing.

Yes I make the reservation in andvance and rent it not the points. Vero Beach has the highest dues but the lowest cost to buy per point. Many will argue that the higher dues make it a bad choice to own which I do not subscribe to. The extent low up front cost and length of contract remaining made it an amazing value for me

 

[DKZB]

Yes I make the reservation in andvance and rent it not the points. Vero Beach has the highest dues but the lowest cost to buy per point. Many will argue that the higher dues make it a bad choice to own which I do not subscribe to. The extent low up front cost and length of contract remaining made it an amazing value for me

Its not an opinion it is a fact to say there is inflation (increase) on dues but purchase price is fixed. Over the life of the contract you WILL pay less money with a higher portion of the total cost attributable to fixed purchase price vs. variable dues (all else being equal e.g. assuming the same contract length and inflation rate on dues for both properties).

See this link for Compound Annual Growth Rate (CAGR) on dues (https://www.dvcresalemarket.com/buying/annual-dues/The).

While Vero Beach is not the highest, that title goes to Hilton Head with a CAGR of 6.9%, at 5% CAGR for Vero Beach it is in the top 4 and nearly 28% higher than the average of all DVC resorts (Average of 3.9%). Last years dues inflation at Vero Beach was 7.9% which was nearly 30% higher than the DVC average of 5.9%. Even if the inflation rate was the SAME you would be increasing by more since it is the same percentage on a bigger number(e.g. 1% of 100 is only 1 while 1% of 100,000 is 1000).

If you do the math and account for the likely inflation properly, or LOVE Vero Beach, or that is simply the price point that gets you in the door, there are plenty of good reasons to buy. That said, the inflation on Vero dues should give any potential buyer pause if they are hoping to save money in the long run vs. other DVC properties.

 

[thelionqueen]

Its not an opinion it is a fact to say there is inflation (increase) on dues but purchase price is fixed. Over the life of the contract you WILL pay less money with a higher portion of the total cost attributable to fixed purchase price vs. variable dues (all else being equal e.g. assuming the same contract length and inflation rate on dues for both properties).

See this link for Compound Annual Growth Rate (CAGR) on dues (https://www.dvcresalemarket.com/buying/annual-dues/The).

While Vero Beach is not the highest, that title goes to Hilton Head with a CAGR of 6.9%, at 5% CAGR for Vero Beach it is in the top 4 and nearly 28% higher than the average of all DVC resorts (Average of 3.9%). Last years dues inflation at Vero Beach was 7.9% which was nearly 30% higher than the DVC average of 5.9%. Even if the inflation rate was the SAME you would be increasing by more since it is the same percentage on a bigger number(e.g. 1% of 100 is only 1 while 1% of 100,000 is 1000).

If you do the math and account for the likely inflation properly, or LOVE Vero Beach, or that is simply the price point that gets you in the door, there are plenty of good reasons to buy. That said, the inflation on Vero dues should give any potential buyer pause if they are hoping to save money in the long run vs. other DVC properties.

I saved over $15000 on purchase price and 19 years of higher dues is far less than that alone. Not to mention I rent half of my annual allotment for a net profit every year of about $1000 While it may not work for some, it is a cash cow for me. I have already recouped about 27% of my purchase price and will recoup the rest by the end of next year. If I paid that increase over 40+ years, then yes, it would cost more, but I’m not. We all use our point’s differently. So what works for some doesn’t work for others.

 

[tom1944]

I saved over $15000 on purchase price and 19 years of higher dues is far less than that alone. Not to mention I rent half of my annual allotment for a net profit every year of about $1000 While it may not work for some, it is a cash cow for me. I have already recouped about 27% of my purchase price and will recoup the rest by the end of next year. If I paid that increase over 40+ years, then yes, it would cost more, but I’m not. We all use our point’s differently. So what works for some doesn’t work for others.

I like to read about all the different decisions people made and why about their purchase. I belief it helps us all even if we ultimately decide that certain transactions would not work for us.

I would never assume someone else's decision was wrong unless that person came back and told us it was a bad move.

 

[DKZB]

I saved over $15000 on purchase price and 19 years of higher dues is far less than that alone. Not to mention I rent half of my annual allotment for a net profit every year of about $1000 While it may not work for some, it is a cash cow for me. I have already recouped about 27% of my purchase price and will recoup the rest by the end of next year. If I paid that increase over 40+ years, then yes, it would cost more, but I’m not. We all use our point’s differently. So what works for some doesn’t work for others.

I didn't mean to say you didn't make the right decision (for you). I would never question that because that is a personal choice. My point was simply to say it is not opinion, it is fact that there is a high probability for VB to be more expensive (over time) vs other choices for SAP.

For example

Recent price for VB was around $50/point. Lets just assume 100 point contract for simple math. If we ignore closing costs since they will be close and assume full dues reimbursement for 2023 points. That is $5000 to buy plus $39,224 over 19 years if dues start at $12.85 and increase by the historical 5%. That brings your total to $44,224 over the 19 years or $23.28 per lifetime point.

