Why is Vero Beach Resale cheap?

[A.Mickey]

Why is Vero Beach so much cheaper than any other resort? Is the contract date shorter than the standard 2042?? Is your home resort that important? I saw on the resale points going from 49 to 69 a pt.

 

[jrbdad]

Why is Vero Beach so much cheaper than any other resort? Is the contract date shorter than the standard 2042?? Is your home resort that important? I saw on the resale points going from 49 to 69 a pt.

Home resort gives you a longer booking window at that resort.

Vero's maintenance fees are really high -- over $6/pt/yr.

 

[A.Mickey]

That's true; but at looking at the other property's fees, it isn't that bad, especially considering the savings of the contract.
From everyone I've heard, getting into just about any DVC is pretty easy at 7 months out (except for BCV, of course), as long as you aren't picky about where the room is, and have a good second option available.
Thanks for the reply... I feel a bit overwhelmed by all the options and I want to make sure I've got all my facts straight

 

[Buckeye Fan]

to the Disboards!!!

I actually own at both SSR and VB. We travel in the summer, and generally over Spring Break, as my husband is a teacher. With that said, we haven't had an issue getting points at the 5 - 7 month window. We've stayed at OKW, SSR, BWV, VWL, will be staying at AKV over Spring Break, and will either do THV or BCV this summer.

Considering NOTHING but purchase price and MFs, the break-even point on my VB contract is around 11 years (I paid $60 a point for my VB points). After 11 years, it would have been cheaper for me to add on at SSR. I purchased VB points, because I wanted to have the 7 - 11 month booking window there. I also wanted to have points at a WDW resort. At the end of the day, you never know how things may change availability. For example, Disney just announced a partnership with RCI (which is a timeshare vacation exchange). As members, we're not sure if/how this new relationship will impact our reservations at the 7 month window, but it could.

Many members on the boards will tell you to purchase where you want to stay. Another big consideration for people is the contract term (BLT/AKV/SSR/OKW-extended) expire later than the 2042 resorts (VB, HHI, BWV, BCV, VWL, OKW-original).

I read a very wise post recently that said everyone will have a different opinion, and all are right. Keep reading, and you'll fall into what is right for you. Things change over time, so don't kill yourself thinking 50 years into the future. I tried to do that, and it was driving me nuts (buy at OKW - a 2042 resort, or at SSR - a 2054 resort?). Made my head hurt!!!

Best of luck with your research!

 

[Tara]

A. Mickey, one thing I've found in running numbers is that fees really do make a big difference in ownership costs - and even a small difference in fees can outweigh a difference in point costs. You can't accurately calculate total ownership costs because you cannot predict how the fees will rise each year. However, if you calculate total ownership based on what we know today, it's pretty interesting.

For the examples below, I have assumed:
1. No financing
2. No closing costs (resale costs are going to be at least as much as Disney, often more from what I've read)
3. No incentives
4. No increase in fees

The no increase in fees is the kicker. I wish that were true, but they do increase about 3% each year. VB's fees have gone up $2.42 over its lifetime. By comparison over the same time period other resorts' fees went up as follows:
OKV $1.57
BWV $1.19
HHI $2.18
VWL $1.42 (1 year less than the others)

So anyhow, here are the examples I just calculated. (Yes, I am addicted to my iPhone's calculator!)

Animal Kingdom Villas
160 @ $104 pp
Fees per point $4.86
Cost of purchase $16,640
Cost per year of ownership $339.59
Cost per year in fees $777.60

Total cost of ownership for 49 years $54,742

Vero Beach
160 @ $60 pp
Fees per point - $6.41
Cost of purchase $9,600
Cost per year of ownership $282.35
Cost per year in fees $1025.60

Total cost of ownership for 34 years $44,470

So yes, buying into AKV is more expensive. But you get 15 more years of ownership. But say AKV was expiring in 2042...what would the cost of ownership be?

Cost of AKV ownership for 34 years $37,984

Now, there could be a million little things wrong with my thinking. And it's hard to really compare resort purchases because you might not need 160 points AT Vero, but if you want to own there and stay at other resorts, then maybe you need that many or more. But what I'm sure of is that when you start figuring out what the annual increase in fees really starts to add up to 10-20-30 years from now (it's scary don't look ) FEES become a very big deal.

Hope this helps.

 

[A.Mickey]

WOW! Thanks sooo much, very informative. I was looking at these two different things at the timeshare store. One is for AKV for 100 points at 89 dollars per point (8,900) with a march year use, 39 pts are banked and 100 pts become avaliable on 3/09. The other one I was looking at is for VB 150 points at 49 dollars per point (7,350) with a december year use, 22 pts are avaaliable and 150 pts become avaliable on 12/09. Still not sure what is a better deal....

 

[KAT4DISNEY]

The other one I was looking at is for VB 150 points at 49 dollars per point (7,350) with a december year use, 22 pts are avaaliable and 150 pts become avaliable on 12/09. Still not sure what is a better deal....

$49/pt? Just be aware the Disney might (my guess is that they would) exercise their Right of First Refusal on a price like that.

 

[dianeschlicht]

Don't expect to get that $49/point, because Disney will likely snap it up.

