Anything wrong with purchasing Hilton Head just for the points?

[Payakan]

Hi all!

I was going through all the listings on DVC Resale market and my husband and I were considering purchasing Hilton Head, mainly only because we want more points. We are not necessarily worried about the Home Resort or the 7 month vs 11 month booking timeline. We already own at Copper Creek and have been discussing purchasing Old Key West since that's one of our favorite resorts, but saw some good listings for Hilton Head for the same amount of points at a cheaper cost. We would love some thoughts on this!

 

[Carol_]

Maintenance fees are not always the same and increase when hurricanes damage the resort, which isn’t never.
Google DVC maintenance fees current and historical
Also, those fees are currently the most expensive out of all the resorts.
Also also, if you do buy HHI, you should go because it’s lovely.

 

[Payakan]

Maintenance fees are not always the same and increase when hurricanes damage the resort, which isn’t never.
Google DVC maintenance fees current and historical
Also, those fees are currently the most expensive out of all the resorts.
Also also, if you do buy HHI, you should go because it’s lovely.

This is great insight, I didn't think about maintenance fees. Appreciate it!

 

[pianomanzano]

Maintenance fees are not always the same and increase when hurricanes damage the resort, which isn’t never.
Google DVC maintenance fees current and historical
Also, those fees are currently the most expensive out of all the resorts.
Also also, if you do buy HHI, you should go because it’s lovely.

VB's is the most expensive of all the resorts, but HHI isn't that far behind. VB is 12.85/pt, HHI is $10.73/pt.

Doing some quick math, the breakeven point for a HHI contract compared to something like SSR is around 10 years, while the breakeven point for a place like BLT won't be until 2040 or so.

 

[Where'sPiglet?]

Aside from the high maintenance fees, you won't have access to any WDW resort with HHI points until the 7-month mark. If you're buying points to use at WDW, then buy points that can be used at the 11-month mark at WDW.

 

[FamilyGuy]

As pointed out above, it's about the higher maintenance fees at HHI. If home resort booking @ greater than 7 months (at HHI) was a priority, then I would recommend considering HHI points.

Since you stated 7 vs 11 month window is not a factor to you, I think there are great values at OKW, SSR & AKV - it's a little higher upfront than VB or HHI, but after a few years to several years of paying the higher annual maintenance fees at HHI, you may actually break even, and then eventually start to come out ahead with the lower maintenance fee resorts...

 

[AstroBlasters]

Most Economical Resorts: (similar to Total Cost to Own)

https://www.dvcresalemarket.com/blog/best-economical-dvc-resorts-to-purchase-fall-2022/

 

[pirate33]

The conventional wisdom is that this is not a good plan due to the already high dues and the potential for future increases due to the location. Someone did an analysis many years ago that suggested buying at Hilton Head or Vero Beach might be a bargain if one held the contract only a few years but that for the long term it was not wise if one’s goal is to stay at WDW.

Also I have become convinced of the “buy where you want to stay” philosophy. When I first started buying DVC about ten years ago, I bought a fairly large Saratoga Springs contract for “sleep around“ points. I ended up selling that and buying more points at places I wanted to stay (VGF and BLT) and that has worked out very well for me.

 

[Pens Fan]

As someone who owns at HHI and doesn't regret it, don't do it. To reiterate what everyone else has said the maintenance fees are really high and pretty much wipe out the savings of the buy-in cost considering the short contract length. We love our HHI points because we love the resort and use them exclusively there. We love being able to book at 11 months and having our pick of rooms. But if you don't plan on using them at HHI, there are much more economical options.

 

[intamin]

I feel like this should be pinned lol, a lot of people new to DVC consider VB or HHI but have no intentions of actually staying there and think they’re a good idea for sleep around points due to the low buy in price but the maintenance fees quickly make VB/HHI a poor investment unless the 11 month priority there is important to you and you enjoy visiting that resort.

 

[CVG]

Most Economical Resorts: (similar to Total Cost to Own)

https://www.dvcresalemarket.com/blog/best-economical-dvc-resorts-to-purchase-fall-2022/

The problem with this report is that it doesn't take into account the number of points required for a stay at each resort. Once that is factored in, you'll see OKW and SSR creep back up to the top.

When I do my calculations it is interesting to note that although the initial cost per point is the largest driving factor in the ROFR thread, it is the total cost of dues that is most significant over time.

Here's a sample from my simplistic model. Limitations include no allowance for increasing dues, and selected minimum cost of resale points from a recent ROFR report, and no allowance for contract costs. This sample looks at Travel Period 1 (TP1) in September and the number of points required to stay a week at each room and resort, and then how much that will cost you initially and over time in dues. I haven't loaded all resorts such as AK and BLT. I might do that later.



Lastly, it is for the reader to decide if Resort X is Y% better than Resort Z.

 

[intamin]

The problem with this report is that it doesn't take into account the number of points required for a stay at each resort. Once that is factored in, you'll see OKW and SSR creep back up to the top.

When I do my calculations it is interesting to note that although the initial cost per point is the largest driving factor in the ROFR thread, it is the total cost of dues that is most significant over time.

