When will the 2042 contracts of BCV and BWV decrease in value?

[Chili327]

Which begs the question, how much would you pay per point for a single year of points?

On top of the dues.

 

[tx911]

On top of the dues.

Right. I think I'd pay $10-15pp.

 

[matt_in_nh]

Which begs the question, how much would you pay per point for a single year of points?

I will just say there is a market for that, rentals go for $16-$22 per point. Rack rate is much more than that.

 

[tx911]

I will just say there is a market for that, rentals go for $16-$22 per point. Rack rate is much more than that.

Yes, without having to pay the dues!

 

[tx911]

I will just say there is a market for that, rentals go for $16-$22 per point. Rack rate is much more than that.

But then I wouldn't be able to add another banner to my signature

 

[Brian Noble]

The reason I posted is to think about when to sell. Are we a year or two away from the 2042 contracts becoming very low in value or will they hold their value for a few more?

The value of points is in their use. If you are still using them, keep them. If you no longer want to use them, sell them!

 

[TheDailyMoo]

I was going between BWV and BCV at the time but the only really good deals I could find were BWV. I couldn't bring myself to pay around 30% more for a resort right next door that expires at the same time, though I do think that I may like BCV just a smidge better after staying at both. The views are better at BWV but the I love the smells and vibe at BCV. And I would probably like the pool better like everyone else does once we have kids. We have a pool at home so we aren't usually pool people on vacation when there are other things to do.

Funny thing is I'm sort of the reverse of this! Don't get me wrong I love Beach Club and SAB and LITERALLY rolling out of bed and into IG but I think our family actually has a stronger affinity towards BW. Something about the vibe there is really appealing. A little more nostalgic draw as well. Again love BC and SAB, even though we have a very nice pool at home too, but my reasoning for having bought BC was that I wanted our DW vacations to be as "resort-like" as possible, sort of a pseudo-island type trip and BC is the only one that really gives that feel (yes Polynesian too but let's pretend that doesn't exist for the sake of this argument).

 

[Nabas]

I will just say there is a market for that, rentals go for $16-$22 per point. Rack rate is much more than that.

I’ve seen some DVC rental sites list AKV Value Studios for $36-37 per point!

BWV Standard View Studios can be pretty high up there too.

 

[E2ME2]

I was referring to the 2042 resorts. I think the price for time left is too high

I think not, but different needs & usage plays into these calculations.
For example:I'll compare my SSR vs AKV vs BWV points in this way:

My SSR Points, amortized (Total$PP/Years Remaining), are approximately 2.83 per-point-per-year & MF= 8.54, so this year I'm paying 11.37/Point - and 3 weeks in a studio in January = 270 Points at $3,069.90 or $146/Night

My AKV Points, amortized (Total$PP/Years Remaining), are approximately 3.89 per-point-per-year & MF= 9.65, so this year I'm paying 13.54/Point - and 3 weeks in a studio in January = 264 Points at $3,574.56 or $170/Night

My BWV Points, amortized (Total$PP/Years Remaining), are approximately 5.50 per-point-per-year & MF= 9.06, so this year I'm paying 14.56/Point - and 3 weeks in a studio in January = 219 Points at $3,188.64 or $152/Night

Given the choice between SSR for $146/Night, vs BWV for $152/Night, I'll take BWV every time. And, at my age, the 2042 expiration is not a limiting factor.

Everyone's situation is uniquely different, and that's still part of the mass appeal for DVC.

 

[SL6827]

I’ve seen some DVC rental sites list AKV Value Studios for $36-37 per point!

BWV Standard View Studios can be pretty high up there too.

Where's the value in that?

 

[Nabas]

Where's the value in that?

For example, in January 2025, a BWV Standard View room weekdays is 9 points. 9 X $36 = $324 per night.

Even with the current "Save Up to 25% Rooms in Early 2025" discount, a cash room at the Boardwalk is $474 + 12% tax = $531

So even at $36pp, there's a lot of value.

 

[BL2020]

I've always thought the 2042 resorts are a bad deal as much as I love them. But after buying at BLT and VGF and feeling short on total points booking vacations for my adult kids and myself, found myself eyeing a small loaded 50 pt contract at BW. Knowing I would use the points, dropping a little over 5k seems worth it for over 15 years of use. As it is I waitlist/stalk BW for split stays most trips, it would make planning easier. Unfortunately DH isn't convinced.

 

[Tatebeck]

I've always thought the 2042 resorts are a bad deal as much as I love them. But after buying at BLT and VGF and feeling short on total points booking vacations for my adult kids and myself, found myself eyeing a small loaded 50 pt contract at BW. Knowing I would use the points, dropping a little over 5k seems worth it for over 15 years of use. As it is I waitlist/stalk BW for split stays most trips, it would make planning easier. Unfortunately DH isn't convinced.

Yeah, definitely more of an add on for most members at this point. Works well for split stays with the low point charts and great location. But if you are fairly young it would be hard to choose as your only resort when there are so many others with so many more years of use remaining

 

[Brian Noble]

AKV [...] 3 weeks in a studio in January = 264

Is there a reason you are using Standard view at Boardwalk but not Value at AKV?

