SSR add-on $61 Per Point?

[LIFERBABE]

Is this right? LOL! I swore I was not adding on anymore, but if they are giving the points away, I will take them. THIS IS FOR SSR add-ons only!

I spoke to my guide this morning and this is how she explained the new incentive to me with a March UY 120 point add-on:

$95 ppt minus $8 because Im not getting 2004 points. $5 discount if I were.

Because Im adding 120 points, I would get the 100 bonus BCV points (no bonus points for less than 120). The bonus points will be awarded to your Master Contract, which is your original (first) contract over 150 points. For me that would be BCV. Bonus points are NOT developer points and can be used or banked/transferred and used for DCL, Concierge etc. Bonus points are available for use in 48 hours or less because they need to be added to your Master contract.

No 2005 dues on the 120 points. DVC will pay them.
No dues payable on the bonus points.

So I did the math:

$95-$8=$87 per point x 120= $10,440
2005 dues on 120 SSR points prorated from May (what I would have paid)=
-$309
2005 dues on 100 BCV Bonus points not prorated = -$425
Rent 220 points at $10 to $12 per point=-2200 to $2640 (avg. -$2420)

Totals $7286 for 120 points or $61!

Not to mention, Disney Visa has 6 month 0% interest on the first 10% of your downpayment when purchasing DVC. The $8 discount counts toward the 20%downpayment so I can put the remaining $180 cash down and pay off my Downpayment over 6 months.

My payments would start right after closing which would be approx. 6-8 weeks.

Not saying Im going for it, but that is a helluva deal if you don't mind renting out the points, which I dont have a problem with.

 

[Scotch]

Since you are doing such detailed calculations, don't forget you need to pay taxes on the rental proceeds. Since you there are no 2005 maintenance fees to offset the rental income, and you can advertise for free on the DIS rent board, 100% of the rental proceeds would be taxable.

 

[jmminarik]

Uhm, were you once an accountant for Enron or is this the new Math everyone talks about?

I'd have never thought to subtract the cost of dues from the 'purchase cost' since I'm still paying that money. However, if it gives someone a justification to buy, cool.

-Joe

 

[SoCalKDG]

Plus no points until 2006 if you sell them. How could you manage?

If you buy a resale with banked points you can do even better. Buy 150 at $75, say it comes with 110 points 2004 and 150 points 2005 so if you had sold them it would be $57.66 per point.

 

[LIFERBABE]

Uhm, were you once an accountant for Enron or is this the new Math everyone talks about?

I'd have never thought to subtract the cost of dues from the 'purchase cost' since I'm still paying that money. However, if it gives someone a justification to buy, cool.

-Joe

I think it is a legit subtraction, because if I were to add on without the promo, then the 2005 dues would be a real out of pocket cost that I would have to pay for 2005. So I do look at it as a savings.

Most resale purchasers get reimbursed for dues on stripped contracts, which affects their total price per point, so why not the other way around?

 

[senecabeach]

Lifrebabe...

Wait....Wait...Wait.....

Please....Please.... explain this to me... simpler if you can??

I am interested in: "What IS the BC Bonus" ????

BTW... BC is my home resort and I am on the "add on wait list" for the BC and would be definitely, positively ...... to hear that BC pts. are being "given away" as an incentive to buy other properties........while Im out here just hanging!!!

Is that how I read this??

 

[CarolA]

Don't panic, they aren't really giving away BC points. They are giving away "Disney points" for a one time use. I assume they are actually coming from the points Disney owns to rent so Disney will just be renting less rooms at BCV this year.So you get them once not every year like if you buy them.

 

[LIFERBABE]

Beach Club Villa is my Home Resort also. It is also my Master Contract because it was the first DVC contract we ever purchased and it was for 160 points.

The way it was explained to me, is that the 100 bonus points would be added to my Master Contract which in my case is BCV. The bonus will be different for those that don't own at BCV or have smaller add-ons there that are not their master contract.

The rest of my contracts are considered add-ons because none of them are 150 points or more.

My guide said that this was the first time DVC ever used bonus points that are not developer points.

Lifrebabe...

Wait....Wait...Wait.....

Please....Please.... explain this to me... simpler if you can??

I am interested in: "What IS the BC Bonus" ????

BTW... BC is my home resort and I am on the "add on wait list" for the BC and would be definitely, positively ...... to hear that BC pts. are being "given away" as an incentive to buy other properties........while Im out here just hanging!!!

Is that how I read this??

 

[senecabeach]

CarolA & Liferbabe...


