Strategy for Buying DVC - Multiple contracts?

[Whitters87]

Hello,

We are looking into buying DVC with cash this fall through resale contracts, but aren't 100% sure what the best way to go about it is. Instead of a 200 point contact I'm thinking a 150-160 point contract at SSR and then possible a 50 point contract somewhere else, possibly Disneyland or a harder to get into Disney World resort.

For usage: we are planning on doing a big family trip to Disney World probably every 2-3 years bringing extended family that would require 2 studios and a 2 bedroom villa. Just our immediate family (2 adults and 2 kids) would go to Disneyland or Aulani in the off years for a 3-4 day weekend once a year (just one 1 bedroom villa). We are west coasters and both of them are much closer.

I am assuming once our kids are teens we will reduce Disney trip frequency and either rent out points or sell the 50 point contract. Which is why diversifying contracts seems better than a single large contract.

But I'm not sure on buying at a different resort or the same for the small contract. I read up on other resorts, but I was wondering if anyone had their own personal strategies for it. If you were to buy a smaller contract at a different resort, which did you pick?

Thanks!

 

[pangyal]

For the small contract, have you priced out your desired stays and added at least 10% to that to hedge against possible future point reallocations? I'm wondering whether you could in fact stay at GCV in a one bedroom for four nights with 150 points (which is how much you'd have with banking and borrowing).

 

[Whitters87]

For the small contract, have you priced out your desired stays and added at least 10% to that to hedge against possible future point reallocations? I'm wondering whether you could in fact stay at GCV in a one bedroom for four nights with 150 points (which is how much you'd have with banking and borrowing).

I've calculated it out and we should be fine as long as we stay in the 1 bedroom villa in non-peak seasons at the VGC. The times we would most likely go would be midwinter break in February, and it's only 31 points per night Sun-Thurs and 40 points per night on Fri-Sat. We would likely just do 3 nights. Since it's only a 2 hour flight from us we could easily fit in Disneyland on just 3 nights. But Hawaii is a bit further so we'd likely want to do 4 nights there.

The other thing I'm considering is possible buying the 50 point contract at BLT. Honestly I kind of want to buy my full contract there, but the resale price is so high! Plus SSR is nice when the kids are older since it's closer to Universal Orlando, etc. But I definitely want to book a BLT room with view of the fireworks someday.

Thanks!

 

[Whitters87]

The thing that draws me with VGC is that I am a runner and love the RunDisney events, and I've heard VGC is hard to book within the 7 month window for the race weekends.

 

[_auroraborealis_]

Just remember, you can't combine the points in an 11-month window.

 

[Whitters87]

Just remember, you can't combine the points in an 11-month window.

Yep! Though I was curious. Can I book 3 nights at the 11 month window at my home resort with points and then add an additional night at the 7 month mark with my non-home resort Points if it still has openings?

 

[KAT4DISNEY]

Yep! Though I was curious. Can I book 3 nights at the 11 month window at my home resort with points and then add an additional night at the 7 month mark with my non-home resort Points if it still has openings?

Yes. if there's availability.

Since VGC interests you for the Run Disney events I'd say you should think about owning some points there. Otherwise it hasn't been bad to get into in Feb at 7 months, especially if you're looking at 1BR's. But the race weekends that wouldn't be as likely.

 

[Dean]

Hello,

We are looking into buying DVC with cash this fall through resale contracts, but aren't 100% sure what the best way to go about it is. Instead of a 200 point contact I'm thinking a 150-160 point contract at SSR and then possible a 50 point contract somewhere else, possibly Disneyland or a harder to get into Disney World resort.

For usage: we are planning on doing a big family trip to Disney World probably every 2-3 years bringing extended family that would require 2 studios and a 2 bedroom villa. Just our immediate family (2 adults and 2 kids) would go to Disneyland or Aulani in the off years for a 3-4 day weekend once a year (just one 1 bedroom villa). We are west coasters and both of them are much closer.

I am assuming once our kids are teens we will reduce Disney trip frequency and either rent out points or sell the 50 point contract. Which is why diversifying contracts seems better than a single large contract.

