Value of aging DVC contracts?

[dalerb]

We are considering purchasing points at VBR at wilderness lodge. The termination year is 2042. Has anyone considered what the value of the contract will be in 10 years? There will be 15 years remaining. How will the "short life" affect the price per point if we would want to sell after 10 years?

 

[Paula Sedley-Burke]

Are you thinking resale or direct? It is a lovely resort. I would add up the amount of vacations you would get and the maintenance fees and if you would normally pay rack rate? Also are you sold on this resort if so then fair enough always buy where you want to stay. But otherwise consider SSR better value for money.

If I was buying direct I would buy the new resort. With the incentives and extra time on the contact I personally think it's worth it.

 

[Paula Sedley-Burke]

I meant the new resort of Copper Creek.

 

[drusba]

I woud not buy Boulder Ridge from Disney. Resale is much cheaper. It is inevitable that the approach of the end date will eventually have a real impact on resale value. It is only 25 years away and I am sort of surprised it has not had more of an impact already. You should not buy with an expectation that you will be able to get back your purchase price when you resell 10 years from now. Maybe that will happen but don't factor it in as a point of value if purchasing now.

 

[dalerb]

I woud not buy Boulder Ridge from Disney. Resale is much cheaper. It is inevitable that the approach of the end date will eventually have a real impact on resale value. It is only 25 years away and I am sort of surprised it has not had more of an impact already. You should not buy with an expectation that you will be able to get back your purchase price when you resell 10 years from now. Maybe that will happen but don't factor it in as a point of value if purchasing now.

Looking at Resale on Boulder Ridge vs Direct on Copper Creek.

 

[Dean]

Looking at Resale on Boulder Ridge vs Direct on Copper Creek.

The real value of the retail purchase won't be much more than the resale at the older resort. I wouldn't buy retail at CCV rather than resale at BR simply because of the longer expiration. There are far too many variables to give significant value to the back end point/years. I do think looking at the possibilities and giving yourself options is a good idea but if one is expecting to sell later, I wouldn't buy at all and for those that decided to anyway, there's no way CCR will work out financially in that scenario compared to buy BR even with the shorter expiration. Obviously there are other factors like financial abilities (pay cash), room type needed and the number of points in question.