Sell and buy vs add On vs transfer points

[itutorfortravel]

My question in a nutshell is when does it make sense to sell a contract to buy a new one vs buying a second contract at either the same or different resort vs transferring a large number of points into account every year?

Some key points:

-we own 150 VWL points that we bought resale at $69 pp

-we have found that 250 points is really what we need for the type of visits we anticipate making over the next 5-6 years

- we transferred what we needed this year but continuing to do this over the next 5-6 years would cost us at least $1k in addition to our MF fees at VWL and I don't know if that's the best choice economically or if it would be better to own more points

- we just stayed at AKV in a 1 bedroom and we LOVED the resort! Love the quietness and remote location. The fact that 1 bedroom units have 2 baths also works perfectly for our dd to take a friend and as an only child we see that being very likely over the next several years.

So what advice would you offer given our situation? Thank you!

 

[supersnoop]

Do you find you need 250 points for a single reservation, or is that for multiple trips?

If you like AKV, I'd recommend adding on at SSR via resale. AKV 1-bedrooms will always be available at 7 months.

 

[nalajms]

How much is it cost to buy in at SSR for 100pts? If we say it's $80pp, that's 8k. So if you're spending an additional $1k a year to transfer beyond MF, then basic math is you'll break even after 8 years. Do you see yourself vacationing the same in 6 years? If you think you'll need less points, I'd transfer rather than buy-in. If you see yourself needing more points, I'd buy-in now.

Transfer
Pros: You can get different home resorts and get the 11m booking advantage. You don't have to get it if you change your vacation style.
Cons: You're paying extra. May be more work to find the transfer you want, home resort & UY.

Buying in
Same resort - only benefit if you want VWL and want to book there at the 11m. If 250pt is for 1 vacation, you might want to buy at VWL. If it's multiple trips, I'd consider a second home resort.

Selling
I'd only sell if you really don't like VWL and want points at a resort for 11m booking, say BWV for F&W or VGF. With the prices today, you'll end up paying more to sell the 150p and buy 250p then just buy a 100pt contract.

 

[itutorfortravel]

Thank you! I see us using 250 points for the next 5-6 years on a single trip per year...beyond that I don't know what our needs will be.

I'm thinking we will zero in on AKV for most of those trips because we will want to allow dd to bring a friend, for which we will need the extra bathroom. AKV is the best deal out there in that regard, as the one bedroom has the second bath and is much less point wise than BLT.

We would like to be able to have the option of VWL for family trips but don't see that as a destination for when dd
takes a friend since we
would have to get a 2
bedroom to get a second bath and that is an even bigger jump in points.

I just cannot decide what to do! But I did expect to hear that selling and buying again would probably not be the best option for us at this time. We really got a nice deal in our contract.

 

[Dean]

IMO it only makes sense to sell and buy again in a few circumstances. When downsizing from much larger to much smaller, when downgrading resorts significantly such that you can walk away with real money, and when you simply must have points to stay at a given location such that the current points and an add on won't satisfy those needs. If you sell, you'll have costs that are sunk costs including the sales commission. When you buy, most people over pay on the maint fees and this can be lost $$ as well. Then again a smaller contract will often be more per point. And if your current points are qualified, you'll lose that status by selling and buying something else resale.

I'd simply lay out on paper each scenario using the best assumptions you can on price per point. In this situation most would be far better served just doing an add on of 100-150 points. I'd suggest you consider the slightly larger contract even if you don't think you need that many but you can let the specifics of the contracts you find make your final decision since you'll need to match a UY and it'd be best to look for a very loaded contract.

 

[chalee94]

If you like AKV, I'd recommend adding on at SSR via resale. AKV 1-bedrooms will always be available at 7 months.

while there is always some risk that the future could bring changes, i completely agree with this.

 

[itutorfortravel]

Why are you recommending a purchase at SSR vs. an add on at my home resort or another resort? Is it because of the CPP? Thanks!

 

[supersnoop]

Why are you recommending a purchase at SSR vs. an add on at my home resort or another resort? Is it because of the CPP? Thanks!

