Considering buying Disney on secondary market

[r85164]

I have done a fair amount of research on timeshares and am considering buying resale points at Disney. Here's how I would like to use the points...please advise me if I am thinking correctly! We would probably bank points one year, pull forward from future year and go to Disney every 2-3 years. We would probably take friends or other family...so would need the 2-3 years of points per visit to accomodate 8-9 people. Otherwise, we might exchange every few years into RCI to vacation elsewhere. Our kids are 10 and 8 now and we all enjoy Disney...just not every year. Based on that I have read online here and elsewhere, it appears that Disney timeshares hold their resale value much better than others. I am aware of the recent changes to the DVC regarding secondary market purchases and am comfortable with them since it appears using points for a Disney cruise is not a good use of points from a value perspective. Please help!

 

[MichaelColey]

Have you done the calculations to figure out what each visit would cost you? If you factor in the interest or opportunity cost of your upfront money and the number of points required, I suspect that a 2BR would effectively cost about $2500/week and a 3BR would cost at least $4000/week. Are you comfortable with that? (I sure wouldn't be.)

Buying DVC to exchange into RCI is a pretty awful value. If it comes to that, you're probably better off renting out your DVC points and renting the timeshare you want to stay in.

 

[heathpack]

Here's how I would approach this: figure out your total purchase price ($/pt plus closing costs). Then figure out your total cost in MF for the period of time you think you will get use (say 15-25 years, longer if you think you will still go to WDW after kids are grown). MF are hard to predict, but it is reasonable to start with current MF and assume a 3% yearly increase. Add those 2 numbers together to determine your total cost. Personally I usually assume a resale value of $0, just to be conservative. Then determine the total number of points you will obtain in your time period. Divide total cost by total number of points to determine $/pt. You will probably find that this will come out to something like $10/pt, which is about what you'd pay to rent.

So then the decision becomes: is it worth plunking down a good chunk of change now to get 3 things- the ease of making your own reservations, a hedge against possible increases in rental rates over the years and possible residual value when you go to sell. For many on TUG, the answer is no, they will tell you to buy an RCI trader. For us, the answer is yes and we bought DVC because we don't want to monkey around with trying to trade in to DVC with an admittedly less costly trader.

If you would have to finance this purchase I personally don't think you can justify the additional expense in a purely mathematical way and in that instance I would say you are better off renting.

Also, just be aware that sometimes friends and family do not understand TSing. They think it's free and/or cancelable and the DIS boards are rife with stories of discord which begins with a DVC owner trying tomtreat someone to a stay at WDW. Sure there are plenty of happy stories too, for some people sharing works and for others, not so much! Just a word of warning.

Good luck in deciding!

H

 

[heathpack]

Michael makes a good point as well: do not plan on using your DVC points to trade in RCI. They are too expensive. If you buy, just buy enough DVC points for your every 2-3 year trips. Then on your nonDisney years pay cash to travel in some other way- go camping, rent a timeshare, stay in a hotel, take a cruise.

H

 

[chriskre]

Here is a points calculator to help you make your decision.
I use it often when planning trips.
http://www.dvcrequest.com/point_calculator.asp

For 8-9 people you are going to need to buy in a resort that you'd want to stay in that has Grand Villas where you will definintely need the 11 month booking advantage to secure a reservation. I think you'll be too crowded in a 2 bedroom.

OKW is probably the cheapest as far as points for grand villas but the Treehouse Villas also sleep 9 and can be had for the equivalent of 2 bedroom points at SSR, but you will definitely need the 11 month booking advantage for that.

So make sure you buy where you will want to go most of the time as your home resort. I think that Grand Villas are slim pickin's for extended trips without the home resort advantage.

 

[r85164]

Thank You!

Thank you to all! Great info.! I like the idea of buying enough points to go every few years and then renting elsewhere vs. RCI exchanges!

 

[got4boys]

Thank you to all! Great info.! I like the idea of buying enough points to go every few years and then renting elsewhere vs. RCI exchanges!

