The VGF 2 pricing thread

[808blessing]

I think VGF people and RIV people tend to be the same people.

Heavily themed people: Boulder Ridge, Copper Creek, Animal Kingdom, Poly

Less heavily themed people: Bay Lake Tower, Beach Club, Boardwalk, Riviera, Grand Flo, Old Key West, Saratoga

To me, Boardwalk is heavily themed with the um Boardwalk. Funky fancy!

 

[jacec]

No, definitely no.

250 points is a larger than average contract, and $203pp is more than the current market even with 101 points from 2020.

We recently bought a smaller VGF1 resale contract with all of its 2020 and 2021 points for appreciably less than $203pp, with the seller paying 2020 and 2021 Maintenance Fees.

We then quickly rented out those 2020 and 2021 points (we didn’t need them) and dropped the net price of our purchase by another $40pp.

With all that we know today, I just can’t imagine VGF2 coming in above $220pp, and I think $207pp is increasingly likely.

Even without VGF2 coming soon, $203pp is (IMO) too much for a larger VGF contract.

Thank you

I'm so happy to have this community to take the emotion out of these back and forth.
You have all talked some sense into my patience.


We're in our first full year of ownership and learned quickly the importance of your home resort. We know after a couple WDW stays that VGF is where we want to be with having younger kids and close to MK. We also knew right away after going to AUL that we'd go every summer. Took advantage of the big direct discount in November to buy there. Now I just need to move my SSR contract and get a couple contracts at VGF to handle our Spring Break and post Christmas vacations

 

[zebsterama]

I agree that the resale restrictions have probably impacted Rivera sales. But I think thats ok with Disney because they’re in it for the long haul. In 20-40 years, every resale contract will be restricted as more new resorts get built. And I know this has been discussed a million times before but I can’t wait to see the reactions if Disney decides to have resale restrictions on VGF2. My popcorn bucket is ready!

I'm definitely one of those persons that would be both torn and freaking out.

 

[Lunchbox66]

There's no question that the resale restrictions have cost DVC sales from a certain type of informed buyer. The question is whether those same rules have allowed DVC to add sales in other areas. Specifically, has the ability to say "you cannot stay at all 15 resorts unless you buy direct from us" become a net positive for sales?

There seems to be a perception that the direct purchase restriction is universally bad for sales. DVC doesn't benefit from enacting policies which blindly punish those who buy resale and drive down aftermarket values. Informed buyers are likely to be more sensitive to resale pricing. Relatively uneducated buyers who tour and consider buying while at WDW will only see value in the idea that a direct purchase is necessary to maximize program flexibility.

*IF* the policy is working as intended, there are more people choosing to buy direct because of the resort access + perks than there are people who run scared from the impact on resale value. And if it's not returning the benefits intended, DVC can always change course.

I would have most likely bought resale instead of direct if not for the new restrictions. So they got me.

 

[jacec]

I would have most likely bought resale instead of direct if not for the new restrictions. So they got me.

They got me too , one of the main reasons we picked up AUL in November during the major incentives. Can use for AUL or RIV ...

 

[CaptainAmerica]

And I know this has been discussed a million times before but I can’t wait to see the reactions if Disney decides to have resale restrictions on VGF2. My popcorn bucket is ready!

They almost certainly can't do that.

 

[HIRyeDVC]

They almost certainly can't do that.

Almost certainly?

 

[KAT4DISNEY]

Thoughts on this groups POV On a VGF1 resale contract now? I am looking at final decision on a 250 point December UY contract that has DEC21 351 pts, of which 101 are banked from DEC 2020 and full 250 2022 points available. Seller wants $203pp

I currently own AUL & SSR direct contracts with Dec UY.

Really want to be able to book 2BR VGF for post Christmas which is hard to do at 7 months.

People are purchasing VGF resale, smaller contracts than that, for less per point. It is too high IMO. Have you looked at the ROFR thread where people post what they are currently under contract for or recently closed on? Look thru there. And it's not crazy to offer much less per point. They may say no but they may say yes.

 

[CaptainAmerica]

Almost certainly?

I'm not an attorney, but the lawyers around here seem to have ruled it out from a contractual perspective, but I would just add that Disney is remarkably poor at tech infrastructure. Even if they 100% legally were permitted to do this, I don't think they could figure out how to manage it logistically.

 

[Paul Stupin]

Riv is too expensive for the current economic environment. I said this up thread Too. Increasing to $207 is going to slow down sales at riv even more. Dvc should really pause the price increase

i think gfv will have an initial influx of sales from people like us who are waiting just for gfv. Thereafter sales will drop like a rock

$207 is way too expensive for the avg Americans right now

I think you’re right about all this. So many people on these boards look at the possible direct VGF price of $207 as surprisingly inexpensive because they were expecting higher, but it’s not cheap at all, especially with a 150 point minimum purchase for new buyers. And 150 points won’t get you very far even if you want studios, so I think the worry about losing one and two bedroom availability might be a bit unfounded.

Add to that inflation, Russia and current stock market/economy issues, which affect everyone one way or another, and suddenly that $207 price starts to look too high.

