The race to worthless

[WinterSolider]

As long as you can use VB points to stay at other resorts it should still hold value.

If I can rent Aulani points for $18 and Vero Beach dues are $14, then owning Vero Beach is worth, at most, $4.

 

[WinterSolider]

In the final year of the contract, the unit is still worth the value of the rental.

The unit is worth the value of the rental (net of taxes) minus the dues.

 

[McCrae]

If I can rent Aulani points for $18 and Vero Beach dues are $14, then owning Vero Beach is worth, at most, $4.

Your math is a bit off. On your assumptions it would be worth $4 per year left on the contract.

 

[Chili327]

No, I get it. I went across to the Boardwalk last visit at BCV, turned around, and immediately understood. Folks want to be there so they can stare and admire my beloved Beach Club! It make sense!

It is a nice view, too bad you can't see the DVC section. what's the view like from back there anyway?

 

[eticketplease]

It is a nice view, too bad you can't see the DVC section. what's the view like from back there anyway?

No view categories we have just been looking at trees. We didn’t care really about the view but wanted the second floor as the balconies are huge and they shrink the higher you go. This also made it easy to walk down the stairs and out the side door to catch the bus.

 

[eticketplease]

How in demand are rentals at Vero? Asking - I really have no idea.

Reason I am asking;
In the final year of the contract, the unit is still worth the value of the rental. If I owned I would either make plans to use it that year or secure a more in-demand week EARLY to assure you could rent it out, but if there is any market for it, it will rent out.

This is different than any other time share because the contract DOES expire. DFiL had a Marriott timeshare that he was able to get rid of when DMiL passed away and he no longer wanted it, but he was lucky. Since those contracts do not expire, those owners are on the hook forever, whether they want to use it or not. I don't know anything about the rental market for those properties, but I guess you could make the argument that they retain value forever as long as you can continue to rent them for more than the amount you pay every year in maintenance and taxes. Otherwise, the value of those properties would go into a death spiral.

Not sure about rentals there but you could always book a confirmed reservation for a poly studio and be just fine.

 

[Chili327]

No view categories we have just been looking at trees. We didn’t care really about the view but wanted the second floor as the balconies are huge and they shrink the higher you go. This also made it easy to walk down the stairs and out the side door to catch the bus.

No worries, i'm just playing with BCV Owners/BWV haters. lol

 

[LittleBitGoofy]

It is a nice view, too bad you can't see the DVC section. what's the view like from back there anyway?

We had great fireworks view from our 5th floor unit. I imagine most don't see much though.

 

[eticketplease]

No worries, i'm just playing with BCV Owners/BWV haters. lol

Yup I like them both. I prefer BW myself but DS always wants to stay at the one with Sand in the pool. Tried to point out that OKW kiddie pool had sand but didn’t go over so well lol

 

[Cfabar1]

I am unfamiliar with the Vero Beach area but is there a possibility of tearing it down and building Disney branded condos? Not sure the zoning requirements and logistics.

That is likely the easiest thing they could get to fly, if Disney wanted to make that commitment to VB. VB has a lot of density and zoning requirements and height restrictions - but they were able to get the original done.

At the time, the area by the original was a much more remote part of the island - which I think is why it was able to be done. Compare this to the original designs for HHI for example which were scuttled when wealthy landowners didn’t want Disney nearby.

I believe I read years ago that the parcel for VB is zoned as resort, which is how they were able to get it done in the first place, but what used to be vacant land is now filled with multimillion dollar homes everywhere around it. I think there will be even more NIMBYism.

 

[LittleBitGoofy]

No worries, i'm just playing with BCV Owners/BWV haters. lol

Well shoot, I thought we were all joking around!

 

[Bearval]

That is likely the easiest thing they could get to fly, if Disney wanted to make that commitment to VB. VB has a lot of density and zoning requirements and height restrictions - but they were able to get the original done.

At the time, the area by the original was a much more remote part of the island - which I think is why it was able to be done. Compare this to the original designs for HHI for example which were scuttled when wealthy landowners didn’t want Disney nearby.

I believe I read years ago that the parcel for VB is zoned as resort, which is how they were able to get it done in the first place, but what used to be vacant land is now filled with multimillion dollar homes everywhere around it. I think there will be even more NIMBYism.

