Resale vs Direct Opinions

[Schweino]

Hello again! Wanted to start a separate post to get additional opinions about Direct Vs Resale. Below is a spreadsheet I put together to help me decide. Option 1 is a Riviera resale, Option 2 a BR resale, and Option 3 a Riviera Direct contract:

Resort Option	Points	Price Per Point	Total	Dues	Total Dues / YR	Pts Per 1BR/wk	Pts Per Studio/wk	Studio Rack Rate	1BR Rack Rate	7 Night Studio	7 Night 1BR
Riviera Resale	130	155	$20,150.00	$8.38	$1,089.40	259	123	$800.00	$1,100.00	$5,600.00	$7,700.00
BR Resale	200	120	$24,000.00	$8.15	$1,630.00	232	114	$590.00	$920.00	$4,130.00	$6,440.00
Riviera Direct	150	207	$31,050.00	$8.38	$1,257.00	259	123	$800.00	$1,100.00	$5,600.00	$7,700.00
6 Trips in 1BR every 2 years
Resort Option	Total Point Cost	Total Points Acq'd	Left Over	Rack Rate	Total Invested	Difference	Available Options with left over points?			Total Value
1	1554	1560	6	$46,200.00	$33,222.80	$12,977.20	None			$12,977.20
2	1392	2400	1008	$38,640.00	$43,560.00	-$4,920.00	This gives us 4 extra weeks of 1BR rates over 12 years			$20,840.00
3	1554	1800	246	$46,200.00	$46,134.00	$66.00	This gives us 2 extra weeks of studio rates			$11,266.00

From the above, the BR resale (assuming 120/pt purchase price) carries a ton of realized value over 12 years compared to the direct cost. I do understand that resale I lose two key things:

• I cannot stay at the Riviera or any other new DVC offering.
• I lose all discounts offered with a direct membership.

Outside of that, it is my understanding from reading that I still get three things that are a big deal to us:

• We can still book at any other DVC resort minus Riviera at the 7 month window.
• We can still rent out the points if we don't want to go to Orlando and use the money elsewhere.
• We can still trade in the points to RCI (now Interval International) if we really wanted (though understood renting the points carries higher value). Though with Interval replacing RCI, can purchaser's of a resale contract still do this on Interval?

We would not do a full Disney experience every two years. There might be a handful of times we just go to escape the winter for a week and maybe just do one park day to eat at a table service restaurant. I am almost very certain there would be no way we could make up the 9k difference between BR resale vs Direct in 'discounts/perks'. Based on the above, it seems to me that BR resale might be the way to go, depending on what the refurb looks like.

If you are bored, please feel free to either correct my sheet (call me out for bad values) or offer differing opinions!

 

[nuhusky123]

One thing you will start loosing in 2040 decade are those resorts. Eventually if you live long enough you will lose the ability to use any resort other than your own

also don’t get blue card benefits

i prefer direct for these reasons
1- no point restriction
2- can use at any resort now and future
3- can use points same day you close
4- closing can take five min, no rofr
5- blue card benefits, if ap ever comes back

 

[Chuck S]

Well, it comes down to what you want to use the points for. If you plan to rent them out in the future, remember that resale Riviera points can not be used at any other DVC resort, they are limited to Riviera only.

With that in mind, I would either do option 2, or if you personally want to stay at Riviera, but also have other options, I would go with number 3.

 

[Schweino]

One thing you will start loosing in 2040 decade are those resorts. Eventually if you live long enough you will lose the ability to use any resort other than your own

The current deed expiration for BR is 2042 - being a noob I have no idea what happens after that, but 20 years of use is good enough for me.

 

[Wedgeout]

With you liking Rivera, I’d suggest direct there Option 3, over any resale. If you don’t want 150 points at Riviera and not interested in the immediate Blue Card option, start with a resale at your BR choice Option 2. Then later decide on how many direct points 50+ you want at Riviera that can also supplement the BR points, 7 month bookings, or get a resale Riviera contract add on to just stay there sometimes. Your spreadsheet is good research to help you decide.

 

[macman123]

My last trip I stayed VGF, BLT and RIV - all 1BR

RIV is a fantastic resort, more luxurious than VGF in my view.

 

[DVChris]

Another vote for #3.

