Why not purchase at Vero Beach or HIlton Head?

[HallDisney2019]

Good Morning-

Was wondering if this would possibly be a good concept: I am looking from the lens of being financial frugal. Understand the deed expiration is 2042, so my $$$ does not go as far as a new resort. But if I look at it, 22 years is still a lot of vacation time. If I am not concerned with the time of year I go (so the 11-month vs. 7-month does not factor), I am not going to go to WDW every year (head to HH or Vero). I also know the F&M are higher at these resorts; so my yearly dues may not appear to be Frugal. Wanted to get everyone's thoughts on this. If you have any suggestions, please let me know

1. purchase a small amount (75 or 100) points directly from DVC - would get the same UY
2. purchase larger contract via resale at Vero Beach or Hilton Head (based on cost/pp these are the lowest resorts)

Thanks

 

[CollinRN]

A buy and hold until 2042 and you would fiscally 'lose' based on maintenance fees. Someone either on a board or podcast recently mathed it out to say that around 8 years is the magic number to enjoy the low buy in before the high maintenance fees outpace the low cost per point. Having said that, if you want to stay at those resorts during prime times, you will need the 11 month window, at least from everything I have heard. You said the 7 vs 11 month window does not matter so my opinion would be to go with 1. Saratoga- almost 100% agreement that this is the best value with buy in/MF in mind or 2. Boulder Ridge- has a shorter contract and reasonable MF, I list this one becaus you seem to be fine with the shorter contract and unsure if you would prefer it? This is just what I have picked up along the way, the list of things I do not know is long and distinguished! Good luck!

 

[MickyLynn]

If you're comfortable staying wherever you can get at 7 months when you go to WDW, and maybe resort hopping, sure. Nobody can really tell you what kind of dues you're comfortable carrying, but its definitely one of the things you have to balance in your decision. You could also get the same UY at different resorts so you do get an 11 month window for part of a trip, wherever you stay.

 

[jlb727]

Good Morning-

Was wondering if this would possibly be a good concept: I am looking from the lens of being financial frugal. Understand the deed expiration is 2042, so my $$$ does not go as far as a new resort. But if I look at it, 22 years is still a lot of vacation time. If I am not concerned with the time of year I go (so the 11-month vs. 7-month does not factor), I am not going to go to WDW every year (head to HH or Vero). I also know the F&M are higher at these resorts; so my yearly dues may not appear to be Frugal. Wanted to get everyone's thoughts on this. If you have any suggestions, please let me know

1. purchase a small amount (75 or 100) points directly from DVC - would get the same UY
2. purchase larger contract via resale at Vero Beach or Hilton Head (based on cost/pp these are the lowest resorts)

Thanks

We LOVE HHI so we looked into purchasing a contract there, but the high MFs stopped us. We would be paying almost $600 more a year in maintenance fees (as they stand now). We just thought about all we could do on our vacation with that extra $600, and decided to go with SSR. We will take our chances with 7 month booking at HHI. Worst comes to worse, we’d have an easier time renting our SSR points and using the proceeds to buy a cash reservation at HHI.

 

[HallDisney2019]

We LOVE HHI so we looked into purchasing a contract there, but the high MFs stopped us. We would be paying almost $600 more a year in maintenance fees (as they stand now). We just thought about all we could do on our vacation with that extra $600, and decided to go with SSR. We will take our chances with 7 month booking at HHI. Worst comes to worse, we’d have an easier time renting our SSR points and using the proceeds to buy a cash reservation at HHI.

Good thoughts!

 

[kniquy]

1. purchase a small amount (75 or 100) points directly from DVC - would get the same UY
2. purchase larger contract via resale at Vero Beach or Hilton Head (based on cost/pp these are the lowest resorts)

I think if you were to take 5 different contracts - choose the cheapest on property SSR, AK or BR and HHI and Vero.

If you do the math and include buy in cost then extrapolate a 3% increase in MF each year for each resort -- see where you are in 20 years. My guess is that over all HHI and Vero will wind up at top as being the most expensive after 20 years.

SSR has been the best buy for the most part.
Your MF end up

As for your choices - 1 or 2 -- why not buy resale for a different resort -- if you are trying to be frugal they why would you want to spend the money on direct? Just not sure what you are trying to accomplish. But do your own math and see where you come out. I'm sure there are spreadsheets which could calculate the rise in MF over the years so that you can compare apples to apples.

 

[jlb727]

Good thoughts!

Hope it helps! Yes, the buy-in costs are more per point initially, but it’s worth it for lower maintenance fees for the next decades. Also, as I hinted, I don’t think there’s as much of a market for renting VB or HHI points as there is for WDW resorts if something happens and you can’t use your points one year, so there’s some value there in buying the more “expensive” WDW resort points.

Good luck with your decision!

 

[_auroraborealis_]

Also, keep in mind that both Vero and HHI are subject to special assessments for hurricanes, and insurance increase beyond the norm because they are coastal. There is additional risk in both items beyond "member fees are high" that can be summed up "and may rise faster than anywhere else not on a direct coastline."

