daviator
TUG Member
- Joined
- May 8, 2011
- Messages
- 1,643
- Reaction score
- 1,512
- Location
- San Francisco, CA
- Resorts Owned
- WKORV, WKORVN, WDW, Westin FLEX, Marriott's MOC, Abound (Trust) Points
Good analysis.I agree that 8300 DPs will generally get you farther than 176,700 SOs. WKORV was either undervalued in SVN or is overvalued in the DC exchange, and most owners who plan in advance and who do not use their home resort will choose DPs over SOs.
But if you think of cash as the ultimate equalizer, the difference is not always as vast which causes some weird incentives for non-Maui owners. If you ascribe values of $0.68/DP (approximate actual rental value) and 3 cents per Staroption (approximately what it's worth to me as a rental at WKV) the difference favors 8300 DP, but it's only by a small margin (certainly not "far more"). I imagine your 2BR OF can rent for $5000-$5500 so the value I use for SOs probably also applies to you as well, give or take a bit.
One can argue that this makes WKV Platinum and Maui more or less equivalent (which they were in SVN) but they certainly are not equivalent in the DC exchange. Everything, with the possible exception of Lagunamar, got very undervalued relative to Maui. Therefore, I suspect many of the savvier WKV owners will either stay in the SO world or, using cash as the equalizer, will rent out their week for $4500-$5000 and use that cash to rent 6400-7100 DPs from the WKORV/N owners
But I think one of the things that the developer counts on is that the percentage of owners who are "savvier" is a pretty small piece of the pie.