 

[KAT4DISNEY]

I'm not an attorney, but the lawyers around here seem to have ruled it out from a contractual perspective, but I would just add that Disney is remarkably poor at tech infrastructure. Even if they 100% legally were permitted to do this, I don't think they could figure out how to manage it logistically.

It doesn't meant they wouldn't think they could manage it just fine and give a shrug of the shoulders if there were issues for owners.

However, unless the State of FL really lets them make up their own rules (and RIV inclusion makes me question if they do) then it can't become part of the current association AND have it's own set of rules.

 

[RebelScum]

I would have most likely bought resale instead of direct if not for the new restrictions. So they got me.

They got me too!

 

[CaptainAmerica]

I would have most likely bought resale instead of direct if not for the new restrictions. So they got me.

They got me too!

But where did you buy direct?

I can understand "I want to be able to stay at Riviera at some point, so I'm going to buy Grand/Saratoga/Boardwalk direct instead of resale." But I don't understand "I want to be able to stay at Riviera at some point, so I'm going to buy Riviera direct instead of resale" if you're concerned about restrictions, because you're backing yourself into those restrictions.

Most Restrictive
Riviera resale
Riviera direct
O14 resale
O14 direct
Least Restrictive

 

[HIRyeDVC]

I'm not an attorney, but the lawyers around here seem to have ruled it out from a contractual perspective, but I would just add that Disney is remarkably poor at tech infrastructure. Even if they 100% legally were permitted to do this, I don't think they could figure out how to manage it logistically.

Disney IT is ALREADY a mess. Adding this wrench won’t make a difference. My guess is VGF2 will be under the same association in terms of dues and admin. But they will be deeded differently and will have resale restrictions, leading VGF1 resale contracts to become more valuable than VGF2, kinda like how Aulani subsidized is more valuable then the rest. That’s my final answer and I’m sticking to it! Can’t wait to see what happens!

 

[Lunchbox66]

But where did you buy direct?

I can understand "I want to be able to stay at Riviera at some point, so I'm going to buy Grand/Saratoga/Boardwalk direct instead of resale." But I don't understand "I want to be able to stay at Riviera at some point, so I'm going to buy Riviera direct instead of resale" if you're concerned about restrictions, because you're backing yourself into those restrictions.

Most Restrictive
Riviera resale
Riviera direct
O14 resale
O14 direct
Least Restrictive

We wanted RIV for our home resort but also not have those points restricted from future resorts. We are younger and so life expentency takes us past 2070, hopefully. I would not buy a 2042 resort for that reason alone due to my circumatances

 

[CaptainAmerica]

We wanted RIV for our home resort but also not have those points restricted from future resorts. We are younger and so life expentency takes us past 2070, hopefully. I would not buy a 2042 resort for that reason alone due to my circumatances

Right of course. If you like Riviera, buy at Riviera. My point was more for people who either don't like or are neutral on Riviera and just want to get into the club to use their points at various places. For those people, I don't think the case for Riviera direct over O14 resale is compelling.

 

[Lunchbox66]

Right of course. If you like Riviera, buy at Riviera. My point was more for people who either don't like or are neutral on Riviera and just want to get into the club to use their points at various places. For those people, I don't think the case for Riviera direct over O14 resale is compelling.

I agree RIV is not the most econimically sound way to get into DVC. My interests and decision making are usually the exceptions to the rule.

 

[nuhusky123]

I think you’re right about all this. So many people on these boards look at the possible direct VGF price of $207 as surprisingly inexpensive because they were expecting higher, but it’s not cheap at all, especially with a 150 point minimum purchase for new buyers. And 150 points won’t get you very far even if you want studios, so I think the worry about losing one and two bedroom availability might be a bit unfounded.

Add to that inflation, Russia and current stock market/economy issues, which affect everyone one way or another, and suddenly that $207 price starts to look too high.

Exactly. We forget at $207 and 150 point minimum that’s $31,000 investment.

how many people can afford this? Median household income in the us is $67,000. A buy into dvc is half of your annual household income, that’s truly insane. How comfortable would anyone on this board be spending half your annual household income to buy dvc?

now let’s add in supply shortage for things like cars, so let’s say you have been putting off other big expenses like a car. Do you buy a car or dvc, both cost the same $

 

[HIRyeDVC]

Exactly. We forget at $207 and 150 point minimum that’s $31,000 investment.

how many people can afford this? Median household income in the us is $67,000. A buy into dvc is half of your annual household income, that’s truly insane. How comfortable would anyone on this board be spending half your annual household income to buy dvc?

now let’s add in supply shortage for things like cars, so let’s say you have been putting off other big expenses like a car. Do you buy a car or dvc, both cost the same $

Most people can’t buy any big ticket items by their income level. It’s done through financing, which I’m sure many DVC buyers used to buy Riviera.

 

[dvc lover 1970]

Most people can’t buy any big ticket items by their income level. It’s done through financing, which I’m sure many DVC buyers used to buy Riviera.

Agree and when the economy crashes which it will at some point any contracts will be substantially cheaper resale across all resorts.