 

[atthebeachclub]

Is there a reason you are using Standard view at Boardwalk but not Value at AKV?

Isn’t BW standard view slightly easier to get than AKV value?

 

[SL6827]

For example, in January 2025, a BWV Standard View room weekdays is 9 points. 9 X $36 = $324 per night.

Even with the current "Save Up to 25% Rooms in Early 2025" discount, a cash room at the Boardwalk is $474 + 12% tax = $531

So even at $36pp, there's a lot of value.

Oh, ok. I can see that now. Wow!!

 

[atthebeachclub]

For example, in January 2025, a BWV Standard View room weekdays is 9 points. 9 X $36 = $324 per night.

Even with the current "Save Up to 25% Rooms in Early 2025" discount, a cash room at the Boardwalk is $474 + 12% tax = $531

So even at $36pp, there's a lot of value.

Agree with this even for Beach Club. My very worst case scenario for cost per point as a recent resale purchaser was about $17 per point remaining on the contract, all in (dues included). Let’s try including time value of money and guesstimate it really costs me $24 per point over the next 16 years to own these points.

To book a comparable room at Beach Club or Yacht Club for my preferred January travel dates would cost me $3060 after taxes with an annual pass discount of 35%. In points, it would cost me 92 points for the same six days. 92 x 24 =2,208, so I am coming out ahead quite easily, since before buying DVC I was staying at Beach Club on the hotel side.

 

[havoc315]

In the end, the math will win out.
There may be some people willing to “overpay” but the resale market won’t be able to sustain pricing higher than the cost of renting. (Anyone buying BCV direct right now, is vastly overpaying).
Simple example:
If there are only 5 years left in a resort, and you can generally rent points for $21ppy.. and dues are $8 per point..

Renting for 5 years would cost: $105
Buying for 5 years use: $40 in dues. Let’s assume closing costs of $5 per point.
Meaning at a selling price of about $60… you’d about break even between buying and renting.

I think we have already partially seen prices start to dip for this reason. It will be a curved decline. The bottom won’t drop out overnight, but the decline will become more pronounced especially when we get to the 10-12 year mark.

 

[clbielick]

I think not, but different needs & usage plays into these calculations.
For example:I'll compare my SSR vs AKV vs BWV points in this way:

My SSR Points, amortized (Total$PP/Years Remaining), are approximately 2.83 per-point-per-year & MF= 8.54, so this year I'm paying 11.37/Point - and 3 weeks in a studio in January = 270 Points at $3,069.90 or $146/Night

My AKV Points, amortized (Total$PP/Years Remaining), are approximately 3.89 per-point-per-year & MF= 9.65, so this year I'm paying 13.54/Point - and 3 weeks in a studio in January = 264 Points at $3,574.56 or $170/Night

My BWV Points, amortized (Total$PP/Years Remaining), are approximately 5.50 per-point-per-year & MF= 9.06, so this year I'm paying 14.56/Point - and 3 weeks in a studio in January = 219 Points at $3,188.64 or $152/Night

Given the choice between SSR for $146/Night, vs BWV for $152/Night, I'll take BWV every time. And, at my age, the 2042 expiration is not a limiting factor.

Everyone's situation is uniquely different, and that's still part of the mass appeal for DVC.

this is exactly how i just rationalized my resale purchase of BW points. We negotiated a good deal, but even with closing costs, its $5.80/pt over the life of the 17 years, plus maintenance fees. So, $14.90/point his year, which given the point chart, is an amazing value (assuming i can snag what i want). The difference between my cost and rack rate even with a 35% discount, remains huge.

Next year, the number of points total on the life of it will drop by 5.8%. I am not positive how closing costs/fees are all calculated, but i imagine they could potentially drive up the cost per point of smaller contracts more than larger contracts as the total number of points to divide the cost over drops each year. I imagine the price drop will be at least 5.8% next year if people do similar calculations as us, unless rack rate goes up excessively, maintaining that value difference.

 

[clbielick]

In the end, the math will win out.
There may be some people willing to “overpay” but the resale market won’t be able to sustain pricing higher than the cost of renting. (Anyone buying BCV direct right now, is vastly overpaying).
Simple example:
If there are only 5 years left in a resort, and you can generally rent points for $21ppy.. and dues are $8 per point..

Renting for 5 years would cost: $105
Buying for 5 years use: $40 in dues. Let’s assume closing costs of $5 per point.
Meaning at a selling price of about $60… you’d about break even between buying and renting.

I think we have already partially seen prices start to dip for this reason. It will be a curved decline. The bottom won’t drop out overnight, but the decline will become more pronounced especially when we get to the 10-12 year mark.

would also add to factor in the value of being able to book your vacation/control dates, esp for the type A's who like to book at 11 months, lol. A friend had to change from her planned beach club to a different location given the lack of available points to rent-there is value to having control over location/date. Not an obscene amount, but many of us would pay for that control.