Sell Grand Californian to purchase Saratoga?

[pennymike]

After being DVC members for 4 years now we are rethinking the Grand Californian (200 points) ownership. Chances are we will not travel west, so owning in FL make more sense. After seeing what GC point are selling for in the resale market, does it make sense to cash in and purchase points at SSR? Any thoughts out there? Thanks.

 

[tjkraz]

I think it absolutely makes sense to sell. VGC is a very hot property. There are literally hundreds of people actively seeking points at that resort. If you're not going to take advantage of the 11 month booking priority, might as well cash in.

As to where you should buy, that's a different topic obviously. SSR is one of the cheapest options but consider whether having the Home resort booking advantage elsewhere would be beneficial.

Also keep in mind that resale points aren't eligible for Disney Collection and Concierge Collection stays. Not a huge issue for most people.

 

[pennymike]

Tim.....thanks for the feed back.........We also own 200 points @ AKV, so SSR made sense. Has anyone ever hear of DVC selling some of the sold out resorts?......you know buy backs from past members?

 

[tjkraz]

Tim.....thanks for the feed back.........We also own 200 points @ AKV, so SSR made sense. Has anyone ever hear of DVC selling some of the sold out resorts?......you know buy backs from past members?

They will sell older properties but most consider the prices to be exorbitantly high. And they go higher in January. In about 3 weeks, AKV will reportedly hit $155 per point, SSR $130 and BLT $170. In some cases, you could buy resale for nearly half of those prices.

 

[jerseyduke]

You will be losing, as PP posted, the benefits of direct points. (Now those benefits may not be worth the price of a cup of coffee).

If that is not a big deal to you, then sell!

Get more points, or put the money in your pocket. You are not using the 11 month window.

If life changes, buy back into the VGC in the future.

Where to buy instead.....totally different question.

One thing you could do, is rent out your VGC points and rent points at SSR. Since i David's only takes 2$ per point for the rental, renting out 200 points, and renting 200 points, will all in all only cost 400. Just something you can ponder as well.

 

[tjkraz]

One other thing to consider is that the VGC price is so high because of pent-up demand. If (when!) Disney finally builds another DVC at Disneyland, we may see a correction in those VGC prices. It won't happen overnight because it'll take them a good 3 years to open a new resort after they start moving dirt. Still, there will eventually be another DVC property at DL and the resale economics could shift to your detriment.

We're VGC owners and love visiting there. My favorite resort of all. But if you aren't going to use those points, I agree with last poster--sell and use the proceeds for even more points elsewhere or pocket the difference.

 

[Chiomaca]

One other thing to consider is that the VGC price is so high because of pent-up demand. If (when!) Disney finally builds another DVC at Disneyland, we may see a correction in those VGC prices. It won't happen overnight because it'll take them a good 3 years to open a new resort after they start moving dirt. Still, there will eventually be another DVC property at DL and the resale economics could shift to your detriment.

We're VGC owners and love visiting there. My favorite resort of all. But if you aren't going to use those points, I agree with last poster--sell and use the proceeds for even more points elsewhere or pocket the difference.

Where do you think they would put another DVC? I didn't think there was much room around there. I just bought VGC resale for an insane price compared to other DVC properties except VGF, but I wanted the loaded contract and 11 month window to use for RunDisney weekends.

OP - Good luck in your research and decision-making. The only thing I'd say there is to watch the ROFR thread - lots of SSR being taken back right now. Are you okay with taking a while and having to possibly make multiple offers to get a contract or is there another resort that you wouldn't have to be as concerned about ROFR?

 

[dsnydaddy]

After being DVC members for 4 years now we are rethinking the Grand Californian (200 points) ownership. Chances are we will not travel west, so owning in FL make more sense. After seeing what GC point are selling for in the resale market, does it make sense to cash in and purchase points at SSR? Any thoughts out there? Thanks.

I was just talking to a Friend about this very thing. He owns GC. I told him he could sell and buy double the points at SSR or about 25% more points at BLT for what his GC is worth. Now he lives in CA so he will really like the 11 mo. advantage at GC but with the greater amount of points he'd be able to afford better accomodations in FL or HI when he goes. You not coming to CA is even more incentive to not own here. Here is a great posting regarding the costs and values regarding the various DVC properties.

http://www.disboards.com/showpost.php?p=52768348&postcount=48

 

[pennymike]

They will sell older properties but most consider the prices to be exorbitantly high. And they go higher in January. In about 3 weeks, AKV will reportedly hit $155 per point, SSR $130 and BLT $170. In some cases, you could buy resale for nearly half of those prices.

Thanks........the only reason we would consider purchasing through DVC over resale is so we could use the point for DCL. I know, not the best way to use points, but there are some years where we have banked points and it was a use them or lose them situation.

 

[tjkraz]

Where do you think they would put another DVC? I didn't think there was much room around there.

There are a number of surface parking lots scattered around Paradise Pier, Disneyland Hotel and Downtown Disney which could be better utilized. The Mickey & Friends parking structure could virtually double in size--right next to it is a surface lot on which they could easily go vertical. That alone would solve DL's parking woes for decades to come. (But would also cost hundreds-of-millions, which is why it hasn't happened yet.)