Disney sold off the lot next to VB years ago that was supposed to be for the expansion of Vero Beach. I don't think they have any intention on keeping this property when the contracts expire.

 

[MarkNC2Disney]

No view categories we have just been looking at trees. We didn’t care really about the view but wanted the second floor as the balconies are huge and they shrink the higher you go. This also made it easy to walk down the stairs and out the side door to catch the bus.

Yeah, best thing about Boardwalk is looking across at it from Beach Club.

 

[PrincessGidget]

I am unfamiliar with the Vero Beach area but is there a possibility of tearing it down and building Disney branded condos? Not sure the zoning requirements and logistics.

VB has a lot of density and zoning requirements and height restrictions - but they were able to get the original done.

I am familiar with Vero Beach and I remember the uproar when Disney wanted to build. They had a very hard time getting the approval.
I dont see condos going in there as that is really not Vero’s style. I could see a developer buying and building some mansions. But I am not sure how the turtle protection would be addressed. The turtles will win in my opinion, meaning anything done, or not done to the property will be done with the Turtles in mind.
(just like DVB was-you dont think Disney wanted to get in the turtle protection business do you?)

 

[Chili327]

Yeah, best thing about Boardwalk is looking across at it from Beach Club.

From the pool though, right, not your room?

 

[skier_pete]

I'm not an expert but am pretty sure the "correct" prices for BWV and BCV are whatever people are willing to shell out for some pretty nice resorts literally at the back doorstep of Epcot.

Oh for sure this is true - people are paying a premium for these two resorts.

But to a point people are paying MORE of a premium for these resorts than they were even 6 years ago. How long will they pay, and how much of a premium. As I pointed out, the premium is $7.05 / point for BCV and BWV versus $3.05 / point for Riviera. When I bought BWV in 2017 it was $5.50 / point.

In another 6 years, assuming BCV stays above $100 a point, and Riviera at $140, those numbers go to $10 / point versus $3.50, which means people would be paying a 300% premium for points at BCV. Will BCV hold that value in six years? At what point does it HAVE to drop.

Back to VB - VB won't go to zero simply because it gets you into Disney world at 7 months. That's why it holds the (low) value that it does now. I think even with 5 years less, they will probably still be selling for $25 a point.

 

[skier_pete]

Yeah, best thing about Boardwalk is looking across at it from Beach Club.

Best thing about Beach Club is looking at it from Boardwalk at 1 AM leaving Jellyrolls.

 

[walt34]

In another 6 years, assuming BCV stays above $100 a point, and Riviera at $140, those numbers go to $10 / point versus $3.50, which means people would be paying a 300% premium for points at BCV. Will BCV hold that value in six years? At what point does it HAVE to drop.

Percentages on points purchase price alone can be a bit deceiving. Taking your numbers, you'd be paying $6.50 more per point for the privilege to book BCV at 11 months as compared to booking RIV at 11 months. But then come the dues and points per room. Assuming 3,5% dues increase per year, for the average studio at BCV you'd be paying about $380 per night including dues, for the average standard studio at RIV you'd be paying about $310 per night including dues.

Now you can question, whether the room at BCV is worth 23% percent more per night or worth anything more at all. To some people it will be, to some it won't. But it is a much less extreme comparison.

 

[atthebeachclub]

Percentages on points purchase price alone can be a bit deceiving. Taking your numbers, you'd be paying $6.50 more per point for the privilege to book BCV at 11 months as compared to booking RIV at 11 months. But then come the dues and points per room. Assuming 3,5% dues increase per year, for the average studio at BCV you'd be paying about $380 per night including dues, for the average standard studio at RIV you'd be paying about $310 per night including dues.

Now you can question, whether the room at BCV is worth 23% percent more per night or worth anything more at all. To some people it will be, to some it won't. But it is a much less extreme comparison.

I compare BCV prices with the hotel side. It’s worth the premium.

 

[HyperspaceMountainPilot]

I compare BCV prices with the hotel side. It’s worth the premium.

Last month I spent over 40 minutes at a bus station at RIV trying to get to EPCOT (an electrical storm had shutdown the skyliner)— 4 busses to MK and 3 to DHS passed us before we gave up and took an Uber to the front of the park, missing our dining reservation at my husband’s favorite restaurant (Shiki Sai). It’s worth the current premium, and probably a 100% premium, to us.