That 12 year difference really bothers me. Am I obsessing??

[Disney Devoted Daddy]

Newbie to this whole DVC thing. Can someone give me the pros of going with the OKW or other 2042 contracts besides the cheaper buy in price??

Am I missing something? Or does it pretty much just come down to 2042 at OKW or BCV is cheaper but you get 12 years less lease time than SSR.

Is there some other way to do a deal that evens out the 12 years difference in the future w/o too much more expense or etc.

Thanks for the help.

 

[gmboy95]

They will have to push me around in a gurney in disney world in 2042,,,so as far as i am concerned my kids can worry about the gap when they actually have jobs!!

 

[AKV707]

The expiration date of the contracts for each resort are tied in to how old the resort is. OKW, BWV, VB, HHI, VWL, and BC are all 2042. When OKW opened in 1992, 2042 was 50 years away.

Remember, that OKW has now been extended, and you can buy OKW points from DVC with a 2057 expiration.

SSR has a 2054 expiration and AKV expires in 2057.

The proposed Kingdom Tower at the Contemporary is rumored to have a 2060 expiration which could likely be the same for GCV and Hawaii.

There is no adjustment of the end date for any of these. There is speculation about whether DVC will extend the contracts of the rest of the 2042 resorts, but there has been no indication that that will happen for sure.

 

[Buckeye Fan]

Newbie to this whole DVC thing. Can someone give me the pros of going with the OKW or other 2042 contracts besides the cheaper buy in price??

Except for AKV (2057) or SSR (2054), all resale contracts will expire 2042. I haven't seen OKW resales yet with the 2057 expiration date. Resales can be cheaper, but it depends on the resort and the number of points you're buying. Certain resorts (i.e., OKW, VB, HHI) sell for much less than through Dis. Lower point contracts fetch a higher price per point because they are affordable and you can't purchase a small number of points through DVC as a new buyer.

Look at any fees, closing costs and MFs and it may help you determine whether the 2042 contracts are really that much better of a deal. The pros of the 2042 resorts...possibly cheaper and most import - people purchase where they want to stay. If you will be disappointed if you can't stay at BCV every time you visit, you probably should consider purchasing there even if it expires in 2042.

Am I missing something? Or does it pretty much just come down to 2042 at OKW or BCV is cheaper but you get 12 years less lease time than SSR.

Again, it's really a matter of where you want to stay. I'm right now considering purchasing Vero Beach points, because I want home resort booking priority. I agree with you...I feel like I'm losing something by getting a 2042 expiration date, but at the end of the day, we'll be in our early 70s when the contract expires, and we really enjoy beach vacations. To the OP...I'm having GREAT mental images of someone wheeling me around in WDW by the time I hit that 2054 expiration date!

Is there some other way to do a deal that evens out the 12 years difference in the future w/o too much more expense or etc.

This is really simplistic and does not consider closing costs, maitenance fees, time value of money, increasing vacation costs, etc., but it will help you start adding in factors and weighing the costs of the initial purchase. Many times, you can negotiate for the seller to pay for closing costs if purchasing through resale. If you're looking at buying the same resort either through Dis or resale, say OKW, your MFs will be the same, so what I listed below would be a fair comparison.

2057 Resort
$96 per point (assuming OKW via Dis) * 160 points = $15,360
$15,360/49 years = $313.47 for each UYs points

2042 Resort
$70 per point * 160 points = $11,200
$11,200/34 years = $329.41 for each UYs points

Good luck on your decision! 2042, 2054, 2057 or waiting for the long awaiting 2060, you'll LOVE your DVC purchase!

 

[rsinj]

.

 

[Granny]

That 12 year difference really bothers me. Am I obsessing??

I don't think you're obsessing at all. 46 years vs 34 years is a significant difference if you are young enough to think that you'll be able to take advantage of the extra years.

One thing that helps many get past that is that DVC can "pay for itself" in 8-10 years depending on how you compare costs with staying at WDW otherwise. So then the additional years aren't part of how we value DVC ownership and we go to the "buy where you want to stay the most" axiom.

But your concern is a valid one, and shoud be part of your decision on where to buy. My only advice is don't buy some place for the extra years that you don't think you'll like to stay at a lot. I don't think you would like that decision in the long run.

