Hi - I have found this forum very helpful over the last few years. We are deciding on whether to buy into DVC. For a lot of reasons, we think it likely makes sense. We've crunched some numbers & were set on buying a small contract at AKV. The annual dues have given us pause. We realize they will likely stay high & have high increases due to the size & upkeep/maintenance of the property, animals, etc.
So we are rethinking this & wondering if it is a smart idea to buy in to SSR, with full intention of rarely staying there as our home resort. Although we wouldn't mind, we have been told that it is very easy to get in to AKV with the 7-month booking window.
Any feedback on this preconceived notion we've come up with? Also, any thoughts on a fair-to-good resale price-per-point at SSR? I'm thinking $70-72 per point would be very good?
Thank you!
The best way to rationalize the savings of buying DVC direct or resale & compare different resorts with different MFs & different expiration dates is to calculate the total price per point on contract, which is the current price you are paying for each point you use on that contract-which you can compare to the going rental rate ($14/pt.) to calculate how much buying is saving over renting. To do this, take any contract, take the total purchase cost (incl. closing fees, excluding MFs due for current points, which we'll add back in in a minute), then divide this by total points on contract (years remaining * pts + banked - borrowed points). This gives you a cost per point on contract , which you can then add to the MF/pt. for that resort to get the current total price you are paying for each point you use on that contract. This varies by resort since each resort has different expiration & MFs. It also varies by resale contract since each contract has different borrowed/banked points & closing costs. With this calculation, SSR is typically cheapest total cost per point starting around $7/pt., which at $7/pt your are saving half over renting the same points @ $14/pt from DVCRequest.com or DVCRentalStore.com. This is the rationalization to buy resale, & SSR specifically. For comparison, AUL (sub)/BLT/OKW(ext.) are in the $7-$8/pt. range. VGC/AKV/OKW are $8-$9. HHI/AUL/BWV/BCV/VWL are $9-$10. VB is $10+. Poly direct is currently $9/pt. for existing DVC members-same total price per point as OKW (oldest DVC resort)-yet people complain Poly is expensive. The fallacy is they are comparing face value without factoring in Poly has 82% more points remaining than OKW. Keep in mind, each resort has it's own supply & demand which dictates price, which is why total price per point varies. Demand is driven a lot by perceived value (value of 7-11 mos. booking) & perceived costs (MFs/pt.). Very few people buying Disney calculate what it really costs per point. You can also take the total cost per point (e.g. $7 for SSR) & compare what DVC booking at that rate will save you over rack rates-typically it's around 60% savings if you assume 30% discount off rack rate which is a common promotion. So, this is how you rationalize the purchase-either off rack rate or comparable DVC rental. While total cost per point factors in current MF/pt., another consideration is how relatively low MFs are historically & how stable the % increases are. See my historical MF chart for complete analysis, but SSR has historically low MFs & % increases, along with relatively low face value, & absolutely best overall value. The only real reason to buy anywhere other than SSR is if you need the 7-11 mos. window. The only resorts/rooms that sell out at 7-11 mos. are AKV Jambo Value/Concierge, BLT Standard , VGF Studio/2bdrm lock-off, & BCV 2bdrm (2 queen), AUL Standard views, & sometimes BWV Studio.. Unless you need to book one of those, owning a specific resort isn't really necessary. That said, you have to book exactly at 7 mos @ 8AM online to get your pick of the other resorts/rooms, so if you aren't someone good with setting reminder that far out for a specific date & time, then the 11 mos. window may be a benefit just to book it & forget it. Good luck!
Edit: For a perhaps simpler explanation of how to calculate DVC savings over direct booking, see
http://www.tikimanpages.com/poly/news/item/223-polynesian-dvc-for-sale about half way down -- same method I use.
Thank you for the replies! To answer the questions: I am a planner. We would almost ALWAYS book 7-months out. We would likely travel in Oct/Nov or Feb. We would almost never go in the summer. While Xmas/Easter would be on our list at some point (as would staying at least once at all the properties), we actually prefer off times when the crowds are lower.
I should've mentioned...we've only ever been to AKV & BWV. Never SSR. However, I have done a TON of research. Truth is, BWV location cannot be beat but I prefer the resort-vibe over location. The buses were not a deal to us at AKV because they are direct & don't make 5 stops. But those annual fees sure do scare us.
Thanks again!
Keep in mind high park demand != high DVC demand. October is actually extremely high-demand for DVC. You have to book exactly at 7 mos @ 8AM to get your choice of resort, especially Studios, which always sell out first.
Thanks so much, Elaine. This is such helpful info. My husband REALLY has no interest in SSR, so we are back to considering AKV. I really am unimpressed by those annual dues though. I can plan much farther out beyond 7 months. I am trying to locate/figure out how much I'd end up paying per night for a week at AKV as an owner, assuming we go 1x every 1-2 yrs. Basically, I'm trying to rationalize this. We are also interested in renting our pts from time to time. Thanks again for the helpful input!
See above calculation for how to rationalize the direct vs. resale savings, factoring in various MFs. All up, you're going to save about 50% over renting AKV by buying SSR ($7/pt vs $14/pt), or about 60% over direct booking (assuming 30% discount off rack rates, which is pretty standard).
Great discussion on this thread. So one of hgvc Orlando will disqualify me from Orlando dvc properties via RCI?
Maybe-presently, when you book DVC in RCI it explicitly states they can review your reservation & cancel it if you are booking it with an Orlando based ownership. That said, HGVC just shows up as HGVC points to RCI, so they (currently) have no way to tell you are trading in from an Orlando HGVC. So, unless someone from DVC audits the exchange, 99% chance it won't get cancelled. That said, you are rolling the dice as things could change. As a DVC & HGVC owner, my advice is buy HGVC where the points & MFs are lowest since 9 mos. availability at Orlando HGVC is never an issue.