VDH Opening

[Brian Noble]

I have no idea why VGC is so low.

What was the initial offering price of VGC?

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.

 

[take36]

What was the initial offering price of VGC?

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.

I paid about 100 a point after discounts and fees I want to say a few months after vgc sales start.

 

[KAT4DISNEY]

What was the initial offering price of VGC?

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.

Base rate was $112/pt I believe. Many incentives applied to lower it.

 

[Epcot Forever Forever]

What was the initial offering price of VGC?

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.

The Anaheim code says timeshares can negotiate lower rates with the city. I imagine that’s what happened with VGC although that’s a guess.

 

[Brian Noble]

Okay, so let's try this.

The cost-of-capital rate people are using is just about 3%, give or take. If you amortized the $100 purchase price over 50 years at 3%, you get a per-year cost of $4.25. Throw in dues of $8.04, you get $12.30 or so. 15% of that is $1.84. That still doesn't get us to the $0.50 that is in the 2022 budget (and presumably it would be a bit higher in 2023 but not $1.30)

 

[Brian Noble]

The Anaheim code says timeshares can negotiate lower rates with the city. I imagine that’s what happened with VGC although that’s a guess.

Sure, but on what basis could you value a VGC point at less than $3.50?

That's just nuts. The only other explanation is that Anaheim is willing to accept much less than 15% of the value each night, and that's...not what governments usually do.

 

[Epcot Forever Forever]

Sure, but on what basis could you value a VGC point at less than $3.50?

That's just nuts.

No what I’m saying is that 15% is the rate Unless a timeshare developer cuts a deal for a different rate and there’s no guideline for how low that rate can be.

Notwithstanding the provisions of Section 2.12.010 of this code, and as an alternative to the amount of any tax upon time-share interests otherwise imposed pursuant to this chapter, the City and the time-share operator of any time-share project may enter into a written agreement (the "TOT agreement") relating to the amount of tax to be imposed upon, and collected from, any time-share owner for the right of occupancy of any time-share unit pursuant to a time-share interest in such time-share project. The amount set forth in said TOT agreement shall be deemed the tax payable to the City by any time-share owner pursuant to the requirements of this chapter.

 

[take36]

I hope that Disney has some improved financing for the fomo financing group. They absolutely going to wrecked on value.

 

[Brian Noble]

So why on God's green earth would Anaheim accept something like 1/3 of what it would get otherwise? Especially because Disney doesn't benefit from it, but its customers do more directly.

 

[Epcot Forever Forever]

So why on God's green earth would Anaheim accept something like 1/3 of what it would get otherwise? Especially because Disney doesn't benefit from it, but its customers do more directly.

 

[shar245]

So can all DVC book starting May 16th (that was mentioned above)?

No. July 27th

I posted this is a different thread:

ugh it gets worse in 2024... this is from my guide:

The dues are $9.06 per point and the Transient Occupancy Tax is estimated at $2.73 per point in 2023 and $2.82 per point in 2024. There may also be parking fees at VDH as well, but we haven’t received any specifics on that yet!

And in case anyone was thinking about when they can book:

Members who add-on at VDH can make reservations with their new points before all other members starting on May 16th! All other members must wait until July 27th to book with their non-VDH points

 

[HyperspaceMountainPilot]

No. July 27th

I posted this is a different thread:

ugh it gets worse in 2024... this is from my guide:

The dues are $9.06 per point and the Transient Occupancy Tax is estimated at $2.73 per point in 2023 and $2.82 per point in 2024. There may also be parking fees at VDH as well, but we haven’t received any specifics on that yet!

And in case anyone was thinking about when they can book:

Members who add-on at VDH can make reservations with their new points before all other members starting on May 16th! All other members must wait until July 27th to book with their non-VDH points

Oof. Well, I guess the upside is that we should be able to see how quickly VDH is selling as we watch peak date availability diminish over May-June-July?

 

[shar245]

Oof. Well, I guess the upside is that we should be able to see how quickly VDH is selling as we watch peak date availability diminish over May-June-July?

That was my thought... But I was really hoping to get a room for the DL half weekend! Oh well... I guess I need to get a back up in place just in case! I'm trying to decide if it's even with booking with my points much less buy more at this rate. :/ bummed out with the dues and tax combo.

 

[Nursemanit]

Wow. Haven’t see direct VGC on the add on tool in eons.

That is so they can email you and say " we do not have any VGC points but we do have Disnyland Hotel points for sale are you interested?"

 

[Nursemanit]

I’m calculating a 2024 all in cost of ~$21/ point the way I calculate cost of capital. That’s $483 for a standard Studio when I usually travel to Disneyland and the Disneyland Hotel in that window starts at $597+tax. But we’re a family of 5 so once the littlest is out of a pack and play, we’re in a 1BR, and we’re looking at $903 worth of points per night to fit our family of 5.

I could stay at GCH for about that with tax. Or at a suite at several nearby hotels for 1/3rd of that.

I’ve been excited about this for 3 years but it had to make financial sense. It…doesn’t. Like, at all. Not even a little bit.

Sorry Disney there’s no damn way.

Makes RR a great deal in comparison ( had to do this , could not resist)

 

[Epcot Forever Forever]

Makes RR a great deal in comparison ( had to do this , could not resist)

It actually does!

Still not as good as VGF but hey that’s okay.

(I wouldn’t do any at current prices but to each their own)

 

[Bucketfoot]

No. July 27th

I posted this is a different thread:

ugh it gets worse in 2024... this is from my guide:

The dues are $9.06 per point and the Transient Occupancy Tax is estimated at $2.73 per point in 2023 and $2.82 per point in 2024. There may also be parking fees at VDH as well, but we haven’t received any specifics on that yet!

And in case anyone was thinking about when they can book:

Members who add-on at VDH can make reservations with their new points before all other members starting on May 16th! All other members must wait until July 27th to book with their non-VDH points

OK I want to make sure I understand this clearly. Using the 2024 number of $2.82 per point, does this mean that for simplicity if I did a 100 point stay that I would have a charge of $282 for my stay?

 

[longboard55]

Hi. If we are a resale owner, do we still get the may 2 date, we did get an email. does anyone know the minimum purchase of points. And what does restricted mean, is as I recall if we sold the new buyer could not go to any location, is that correct?

 

[shar245]

OK I want to make sure I understand this clearly. Using the 2024 number of $2.82 per point, does this mean that for simplicity if I did a 100 point stay that I would have a charge of $282 for my stay?

That's my understanding.

 

[shar245]

Hi. If we are a resale owner, do we still get the may 2 date, we did get an email. does anyone know the minimum purchase of points. And what does restricted mean, is as I recall if we sold the new buyer could not go to any location, is that correct?

Minimum add on is 50pt. And correct about the restrictions - the resale buyer of a VDH contract can only stay at VDH.