Ssr Buyers

[LOVEMICKEY&MINNIE]

My question is this :

What is the absolute minimum should I pay to buy 150 points at SSR, they said something about only paying 85/points if I don't go this year but I still would have to pay maint. fees ??

Secondly, is this a good investment when you can buy a resale for apprx. 70/point, it will take a long while if I decide to sell my SSR as the resale market is always lower but if you bought a resale and then resold it in a few years you should recoup money right away as you are paying less upfront ..

I've been told that SSR is so much bigger than other resorts that you will always be able to get in to it even if it's not your home so I should buy at another that's harder to get into ..

All this points to NOT buying SSR...ANy thought ???

 

[Granny]

Need a little more information to be able to help you.

Do you care which DVC resort you stay at? If you truly don't care, then my advice would be to purchase an OKW resale contract....lowest cost, lowest annual dues, lowest point-per-night structure if you stay at OKW. It's a great condo-style resort, with parking right in front of your accommodations.

If you really enjoy a different DVC resort though, that's where you should purchase.

I don't know your age, but keep in mind that the SSR contracts include an extra 12 years of use over any other DVC resale contract. SSR contracts have a 50 year life while all the other DVC contracts expire in 38 years.

We strongly urge people to purchase where they feel they will want to stay the most. If that's truly not important to you, then I'd stick with OKW, or SSR if the extra years are important.

 

[tjkraz]

Granny is right--it would help to have more info.

Here are some general comments regarding your post.

The base cost for SSR is $95 per point. However DVC offers an incentive called Magical Beginnings which allows you to trade in your first year's points for a $10 per point credit. That's where you get down to the $85 figure.

What's the minimum you should pay? Well, DVC will NOT negotiate with you. All of their rates are firm. So if you want to buy into SSR, that's the cost and there is no wiggle room.

Resale is always an option, and does represent lower up-front cost. But you also get fewer years as Granny indicated. If you spread out your initial investment equally over the length of the contract, resale points ($70, 38 years) would cost you about $1.84 per point, per year. SSR ($85 with MB, 49 years) is $1.73 per point.

So, I guess the main question you need to answer for yourself is whether those additional 12 years have some value to you. If not, then by all means look into a resale.

Projecting the future resale value of a DVC purchase is a pretty dicey proposition. Right now, the resale prices are largely proped-up by DVC's exercising its Right of First Refusal. DVC wants to keep that $$$ gap between resale and new sales as close as possible, so they will exercise ROFR on any sale below a certain level.

Will this practice continue indefinitely? Probably into the forseeable future, but nobody really knows.

What will happen to resale prices if DVC discontinues ROFR? Supply and demand will rule, but you can bet that the value will begin to decline--particularly as the year 2042 gets closer and closer. It's mostly a question of how quickly the value will decline. Other timeshares sell for pennies on the dollar on the resale market. But as long as there is a demand, DVC won't depreciate to such a degree.

 

[DrTomorrow]

Originally posted by tjkraz
[...]
Projecting the resale value of a DVC purchase is a pretty dicey proposition. Right now, the resale prices are largely proped-up by DVC's exercising its Right of First Refusal. If a

Oh, No! Somebody got to Tim right before he could reveal his last words of wisdom!

 

[bobbiwoz]

It seems as if Disney has not used ROFR recently. Yet, we still are talking about it on the boards. They don't seem to be interested in selling add-ons, the thrust is selling SSR. People are willing to pay the bit more for the resales because of the threat, but I'm wondering now, is it an emptier threat than it had been last fall, when Disney took the contract that we were interested in?

Bobbi

 

[tjkraz]

Originally posted by bobbiwoz
It seems as if Disney has not used ROFR recently.

I don't know if that is entirely true. In the past week I've seen a couple people post that they got their add-ons direct through DVC. Those points must be coming from somewhere.

I know very little about the resale market, but I wonder if this doesn't have a lot to do with the brokers / agents having a better feel for the levels at which DVC will exercise ROFR. As a buyer, if I told the broker that I wanted to offer $62 on a BCV resale and he/she could provide convincing evidence that I probably wouldn't get it for less than $65, I'd seriously consider offering $65.

I'm sure DVC would never make a formal announcement that ROFR has ended--but it would certainly be in their interest to continue ROFR at SOME level. If word leaked out that a handful of contracts traded hands at, say, $50 per point, it could send ripples through the entire resale market. And, you have to believe it would hurt SSR sales with such an extreme disparity between new and resale prices.