Riviera Resale

[sethschroeder]

busy week for RVA resale!

Seems like its settling in at that $120-$130 price range for an "easy" sale possibly. The summer incentives for 300 points was around $157-$159 after closing costs. So I am losing $27-$39 per point.

Flip side you had CCV for 300 points around $183-$185. That is selling for around $130-$135 which would be roughly a loss of $48-$55 per point.

I know the latest incentives are not the same but pointing it out based on the math when I purchased. Yes there is resale restrictions but its built in to the pricing right now as an extra discount over other sold out resorts (other than SSR/OKW).

My basic math range is built on having 1 contract for 300 points or 2 contracts for 150 points.

 

[Ginamarie]

Those contracts at $120-125/pp seem like a steal. I know you’d be locked into just staying at Riviera for now, but the dues are low and the contract term is so much better than the older properties.

I wonder if those properties were priced low to begin with or if they just accepted a low offer.

 

[sethschroeder]

Those contracts at $120-125/pp seem like a steal. I know you’d be locked into just staying at Riviera for now, but the dues are low and the contract term is so much better than the older properties.

I wonder if those properties were priced low to begin with or if they just accepted a low offer.

They probably took like $5-$10 off the price. I haven't followed it that closely as I don't really plan on ever selling.

 

[Ginamarie]

They probably took like $5-$10 off the price. I haven't followed it that closely as I don't really plan on ever selling.

I’m looking at it from a buyer’s perspective. At $120/pp, I’d buy it. That’s cheaper than buying at BCV or BLT, and has a longer term. We already bought resale points at AKL, so I can swap into the original DVC properties with those points.

 

[i<3riviera]

͏

 

[sethschroeder]

Sucks that people have to sell already you know they must be going through something terrible. Hopefully its not a loss of life though if nothing else.

 

[CastAStone]

Sucks that people have to sell already you know they must be going through something terrible. Hopefully its not a loss of life though if nothing else.

I dunno if that’s universal, i imagine a lot of people buy and realize pretty quickly that Either their family isn’t as jazzed about it as them or that they just aren’t going to use it as much as they thought that they were.

 

[sethschroeder]

I dunno if that’s universal, i imagine a lot of people buy and realize pretty quickly that Either their family isn’t as jazzed about it as them or that they just aren’t going to use it as much as they thought that they were.

A fully loaded contract though and taking a quick sale to a resale company has to be more than just changing your mind. Maybe I am wrong though. Sounds like never even used the contract once.

 

[Matty B13]

I think a lot of people buy in thinking that since they are "SAVING" on their hotel room with DVC than can afford a Disney Vacation every year. They soon realize how expensive it is once you add in air fair, tickets, food, and annual dues, and there only saving maybe 10% to 20% over the cost of the hotel prices. Once you add it all in, it is still over $5K a trip if not $8K.

I know that 3 of the 4 contract we bought were purchased direct within 2 years of us buying them, and this was 4 years ago.

 

[Ginamarie]

I think a lot of people buy in thinking that since they are "SAVING" on their hotel room with DVC than can afford a Disney Vacation every year. They soon realize how expensive it is once you add in air fair, tickets, food, and annual dues, and there only saving maybe 10% to 20% over the cost of the hotel prices. Once you add it all in, it is still over $5K a trip if not $8K.

I know that 3 of the 4 contract we bought were purchased direct within 2 years of us buying them, and this was 4 years ago.

I don’t know- these people who are taking a loss of $40/point after only owning for a year.. I have to believe they need cash quickly. Otherwise you would bank them points, do a resort only stay, rent them out... you’d find a way to make it work at least for a couple of years hoping to minimize your losses.

 

[sethschroeder]

I think a lot of people buy in thinking that since they are "SAVING" on their hotel room with DVC than can afford a Disney Vacation every year. They soon realize how expensive it is once you add in air fair, tickets, food, and annual dues, and there only saving maybe 10% to 20% over the cost of the hotel prices. Once you add it all in, it is still over $5K a trip if not $8K.

I know that 3 of the 4 contract we bought were purchased direct within 2 years of us buying them, and this was 4 years ago.

It's really a choice though.

Airfare is likely cheaper to Orlando that most places for people so it would be an impact of any trip.

Annual MFs just depend but are around $1k-$3k for most people which again is in line with hotels, resorts, and airbnb. (treating upfront cost as sunk it's not an annual part of my costs I have to actually pay)

Food can actually be cheaper than other trips as if you are in a 1/2br as you can make all your own food.

Tickets this is where it can be more money or could be less. The key to this is DVC AP discounts and alternating trips.

Yes it can cost more but I could go to the city for the weekend, eat at nice restaurants where it's $100 per steak, where drinks are $20 for on the rocks, and I am getting courtside/50 yard line tickets for $500/$1000+. That is on me though to budget.

I get people say it will change how you go to Disney but if you need to fix a budget and want to do Disney every year you can reduce costs if needed.

 

[Matty B13]

I don’t know- these people who are taking a loss of $40/point after only owning for a year.. I have to believe they need cash quickly. Otherwise you would bank them points, do a resort only stay, rent them out... you’d find a way to make it work at least for a couple of years hoping to minimize your losses.

Problem is most of the people who buy DVC are not as educated about it like most people on Disboards, and have no idea what the resale value is, much less the rental value.

 

[RivShore]

I think a lot of people buy in thinking that since they are "SAVING" on their hotel room with DVC than can afford a Disney Vacation every year. They soon realize how expensive it is once you add in air fair, tickets, food, and annual dues, and there only saving maybe 10% to 20% over the cost of the hotel prices. Once you add it all in, it is still over $5K a trip if not $8K.

