ROFR Thread April to June 2022 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[Redheadprincess]

Beach Club value is so bad that you're better off not buying DVC at all. If you want to stay at Beach Club, wait for a 30% discount and stay as a cash guest.

Actually it is still a good deal, if you get the right resale contract. Our cost per point on the contract we just signed is 15.04 pp. That comes out to less than $300 on most studios that we will stay in during the year. Pop Century can cost that more. I've never seen Beach cash prices below $500 per night with discounts, plus I don't have to pay parking, taxes, extra adult prices, and get priority booking.

 

[CaptainAmerica]

Is the same true for boardwalk? I actually did the math and think my purchase that is in ROFR right now of 250 at $143 a point pays itself off before 2042. But I guess value is an objective metric.

Boardwalk resale is probably pretty close to break even, with a thousand assumptions about rack rate inflation, dues inflation, and availability of rack rate discounts.

 

[Mexacajun]

Boardwalk resale is probably pretty close to break even, with a thousand assumptions about rack rate inflation, dues inflation, and availability of rack rate discounts.

I have a big family so the value for me is getting the 2 bedrooms (or occasionally the 3). It is just harder to get without owning there. So that is how i calculated the value. We can’t fit in anything smaller than 2 bed.

 

[CaptainAmerica]

Actually it is still a good deal, if you get the right resale contract. Our cost per point on the contract we just signed is 15.04 pp. That comes out to less than $300 on most studios that we will stay in during the year. Pop Century can cost that more. I've never seen Beach cash prices below $500 per night with discounts, plus I don't have to pay parking, taxes, extra adult prices, and get priority booking.

Dividing total cash over the life of the contract is a poor substitute for NPV analysis.

Easy numbers for the sake of example... Spending $30,000 today is much more expensive than spending $3,000 per year for ten years.

 

[CaptainAmerica]

I have a big family so the value for me is getting the 2 bedrooms (or occasionally the 3). It is just harder to get without owning there. So that is how i calculated the value. We can’t fit in anything smaller than 2 bed.

I'm not talking about owning Boardwalk/Beach Club versus owning elsewhere. I'm talking about owning Boardwalk / Beach Club versus not owning DVC at all.

 

[Sandisw]

Dividing total cash over the life of the contract is a poor substitute for NPV analysis.

Easy numbers for the sake of example... Spending $30,000 today is much more expensive than spending $3,000 per year for ten years.

True. But that assumes that what you are buying upfront remains $3k each of those 10 years. If it goes up, then it does offset it.

 

[CaptainAmerica]

True. But that assumes that what you are buying upfront remains $3k each of those 10 years. If it goes up, then it does offset it.

Yeah but I left dues off of my simplified example. DVC isn't just cash upfront for years of cash saved on vacations. It's cash upfront, plus dues (which inflate) every year in exchange for years of vacations (which also inflate).

My DVC cash flow analysis is extremely robust. There's no way that the math of Beach Club works out unless you make crazy assumptions like "rack rates are going to increase by 15% every year and dues are only going to inflate 3%."

 

[Mexacajun]

Yeah but I left dues off of my simplified example. DVC isn't just cash upfront for years of cash saved on vacations. It's cash upfront, plus dues (which inflate) every year in exchange for years of vacations (which also inflate).

My DVC cash flow analysis is extremely robust. There's no way that the math of Beach Club works out unless you make crazy assumptions like "rack rates are going to increase by 15% every year and dues are only going to inflate 3%."

Do you have a spreadsheet to share? I am curious.

 

[pangyal]

Updated

 

[pks_domer]

Updated

Thank you for all your work on this thread!

 

[M23F5]

M23F5---$185.5-$9811-50-PVB-Dec-50/21, 50/22, 50/23- sent 4/6, passed 4/30 So excited to have our first contract!

 

[CaptainAmerica]

Do you have a spreadsheet to share? I am curious.

Turns out I may have exaggerated (it's no secret that I'm a Beach Club hater). It appears to be roughly break-even.