Also, with DVC Points you can bank and borrow so you can use 3 years of points at once. Points are less expensive Sunday through Thursday nights. Avoid Friday and Saturday and peak times and Premier Season which is usually Weeks around Christmas and Easter.

Peggy

 

[glypnirsgirl]

Thank you to all! Great info.! I like the idea of buying enough points to go every few years and then renting elsewhere vs. RCI exchanges!

I have been doing this since 1994 and it has worked great for us. I take extended family. We always discuss who is paying for what. i usually furnish the Grand Villa and I get the master bedroom. I think the key is to be comfortable talking about money with who ever you are taking. For me, it is my sister (and brotherinlaw) and brother (and usually his partner), my son (and a friend when he was younger, now his wife).

In 2003 I married a man and received 2 bonus children. We bought more DVC points and we now get 1 GV (sister and brother in law (both in their early 50s) now get the master), bonus daughter (26) and her boyfriend (23), son (28) and his wife (28) fill out the other two bedrooms. My husband and i get a one BR (and we try to get this on RCI trades --- another good reason to use OKW as your home resort - it is easier to trade into). Bonus son (23) gets a studio.

I make reservations for the every 2 or 3 year family blow-out right at the 11 month booking window at my home resort to get the Grand Villa. I go ahead and book the 1 BR on DVC points and the studio. If I get the right trade, I can cancel and not have any penalty for the cancellation as long as it is more than 30 days in advance.

I love my DVC points. My original contract was for 230 points which was just about right for the GV every 2 to 3 years.

I added 200 points when Ian and I married. And here is where I made my mistake: instead of buying at OKW, I bought at SSR. So the 1BR and studio I book at 11 months at SSR and switch at 7 months. So far, I have always been able to make the switch, so it has been a very modest inconvenience, but I would like to do without that additional step.

One year, Ian decided he did not want to do the big family blow out and we used points for 6 trips, each time staying in a studio. It just about Disneyed me out --- and we went broke making sure we maximized the use of our Annual Passes.

The points give you the flexibility to change how you vacation. It has been two years since our last family blow out and the next one will be in May, 2012 - so this time a pretty big interval between family trips.

I use an agent to rent out points when I have extra. At rental of $10 per point, I have been able to make some money on the years that we have points that would expire.

Hope you have a great time!

elaine

 

[moonlightgraham]

We used to just exchange in (under II) but when our kids got to be school age and II lost the DVC contract I decided to buy points as we had to travel during the school holidays/vacations and we got pickier as to where we wanted to stay. I bought 160 points and bank/borrow so we generally go on our points every other year or so and it works out fine for our needs in a 1 or 2br for a week. As others have said, if you are very picky on your location buy there, otherwise the best point value will be in SSR, but that will also give you access to Treehouse Villas at the 11 month ressie window which is generally needed to get one of those.

 

[SuzanneSLO]

We go ever other year (although we take 2 trips during our Disney year to maximize our AP). It is very easy to plan with such a schedule as points not used from Year 3 for a trip in Year 2 can be banked and used in Year 4.

Every 3rd year, while possible, is much more difficult to plan. You need to use all your Years 1-3 points for your Year 2 trip; none of them will be available for a Year 5 trip. With this plan, you need to be comfortable renting/transferring for those trips you need more points or have excess points. The good thing is that transferring a small number of points to another member is pretty easy (it's a seller's market). If you need a few extra points for a trip, DVD now makes one time transfers of up to 24 points for $15 per point, but you cannot use these points at the 11 month window.

Best of luck -- Suzanne

 

[dvcdavid]

Think carefully about what home resort you want. The 11 month booking window for your home resort is key if you plan to go at busy times of year.

 

[user name here]

In deciding on the number of points, I recommend first considering whether you really think you will need, and use, a Grand Villa, and also, how long in advance do you think you would book.

My husband and I could never even consider booking 11 months in advance. We're lucky if we know 2 months in advance when we can take time off work, which also can occur at any time of the year, but that also enables us to take advantage of off-peak period savings.