Costs per point, maintenance fees, and everyone is equal at 7 months. AKV is one of the largest resorts and one-bedrooms are the last category to be booked.

Just make sure you get the same use year and title the contract the same as you're existing contract.

 

[Dean]

Why are you recommending a purchase at SSR vs. an add on at my home resort or another resort? Is it because of the CPP? Thanks!

IMO the dues are somewhat high for AKV and are at the most risk of increasing faster than the others long term. The other one I consider a real risk for this is OKW for the 2057 RTU. AKV makes sense if the value rooms or concierge will be a major focus.

 

[supersnoop]

IMO the dues are somewhat high for AKV and are at the most risk of increasing faster than the others long term.

Why do you believe that dues are risky there? Animal maintenance is less than 3% of their budget. The dues are high because it's a large tract of land.

 

[Dean]

Why do you believe that dues are risky there? Animal maintenance is less than 3% of their budget. The dues are high because it's a large tract of land.

There are a number of reasons, the animals are only part of it. I juts see AKV as a very inefficient system with challenges on transportation, Front Desk and other supports costs and a higher risk if RE taxes go up.

 

[KAT4DISNEY]

There are a number of reasons, the animals are only part of it. I juts see AKV as a very inefficient system with challenges on transportation, Front Desk and other supports costs and a higher risk if RE taxes go up.

What is different about the transportation, front desk and other support costs vs other resorts that rely only on bus service? The real estate tax is definitely different for them though.

 

[Dean]

What is different about the transportation, front desk and other support costs vs other resorts that rely only on bus service? The real estate tax is definitely different for them though.

For transportation it's distance and isolation. For the FD it's 2 locations, basically 2 smaller resorts combined.

 

[itutorfortravel]

Reading all the replies here...would you all recommend add on at VWL or do you think it's risky in terms of rising costs? Any other resorts you suggest other than SSR? How about VB or HHI? I know they aren't Disney World properties, but as long as I can use points at any Disney resort it wouldn't matter. Also, it looked like it might take around 17 years "break even" in terms of CPP plus maintenance at a resort like VB compared to something like VWL. I don't really understand the way people speculate on future costs at various resorts, so I don't know how to take that into account in a purchasing decision.

 

[chalee94]

How about VB or HHI? I know they aren't Disney World properties, but as long as I can use points at any Disney resort it wouldn't matter.

for a number of reasons (including higher annual dues, 11 month window, weather risks, *how essential they are to the DVC system*), VB and HHI are more risky than onsite DVC properties. they are not recommended by most posters here unless you plan to stay there. they are cheaper upfront for a reason.

but if you want to roll the dice, it's up to you.

 

[itutorfortravel]

Thank you everyone for all the feedback. Many ideas shared that I would not have even thought of. Transferring points in for the next several years is definitely an option and one that would not require a long term commitment. But I guess if I could buy a contract at the right price, at the right place, with the right UY it might be worth considering as we could either sell it when we no longer needed it, rent the points, or give it to our children and their families to enjoy.

No great urgency but interested in knowing what others think about when making these decjsions.

 

[Dean]

Thank you everyone for all the feedback. Many ideas shared that I would not have even thought of. Transferring points in for the next several years is definitely an option and one that would not require a long term commitment. But I guess if I could buy a contract at the right price, at the right place, with the right UY it might be worth considering as we could either sell it when we no longer needed it, rent the points, or give it to our children and their families to enjoy.

No great urgency but interested in knowing what others think about when making these decjsions.

If you're going to add on around 100 points or so anyway, why not give yourself options you don't currently have. Either a longer RTU, cheaper long term option or different home resort. I would only do VB or HH if you have an interest in staying there for things you can't get otherwise. SSR will be the cheapest long term and give you a longer RTU of 12 yrs. AKV would give you 15 yrs and the value/concierge options. BLT likewise will give you a longer RTU and cheaper dues but will be more than SSR and roughly similar costs to AKV when you consider MF. You'll have to decide what option works best for you.