Would You Buy 2042 Resort w/10 Yrs Left?

[DisneyStarWisher]

Within the next year we are planning on adding on points at HHI since it's the resort we want to stay at as we enjoy our retirement. We should be able to buy 150 points by next spring, but ultimately need 200 for what we want to do. Over the next few years, we are also trying to visit the states we haven't seen yet. That means we may not need the additional 50 points for a while. Would it be a not-so-wise decision to purchase a small contract with around 10 years left on the contract? Do you think there will be more or less contracts for sale at that point? Will prices be super low? What are your predictions?

 

[intamin]

To be honest, I'd be more worried about the dues rather than the prices. I would calculate the compound interest. I think people will be trying to escape dues especially on these beach resorts like HHI and VB, probably CFW by that point.

4% CAGR which is obviously an extremely low estimate would put it's dues in 8 years (10 years left) at 15.48.

HHI's historical CAGR average is 6.9% which would put it's dues in 8 years at 19.29. In 18 it will be 37.59 per point.

I think people will be trying to give them away frankly but who knows. I'm glad you're able to find value in it and will be content staying there.

Figures grabbed from here and calculated using the CAGR calculator from www.investor.gov

Edited to add: this is specifically for HHI and VB. BWV and BCV and etc. I think will still retain value.

 

[tom1944]

It would depend on my financial situation at the time and the price of the contract.

And dues.

 

[hhisc16]

Within the next year we are planning on adding on points at HHI since it's the resort we want to stay at as we enjoy our retirement. We should be able to buy 150 points by next spring, but ultimately need 200 for what we want to do. Over the next few years, we are also trying to visit the states we haven't seen yet. That means we may not need the additional 50 points for a while. Would it be a not-so-wise decision to purchase a small contract with around 10 years left on the contract? Do you think there will be more or less contracts for sale at that point? Will prices be super low? What are your predictions?

Yes i would buy a 2042 for the right price.
Hhi prices for 100+ points are lower right now.

 

[ShaneDJ]

Yes. We love BWV!

 

[DisneyStarWisher]

Yes i would buy a 2042 for the right price.
Hhi prices for 100+ points are lower right now.

Yes they are. I'm just hoping they keep going lower.

To be honest, I'd be more worried about the dues rather than the prices. I would calculate the compound interest. I think people will be trying to escape dues especially on these beach resorts like HHI and VB, probably CFW by that point.

4% CAGR which is obviously an extremely low estimate would put it's dues in 8 years (10 years left) at 15.48.

HHI's historical CAGR average is 6.9% which would put it's dues in 8 years at 19.29. In 18 it will be 37.59 per point.

I think people will be trying to give them away frankly but who knows. I'm glad you're able to find value in it and will be content staying there.

Figures grabbed from here and calculated using the CAGR calculator from www.investor.gov

Edited to add: this is specifically for HHI and VB. BWV and BCV and etc. I think will still retain value.

Definitely worried about the dues, but if I see they are out of control by the time I get ready to add the 50 points, I don't have to buy. $37.59/point is definitely scary!

 

[Stank]

My concern with DVC dues, primarily the VB and HHI, are the skyrocketing insurance costs we’re seeing across the country.

Given these are coastal properties this could be a problem. At the very least, I anticipate VB/HHI to compound at a higher rate than other resorts. The insurance costs are just going up and up, and many insurers are walking away from high-cost areas.

 

[Bearval]

To be honest, I'd be more worried about the dues rather than the prices. I would calculate the compound interest. I think people will be trying to escape dues especially on these beach resorts like HHI and VB, probably CFW by that point.

4% CAGR which is obviously an extremely low estimate would put it's dues in 8 years (10 years left) at 15.48.

HHI's historical CAGR average is 6.9% which would put it's dues in 8 years at 19.29. In 18 it will be 37.59 per point.

I think people will be trying to give them away frankly but who knows. I'm glad you're able to find value in it and will be content staying there.

Figures grabbed from here and calculated using the CAGR calculator from www.investor.gov

Edited to add: this is specifically for HHI and VB. BWV and BCV and etc. I think will still retain value.

I agree here concerning the dues part. It could get to the point where the MFs exceed the costs of a cash booking. You may not even be able to give your Time Share away at that point.

 

[CastAStone]

Let’s go by resort.

VB could well be upside down by 2031, where dues are so high the underlying value is $0 (like you won’t be able to rent the points out for dues). So no to that one.

There’s a minor risk of that for HHI, but I think it will still have some underlying value. It’s probably the hardest one to predict though because that value may be low. Anywhere from $0-$50.

Okay so BWV is currently the most valuable resort on a points-night-room rate basis. I don’t see any reason to think that would change. I think BWV could easily still be priced in the $80s or $90s by 2031, because there’s still a lot of value for the buyer at that price. Even in 2040, that contract will save you $20-$30 per point off of rack rates after dues, so it will still be worth some portion of that.

