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- Nov 15, 2008
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IMO, this is a factor that should be part of the calculations of ‘value’ per point but is difficult to quantify because it’s unique to each individual & depends on view & villa size they plan to book.
I compared a hypothetical 1 week vacation starting tomorrow at BWV v. Riv.. I chose BWV because they’re both Epcot resorts, they’re approximately the same size, both have cheaper standard views, & MFs per point are about the same.
A 2 br. standard view next week would cost 253 pt.s at BWV v. 368 pt.s at Riviera.
If I paid $120 per point to get enough points for a 2 br. standard view at BWV it would cost $30,360, at Riv. $44,160. If I invest that $13,800 savings @ 5% for 18 years I have $33,211, @ 8% $55,145.
Then I have to add in carrying costs, BWV MFs are $8.53 x 253 points = $2158. Riv. MFs are $8.50 x 368 = $3128. So my 2 br. standard view Riv. villa currently costs $970 more per annum in MFs. If I throw that $970 per year in w/ my original $13,800 my gain after 18 years @5% is $60,500, @8% it’s $91,472. MFs will go up & they’ll go up more for Riv. in my hypothetical because I’ll have to pay on more points - so my numbers are conservative.
In 2042 BWV’s residual value is 0, thus to break even my 368 restricted Riv. points need to be worth $248 per point (8% BWV invested savings) or $164 per point (5% BWV invested savings.)
On the flip side, the SV RIV 2 bedroom is close to the 2 bedroom PV at BWV and on par with BCV.
Given that SV at RIV have fireworks views, it seems like a better comparison.
Realistically, getting SV at BWV is harder for owners than SV is at RIV for owners.
Still can make BWV the right choice if you prefer it, but there are ways to stay at RIV for a comparable number of points. And, rule of thumb has typically been dont but BWV for SV rooms.