Well.....rest my weary, racing heart ....Thank You!!

Now...if only the wait list was that easily explained

 

[ColoradoBelle1]

Hey Liferbabe...
I understand your new math.
It's what I did to justify offering enough to the seller in my resale purchase to hopefully get by ROFR.

I think I might be interested in this too (IF my BWV gets through ROFR) . Like you, I would rent the extra points offered to bring the cost base down...and yep, it looks like a good deal. I think you might have even a better deal if you also keep the 2004 points and rent them. (At least that is how someone else figured it).
Two questions:
If I bought 150 points as a first timer (if my ROFR doesn't get thru) would the incentive be the same?
If my credit limit were high enough (it is) could I put ALL the purchase price on Disney Visa? (I have 12 months 0%...and I could figure that savings in too and make about 5% on the money invested)...hey, if I keep going maybe this could turn out to be FREE!!!!

Thanks for answering...I know I should just talk to a guide but I am superstitious re this ROFR stuff and don't want anyone thinking I'll buy outright if they snatch my resale contract.

CB

 

[Silos]

Is this right? LOL! I swore I was not adding on anymore, but if they are giving the points away, I will take them. THIS IS FOR SSR add-ons only!

I spoke to my guide this morning and this is how she explained the new incentive to me with a March UY 120 point add-on:

$95 ppt minus $8 because Im not getting 2004 points. $5 discount if I were.

Because Im adding 120 points, I would get the 100 bonus BCV points (no bonus points for less than 120). The bonus points will be awarded to your Master Contract, which is your original (first) contract over 150 points. For me that would be BCV. Bonus points are NOT developer points and can be used or banked/transferred and used for DCL, Concierge etc. Bonus points are available for use in 48 hours or less because they need to be added to your Master contract.

No 2005 dues on the 120 points. DVC will pay them.
No dues payable on the bonus points.

So I did the math:

$95-$8=$87 per point x 120= $10,440
2005 dues on 120 SSR points prorated from May (what I would have paid)=
-$309
2005 dues on 100 BCV Bonus points not prorated = -$425
Rent 220 points at $10 to $12 per point=-2200 to $2640 (avg. -$2420)

Totals $7286 for 120 points or $61!

Not to mention, Disney Visa has 6 month 0% interest on the first 10% of your downpayment when purchasing DVC. The $8 discount counts toward the 20%downpayment so I can put the remaining $180 cash down and pay off my Downpayment over 6 months.

My payments would start right after closing which would be approx. 6-8 weeks.

Not saying Im going for it, but that is a helluva deal if you don't mind renting out the points, which I dont have a problem with.

Not that I disagree with your thought process, I really do not believe subtracting the dues from the cost should be factored into your calculation. The savings to you is that you just did not have to pay the dues. Also, not only is the rent fully taxable you are forgeting to factor in the cost of money you used to invest in the DVC. Do not get me wrong this is still a good deal and if at all possible one should purchase through this promo if at all possible.

 

[EdTreo]

$95-$8=$87 per point x 120= $10,440
2005 dues on 120 SSR points prorated from May (what I would have paid)=
-$309
2005 dues on 100 BCV Bonus points not prorated = -$425
Rent 220 points at $10 to $12 per point=-2200 to $2640 (avg. -$2420)

Totals $7286 for 120 points or $61!

Why would you include rental rates for your 120 add on points? When you buy a contract you never subtract the points equivalent in rentals and call it a deal, do you?

Also, you never pay dues on bonus points, correct if I'm wrong.

All I can see here is the dues for 05 and the 100 points. So its $1425 - $10540 = $9015.

Just my 2 cents.

 

[mydogdrew]

Do not deduct the cost of dues you did not pay. Otherwise fine. But why stop there? Pay $3 more on the purchase price for another 120 2004 points with no dues and rent them. You can take another $7 off the price.

 

[LIFERBABE]

Hey Liferbabe...
I understand your new math.
It's what I did to justify offering enough to the seller in my resale purchase to hopefully get by ROFR.

I think I might be interested in this too (IF my BWV gets through ROFR) . Like you, I would rent the extra points offered to bring the cost base down...and yep, it looks like a good deal. I think you might have even a better deal if you also keep the 2004 points and rent them. (At least that is how someone else figured it).
Two questions:
If I bought 150 points as a first timer (if my ROFR doesn't get thru) would the incentive be the same?
If my credit limit were high enough (it is) could I put ALL the purchase price on Disney Visa? (I have 12 months 0%...and I could figure that savings in too and make about 5% on the money invested)...hey, if I keep going maybe this could turn out to be FREE!!!!

