confused on the draw to DVC

[SecondEventuality]

It will be okay! I'm just panicking since this is the time to back out if we still wanted to and I'm just over-analyzing the resale restrictions again, plus wondering if we add on later and have 100 points.

 

[kboo]

But I thought you wanted to have the 2042 end date... ?

Direct:
$165 x 50 points = $8250 -- 2057 end date (?)

Resale
$110 x 50 = $5500 -- 2042 end date

So $2750 for 15 more years on the points, and, essentially, an insurance policy that you may want to/be able to buy 50 more and get direct benefits.

If you bought direct and didn't plan on using points until 2021 (your offer is on a stripped contract, right?), you could rent out the 100 points (2019, 2020) - say, $14/pp - then that puts the additional cost of buying direct at $1350 ... that's still a 25% premium for an insurance policy.

Another way to think about it is - if you decided later you wanted to be a direct member, you could sell this contract and buy 100 points direct, and use the proceeds from the sale to offset the cost of the 100 direct points. And you're not out the $$ right now.

 

[kboo]

That said...
(and this is now doing #DisneyMath, and a reason why buying DVC never really saves you money...)

*IF* you would like to use 100 points sooner rather than later (2019 and 2020 points), you would get 2 years of current points that you're not getting with the resale contract, in addition to points expiring in 2057... and a few hundred $ in MFs.

 

[SecondEventuality]

Yes, we wanted the 2042, forgot that direct would be the extended one. Sigh, suffice it to say, DVC is too complicated to have all it all figured out within a mere couple of weeks. That's on me, though! Thank you.

Oh, there is a wait list for OKW, so I don't even know if we'd be able to get the 2019 points anyway!

Thanks, @kboo.

D

 

[Great3]

Yes, we wanted the 2042, forgot that direct would be the extended one. Sigh, suffice it to say, DVC is too complicated to have all it all figured out within a mere couple of weeks. That's on me, though! Thank you.

Oh, there is a wait list for OKW, so I don't even know if we'd be able to get the 2019 points anyway!

Thanks, @kboo.

D

Personally, I think you are too worry about having the 2042 end date. To me, it better to get the later end dates, as than you "should" have some value left in the contract to resale, instead of having $zero value at 2042. Sure, the MF dues ends at 2042, but when you sell the later end date DVC contracts, the MF dues also end after completion of the sale. Price it low enough, and it will go like hotcakes. To me, it's not much work, you just pay the broker a commission, and they do most of the work, you just sign paperwork.

I rather have some sort of capital preservation left at 2042 (even if there are lots of arguments about what happens to value in the future). You might even luck out and get most your initial up-front "sunk" costs back, or maybe even profit! Maybe not, that's why assume "sunk" cost, but a 2042 DVC resort / contract is absolutely "sunk" costs in 2042, where for other longer end date resort(s), you might be pleasantly surprised at the residual value left in 2042.

Great3

 

[SecondEventuality]

I contacted DVC and they said it may be 1-2 weeks, as a best guess, it's hard to say, but doesn't sound that long, if we wanted to go direct.

 

[SecondEventuality]

Personally, I think you are too worry about having the 2042 end date. To me, it better to get the later end dates, as than you "should" have some value left in the contract to resale, instead of having $zero value at 2042. Sure, the MF dues ends at 2042, but when you sell the later end date DVC contracts, the MF dues also end after completion of the sale. Price it low enough, and it will go like hotcakes. To me, it's not much work, you just pay the broker a commission, and they do most of the work, you just sign paperwork.

I rather have some sort of capital preservation left at 2042 (even if there are lots of arguments about what happens to value in the future). You might even luck out and get most your initial up-front "sunk" costs back, or maybe even profit! Maybe not, that's why assume "sunk" cost, but a 2042 DVC resort / contract is absolutely "sunk" costs in 2042, where for other longer end date resort(s), you might be pleasantly surprised at the residual value left in 2042.

Great3

I understand where you are coming from, thank you. I think the main reason we wanted 2042 is that we know it's limited to 21 years and that's a shorter commitment, in case anything goes wrong with the resale market later on after that.

But you make sense and it appears, at least for right now, when 2057 enter the resale market, they sell fairly quickly as they are more rare.

Thanks!

 

[KStash]

Isn't there a minimum to buy if you aren't already a DVC owner, or is that minimum just for the blue card? I know if you are already a DVC member (blue or white card), you can add on small contracts, but I thought there was a minimum point buy in if you weren't a member?

 

[SecondEventuality]

50 is the minimum for OKW to buy a direct contract with extended 2057 date, 100 to get member benefits is my understanding. We aren't DVC members just yet!

 

[SecondEventuality]

Just found this:

https://www.dvcresalemarket.com/blog/the-value-of-an-old-key-west-extended-contract/
Sigh. I get it. But provided the resale market isn't annihilated 15 years from now, sure.

Anyone have a crystal ball handy?

 

[Brian Noble]

My take: don't over think it. If you are comfortable with 2042 for whatever reason, then you are comfortable with that. The difference might be worth it to some, might not to others.

 

[CanadaDisney05]

My take: don't over think it. If you are comfortable with 2042 for whatever reason, then you are comfortable with that. The difference might be worth it to some, might not to others.

I agree with this. The real dollars were talking about on 50 points at OKW are pretty negligible in the long run.

 

[SecondEventuality]

Thanks, guys! Yes, we are more comfortable with the 2042 date, correct, which is why we wanted it to begin with.

Provided we don't have addonitis and find ourselves wanting more, it actually turns out to be the best option, overall!!!!

You are the best, thanks!!!