So we bought points at the very cheapest Disney property on the resale market, which is Vero Beach, for which we paid a little over $40/point, instead of the current "new" price, which I understand can run as high as $140/point. Meaning that over the next 30 years of our membership, each point costs $1.40/year, while a new membership runs approx. $2.80/point per year (50 years), but our annual maintenance fees run about $100/year higher as well.

Of course, we're always taking a chance on availability, but we can't avoid that anyway.

Depending on the season, the number of points required for a Grand Villa can be more than double the points of a 2 bedroom, most of which can easily accomodate 8-9 people anyway. If you really need the extra room, renting a 2 bedroom plus a studio is almost always a far more economical use of your points.

For example, a 3 bedroom Grand Villa at Animal Kingdom Villas (AKV) during "adventure season" currently requires 545 points, Savannah View.

However, a 2 bedroom, plus studio (both Savannah views) is 220 + 81 points, respectively, or 301 points, a savings of 244 points, which, if you don't use yourself, you could rent out for approx. $10/each, and make $2,440.

At least 1 party in your group might prefer a little extra privacy of that studio, and that is, if you even need that much room, because again, a 2 bedroom easily accomodates 8-9 people anyway.

Most of our family lives in Florida, so we usually spend most of the time visiting and staying with family, and then reciprocating by having them stay with us for a few days at Disney, which gives us even more flexibility on dates and accomodations.

 

[Jay MA]

Disney changes resale market

Disney recently instituted changes to the resale market by banning new non-Disney buyers from certain Disney excanges, the most significant of which is the Disney Cruise Line. Anyone thinking about buying a resale needs to consider the value without these exchanges.

 

[r85164]

Thank you!

Your post was really helpful! I am trying to accomodate 9 people and now feel better about how best to use the Disney timeshare! I love the idea of the 2 bedroom and/or also adding the studio vs. the Grand Villa!

In deciding on the number of points, I recommend first considering whether you really think you will need, and use, a Grand Villa, and also, how long in advance do you think you would book.

My husband and I could never even consider booking 11 months in advance. We're lucky if we know 2 months in advance when we can take time off work, which also can occur at any time of the year, but that also enables us to take advantage of off-peak period savings.

So we bought points at the very cheapest Disney property on the resale market, which is Vero Beach, for which we paid a little over $40/point, instead of the current "new" price, which I understand can run as high as $140/point. Meaning that over the next 30 years of our membership, each point costs $1.40/year, while a new membership runs approx. $2.80/point per year (50 years), but our annual maintenance fees run about $100/year higher as well.

Of course, we're always taking a chance on availability, but we can't avoid that anyway.

Depending on the season, the number of points required for a Grand Villa can be more than double the points of a 2 bedroom, most of which can easily accomodate 8-9 people anyway. If you really need the extra room, renting a 2 bedroom plus a studio is almost always a far more economical use of your points.

For example, a 3 bedroom Grand Villa at Animal Kingdom Villas (AKV) during "adventure season" currently requires 545 points, Savannah View.

However, a 2 bedroom, plus studio (both Savannah views) is 220 + 81 points, respectively, or 301 points, a savings of 244 points, which, if you don't use yourself, you could rent out for approx. $10/each, and make $2,440.

At least 1 party in your group might prefer a little extra privacy of that studio, and that is, if you even need that much room, because again, a 2 bedroom easily accomodates 8-9 people anyway.

Most of our family lives in Florida, so we usually spend most of the time visiting and staying with family, and then reciprocating by having them stay with us for a few days at Disney, which gives us even more flexibility on dates and accomodations.

 

[MichaelColey]

FWIW, we did two 2BR units at Wilderness Lodge last month (exchanging in through RCI), one for my family of 5 and one for my brother's family of 4. We strongly prefer that over a 3BR. We were able to spend time together when we wanted (most nights, all of us ate in our unit) but had our privacy the rest of the time.