Thanks for answering...I know I should just talk to a guide but I am superstitious re this ROFR stuff and don't want anyone thinking I'll buy outright if they snatch my resale contract.

CB

Hey Belle,
Good luck on your ROFR!
This incentive is only for add-on contracts, so you would have to already be an owner or hopefully pass ROFR and then you could add-on to get the incentives.

My guide did explain the New Purchase requirements and incentives and it did get more expensive from last month's offer for new purchasers. (February)

I hope im explaining this right...........From my notes:

New contracts are required 150 point purchase.
$95 per point.
You can choose $8 per point discount and currently they are selling Sept 2005 UY or later, so you wouldnt receive 2004 points.
Your first set of points would be in Sept 2005.
You could forego the $8 discount and receive developer points.
For a 150 point contract you would receive 100 developer points.
Developer points expire Dec. 31 2005.

 

[KellyDVC]

Liferbabe,

I'm all for a good deal!!!! Yours gets even better if you accept the 2004 points. If I understood correctly, your are given a credit of $8 if you don't accept the 2004 points, but $5 if you do. Doesn't this mean that you can get the 2004 points for $3 each. In your analysis, if you accept these $3 points, then rent them for the $10-12 you project on the other points, aren't you getting another $7-9 per point of the purchase price?

Think about it, 'free' points (meaning no maint fees) for $3. Gotta go with that!!

Thanks to all.

Brian

 

[LIFERBABE]

Do not deduct the cost of dues you did not pay. Otherwise fine. But why stop there? Pay $3 more on the purchase price for another 120 2004 points with no dues and rent them. You can take another $7 off the price.

I would love to! But my UY is not available for 2004. I would have to purchase a new master contract with 150 points with a different UY to get the 2004 points.

Not trying to argue or justify a purchase, but I still dont understand why the dues can't be viewed as a reimbursable just like they are on a resale contracts. Just trying to fully understand the logic.

Why would you include rental rates for your 120 add on points? When you buy a contract you never subtract the points equivalent in rentals and call it a deal, do you?

I would say because this is an add-on contract. I could draw my initial costs down and still have full use of my points in 2006 (or borrow) and beyond.

People are buying stripped contracts from the resalers, paying much more, and they are usually reimbursed for the points used by the seller if they are Current year points. If there are points available for the current year, they normally pay the dues or reimburse the seller for dues already paid.

This is how must have calculated their cost per point when buying resale.

This is what I have read on these boards, and have seen others recommending the same and to me it makes sense.

 

[EdTreo]

I would say because this is an add-on contract. I could draw my initial costs down and still have full use of my points in 2006 (or borrow) and beyond.

People are buying stripped contracts from the resalers, paying much more, and they are usually reimbursed for the points used by the seller if they are Current year points. If there are points available for the current year, they normally pay the dues or reimburse the seller for dues already paid.

This is how must have calculated their cost per point when buying resale.

This is what I have read on these boards, and have seen others recommending the same and to me it makes sense.

If your initial intention is for business purpose (buying points to rent out) then that makes sense.

 

[lllovell]

I haven't even started paying for my initial contract.....


now I want more!!! ack!!

 

[Geyser Gazer]

liferbabe,

The fact that your not getting '04 points counts against you, not for you.

95-8 = $87.00/pt.
87 x 120= $10,440 total.
Losing '04 points can be thought of as losing $1,200
10,800+1200= $11,640 new total.
Getting 100 incentive points can be thought of as gaining $1,000
11,640 -1,000 = $10,640 losing '04 but gaining incentive points.
10,640/120= $88.67/point

If you kept '04 points:
95-5 =$90/point
90 x 120 =$10,800 total
Getting 100 incentive points can be thought of as gaining $1,000
10,800-1000=$9,800
9.800/120= $81.67/point.

I'm not gettin' into the dues part of your calculations.

 

[cruise-o-matic]

Seems like a really sweet deal, but I have some questions....

My UY is December. Can I add on 120 points and get a different UY or do I have to add 150 to get the incentives?

Can the 2004 points you get be banked? What about the 100 bonus points?

If I calculate right, the net cost of the points, if you rented 04 & 05 + 100 would be:

120 x $90 = 10,800
340 x $10 = 3,400
Net $7,400
PPP 61.67 ooh-la-la

Not sure what the tax laws state as far as rental income, but not having to pay for '05 fees seems like a bonus in itself.

And one final other question.....Why is DVC doing this? I thought SSR sales were pretty brisk.