 

[Schweino]

Thanks all - appreciate the opinions. Another thing we really liked about option 2 was that since we had 4 'extra' weeks worth of points, we could gift those to our siblings who are married with kids. Expensive present for sure, but we love them But we did absolutely love Riviera after watching numerous room/resort tours on Youtube. Super tough choice.

Thanks again!

 

[Sandisw]

Just one more point to consider. When BRV ends in less than 20 years, you will have nothing left and can walk away.

If you go with option 3, in 20 years, you can sell RIV and recoup at least some of your money…definitely more than the $0 BRV is worth.

And, for rental, you be get more with RIV points over BRV. I think the biggest question is whether or not you will be disappointed not to have points good at RIV and any future resorts that open between now and then.

 

[Schweino]

Just one more point to consider. When BRV ends in less than 20 years, you will have nothing left and can walk away.

If you go with option 3, in 20 years, you can sell RIV and recoup at least some of your money…definitely more than the $0 BRV is worth.

And, for rental, you be get more with RIV points over BRV. I think the biggest question is whether or not you will be disappointed not to have points good at RIV and any future resorts that open between now and then.

This is a great call out. Just crunched some numbers:

Sell Riviera Direct
Points	Est. Points Per Sale	Total Sale	Total Invested	110 points left over	True Value
225	140	$31,500.00	$69,201.00	$1,650.00	$40,949.00

The above is a 12 year hypothetical where Total Invested = Purchase Price + 12 years of dues at 225 points. 110 points left over is what is not used over 12 years. Total Value = 10 weeks of 1 BR rates at Riviera + 110 points renting out at 15 per point.

So over 12 years, I would pay out of pocket 38k for 10 weeks of 1BR rates. Thats roughly 50% off rack rate currently at Riviera. Comparing that with option 2 buying BR resale, over 12 years I'd be out of pocket 43.5k for the same 10 weeks of 1BR rates. The big question is what is Riviera resale value look like in 12 years, especially if whoever buys my contract can only use it at Riviera??

 

[Sandisw]

This is a great call out. Just crunched some numbers:

Sell Riviera Direct
Points	Est. Points Per Sale	Total Sale	Total Invested	110 points left over	True Value
225	140	$31,500.00	$69,201.00	$1,650.00	$40,949.00

The above is a 12 year hypothetical where Total Invested = Purchase Price + 12 years of dues at 225 points. 110 points left over is what is not used over 12 years. Total Value = 10 weeks of 1 BR rates at Riviera + 110 points renting out at 15 per point.

So over 12 years, I would pay out of pocket 38k for 10 weeks of 1BR rates. Thats roughly 50% off rack rate currently at Riviera. Comparing that with option 2 buying BR resale, over 12 years I'd be out of pocket 43.5k for the same 10 weeks of 1BR rates. The big question is what is Riviera resale value look like in 12 years, especially if whoever buys my contract can only use it at Riviera??

That is the big question but what I think we can all say it will be worth more than a BRV contract will be at that point.

So far, people are buying it for much more than anyone expected, including me. I said when it went for sale I would not pay more than $50/point for it. Fell in love with the place and just paid $152/pt last summer.

I think there will always be a market for contracts as part of the larger holdings people have, like me.

We also could see more resorts come out with these same restrictions by then and of course, DVD has the right to reverse them at any time.

If you do go direct, I’d break 225 points into a 150 and 75 point contract and pay the extra closing cost to help with resale value down the road.

 

[Chuck S]

I'm guessing in 12 years, Riviera will have a higher resale price than a 2042 resort, with only 8 years left on the contract.

 

[WxKristin]

If you want to stay at RIV as well as other resorts, I suggest option 3.

You could rent out your points and then rent from another owner if you really wanted to stay at CCV/BRV with option1, but that seems like way too much effort to me.

with option 3, you can also ‘gift’ weekends at studios like Poly (at 7 mo booking window) or at other resorts that have lower point totals than RIV if that is important to you.

 

[Schweino]

I'm guessing in 12 years, Riviera will have a higher resale price than a 2042 resort, with only 8 years left on the contract.

Yeah that is assumed. Crunched more numbers and it looks like I can sell Riviera for 114/pt after 12 years (if I wanted) and still have equal out of pocket costs compared to Option 2 (BR resale contract). 113 and lower is when value shifts.