Want to buy, but am overwhelmed. . .

[mousefansmom]

Hi All-
Last week my family stayed at BWV by renting points (thanks Jennifer D!). By surprise, we were upgraded from a preferred studio to a one bedroom. That did the trick. . . after five years of trying to talk my husband about buying into DVC, he finally relented. All I've done since returning on Sunday was look into which option is best- buy resale or SSR.

Can someone look over my figures and see if I am even close to accurate? I am a teacher, but not in math!!

SSR: 200 pts @$84 (after $5 discount) = $16800
Return 300 points through Magical Beginnings (can I do this?)
=-3000
=$13800
= $69pp


Resale: 200 pts BWV =$13800
rent out 129 available points =- $1290
add estimated closing costs =+$ 600
=$65.55 pp

So if I am right, for ~$700 more I can get a Saratoga Springs contract which lasts 12 extra years

Is this even close?

Please help!!!

Mousefansmom

 

[Richyams]

No

THere is no MB for SSR....unless it came up real, real recently.

 

[mousefansmom]

Ok, that does make a difference, because I was hoping to take the buy back price off of the sale price. Could I still use this approximation by selling points once acquired?

Mousefansmom

Originally posted by Richyams
No

THere is no MB for SSR....unless it came up real, real recently.

 

[tjkraz]

The single best bit of advice that I can offer is to purchase at the resort in which you really want to stay each and every time you visit WDW over the next 40-50 years. Yes, DVC does allow you to book at all DVC properties within the 11/7 month windows. But logically one can assume that it will only get more and more difficult to book at non-Home resorts in the future.

Currently there are about 200 BCV rooms and roughly 80,000 DVC members. Barring any expansion project at BCV, in 20 years there will still be 200 BCV rooms. However there may be 150,000 - 200,000 DVC members.

Before you drive yourself crazy trying to decide which resort is the best "deal", really consider which resort will make you happy. The last thing you want is to be miserable buying BWV even if it did save you $700 (or even $7000).

With that said, I do still think you have some flaws in your logic. In one example you are renting out 300 points. In the other only 129 points. Is that really a fair comparison? Regardless of whether you choose to buy from DVC or a resale, you have the potential to rent out a lot of points over the next 40-50 years.

In your BWV example, it appears that you are using a resale price of $69 per point. Are you certain that is indicative of the current market? It seems a bit low to me, although I don't follow resales that closely. Remember DVC can invoke Right of First Refusal on any resales, so even if your offer is accepted at $69 per point, there is no guarantee you will get the contract.

Also, if you're going to beat the costs into the ground, don't forget to compare maintenance as well. SSR will start at $3.80 per point, while BWV is currently $4.25. On 200 points, that's currently a difference of $90 per year (or $900 over 10 years, $3600 over 40 years.) There's really no way to predict how the dues may fluctuate over the years, but given steady increases, it's safe to assume that BWV will always cost more.

Finally, don't forget to account for the additional 12 years at SSR. Even if you aren't young enough to utilize those latter years of the contract, do you have children to whom you would like to pass your DVC contract? If not, you can at least assume that the SSR contracts will maintain a higher resale value if you may want to sell as you get older. For example, if you know that you will probably sell your DVC contract by the time you turn 70 in 2035, which do you think will have a greater resale value--a BWV contract with 7 years remaining or a SSR contract with 19 years remaining?

Good luck with your decision.

 

[Cruelladeville]

Nice job, tj, on summarizing I would say that your preferred location is the first thing you should think about--if you like OKW, buy there, even without the extra 12 years. I know that lots of people are making a big deal out of that, but if you are older than, say 40 or so, it's not important. Your kids may not want DVC, so don't buy for them, buy for yourself--there was recently a thread on this subject, and there are many of us with kids in their 20's and 30's who don't want--or can't afford--inheriting a contract. Don't forget that your "gift" is likely to cost your children $1000 per year on a 250 pt contract. A gift that costs your children $$ may not please them as you are expecting that it will.

As a teacher myself, I can tell you that DVC is the best thing there is at reducing stress.

 

[stacy6552]

Do you have a big preference as to what you buy? Do you have to have the BW? allearsnet.com has the best photo gallery, so go view all the resorts, maybe youll have a strong opinion afterwards.

While its more expensive to buy direct from Disney, remember there are additional costs when buying resale, like closing costs and dues. So the $3000 difference could be more like 2000-2500.

With SSR's longer life, you are getting something tangible for your extra expense. And if youre an instant gratification kind of person, then you could wind up very fustrated with failed attempts to buy resale.

Buy if you love love love one resort over another, and its not SSR, then resale is the way to go.

 

[kem330]

MB, if available is only for first years point
Clsoing on 200 point resale would be $450

 

[mousefansmom]

Thank you everyone, for the advice.

I guess we would go either way as far as which resort. I liked BWV, my husband really thinks that SS with its proximity to DD is attractive. We would be happy in either place.

As far as resales go, and to update anyone who might be interested, currently the going price is from 67-73. I was just using an advertised price. If Disney exercises their ROFR, then it wasn't meant to be!

I know that I only compared the 300 pts forto the 169 available from the resale, in that comparison that was what I would be able to use to reduce my costs. You are correct, it isn't a completely fair comparison.

This is why I love these boards- it's like a massive brainstorming session!!!

Thanks Again!!!!

Mousefansmom

 

[cybant]

I want to thank all of you for contributing to this thread. A few days ago I discovered this board for the first time and, after a few hours surfing it, made a post very smiliar to Mousefansmom. My GF and I were torn between 200 pts at SSR and a BWV resale. We kept going over the numbers. Closing costs on the resale vs. no costs on SSR, the increased pt cost at SSR over the resale, the maintenance fee difference over 1, 10 and 40 years, as well as the 12 year difference in the contracts, adn the proximity to DD or, in the case of BWV, Epcot. Stacy6552 posted some info about allearsnet.com and we checked out the extensive photo galleries. We realized that for us SSr was the way to go. We figure that if we use half the contracts life (God willing), then we would still have something viable for resale. We also like the proximity to DTD and the fact that it is a stand alone resort. When you factor in the increased MF of BWV and the closing costs, then the difference is marginal. But I think we heeded the most important advice that people seem to give on this board..... to buy where you feel comfortable and want to stay. Frankly, we checked out the pics on allearsnet.com for BWV and SSR. The BWV is an awesome resort, but when we saw the SSR pics, we just fell in love with the place. This board has been so helpful in helping us make our decision. I am so pleased that there are so many satisfied people out there. Thanks again.

 

[Doug Wolfe]

Go to: www.disneyvacationclub.com

You can order a free video. A lot of your questions can be answered right there on the web site.

Also, call the sales department and ask for a guide. Mine was Byron. They can tell you if MB or any other deals might be available to you. They are NOT high pressure, so don't be afraid to call.