To contrast lets assume you bought SSR for $100/point (Probably could get lower but lets assume). You would pay more up front at $10,000 to buy but would only pay $21,550 in dues over the same 19 years assuming $7.86 starting and 3.9% historical growth. That brings your total cost to $31,550 or $16.61 per lifetime point. Also with SSR you have an additional 12 years on the contract so there is more chance that it will have some residual value which would make the difference even more dramatic.

Basically VB in total costs you 40% more than SSR over that 19 years even though it cost 50% less up front and you may have some residual value. In fact you could pay $225/point for SSR and still pay less over the 19 years.

 

[thelionqueen]

I like to read about all the different decisions people made and why about their purchase. I belief it helps us all even if we ultimately decide that certain transactions would not work for us.

I would never assume someone else's decision was wrong unless that person came back and told us it was a bad move.

Agree 100% that I like reading how others use their membership.

On paper yes it’s more expensive if not renting and making profit or comparing each for personal use, I get it. However, in my scenario, I more than offset any increased dues paid due to how I navigate that contract. In fact, my plan will allow me to have a zero purchase price and $1000 net profit annually starting in 2025. So, none of these equations are relevant to my ownership at all.

 

[jrieder]

I like to read about all the different decisions people made and why about their purchase. I belief it helps us all even if we ultimately decide that certain transactions would not work for us.

I would never assume someone else's decision was wrong unless that person came back and told us it was a bad move.

So is there a place where approved offers are posted?

 

[intamin]

So is there a place where approved offers are posted?

Same place in the ROFR thread. All of the ones in there have been approved. I don't think any of the posters here on disboards have been ROFR'd this year.

 

[jrieder]

Same place in the ROFR thread. All of the ones in there have been approved. I don't think any of the posters here on disboards have been ROFR'd this year.

K thx

 

[jrieder]

K thx

Same place in the ROFR thread. All of the ones in there have been approved. I don't think any of the posters here on disboards have been ROFR'd this year.

So all the ones in page 1 of this thread?

 

[thelionqueen]

So all the ones in page 1 of this thread?

No, the ROFR thread in this forum

 

[DKZB]

So I've been trying to pick up a small BWV contract in one of my Use Years at (what I believe) is a reasonable price. I frankly put a low-ball offer on a 150 point December contract. It had 0 points remaining in 22 and 179 coming in December of 23. According to the broker who told me my offer was rejected, they apparently got several full price offers at $110.

 

[HyperspaceMountainPilot]

This thread has been very quiet lately—I wonder if people in our community aren’t buying resale as much or if buyers are making higher offers or sellers are accepting lower offers?

I just made a couple of offers for PVB and expect to report back here (as opposed to the ROFR thread) unless the sellers are REALLY motivated.

 

[DonMacGregor]

This thread has been very quiet lately—I wonder if people in our community aren’t buying resale as much or if buyers are making higher offers or sellers are accepting lower offers?

I just made a couple of offers for PVB and expect to report back here (as opposed to the ROFR thread) unless the sellers are REALLY motivated.

My guess is that people don't have the same enthusiasm or eagerness to rush on and post information about a contract they DIDN'T get, versus the joy of sharing one they successfully did.

 

[TheDailyMoo]

Yeah definitely not as eager or fun to post rejected offers! But since it's quiet I'll post one I JUST got rejected for 15 minutes ago.

BWV, TheDailyMoo, 60, offered $110, listed $122, Sept. 2023

 

[Cfabar1]

VGF 100, $140, $180 listed price, 9/14

 

[HyperspaceMountainPilot]

VGF 100, $140, $180 listed price, 9/14

I have no idea what the market price is, but I would have assumed anyone who wanted to pay $160/pt or more for VGF would have just bought direct at some point in the past 3 months.

 

[Cfabar1]

I have no idea what the market price is, but I would have assumed anyone who wanted to pay $160/pt or more for VGF would have just bought direct at some point in the past 3 months.

Yeah, the market has been starting to cool on VGF but it was very hot for a while. We bought 150 points in June, and I thought why not give this a try.

Seller countered back in the $170s, I was encouraged by my broker to make a counter offer, which I did at $150.

Seller rejected it, and I moved on.

Time to find another house to flip.

 

[buzzrelly]

So all the ones in page 1 of this thread?

Here's the link to the ROFR thread. On the first page is a list of all the offers being sent to Disney for ROFR. The offers wouldn't be sent if they weren't accepted.

https://www.disboards.com/threads/r...ost-for-instructions-formatting-tool.3923215/

 

[HyperspaceMountainPilot]

Yeah, the market has been starting to cool on VGF but it was very hot for a while. We bought 150 points in June, and I thought why not give this a try.

Seller countered back in the $170s, I was encouraged by my broker to make a counter offer, which I did at $150.

Seller rejected it, and I moved on.

Time to find another house to flip.

I am curious to see where it goes (as someone who currently has slightly more VGF than I need because I did jump on the direct points)—my assumption has been that it will stay about where it is until VGF sells out (again) and then maybe trend up a bit—BUT not if the stock market keeps sliding like it did today and yesterday (or the economy otherwise goes into decline).