If they decide to expand the current hotels, underground parking is an option. The Grand Cal villa wing actually sits on top of its underground valet parking lot. This isn't Florida with the high water table.

When the Disneyland Hotel began its revitalization about 4-6 years ago, there were rumors of a 4th tower being built which would house DVC villas. That will probably happen in some way, shape or form. It's more sensible than an add-on to the lesser Paradise Pier or an entirely new stand-alone hotel.

Newer hotel rooms at the Grand Cal could also be converted to villas, but for the time being they are much more profitable left as hotel rooms.

Right now, Aulani is the big elephant in the room. Disney execs saw Hawaii as being a big draw for west-coasters. Even though Aulani sales have been disappointing, they would be downright dismal if Aulani had to directly compete with another DVC resort at Disneyland. As soon as they feel they've sold enough of Aulani, we'll start to see movement on another DL destination.

 

[BWV Dreamin]

I would not. VGC will stay in demand and Saratoga Springs can easily be had at 7 mos.

 

[Minniesgal]

I would not. VGC will stay in demand and Saratoga Springs can easily be had at 7 mos.

I agree especially since you would lose 10 percent of the proceeds in commission.

 

[MountainMouse]

That's a hard call. VGC is in such high demand and you can use those points a SSR, however, no offense to SSR but what a waste. Would you actually use the booking advantage at WDW resorts? I'd think long and hard about what you anticipate your use to be long term and adjust to that. If it comes to selling VGC I guess I would bite the bullet and do it. Tough move though.

 

[tjkraz]

What value does the VGC booking window serve if it's never used?

200 VGC points sold for $135 would net $24,300 after 10% commission.

200 SSR points purchased at $75 each would cost $15,000. OP would pocket nearly $10,000 on the deal! Or could put the $24k toward more than 300 SSR resale points.

 

[KAT4DISNEY]

What value does the VGC booking window serve if it's never used? 200 VGC points sold for $135 would net $24,300 after 10% commission. 200 SSR points purchased at $75 each would cost $15,000. OP would pocket nearly $10,000 on the deal! Or could put the $24k toward more than 300 SSR resale points.

Except OP says they would purchase direct for the replacement. All or virtually all gain would be lost. No sense in doing this switch unless they are going to repurchase resale. Then this "trade" can make sense.

 

[PatMcDuck]

I wish I could trade my BCV points for VGC myself!

We sold our original DVC points at OKW to re-buy back in at BCV. Sometimes, it makes sense to switch home resorts....... my 4 kids fell in love with BCV when it opened, so we made that decision, and it really worked for us. (The $$ was a "wash", because I was a CM at the time I did this).

I travel each year to both DL and WDW. I only have 200 points, which is not enough for that! At WDW, I now found that I LOVE staying in an Art of A suite. While not Deluxe, is it large and comfortable, and honestly, a fun place. I have no such options at DL resort, no Value suites there, and no Value hotels to get 2 rooms....so I use those BCV points at VGC every other year when I can.

 

[tjkraz]

Except OP says they would purchase direct for the replacement. All or virtually all gain would be lost. No sense in doing this switch unless they are going to repurchase resale. Then this "trade" can make sense.

I didn't interpret that as a definitive statement. OP said "... the only reason we would consider purchasing through DVC..."

Totally agree that it makes no sense to sell VGC and then buy another direct. (Well...unless Home resort advantage is wanted at VGF, Poly or some other. But OP didn't indicate that was the case and the premium cost looks to be extremely high.)

 

[JimMIA]

After being DVC members for 4 years...

the only reason we would consider purchasing through DVC over resale is so we could use the point for DCL.

From your signature:
08/2010 - 11-Night Mediterranean Cruise, Magic. 12/2010 - 11-Night Christmas Cruise, Magic. 08/2011 - 5-Night Bahamian Cruise, Dream, 08/2011 - 4 Night @ WDW - WLV and AKV. 12/2011 - 7 Night Eastern Caribbean, Magic. 07/2012, 2-Nights @ BWV & 7-Night Western Caribbean, Fantasy. 07/2013 - 12 Night Mediterranean Cruise, Magic. 12/2013 7-Night NYE Eastern Caribbean, Fantasy. Up and coming: 08/2014, 7-Night Western Caribbean w/Jamaica, Fantasy then 07/2015 12-Night Northern Europe, Magic.

It looks to me like cruises are just about the only thing you've used your points for in four years of ownership. Even the few nights you've spent in a DVC villa have been in conjunction with cruises.

And...

I know, not the best way to use points, but there are some years where we have banked points and it was a use them or lose them situation.

Assuming I have not grossly misread...

1. You have too many DVC points
2. At a minimum, I would sell the VGC -- you have no reason to own it.
3. Frankly, I would sell ALL of your DVC -- and use the proceeds and saved annual MFs to pay for the cruises you love.

 

[Minniesgal]

Except OP says they would purchase direct for the replacement. All or virtually all gain would be lost. No sense in doing this switch unless they are going to repurchase resale. Then this "trade" can make sense.

Exactly and the price is about to go up for the sold out resorts.

 

[starry_solo]

Maybe I'm in the minority but I would keep the VGC points. You can do a transfer of SSR points (if you want to book there at 11 months out) and rent the VGC points out (or transfer those out if a different year) for extra funds.