Poll: Your Riviera Resale price

[jerseyduke]

Not really.
While SSR is not everyone first choice, the fact it's often available last(-ish) minute helps every member.
Life happens: while most people plan to always use their VGF or BCV points at their home resort, they might be forced to cancel and have points on holding. Or they might want to add a night last minute to accommodate an early cheaper flight. Or they might want to check a new resort.
Being able to use points at other resorts helps everyone, even people who don't plan to do it, ever. Owning DRR resale comes with an higher risk which should be accounted in the purchase price.

Of course - breakage risks run much higher. And as I stated in another post, if those DRR resale points go into holding, and you can not switch them....well good luck there! My point really was that there are some people who pretty much only stay at their home resort, and to them, DDR resale would be more appealing as the restriction is, well, less restrictive. But yes, it does come with higher risk.

However, in my mind, buying DRR resale is nowhere near the risk of buying it Direct. Like you said, life happens, and DVC is an asset that you can often liquidate for capital. The possibility of significant depreciation of a direct contract scares me - you could lose 50% of your investment depending on how the resale market reacts. I can not see how a resale contract would depreciate much outside of its decreasing years remaining. I bought VGF direct, and I can sell it for as much or more than I paid for it. I can not see that being the case with DRR. However, I have been wrong before.

 

[Great3]

I predict the voters are all full of it, in the end. People will stay there once, love it, have pixie dust in their hair and falling into their eyes, see prices rising and speculate that they can only rise further, and buy the points resale for much higher than "<$90"

That's why the thread is titled "Your Riviera Resale price: At what price would you buy Riviera on the resale market (Be limited to staying only at Riviera)?". It's what many of us would do given the current circumstances and what we know.

If the question was what do you think the Riveria Resale will end up being, I would guess it be above $100, as market is not determine by the > 50% of the people voting under $90, but determine by if there are enough buyers willing to pay more than $100 a point for RR than there are sellers selling. All that's needed is a few people willing to pay more for market price to be higher than expected, and there are plenty of people that will buy at higher prices because they don't view the restrictions as being limiting as most view it.

Great3

 

[Great3]

I can say with 100% certainty that I would not buy it ...period...at any price. And the voters weren't voting on "what will it resell for?". They were voting on " At what price would you buy Riviera on the resale market (Be limited to staying only at Riviera)?"

Will people pay more than $90 on resale...Absolutely, because Disney will continue to raise prices and people will still make the decision of whether or not it works for them.

This, I guess I should have read the rest of the thread before responding. It's funny that I quoted the same thread title in my response . In the end, I do think the resale price of RR will higher than what most of us are willing to pay, if at all.

Great3

 

[CookieandOatmeal]

Not sure if it was mentioned already but the broker who sold the Riviera contract from DCVShop said today in the comment section of a post in the FB group that she sold it for $100/pt. Also mentioned she helped two private sales for $90/pt.

 

[Tink10]

Of course - breakage risks run much higher. And as I stated in another post, if those DRR resale points go into holding, and you can not switch them....well good luck there! My point really was that there are some people who pretty much only stay at their home resort, and to them, DDR resale would be more appealing as the restriction is, well, less restrictive. But yes, it does come with higher risk.

However, in my mind, buying DRR resale is nowhere near the risk of buying it Direct. Like you said, life happens, and DVC is an asset that you can often liquidate for capital. The possibility of significant depreciation of a direct contract scares me - you could lose 50% of your investment depending on how the resale market reacts. I can not see how a resale contract would depreciate much outside of its decreasing years remaining. I bought VGF direct, and I can sell it for as much or more than I paid for it. I can not see that being the case with DRR. However, I have been wrong before.

I have to agree with you 100% because the direct prices are so incredibly inflated, compared to what prospective DVC members will receive as a "benefit". DVC CAN charge more and they will! Not to mention that benefits can change...they simply aren't guaranteed, regardless of when someone purchased direct, unless it's written in to their purchase agreement. So if someone is basing a direct purchase on "the blue card", the member lounge in Epcot, AP discounts or dining discounts, they need to put those out of their head because they may not be available down the road.

I work in the timeshare rental/resale industry (not in a scammy way) and I'm always amazed at the immense depreciation from the buyers original purchase price from the developer from what they could have purchased on resale. I'm stunned at the promises that are made verbally (without being in writing in a contract) when someone purchases direct from so many companies. So it's just not uncommon for me to see people who purchased for tens of thousands of dollars or more and can only give their timeshare away for a tiny fraction of their original purchase.

With DVC, we're pretty darned lucky, because I just sold three contracts (all at a nice profit from our purchase price) and bought one at an amazing discount from that DVC was charging. I did this because it worked better for our travel preferences, but did well. Which is so so rare in the timeshare industry, but we never ever based our DVC purchase as an investment at all. We looked it as pre-paid vacations and nothing more.

I think as more DVC resorts are added and selling standards change, resale values will absolutely go down compared to the original purchase price, so nobody should ever expect to break even....ever. I think that we'll see sales tactics getting a little less "Disney-ish" and people can only expect that is actually in writing.

I'm almost thinking that DVC might be getting a little too big for its britches and they may need to slow it down a bit to keep it a seriously desirable commodity as just that.

 

[kboo]

Personally, as a long-time DVC member...I will not buy there and wouldn't even if the prices were bargain basement low.