 

[Great3]

My take: don't over think it. If you are comfortable with 2042 for whatever reason, then you are comfortable with that. The difference might be worth it to some, might not to others.

This, SecondEventuality. At some point, you need to go with emotions, not with logic, not with financial calculations, or other analysis, or else you won't ever be buying DVC ever. I think you will be 100% glad you made the jump, when you look back afterwards 10 years later, and realize the fond memories you had and built with your family over the years, that surpasses the money already spent (it will be long forgotten by than what the sunk costs were). But the memories will always be there, even when the kid becomes an adult, that's something you can't put a price on or analyze to the death!!!

Great3

 

[SecondEventuality]

This, SecondEventuality. At some point, you need to go with emotions, not with logic, not with financial calculations, or other analysis, or else you won't ever be buying DVC ever. I think you will be 100% glad you made the jump, when you look back afterwards 10 years later, and realize the fond memories you had and built with your family over the years, that surpasses the money already spent (it will be long forgotten by than what the sunk costs were). But the memories will always be there, even when the kid becomes an adult, that's something you can't put a price on or analyze to the death!!!

Great3

Thank you! Yes, we are not planning on ever selling and then going every other year or every 3 years, so this is the best choice for us. We also are not comfortable with being boxed in and desire flexibility. 20+ years of owning our own business during the 2007-8 taught us a great deal about what’s really important when the going gets tough. Since then we remain with our feet firmly glued to the ground.

thanks again for all you’ve shared, it’s greatly appreciated.

D

 

[Maistre Gracey]

This, SecondEventuality. At some point, you need to go with emotions, not with logic, not with financial calculations, or other analysis, or else you won't ever be buying DVC ever. I think you will be 100% glad you made the jump, when you look back afterwards 10 years later, and realize the fond memories you had and built with your family over the years, that surpasses the money already spent (it will be long forgotten by than what the sunk costs were). But the memories will always be there, even when the kid becomes an adult, that's something you can't put a price on or analyze to the death!!!

Great3

True, but it’s not “money already spent”.
In the long run maintenance fees are by far the largest part of your commitment.

 

[Ms.Minnie]

Especially if you own 2000 pts...

 

[SecondEventuality]

Whelp, I was vetoed and hubby wants to go every year plus be a member so we bought two 50 pt contracts direct today! At a certain point, he just had to think what he ultimately wanted and there you have it, folks. Ease, convenience and old age trumps all. Works for me! Whoo hooo!!

 

[mentos]

I see this thread is 11 pages deep, but I'll answer the original question anyway.

We purchased DVC for a few reasons. We wanted to stay at Aulani but balked at the ~$700/night charge, so we spent $5000 for a small 50 pt contract on resale which enabled us to stay 4 nights (with some mild borrowing), which would have cost us close to $3000 with no residual value thereafter.

Once we got the hang of the values and how the system worked, we bought a 100pt contract at VGC on resale for $15,000. We typically stay here in the fall which is still considered "low" season by points (currently one of the busiest times to go) and enables us 5 nights/yr. Retail price for 5 nights of hotel is ~$3500 ($700/night, for Friday/Saturdays).

Financially, the numbers are in our favor because of the extremely high retail rates of comperable hotels. We typically stay in 4 diamond and up hotels only, so for those that stay at more value locations, you cannot directly compare what you get with DVC with what you can obtain elsewhere.

Upcoming changes: i'm looking into another resale for VGC, but with the JW Marriott opening nearby to DL, I may have other options come spring. Also, we are not urgently trying to return to Aulani, so I was able to parlay those points into VGC stays on the waitlist at the 7 month mark, which is an even better value for me.

I probably will never buy direct because a) the ancillary benefits are mostly useless to me and b) the upcharge turns a situation with a marginal cost-benefit analysis into the red and pushes the break-even point far forward. That, and the place I want to buy (VGC) is either not selling direct, or rumors are that they are being sold at $260-$280/pt after DVC exercises ROFR.

In that case, if my resale transaction is picked up at ROFR, I will default to my "I have other options with JW Marriott" position above.

Love DVC, though! Once I get around to it, they will get titled into the family trust and likely held through the end.

 

[lovin'fl]

OP, I can tell you why we bought DVC in 2006. We 1st went to WDW in 2003 and stayed off site. It was tough driving in each day and parking with 3 little kids. We'd leave early to drive back and stop for dinner on te way back. Bathe the kiddos and put them to bed. Then rise repeat the next day. So the next trip, in 2005, we stayed on site at POR. We drove in and parked our car for the week, never needing to use it. It was magical. Except being in that regular room with 3 kids. There was an under the bed trundle that DS slept on and our 2 DDs in one bed and us adults in other. It was tight and zero privacy. We longed for a condo style room. With a door to the master for privacy. ANd more space to walk. So we looked into DVC and bought in. Then once the 3 kiddos were heading to teen years we needed 2 bathrooms and DVC allows that option (with a 2BR or some 1BR that have an extra bathroom).

Another big draw for deluxe resorts in general is LOCATION LOCATION LOCATION. We own most points at BWV and love walking to 2 parks. BLT, which has that extra bathroom in the 1/2BR villas, can walk to MK. You can see fireworks from some locations. It can be magical.

Another thing is that we are basically pre-paid for our rooms. We pay @$7.50 per point in dues now but get a condo with kitchen and W/D for like 3 weeks a year (we have 450 points). A condo for $1100 a week is not bad. Considering you also get free transport to/from airport and free parking and transport while there. There are amenities like pools, gyms, kid clubs in some...etc. Look for a condo in Kissimmee/Orlando for $1100 for a week and see what you get and how nice....and then you also will have to deal with driving and parking at WDW and you'll have to clean it or pay a cleaning fee.