 

[jerseyduke]

If you need points for the benefits (IE, save some on the the new AP Prices) and have to buy direct, I think VB is a legit option. the dues are about 2.08 higher than SSR, but it is 60$ cheaper per point.
It is going to take a lot of time to chew up that extra 60$ up front. 30 years at 2$ per point. Tough comparison since SSR contract is good for an additional 15 years, so has more potential resale value.

Big problem to me is you do not have an 11 booking window anywhere on property. What happens if you can't get in anywhere at 7 months? Do you want to stay at VB?

Unless of course you buy enough VB points to stay at the Poly Bungalows...they will always be available at 7 months

 

[MICKIMINI]

Having stayed at VBR and HHI - I agree that they are great properties, but they are not "on property". Booking 11 months is now very competitive with few exceptions. If you are looking for a couple days at 7 months, you might find something depending on the season, however if you are looking for a week long studio stay you will have a problem.

Why not buy a small, loaded contract now and then buy another, perhaps for a different property (but same UY) down the road? You'll have two contracts which are easier to sell if need be and you will be on property with lower dues. You don't need to jump in 100% right out of the gate and you'll get what you need now with the opportunity to borrow for a year or so until you buy the next property. Good luck!

 

[Deb & Bill]

Buy VB or HHI if that is where you want to stay. If you want to stay mainly at WDW, buy a WDW resort instead. It is getting very hard to change your reservation at seven months out. Especially from Sept through Jan, plus any RunDisney event time.

 

[Dean]

Good Morning-

Was wondering if this would possibly be a good concept: I am looking from the lens of being financial frugal. Understand the deed expiration is 2042, so my $$$ does not go as far as a new resort. But if I look at it, 22 years is still a lot of vacation time. If I am not concerned with the time of year I go (so the 11-month vs. 7-month does not factor), I am not going to go to WDW every year (head to HH or Vero). I also know the F&M are higher at these resorts; so my yearly dues may not appear to be Frugal. Wanted to get everyone's thoughts on this. If you have any suggestions, please let me know

1. purchase a small amount (75 or 100) points directly from DVC - would get the same UY
2. purchase larger contract via resale at Vero Beach or Hilton Head (based on cost/pp these are the lowest resorts)

Thanks

There's no reason to buy HHI or VB for other locations only. Both will be more expensive over time that just buying SSR. You'll also have the issue of the 7 month window EVERY time. The damage risk from natural disasters is the least of the issues IMO. For WDW SSR is the cheapest by far BLT likely second long term depending on what the fees increase. IF one looks at a single resort sometimes that becomes cheaper if you use the cheaper views a lot like Value at AKV or standard at BWV/BLT.

 

[mrt3o3]

I have the perfect excel doc for you. I created a couple weeks ago broken down by resort with tabs of initial cost buying direct at 50, 75, or 100 points. Includes price per point, years left/contract end, initial cost, annual dues (total + per point), as well as the total price per point (per per point divided by years left + annual dues)

Id be more than happy to send it to you!

 

[CarolMN]

If you are mostly going to go to HHI or VB, there is no good financial reason to buy direct. The main benefit of buying direct is the lower prices for Annual passes. Don't see how getting an AP helps you if you are not going to spend multiple nights per year at WDW. Buy (via resale) the beach resort where you need the home resort booking priority - i.e., summer trips to HHI or booking a beach cottage at VB.

 

[BillPA]

If you need points for the benefits (IE, save some on the the new AP Prices) and have to buy direct, I think VB is a legit option. the dues are about 2.08 higher than SSR, but it is 60$ cheaper per point.
It is going to take a lot of time to chew up that extra 60$ up front. 30 years at 2$ per point. Tough comparison since SSR contract is good for an additional 15 years, so has more potential resale value.

Big problem to me is you do not have an 11 booking window anywhere on property. What happens if you can't get in anywhere at 7 months? Do you want to stay at VB?

Unless of course you buy enough VB points to stay at the Poly Bungalows...they will always be available at 7 months

Dues at VB are $9.4766 a point on 200 points = $1895.32 x 20 = $37,906.40 with 3% inflation = $68,463.17
Dues at SSR are $6.4041 a point on 200 points = $1,280.82 x 20 = $25,616.40 with 3% inflation = $46,266.06
That's $22,197 more in dues at VB over SSR in 20 years. Assume the $60 less at VB, the purchase price difference is $12,000 more at SSR, but dues will be more than 22K less. It looks better to own SSR. It's the dues that kill you in the long run. ADD that you have a home resort at WDW and can book at 11 months.

 

[jerseyduke]

Dues at VB are $9.4766 a point on 200 points = $1895.32 x 20 = $37,906.40 with 3% inflation = $68,463.17
Dues at SSR are $6.4041 a point on 200 points = $1,280.82 x 20 = $25,616.40 with 3% inflation = $46,266.06
That's $22,197 more in dues at VB over SSR in 20 years. Assume the $60 less at VB, the purchase price difference is $12,000 more at SSR, but dues will be more than 22K less. It looks better to own SSR. It's the dues that kill you in the long run. ADD that you have a home resort at WDW and can book at 11 months.

