worst case scenario - can we end up with an almost open-ended liability?

[macman123]

Worst case: someone nukes a resort, nuclear disaster and acts of war not covered by insurance, owners are technically on the hook to rebuild.
::::

Im sure they are insured for re-builds......... Depends on the cover of course.

 

[CanadaDisney05]

But you only have to be 1% out in that assessment to make a significant difference over 40 years! And it's further complicated by the fact I don't live in the US so am subject to other economic disconnects.

If you don't discount, you are automatically out 2 - 2.5%...... No matter what, your not going to be able to perfectly predict every component. The goal is to get as close as possible.

I live in Canada. I'm subject to FX risk as well. I just did the math in USD because it is much easier to project with some level of accuracy. My comparison was the cost of staying at Disney using DVC vs non DVC. Non-DVC stays would be paid in USD also.

FX is a risk that is not easily quantifiable until after the fact. Buying today is basically solidifying an exchange rate on about 1/3rd of the overall price. The other 2/3 is still has FX risk.

 

[mentos]

Im sure they are insured for re-builds......... Depends on the cover of course.

Probably not due to nuclear warfare!

 

[tjkraz]

But you only have to be 1% out in that assessment to make a significant difference over 40 years! And it's further complicated by the fact I don't live in the US so am subject to other economic disconnects.

Covid or no Covid, these are the issues one has to overcome when committing to a timeshare. If you don't trust that the destination will remain viable and the property will be well managed, you shouldn't buy. Because truly you have almost zero control.