 

[chalee94]

Don't expect to get that $49/point, because Disney will likely snap it up.

i agree.

look at the ROFR thread below to get an idea of what to pay. a "deal" that will get ROFRed is just a waste of your time. (OTOH, if you have the time to waste, then by all means, roll the dice and let us know what happens... )

http://www.disboards.com/showthread.php?t=1960185&page=19

edited to add: to answer your original question, VB is cheaper because fees are higher (and a hurricane on the coast could send them MUCH higher), because you do risk getting locked out of wdw (many are successful at the 7 month window...but some are not. it is a real risk.) and because there is a teeny-tiny chance that if DVC ever decided to spin off some of its resorts, HH and VB would be the most at risk.

 

[Lynne M]

That
From everyone I've heard, getting into just about any DVC is pretty easy at 7 months out (except for BCV, of course), as long as you aren't picky about where the room is, and have a good second option available.

Not entirely true. Between October 1 and Thanksgiving, you're going to have very little chance of getting into BCV, BWV and VWL at 7 months. For the entire month of December, you may have a tough time getting ANY resort at 7 months. January can also be problematic.

Certain villa types and views are always going to be hard to get at 7 months. AKV concierge, BWV standard view, BWV grand villas. And I suspect that the BLT MK views will also be tough.

OKW, SSR and AKV will likely be OK at 7 months, except for December.

If you're OK with staying at OKW, SSR and AKV, and you don't ever plan to visit WDW in December, then it may not matter so much. But...if you're happy staying at those resorts, then why not buy there? OKW, certainly, will end up being cheaper over the life of the contract, and you won't be stressing over availability every time you want to make a reservation.

 

[BWV Dreamin]

I own at VB. I have a 50 pt. contract. Love it. That said, you can get most anything except beach cottages at 7 mos. at VB. The only times that get real tough, are spring break dates (April), beginning of June, and holidays. There are very few 2 bedrooms, 1 bedrooms. If your plans are to buy VB points and never go there......buy SSR points.

 

[5forDiz]

That's true; but at looking at the other property's fees, it isn't that bad, especially considering the savings of the contract.
From everyone I've heard, getting into just about any DVC is pretty easy at 7 months out (except for BCV, of course), as long as you aren't picky about where the room is, and have a good second option available.
Thanks for the reply... I feel a bit overwhelmed by all the options and I want to make sure I've got all my facts straight

If you want to take majority or all of your vacations at WDW it's probably best to purchase a contract at DVC resort located there. Is the savings purchasing at VB ( & that savings will eventually be eaten up by higher VB dues) worth putting yourself through the stress of not knowing if you can get that reservation you're hoping for at WDW at 7 month booking window? - imho it is not.

Even at a so-called 'quiet' time at WDW you can find that you may not get the dates/resort/villa-type you want at 7 month window (and it seems quiet times are become more scarce as years go on at WDW). If you aren't absolutely positive that you wouldn't mind having to go on your vacation at VB because you couldn't get the reservation at WDW you wanted at 7 month window don't buy at VB.

Best wishes on your planning

 

[quentina]

That's true; but at looking at the other property's fees, it isn't that bad, especially considering the savings of the contract.
From everyone I've heard, getting into just about any DVC is pretty easy at 7 months out (except for BCV, of course), as long as you aren't picky about where the room is, and have a good second option available.
Thanks for the reply... I feel a bit overwhelmed by all the options and I want to make sure I've got all my facts straight

We own VB and HHI, have never had a problem getting a room including BCV...I am trying to move out of our Feb. reservation and am on waitlist for VWL or AKV....no luck yet.

 

[Mississippian]

That's true; but at looking at the other property's fees, it isn't that bad, especially considering the savings of the contract.
From everyone I've heard, getting into just about any DVC is pretty easy at 7 months out (except for BCV, of course), as long as you aren't picky about where the room is, and have a good second option available.
Thanks for the reply... I feel a bit overwhelmed by all the options and I want to make sure I've got all my facts straight

If you are able to plan 11 months ahead, you are highly likely to be able to get a cheap standard-view room at BWV. For someone able to book ahead, the BWV points will be worth about 25 percent more in purchasing power.

OKW has grand villas, which make the points more valuable than they would otherwise. Same with the new treehouse villas at SSR and the concierge rooms and "saver" rooms at AKL. Plus, with VB points you run the risk of being completely shut out of WDW on busy dates.

This doesn't mean I haven't thought about adding some cheap VB points.

 

[Dean]

At $49 a point, it's worth the negatives for 150 points, IMO. Overall HH and VB are cheaper because you get what you pay for. Much of the benefit of DVC is the on property option which you don't get with either of those resorts. Even with SSR and OKW you get the option of booking something at 11 months out and know you can plan your trip. HH and VB are more just regular timeshares with a flexible points system. It's getting more and more difficult to book at the 7 month window about 6 months of the year. Still you can be successful most of the time if you work the system, plan ahead and use the wait list, it's just that there are risks and uncertainties.

 

[jimmacmn]

Certain villa types and views are always going to be hard to get at 7 months. AKV concierge, BWV standard view, BWV grand villas. And I suspect that the BLT MK views will also be tough.

I would amend this statement to say a Grand Villa at ANY resort will be extremely hard to come by at 7 months

 

[BWV Dreamin]

I bought my VB points taking into account other factors. Beach properties are very expensive in Maryland. I look at owning VB points as a much cheaper way of owning a beach vacation destination. I am not comparing VB's MF's to other DVC resorts, rather I am comparing the MF's to what I would have to pay if I could purchase another beach resort closer to home....and I can't touch anything for what I purchased VB for (even with the higher MF's). To be able to also use these points at WDW, CA, HHI, etc. is an added plus.