This assumes that you're going to use every single Beach Club point you buy at Beach Club, and that if you hadn't bought DVC you would have stayed at Beach Club as a cash guest exactly the same amount.

Most of the work here goes into figuring out that initial "Average Rack Rate per Point." If you're staying in 1BR every time, this gets significantly worse. If Studios every time, a bit better. The 2BR average is very close to the resort overall average.

 

[TotallyMinnie83]

TotallyMinnie83---$272-$35642-125-VGC-Sep-0/20, 37/21, 125/22, 125/23- sent 4/5, passed 4/30

I'm so excited! I had assumed I wouldn't be hearing anything over the weekend and then I received my email at 8am PDT.

 

[Redheadprincess]

Turns out I may have exaggerated (it's no secret that I'm a Beach Club hater). It appears to be roughly break-even.

This assumes that you're going to use every single Beach Club point you buy at Beach Club, and that if you hadn't bought DVC you would have stayed at Beach Club as a cash guest exactly the same amount.

Most of the work here goes into figuring out that initial "Average Rack Rate per Point." If you're staying in 1BR every time, this gets significantly worse. If Studios every time, a bit better. The 2BR average is very close to the resort overall average.

View attachment 665888

View attachment 665889

We just closed on a BCV contract for $150pp and have a $145 pp in ROFR. Both contracts are loaded, too, so it can actually be a savings.

 

[M23F5]

TotallyMinnie83---$272-$35642-125-VGC-Sep-0/20, 37/21, 125/22, 125/23- sent 4/5, passed 4/30

I'm so excited! I had assumed I wouldn't be hearing anything over the weekend and then I received my email at 8am PDT.

Same! I had assumed since we didn’t hear on Friday it wouldn’t be until next week. Congrats!

 

[CaptainAmerica]

We just closed on a BCV contract for $150pp and have a $145 pp in ROFR. Both contracts are loaded, too, so it can actually be a savings.

Were they huge contracts or international sellers? I thought Disney was taking them around 170.

 

[mejones1115]

Did you buy from dvcresalemarket?

Yes we did.

 

[Pens Fan]

Yes we did.

Oof!

That's good to know, though. We are waiting on closing documents from them as well, so this tells me I need to be patient on ours that passed last Thursday.

We had two different contracts (different brokers) pass ROFR that same day. For the other one (broker who cannot be mentioned here and Mason Title) we got our "passed" email around 5 PM. Cammie sent us the closing documents by 11:45 AM the next morning. Everything was docusigned, and the cashier's check on its way by that afternoon. We had another contract that passed a few weeks ago (yet another broker and title company) and it took 2 weeks to get the closing documents. I guess in the grand scheme of things waiting a couple of weeks isn't that big of a deal, though. As long as it gets done.

Still, as everyone on here always says, Cammie at Mason Title is awesome!

 

[TroJo]

Still, as everyone on here always says, Cammie at Mason Title is awesome!

Yes she is. She’s done two of my resale contracts. This past week I was informed I passed ROFR on Friday. Closing documents were sent out that next Monday. I went in person and signed with her on Wednesday. And the closing happened yesterday (Friday). So one week turn around from ROFR pass to closing.

 

[mejones1115]

Oof!

That's good to know, though. We are waiting on closing documents from them as well, so this tells me I need to be patient on ours that passed last Thursday.

We had two different contracts (different brokers) pass ROFR that same day. For the other one (broker who cannot be mentioned here and Mason Title) we got our "passed" email around 5 PM. Cammie sent us the closing documents by 11:45 AM the next morning. Everything was docusigned, and the cashier's check on its way by that afternoon. We had another contract that passed a few weeks ago (yet another broker and title company) and it took 2 weeks to get the closing documents. I guess in the grand scheme of things waiting a couple of weeks isn't that big of a deal, though. As long as it gets done.

Still, as everyone on here always says, Cammie at Mason Title is awesome!

I've seen a lot people post about Mason and how quick they are. Was really wishing it would be that quick for us. But it is what it is. At least we got 1 to pass. Now to try again and wait it out.