BCV I feel similarly about; while the underlying value vs rack rates is lower, the DVC demand is higher because of SAB. If you have kids 5-8 and want to buy something to get you through most of their schooling, what better place? This will also only be 29 years old in 2031 and I think will just have a lot lower percentage of its contracts on the market. $85-$100.

BRV has a lower comparative price per night in cash, and Disney seems intent on building more WL adjacent rooms, so I imagine a lower value, $60? $70?

OKW is hard because dues are high and 2057 contracts will continue to be a higher and higher percentage of the market, and also I think Disney will get ever more aggressive about ROFRing 2042s and reselling them as 2057s. I could really see prices in the $60s just because they’re worth more to Disney than they will be to us.

 

[jcolvin5]

Buy in for VB and HHI are dropping to unbelievably low rates right now, but those dues are going to negate any low resale in a very short amount of time. Those dues are going to skyrocket, especially the last 10 years and no one is going to buy them at that point. So those are your dues for the remainder of the contract term. I don't think that's even debatable.

You just have to decide if you can afford to pay those dues and if it is worth it to you? For me, I would be looking at other options outside of DVC for visiting HH. Good luck!

 

[MICKIMINI]

We just sold our last two 2042 resorts while we can. OKW sold in ten days and VB in one day. They haven't closed yet so no details other than they were competitively priced. We felt we got much value out of them but didn't want to chance it down the road. We still have our direct contract and another contract both with later expirations. We changed our mind regarding retirement traveling and just built a new home instead and are content with our decision.

If you know you will use them and don't mind the MF's, shop around until you get your deal. I sure would not speculate thinking selling before 2042 is even a slight possibility. Good luck!

 

[Tatebeck]

If the worst case scenario happens and everyone is left trying to sell VB or HHI contracts just a few years before expiration and no one is buying them, and if the yearly dues get to the point where you can't afford them or they exceed the value of rentals, couldn't you just stop paying them? They would just take the contract back after a while, but you really could "give away" the contract back to Disney if you really wanted out but there are no buyers, right?

 

[CastAStone]

If the worst case scenario happens and everyone is left trying to sell VB or HHI contracts just a few years before expiration and no one is buying them, and if the yearly dues get to the point where you can't afford them or they exceed the value of rentals, couldn't you just stop paying them? They would just take the contract back after a while, but you really could "give away" the contract back to Disney if you really wanted out but there are no buyers, right?

If you stop paying your timeshare dues, Disney will sue you and seize it back. It will wreck your credit but you won’t own it anymore.

Disney does not currently offer a take back program, unlike many large operators, but there’s also no demand for one due to the healthy resale market. Why give your timeshare to Disney for free when you can sell it? If you call DVC today and ask them to take back your contract, they will tell you to sell it online instead and direct you to Fidelity.

TUG has, as usual, the best information on this topic, IMO:

https://tug2.net/timeshare_advice/how-to-get-rid-of-timeshare.html

 

[TinkAgainU]

Just added another small Boardwalk contract at $140/pp, closing this week. So, probably a yes, lol.

Combination of a location we wanted (we love Riviera's Skyliner but don't find it as dependable as walking or boats) and even see some benefit in resorts that have an earlier "management fees" end date too.

 

[Cfabar1]

For me it would depend on the need/context/etc.

I could see us at some point buying more points at say OKW or HHI or VB all for different reasons.... once we are above about 400-500 points. Otherwise, I don't see us doing it.

 

[js]

Within the next year we are planning on adding on points at HHI since it's the resort we want to stay at as we enjoy our retirement. We should be able to buy 150 points by next spring, but ultimately need 200 for what we want to do. Over the next few years, we are also trying to visit the states we haven't seen yet. That means we may not need the additional 50 points for a while. Would it be a not-so-wise decision to purchase a small contract with around 10 years left on the contract? Do you think there will be more or less contracts for sale at that point? Will prices be super low? What are your predictions?

Hi. I just want to say I remember when you were deciding to add DVC or outside resort for your HHI trips and we spoke off the dis. If you are thinking after ten years, you will no longer need the contract, then I would get one with -10 years left but if you still more Disney trips in the distant future, then I wouldn't purchase. But, it seems that is really a decision and questions only you can really answer.

We love HHI and have a 3 bedroom there at Waterside by Spinnaker.

 

[Sandisw]

We don’t like any of them well enough to spend that much for one. Noe, if BW or BCV is going for $20 to $30/ pt? Might consider it.

 

[NY Pirate Princess]

I wouldn't buy HHI or VB at any price at this point. If I remember correctly my resale contract indicates dues can be increased up to 15% annually. I think it is unlikely for WDW resorts but the ocean front resorts could potentially see it. I know my homeowners insurance surged dramatically this year. I can't imagine what those Disney bills look like.

 

[theMoreDisneytheBetter]

I keep telling my mom no more 2042 properties despite how much we all love BC, but to be fair more than half of our points will expire then. Part of me really wants to sell our OKW contract and use the money to buy somewhere else, but we consider it “free” as it has paid for itself many times over at this point, so we use it for splurging on “special” experiences. It’s a whole lot harder to justify using points for the bungalows, for example, if you have to “pay” for them.