But I'm not sure on buying at a different resort or the same for the small contract. I read up on other resorts, but I was wondering if anyone had their own personal strategies for it. If you were to buy a smaller contract at a different resort, which did you pick?

Thanks!

You'll give up some of the savings of SSR by going this route. It's harder to find VGC and even harder still if you add the requirement of UY and smaller contract. In this situation, if you're set on the more difficult to find option, I'd buy it first. And I'd keep my options open anywhere from the 50 pt you're thinking about all the way up to the full 200 points there. It's going to be MUCH easier to find a SSR or AKV full sized starter contract than the other you're thinking about. Personally I'd likely just do them all at one resort rather than SSR. I wouldn't plan to sell later, I'd buy less rather than do this but at 200 points total (or thereabouts), I doubt you'll have an issue using them. And if you did, one rental every few years would take care of the issue.

 

[Whitters87]

You'll give up some of the savings of SSR by going this route. It's harder to find VGC and even harder still if you add the requirement of UY and smaller contract. In this situation, if you're set on the more difficult to find option, I'd buy it first. And I'd keep my options open anywhere from the 50 pt you're thinking about all the way up to the full 200 points there. It's going to be MUCH easier to find a SSR or AKV full sized starter contract than the other you're thinking about. Personally I'd likely just do them all at one resort rather than SSR. I wouldn't plan to sell later, I'd buy less rather than do this but at 200 points total (or thereabouts), I doubt you'll have an issue using them. And if you did, one rental every few years would take care of the issue.

I'm planning on doing my started contract for the 150-200 at SSR, since my financial analysis says it's the best bet (I'm an actuary so building out a full financial analysis was a blast for me!) The AKV has too high of dues from what I saw. BLT seemed to have a high upfront cost but relatively low dues plus a later expiration date. We are most interested in booking a 2 br villa and going in less peak seasons according to the availability tables I saw on this site, so I'm not too worried about needing to get a good home resort at WDW. Hence picking the cheapest option out of home resorts at WDW.

But the difficulty of booking at VGC is what has me worried, especially since it's the only option at Disneyland. Which is why I would be willing to pay for a 50 point contract at VGC and was wondering if anyone had any input. But as you noted it's crazy expensive and not very easy to find that specific of a contract. I see one 50 pt available for $165 pp (yikes) with full points coming in 2016 and 2017. Most of the ones I have seen lately are stripped for 2016 and most of 2017.

I wish there was a calculator I could see the difficulty of booking at VGC! It would just stink to buy a contract with a WDW home resort and not be able to book at VGC the dates I would want. So nerve wracking.

And to think some people just buy it right from Disney World with nary a thought. And I'm treating it like this super complex matter that requires a full analysis!

 

[Dean]

I'm planning on doing my started contract for the 150-200 at SSR, since my financial analysis says it's the best bet (I'm an actuary so building out a full financial analysis was a blast for me!) The AKV has too high of dues from what I saw. BLT seemed to have a high upfront cost but relatively low dues plus a later expiration date. We are most interested in booking a 2 br villa and going in less peak seasons according to the availability tables I saw on this site, so I'm not too worried about needing to get a good home resort at WDW. Hence picking the cheapest option out of home resorts at WDW.

But the difficulty of booking at VGC is what has me worried, especially since it's the only option at Disneyland. Which is why I would be willing to pay for a 50 point contract at VGC and was wondering if anyone had any input. But as you noted it's crazy expensive and not very easy to find that specific of a contract. I see one 50 pt available for $165 pp (yikes) with full points coming in 2016 and 2017. Most of the ones I have seen lately are stripped for 2016 and most of 2017.

I wish there was a calculator I could see the difficulty of booking at VGC! It would just stink to buy a contract with a WDW home resort and not be able to book at VGC the dates I would want. So nerve wracking.

And to think some people just buy it right from Disney World with nary a thought. And I'm treating it like this super complex matter that requires a full analysis!