I know that 3 of the 4 contract we bought were purchased direct within 2 years of us buying them, and this was 4 years ago.

While certainly true to some extent under normal circumstances, I don't think you can say this about Riviera at this time. Sales only took off last Dec. and then Covid restrictions hit in March. A good chuck of owners haven't been able to even experience that trip yet to come to the conclusion that it costs more than expected.

As others have said, it's someone who needed cash quick, or someone who won't feel save going to parks for a long time, or...

 

[CP3uhoh]

I think my favorite thing about the DVC portion of this site is the math people come up to justify an opinion....

I would just add that I think the days of these contracts doubling over 10 years in value are gone. But the idea that, to stay on the topic of this thread , a Riviera contract bought today for let's say $140/pt. is going to be worth less in 10 years is sort of hilarious. The 2042 resorts will be getting to roll off in 10 years and rerun with same restrictions, DLT will have same restrictions and probably at least one other property by that point whether it be Reflections or something else. Meanwhile, Riviera will still have 40 years left.

So even after commissions, you'd be able to sell for the same price (and probably higher) and be just be out the dues for 10 years. The idea that this would represent some fractional savings is not really accurate. Not to mention how much you can make by simply booking a highly sought after reservation and selling it.

Next fall Disney currently has a preferred studio at $800/night. Now would you or I pay that, of course not. But let's call that $525 and do the math on a 4 night reservation and price of buying a $100 point contract at $140.

This resort will also be impossible to book once it sells out. You won't be able to "book cash" on the hotel side. 5% or whatever will be Disney's to sell but that's nothing compared to Beach Club, Grand Floridian etc...So if you want to stay there you're going to have to buy points or come to someone that has them to rent. Does that create an inherit value? I'd say yes. You or I might just stay somewhere else, but it's not an accident that they put one of what will be one of their premiere restaurants for years to come at that location and anyone on the skyliner will be going right past it from Epcot to Hollywood or from Pop Century to Epcot with the idea "Wow, imagine if we could stay there."

There's a lot of angst over this property because they changed the "rules" we got use to. I get it, but I would just add that I've yet to read someone on here say, "I didn't like it" after staying there. That could change of course, but only time will tell.

 

[DVCsloth]

Don't think I would buy Riviera resale. I may add on a small direct contract in the future though. I think O could make a resale work for me, but I don't think I would enjoy the fact that I can only use it there.

 

[CastAStone]

The 2042 resorts will be getting to roll off in 10 years and rerun with same restrictions,

21 years, not 10.

This resort will also be impossible to book once it sells out. You won't be able to "book cash" on the hotel side. 5% or whatever will be Disney's to sell but that's nothing compared to Beach Club, Grand Floridian etc...So if you want to stay there you're going to have to buy points or come to someone that has them to rent. Does that create an inherit value? I'd say yes.

Hasn’t helped SSR or OKW, the 2 least expensive resorts to buy resale. If anything the fact that they’re barely available on the cash side has likely hurt resale prices because so few people ever build emotional attachments to those resorts until they’re already members. We bought an Elantra because we rented one randomly once and we loved it. Not likely to happen with Riviera Resort.

 

[sethschroeder]

21 years, not 10.

They are stating in 10 years there will be 10 years left on the contract. I think many assume as we approach or hit 10 years value and those wanting the resort will decrease on the resale market. Who knows.

Hasn’t helped SSR or OKW

SSR and OKW are more like non Disney resorts though. Riviera is on the Skyliner and attached to Epcot/HS.

 

[i<3riviera]

͏

 

[CP3uhoh]

21 years, not 10.

Hasn’t helped SSR or OKW, the 2 least expensive resorts to buy resale. If anything the fact that they’re barely available on the cash side has likely hurt resale prices because so few people ever build emotional attachments to those resorts until they’re already members. We bought an Elantra because we rented one randomly once and we loved it. Not likely to happen with Riviera Resort.

You left out the part when I said in 10 years....and yes in 10 years it will be 11-12 until the 2042's roll, but you get the point.

To compare OKW and SSR to Riviera is sort of laughable and I like the SSR remodel a lot. But just for kicks I'll point the walk to the bus spot to then take a 15-25 minute ride on a bus is longer than the skyliner ride to Epcot or HS.... That doesn't even take into account the level of accomodation that goes way beyond the finishes which can always be updated. Murphy bed in a studio is a plus as the couches are fine for kids but barely a bed and much more of a hassle to set up. Then you have the double shower option which no resort rooms have in standard rooms let alone other DVC studios.

Anyone can trade into SSR and OKW too. IF you want a studio or 2 BR at Riviera, especially a standard, you're going to have to own there, same with CCV. Really bad comp, sorry.

 

[CastAStone]

They are stating in 10 years there will be 10 years left on the contract. I think many assume as we approach or hit 10 years value and those wanting the resort will decrease on the resale market. Who knows.

You and I have run circles around on this topic before but I think the poster overestimates the extent to which BCV and BWV prices will impact Riviera prices. It’s great that people are getting BLT like prices for their Riviera contracts now but the market still isn’t liquid. It’s beginning to get there. We will know a lot more I think in the late winter or spring about where Riviera’s resale will slot in vis-a-vis the other resorts. No doubt it will eventually cost more than the 2042 resorts but that’s because it’s value will eventually be indisputably higher. Would people on balance rather have 21 years of Beach Club with the ability to move or 49 years of only Riviera? I’m betting Beach Club! When it’s 12 and 40? I’ll bet Riviera.