Brian Noble
Gratefully in Recovery
- Joined
- Mar 23, 2004
What was the initial offering price of VGC?I have no idea why VGC is so low.
That might explain at least part of it. Only the Dues component increases over time; the purchase price does not if you are amortizing. As an aside, that also means that ToT will grow more slowly than inflation, for the same reason.
And, that principle is true more generally, whether you are buying a house or a timeshare. The first year is the most painful, but over time a lot of the costs remain fixed in purchase-year dollars. We'd be paying much higher mortgage payments if we bought our house today, even if it was at the same interest rate--assuming of course we were buying new with 20% down rather than just re-capturing our current equity.