 

[Arthur27]

Newbie to this whole DVC thing. Can someone give me the pros of going with the OKW or other 2042 contracts besides the cheaper buy in price??

Am I missing something? Or does it pretty much just come down to 2042 at OKW or BCV is cheaper but you get 12 years less lease time than SSR.

Is there some other way to do a deal that evens out the 12 years difference in the future w/o too much more expense or etc.

Thanks for the help.

My wife and I struggled with the same questions as recently as last week. What helped make our decision is the current promotion with SSR or AKV. We bought AKV for the 100 developer points - that to me added the value plus we have 12 years more. And we get our points right away instead of waiting three months or something. Either way you choose I don't think you can go wrong, it's a good deal all the way.

Regards
Arthur27

 

[DeeCee735]

They will have to push me around in a gurney in disney world in 2042,,,so as far as i am concerned my kids can worry about the gap when they actually have jobs!!

Well said! AGREED!

 

[Brian Noble]

2057 Resort
$96 per point (assuming OKW via Dis) * 160 points = $15,360
$15,360/49 years = $313.47 for each UYs points

2042 Resort
$70 per point * 160 points = $11,200
$11,200/34 years = $329.41 for each UYs points

The divide-by-years analysis ignores the fact that there is a time-value of money. Another way to think about it is: if I borrowed the purchase price at a reasonable interest rate (say 5%) spread over the term of ownership, how much would my annual payments be? In some sense, that's the "cost" of using your own cash now, because the two alternative purchasing mechanisms are fungible, and the value of the contract at end-of-term is conveniently $0.

Using the above examples, $15,360 at 49 years is $840 per year. $11,200 at 34 years is about $700 per year. The reason there is such a difference---the extra years you are buying are "far off" into the future, at which time the extra todays-value dollars are worth much more.

Different people treat the analysis differently, and reasonable people could put the effective interest rate anywhere between long-term inflation (about 3%), and the after-tax S&P 500 return (about 7.5%), but I'm pretty firmly convinced that *some* time-value of money needs to be considered in a purchase such as DVC.

 

[crisi]

There are a number of things to consider - are you young enough to want the years, does resale value make a difference 20 years from now to you, are you willing to purchase additional years (if offered), and the "if you can book more than seven months out, buy where you want to stay."

We didn't have the option having bought prior to SSRs extended contract. Had we had the option, I'm not sure I would have taken it. SSR isn't an appealing resort to me, and I think I'm getting great value for my points at the Boardwalk - since we travel in October, having the home resort window is important to us to take advantage of standard view units. Now, AKL does have some more appeal to me, but we've owned for a number of years now, and I can't trade those.

 

[Tink-n-Belle]

We went for Bwv even though that contract contained 12 less years because the BWV is a prime location for us NOW. I really don't care if I have to pay rack rates 35 years from now or that my contract will be expiring then, because I don't know when I will expire and I wanted to live in the now. We travel during the peak seasons due to the kids being in school and we would never get into our boardwalk views rooms at 7 months. (this will be our situation for the next 10 years) The location at SSR never appealed to me-- I don't go to Disney to hang out at DTD. I felt SSR was too far away from the parks and because we used to stay at that location every year when it was the Fairway Villa's I knew from past experience. IMHO the BWV is worth every penny and less year I got, because I enjoy the location so much!

However, since The KTV will have 50 years on them when I buy points there I can leave the contract to the kids and GK someday. But The real reason I will be buying the KTV is because thats were I want to stay NOW Guaranteed.

 

[twinklebug]

Great thread as I've been having the same issue fighting over buying AKV or VWL/BWV (where we feel most comfortable) & the years "lost".

Looking at it from the point of buying where we like to stay I'd have to say I'm not too worried about missing those last years hanging out at the poolside in my bikini sipping drinks. Infact, at 88, I think you all would be the ones needing the drinks if I chose to sit around in my bikini

 

[Buckeye Fan]

Using the above examples, $15,360 at 49 years is $840 per year. $11,200 at 34 years is about $700 per year. The reason there is such a difference---the extra years you are buying are "far off" into the future, at which time the extra todays-value dollars are worth much more.