Agreed about the non WDW home resort, and for that alone I would not do it.

You did not factor in any ROI on the 12K difference in purchase price however, if you take that 12K, at 4%, in 20 years it will be 26,293$ That is 4K MORE than the dues difference.

However, with SSR you still have 15 years left on the contract, so it is an assent of value in 2024 where VB is not....thats really the biggest element.

Also how did you get your numbers?
at 3% I get 50,9276 vs 34,416 when done for 20 years

1895.32​	1​		1280.82​
1952.18​	2​		1319.245​
2010.745​	3​		1358.822​
2071.067​	4​		1399.587​
2133.199​	5​		1441.574​
2197.195​	6​		1484.821​
2263.111​	7​		1529.366​
2331.005​	8​		1575.247​
2400.935​	9​		1622.504​
2472.963​	10​		1671.18​
2547.152​	11​		1721.315​
2623.566​	12​		1772.954​
2702.273​	13​		1826.143​
2783.341​	14​		1880.927​
2866.842​	15​		1937.355​
2952.847​	16​		1995.476​
3041.432​	17​		2055.34​
3132.675​	18​		2117​
3226.655​	19​		2180.51​
3323.455​	20​		2245.926​
50927.96​		total dues	34416.11​

 

[tguz]

Good Morning-

Was wondering if this would possibly be a good concept: I am looking from the lens of being financial frugal. Understand the deed expiration is 2042, so my $$$ does not go as far as a new resort. But if I look at it, 22 years is still a lot of vacation time. If I am not concerned with the time of year I go (so the 11-month vs. 7-month does not factor), I am not going to go to WDW every year (head to HH or Vero). I also know the F&M are higher at these resorts; so my yearly dues may not appear to be Frugal. Wanted to get everyone's thoughts on this. If you have any suggestions, please let me know

1. purchase a small amount (75 or 100) points directly from DVC - would get the same UY
2. purchase larger contract via resale at Vero Beach or Hilton Head (based on cost/pp these are the lowest resorts)

Thanks

Maybe that is a good idea if you want to get into DVC but your budget can't afford a loan for the more expensive properties but you can afford the payment on Vero at say $60/pt. but also are ok with possibly paying more overall in the long run and you already said booking at 7 months doesn't bother you.

 

[Dean]

Maybe that is a good idea if you want to get into DVC but your budget can't afford a loan for the more expensive properties but you can afford the payment on Vero at say $60/pt. but also are ok with possibly paying more overall in the long run and you already said booking at 7 months doesn't bother you.

Penny wise and pound foolish IMO. Better to wait and save up or buy less points that compromise for short term savings.

 

[mustinjourney]

Using rough math -- if vero is going for about $40 less on the resale and the MFs are $3 more per year -- your "break-even" point (not taking time value of money) would be about 13 years (40/3). So if you held it for less than 13 years, your total costs would be less with Vero.

Of course, even if you were to sell at 13 years...the Vero contract would likely be worth WAY less than a comparable SSR at that point, so you wouldn't be even at that point. If you assume the spread between Vero and SSR would remain at about $40 per point -- then your SSR contract would NET you $40*(number of points) at whatever year you sell. To back that into today's dollars, divide by 1.03^n, wherein n is how many years from now.

This calculation is not perfect -- but it gives you a good idea without having to bust out a spreadsheet in order to discount the future MFs' current value.

 

[Dean]

Using rough math -- if vero is going for about $40 less on the resale and the MFs are $3 more per year -- your "break-even" point (not taking time value of money) would be about 13 years (40/3). So if you held it for less than 13 years, your total costs would be less with Vero.

Of course, even if you were to sell at 13 years...the Vero contract would likely be worth WAY less than a comparable SSR at that point, so you wouldn't be even at that point. If you assume the spread between Vero and SSR would remain at about $40 per point -- then your SSR contract would NET you $40*(number of points) at whatever year you sell. To back that into today's dollars, divide by 1.03^n, wherein n is how many years from now.

This calculation is not perfect -- but it gives you a good idea without having to bust out a spreadsheet in order to discount the future MFs' current value.

Using 2018 numbers the total dues paid crossed over at 10 years using the same inflation for both of 3.5%. In 2042 dues for VB were roughly $7K more than SSR dues plus the original buy in. If you invested the difference up front that you saved buying VB it was a rough break even but you didn't have the 11 month option for WDW. For BLT & AKV it was almost identical in cumulative dues plus buy in. For buy in at the time I used $70 pp for VB, $100 pp SSR, $135 for BLT and $100 for AKV all using 100 points as reference. VB & HHI are fine properties and if one wants to use point there and for WDW AND don't need enough points to own both, owning at one is a reasonable options, it is not as a "cheap" way to get into WDW.