I think that's the point - the vast majority of us on this board are longer-term owners and probably the vast majority of the points that we own are grandfathered. So we already have points at resorts that we'd be perfectly happy to stay at, and are informed enough to know how to use our points, and have in fact used our points to sleep around. And the points we currently own are eligible to book RIV and newer resorts at 7 mo. So there's not really a need for "us" to buy RIV resale unless you are sure you want to stay in a tower studio (or maybe a studio at all) during F&W every year, in which case then ok, maybe you do want to buy a small RIV resale contract. It will be interesting to see how this shakes out in the next 5-10 years.

@jerseyduke has a good point - buying RIV resale is a lot less risky than buying it direct, and a RIV resale owner could probably resell at or close to what they paid. Also - if the owner is well-informed, I am not entirely sure there will be a lot of breakage. Maybe there will be a robust secondary market of spec reservations during holiday periods. For example, I am currently booked for a few days over New Year's. If we had to cancel our trip, I am not sure I would cancel the reservation instead of putting the reservation up for rent, especially if I had to cancel on super-short notice.

 

[EYL]

I'm not sure if I can post the link, but it seems like there is a Riviera resale that just got recorded. 175 points. Recorded on 8/7/19. Sale price is stated on deed, and it seems to confirm the $100/point resale price.

 

[robinb]

$0? I have no interest.

 

[TexasChick123]

I'm not sure if I can post the link, but it seems like there is a Riviera resale that just got recorded. 175 points. Recorded on 8/7/19. Sale price is stated on deed, and it seems to confirm the $100/point resale price.

That’s the one for $100. The buyer is a known DVC flipper. Good deal for him.

 

[Randywatson79]

There was a Riviera resale listed on Fidelity today. 125 points, asking for $170/pt. I don't want to link it, in case that breaks any rules.

 

[Cyberc1978]

There was a Riviera resale listed on Fidelity today. 125 points, asking for $170/pt. I don't want to link it, in case that breaks any rules.

I saw that too, wonder how much it will end up selling at.

IMO $100-$110 would be in the right ballpark at this time.

 

[Spartan86]

That’s the one for $100. The buyer is a known DVC flipper. Good deal for him.

Yeah that person and, I believe family members (same name) buy and sell 1000’s of points. I wonder how they keep it all straight.

 

[TexasChick123]

Yeah that person and, I believe family members (same name) buy and sell 1000’s of points. I wonder how they keep it all straight.

You are correct. I tried to buy a contract from him a few years ago. It got taken by ROFR, but he did mention that he and family members buy and flip DVC contracts.

 

[Spartan86]

You are correct. I tried to buy a contract from him a few years ago. It got taken by ROFR, but he did mention that he and family members buy and flip DVC contracts.

I’m pretty sure we talked with him once on a posted contract, but it turned out to be sold already.

 

[jerseyduke]

I have to agree with you 100%

You make it sound like agreeing with me is painful

You also hit the nail on the head with timeshares. One of the third party dvc Financing options, Monera, will not finance if you purchase from DVC Directly. This could be a legal thing, but I always thought it was because of the depreciation. So far, DVC contracts have held there value so well. That really is a testament to it being a quality product that people continue to demand.

I bought VGF directly at 150 per point(2013), and Boulder Ridge resale for 89(2015) according to the ROFR thread, I can fetch (about) 165 for VFG and 95-100 for BRV. Can not really complain about that at all.

Just did a little math, and assuming a 5% return on my VFG purchase price would have netted be 8K in profits since the time of purchase(23,000 -> 31,000). Add in the maintenance fees and since 2013, that comes out to about 1800 a year - and I get 8+ nights in a studio. That comes out to 225 a night to stay at the VGF! IF i sold it today, the increase in price would basically cover the commissions. Ill take the 225 a night! Its turned out pretty well.

 

[sugliac]

I have to agree with so many who have commented, but as someone who is kind of considering buying direct, I could never pigeon hole myself. I want to be able to not only experience many Disney World DVC properties, but also great places like Vero Beach, Hilton Head, and especially Aulani. For me, part of the appeal of a DVC contract over a typical timeshare is the fact that you get options and flexibility.

 

[DougEMG]

Not really.
While SSR is not everyone first choice, the fact it's often available last(-ish) minute helps every member.
Life happens: while most people plan to always use their VGF or BCV points at their home resort, they might be forced to cancel and have points on holding. Or they might want to add a night last minute to accommodate an early cheaper flight. Or they might want to check a new resort.
Being able to use points at other resorts helps everyone, even people who don't plan to do it, ever. Owning DRR resale comes with an higher risk which should be accounted in the purchase price.

In the last two years I've had to book a trip under 5 months and then add on two nights to an existing trip within 2 months, both times I was glad I could switch outside my home resort. Resale RRR owners will not be able to do that.

I also believe that RRR is going to be a difficult resort to book, resale owners are going to have to book as early as possible so they don't lose their points, forcing direct owners to follow suit which will then leads to walking. If resale owners aren't booked before the 7 month window opens there is going to be a good chance of them getting shut out completely.

The whole point of the point system and trading resorts was for maximum flexibility, a lot of that flexibility is now going away for resale RRR owners. That just increases their risk of not being able to use their points, so that should cause the points to have a lower market value.

 

[DVC Fanatic]

I only got into DVC last year, but is it typical to see resells before a resort even open? Is this just a case of someone purchasing direct, that got caught up in the moment? Just curious.

 

[DisFanDad]

I mean, if these contracts which haven't been USED yet, are already selling for $90 - $100 resale, that doesn't bode well for them IMO.

Pretty much bang on to what I'd expect.

 

[zavandor]

While I do think Riviera contracts will be heavily impacted by the restrictions, I wouldn't read too much in one single contract yet. We do not really know the story behind that contract, it can be an outlier.