I agree with your thoughts and for WDW they are right along my lines of thinking for those who are flexible and OK staying at the lower demand places & times. But here's the problem I see with your plan. By buying SSR then trying to add VGC, you're limiting yourself to an extremely limited group of resales for VGC. Finding good contracts there in general can be an issue but when you cut the options to only 1/8 (roughly) of the total contracts then further restrict it to a small contract, you may never find what you need or have to go retail and IIRC, even the wait list to buy there is currently closed. If you're set this is where you want to end up, I'd buy the VGC first or just go for VGC for the total. Your overall costs will be higher but not that much in the long run and you'll avoid a ton of hassles and hours working on it. Obviously with your background you can work out the numbers you can work out the numbers in terms of savings by trying to go your route but with comparable dues, you're talking just the buy in difference. Rough numbers comparing 200 at VGC to 150 VGC/50 SSR to 150 SSR/50 GC would be 28K, 25K, 20K. If the dues were a large difference I'd say maybe it was worth the hassle but I don't see it and I'm the one almost always telling you to buy cheaper mostly SSR. Personally in this case I'd buy all VGC but second option buy VGC first.

 

[Whitters87]

I agree with your thoughts and for WDW they are right along my lines of thinking for those who are flexible and OK staying at the lower demand places & times. But here's the problem I see with your plan. By buying SSR then trying to add VGC, you're limiting yourself to an extremely limited group of resales for VGC. Finding good contracts there in general can be an issue but when you cut the options to only 1/8 (roughly) of the total contracts then further restrict it to a small contract, you may never find what you need or have to go retail and IIRC, even the wait list to buy there is currently closed. If you're set this is where you want to end up, I'd buy the VGC first or just go for VGC for the total. Your overall costs will be higher but not that much in the long run and you'll avoid a ton of hassles and hours working on it. Obviously with your background you can work out the numbers you can work out the numbers in terms of savings by trying to go your route but with comparable dues, you're talking just the buy in difference. Rough numbers comparing 200 at VGC to 150 VGC/50 SSR to 150 SSR/50 GC would be 28K, 25K, 20K. If the dues were a large difference I'd say maybe it was worth the hassle but I don't see it and I'm the one almost always telling you to buy cheaper mostly SSR. Personally in this case I'd buy all VGC but second option buy VGC first.

I have a bit of time so I think I'll watch for the perfect contract at VGC for now. It seems like SSR is fairly easy to get the 150-160 on resale so I don't feel as pressured, especially since our first trip to Disney world using DVS likely won't be until 2018.

I called DVC today and things definitely do not sound promising if I wanted to by VGC direct from them. They said if they had anything it would be $180 a point, but the waitlist is closed and they aren't reopening it any time in the foreseeable future. So I definitely agree if booking VGC is important to me I really need to buy a chunk of points at VGC (if not all of them).

Thanks!

 

[Dean]

I have a bit of time so I think I'll watch for the perfect contract at VGC for now. It seems like SSR is fairly easy to get the 150-160 on resale so I don't feel as pressured, especially since our first trip to Disney world using DVS likely won't be until 2018.

I called DVC today and things definitely do not sound promising if I wanted to by VGC direct from them. They said if they had anything it would be $180 a point, but the waitlist is closed and they aren't reopening it any time in the foreseeable future. So I definitely agree if booking VGC is important to me I really need to buy a chunk of points at VGC (if not all of them).

Thanks!

You are correct that finding SSR with a specific UY and number of points in mind will infinitely easier than doing the same for VGC. Remember that VGC will have a higher inherent value going forward as well plus there's no guarantee that smaller contracts will continue to sell at a premium long term. Good luck and let us know what happens.

 

[disneynutz]

Planning a purchase is a best guess. After buying, things change, you learn about the system, issues that you may have with MS and the website, how difficult it is to book certain resorts/rooms during different times of the year. We found that staying at WDW gave us more to do and the resorts that we thought we would fall in love with, we didn't and other resorts, we did.
We also would vacation often and spend most of our time in the parks, now we vacation less and spend most of our time at the resorts.

Bottom line is make you best guess now but be prepared to adjust your holdings and mindset latter.

Bill