Step 6: The Year of Favorite Weeks—Guaranteed Winter Elegance at The Grand Floridian!

[emchen]

Just as I was closing on my VDH contracts, fate—or should I say, extreme add-on-itis—intervened. I stumbled upon a 477-point FW52 subsidized Aulani contract that had languished on the resale market. After geeking out on favorite weeks (FW) in the DisBoards forums, I snapped it up for a price eerily similar to my first Aulani contract four years ago. This contract would not only fund Annual Dues (ADs) across my portfolio but also grant us enviable yearly vacations.

But let's pause for a DVC 101 lesson on Favorite Weeks. In DVC lingo, these are akin to "fixed weeks" or "guaranteed weeks" in other timeshare realms. You pay a 10% point premium for the luxury of having your dream week locked in each year. Now, back to our tale: I was so infatuated with FW that I couldn't resist a direct VGF FW49 contract. The base cost was 145 points, but with a summer offer of 5-free points, we bumped into an array of dazzling incentives for the 150 point threshold—bringing the cost down to the $170s per point from developer credits!

But the magic didn't end there! By opting for a December Use Year (UY), we received 2022 points with no dues through the Magical Beginnings offer. Renting these and our 2023 points (with pro-rated dues) would bring our total buy-in to the $130s per point. A steal too enticing to pass up!

So, get ready for a return to The Riviera Resort, where FW50 takes the spotlight and the magic continues to unfold.

Full disclosure: ChatGPT-4 helped edit and proof this post for style consistency and readability. Smash that 'Like' button to see the original draft! Click the links in my signature to explore our DVC Journey's previous steps.

 

[Paul Stupin]

Just as I was closing on my VDH contracts, fate—or should I say, extreme add-on-itis—intervened. I stumbled upon a 477-point FW52 subsidized Aulani contract that had languished on the resale market. After geeking out on favorite weeks (FW) in the DisBoards forums, I snapped it up for a price eerily similar to my first Aulani contract four years ago. This contract would not only fund Annual Dues (ADs) across my portfolio but also grant us enviable yearly vacations.

But let's pause for a DVC 101 lesson on Favorite Weeks. In DVC lingo, these are akin to "fixed weeks" or "guaranteed weeks" in other timeshare realms. You pay a 10% point premium for the luxury of having your dream week locked in each year. Now, back to our tale: I was so infatuated with FW that I couldn't resist a direct VGF FW49 contract. The base cost was 145 points, but with a summer offer of 5-free points, we bumped into an array of dazzling incentives for the 150 point threshold—bringing the cost down to the $170s per point from developer credits!

But the magic didn't end there! By opting for a December Use Year (UY), we received 2022 points with no dues through the Magical Beginnings offer. Renting these and our 2023 points (with pro-rated dues) would bring our total buy-in to the $130s per point. A steal too enticing to pass up!

So, get ready for Step 7, where FW50 at Riviera takes the spotlight and the magic continues to unfold.

Full disclosure: ChatGPT-4 helped edit and proof this post for style consistency and readability. Smash that 'Like' button to see the original draft! Click the links in my signature to explore our DVC Journey's previous steps.

Isn’t week 52 at Aulani relatively easy to book at 11 months, though, especially if you do it on the day the window opens? Is a fixed week necessary? And aren’t high point contracts, subsidized or not, very difficult to sell on the resale market? Just playing devil’s advocate. I’m not really following your math, but it seems to be working for you.

In my opinion, the huge discounts on large point contracts can be a bit deceptive, because the owner might very well have to offer a similar or even higher discount to sell it down the line.

 

[emchen]

Isn’t week 52 at Aulani relatively easy to book at 11 months, though, especially if you do it on the day the window opens? Is a fixed week necessary? And aren’t high point contracts, subsidized or not, very difficult to sell on the resale market? Just playing devil’s advocate. I’m not really following your math, but it seems to be working for you.

The fact it was a FW was wholly incidental. I stumbled into it and it served as a caralyst for me to study the subject. It acted as a gateway to a whole new way to look at direct contracts for me.

With regards to math, you may know that the bulk of the overall cost of any contract is tied to the annual dues. Taking that into account, subsidized AUL points are the most cost effective over the life of the contract in the DVC world. They also happen to rent out at premium rates and with relative ease. Put those two variables together and it easily pays for its annual dues plus another’s. Truly staying on points for free after breakeven (10 years). Why not invest $64000 into index fund, one may ask? Can’t book at Aulani at 11-mo every so often, is the answer.

 

[Paul Stupin]

The fact it was a FW was wholly incidental. I stumbled into it and it served as a caralyst for me to study the subject. It acted as a gateway to a whole new way to look at direct contracts for me.

With regards to math, you may know that the bulk of the overall cost of any contract is tied to the annual dues. Taking that into account, subsidized AUL points are the most cost effective over the life of the contract in the DVC world. They also happen to rent out at premium rates and with relative ease. Put those two variables together and it easily pays for its annual dues plus another’s. Truly staying on points for free after breakeven (10 years). Why not invest $64000 into index fund, one may ask? Can’t book at Aulani at 11-mo every so often, is the answer.

Fair enough! And yes, I’m well aware of the substantial impact of annual dues! And, as you probably know, the 11 month window is particularly good for December and June at Aulani.