Absolutely agree that TVM is an important factor. Could have calculated it, but the reason I didn't...MFs. Though your contract ends 15 years earlier, you'll be paying MFs for an additional 15 years. You can't deduct a great enough percentage on taxes to make up for what you'll be paying out. They will also increase by 5 - 15% per year for the last 15 years and by that point in time, YIKES!!!

I do think that's a great point, though, and that's why I mentioned in my response that TVM wasn't considered. Many times, a straight calculation is just not apples to apples and can be very misleading.

Just my two cents!

 

[BroganMc]

Am I missing something? Or does it pretty much just come down to 2042 at OKW or BCV is cheaper but you get 12 years less lease time than SSR.

It gets even more complicated than that. Owning at OKW gives you more bang for the buck than BCV. The reason is that the nightly point costs are lower so the number of points you'd need are lower. Also maintenance fees are lower. And with Disney's contract extension of 2057, it makes for a good deal at OKW these days.

IMHO, the only advantage to buying BCV, VWL and BWV is the location. But once KTR is built, there goes VWL's proximity advantage. They are all still very good resorts, but you'll pay for the ability to use an 11 mos window.

If you absolutely, positively MUST always be able to book rooms at those resorts in the highest demand times, then location trumps everything. But based on a purely financial decision, I can't get over the loss of time. it feels like I'd be shelling out an awful lot for a not-so superior product. (Like buying anything Sony or Apple.)

Now while I'd be in my 70's by the time 2042 rolled around, the next generation in my family would be parents of school-age kids. I like the idea of them carting me around as their family discovered the magic. (Heck with technology today, I can keep up in my powerchair. In 30-40 years, I'll probably be nuclear-powered.)

 

[Bichon Barb]

What about resale? What if you decide in 10 years that you don't want your DVC anymore--for whatever reason. Wouldn't it be easier to sell a contract that has 39 years left on it compared to one which has 24 years left?

 

[DVCSAMNH]

Just to put age into perspective a little bit in this argument. My in-laws are in their 80s and they are still very healthy and active. They used to spend a lot of their winter vacation time on the east coast of Florida but since my husband and I bought our points a few years ago, they are loving staying at Disney. They do spend a little of their time in the parks but most of the time is spent relaxing at the pool or on the golf course. Their most requested resort is SSR because they love to take the boat in the evening over to DTD and grab a sandwich at EOS or a nice meal at Wolfgang Puck and then spend an hour walking around and enjoying the people watching.
Just because some of us can't imagine getting up there in years and enjoying our membership doesn't mean that isn't going to be exactly what happens!

 

[Brian Noble]

What about resale? What if you decide in 10 years that you don't want your DVC anymore--for whatever reason. Wouldn't it be easier to sell a contract that has 39 years left on it compared to one which has 24 years left?

Absolutely.

To my way of thinking, there are two types of DVC buyers---folks who buy for a lifetime of vacations, and folks who want to go to Disney while they have kids in the house. For the former, you probably want the cheapest '42 contract you can find---let the kids buy their own darn timeshare. For the latter, you probably want the longest horizon you can find, to have the best chance of preserving value on resale when the kids are no longer interested.

 

[PEANUT1]

financially it was a HUGE decision for us. We bought a SSR resale and the extra years make sense.That being said, home resort doesn't mean as much to us because we don't travel at peak times.

I'm 32 and those extra years will bring me past retirement and hopefully to see my kids and grandkids enjoy DVC.

 

[crisi]

SSR is a great resort and a lot of people love it. The thing to keep in mind is that DVC shows no sign of slowing down, and VWL is always going to have 132 rooms (or whatever it has). Even if most people want to stay at their home resort most of the time, each new owner who purchases wanting to try VWL once in a while creates another call to compete with at seven months. So if a resort holds your heart - and you can afford it - the value is with the resort that holds your heart. Now, it probably is true that for many of us, no resort really holds their heart - you don't want to end up staying at a resort you don't like, but any of several resorts is going to meet your needs, you'll probably be happy owning anywhere - this is the logic behind "buy where you won't be disappointed to end up."

 

[Bichon Barb]

Then of course there are the buyers (which I think you are seeing a lot of now) who run into financial trouble and need to dump their DVC.