Here's a sample from my simplistic model. Limitations include no allowance for increasing dues, and selected minimum cost of resale points from a recent ROFR report, and no allowance for contract costs. This sample looks at Travel Period 1 (TP1) in September and the number of points required to stay a week at each room and resort, and then how much that will cost you initially and over time in dues. I haven't loaded all resorts such as AK and BLT. I might do that later.

View attachment 730074

Lastly, it is for the reader to decide if Resort X is Y% better than Resort Z.

OKW and SSR have great point charts. That being said I think people don't really consider their point charts because OKW/SSR typically have the most availability of all the DVC resorts in WDW and know they can pretty much book them regardless with their points from another resort. People can use their points on a budget stay there if they want to while retaining the ability to book something more coveted like a studio at Copper Creek during Christmas. This is essentially what I did recently, I originally had booked a tower studio at RR during a popular time in the year and then ended up switching it over to a studio at OKW for more space to save some points and accommodate another guest. That flexibility I think to a lot of people is worth the extra cost.

 

[AstroBlasters]

The problem with this report is that it doesn't take into account the number of points required for a stay at each resort. Once that is factored in, you'll see OKW and SSR creep back up to the top.

When I do my calculations it is interesting to note that although the initial cost per point is the largest driving factor in the ROFR thread, it is the total cost of dues that is most significant over time.

Here's a sample from my simplistic model. Limitations include no allowance for increasing dues, and selected minimum cost of resale points from a recent ROFR report, and no allowance for contract costs. This sample looks at Travel Period 1 (TP1) in September and the number of points required to stay a week at each room and resort, and then how much that will cost you initially and over time in dues. I haven't loaded all resorts such as AK and BLT. I might do that later.

View attachment 730074

Lastly, it is for the reader to decide if Resort X is Y% better than Resort Z.

No arguments from me. My comment was just about the OP looking at resorts to use for SAP and making sure they factor in the dues.

 

[RoseGold]

but the maintenance fees quickly make VB/HHI a poor investment unless the 11 month priority there is important to you and you enjoy visiting that resort.

I'm not sure "very poor" is fair. There's something to be said for locking up less money overall in this, especially if you perceive it as risky. With the way Disney's decisions are going lately, I have to say RISK is much more persuasive than when I bought.

If DVC tanks, which is possible, the person buying VB/HHI is going to be looking smarter because they have so much less at stake. If a hurricane hits, maybe not so much.

All that said, others come and go, but SSR is the choice for SAP for a long time for a reason. Long-ish contract. Low buy in, low dues, easy to buy and sell.

 

[intamin]

I'm not sure "very poor" is fair. There's something to be said for locking up less money overall in this, especially if you perceive it as risky. With the way Disney's decisions are going lately, I have to say RISK is much more persuasive than when I bought.

If DVC tanks, which is possible, the person buying VB/HHI is going to be looking smarter because they have so much less at stake. If a hurricane hits, maybe not so much.

All that said, others come and go, but SSR is the choice for SAP for a long time for a reason. Long-ish contract. Low buy in, low dues, easy to buy and sell.

True, the benefit is less money locked up overall but if that were something that was a priority for you then wouldn't it be better to simply rent points until you could afford to have that money locked up in a DVC contract? While also keeping the flexibility and not have to assume the risk of a DVC contract or your home resort being hit by a hurricane? I think my statement still stands that VB/HHI are good if you plan to use it there primarily and that 11 month window is important to you, but if you're planning to book at resorts other than VB/HHI it makes a lot more sense to buy another home resort or just hold off on doing so until it's financially viable for that person.

 

[RoseGold]

True, the benefit is less money locked up overall but if that were something that was a priority for you then wouldn't it be better to simply rent points until you could afford to have that money locked up in a DVC contract?

Yes, and I think this makes renting an even better decision mathematically than it appears, and it appears pretty good right now anyway. IMO, rental points are undervalued. Really undervalued if you view DVC as risky.

 

[sethschroeder]

I would never buy outside of WDW if my goal was staying at WDW.

How much total are you really going to save? I suspect very minimal and your MFs are already high and could go crazy if they happen to get nailed by a hurricane.

 

[Cfabar1]

HH looks to be a nice resort, but if you don’t think you’d ever go, I wouldn’t buy there. I would like to visit Aulani, but rarely given the distance. As tempting as Aulani points are (I think they’re arguably the best contract to buy right now), I am not going to purchase them.

 

[kilik64]

AUL subsidized if you can find one would be the best way to go if you are looking for cheapest and dont care where you stay at 7 months (IE you dont mind getting stuck at SSR)

 

[intamin]

AUL subsidized if you can find one would be the best way to go if you are looking for cheapest and dont care where you stay at 7 months (IE you dont mind getting stuck at SSR)

This is me. we honestly fell in love with SSR. The proximity to Disney Springs is amazing. We typically like taking the bus to Disney Springs, picking up a dessert/smoothie on the way back to the room and then walking to the room. And then add in the fact that Aulani sub is a great deal because of the dues, longer contract and of course ability to book Aulani at any time we want made it the best option for our first resale.