Spreadsheet Warriors - how have you calculated the all in real cost?

[Mousemath]

First and foremost, buying DVC is an emotional decision, but for those who love numbers….. I’ve been comparing resale costs at various properties to assess overall cost and value. Right now I’m looking at the yearly amortization of the initial cost assuming a 4% risk free rate, and then adding in dues increasing over time based on history. How have you looked at this?

It’s quite interesting that doing the math this way it really stands out that dues are way more of a cost driver than initial investment, and the longer deeds hold great value. It’s not hard to run scenarios where the value (relative to current resale price) of VGF is greater than SSR.

Anyone else ever geek out like this?

 

[airjay75]

Oh yes. You should check out this thread: https://www.disboards.com/threads/most-economical-resort-beyond-year-1.3950476/

I think you're looking at it right, although I don't personally get too focused on the risk free rate of return on my money or expected increase in dues because both of those are bit unpredictable. I tend to think, looking at prices and dues today, how much am I going to spend per year over the life of the contract and then I compare resort/contracts on that basis. It is so easy to focus on the upfront cost, but dues are far and away the most expensive part of DVC ownership. I know as I was getting into this, I toyed with resale Vero Beach contracts for a few minutes and, after doing some of my own calculations, quickly realized how that made no sense.

IMO, the best resale values are currently CCV/BLT/SSR (and probably in that order). That said, some people really fall in love with individual resorts where the 7-11 month booking window makes a difference. For those people, paying a premium to stay where you love may well be worth it. And direct points purchases are a bit different calculation too (how do you value the direct benefits?) and then there is also the issue of resale restrictions to complicate decision-making further. No doubt, you can analyze the heck out of DVC purchases!

 

[Chili327]

Anyone else ever geek out like this?

Yes, definitely!!
I just love it when someone does it for me to read.

 

[Mousemath]

Oh yes. You should check out this thread:

Oh wow, that’s my kind of post… thanks for sharing!