Buy VB over Poly - is this crazy

[DVC Doctor]

I have been a DVC member for 15 years and love it. I also USED to think buying VB was crazy as the annual dues was so high, but with the current prices of the Poly at $165 and the resale of VB at $50, is it so crazy to consider buying VB over Poly?

Now truth be told, I personally think SSR is the best bang for the buck in terms of buying resale, but what if someone says to you - i want to join DVC for the LOWEST price and only want to be a member for 5-10 years while my kids are young.

Although most DVC members think LONG term (buy and give to to my kids when I die), what about the short term buyers?

If the average person only lives in their home for 7 years before moving, what about buying and selling DVC in that same time period.

Here is the math for a 150 point purchase

Poly
$24,750 price @$165pp
$6pp annual dues

VB
$7,500 price @$50
$8pp annual dues

The difference is the initial $17,250 cost to join poly over VB (and this assumes that you paid cash for both) and if you financed the poly, the prices goes up (of course).

It would take 57.5 years before the cost of VB overtakes Poly in terms of paying $2pp more in annual dues.

If you sold in 10 years, you would pay $3,000 more in annual dues for VB over poly, but are still saving $14,250.

We don't know what the future price for Poly and VB will be in 10 years so that could also affect the price, but even if you give VB away for FREE then you are still saving almost $7,000 over buying Poly.

I have NEVER been a big fan of buying VB just because it is the cheapest resale option, I generally prefer SSR at $20-25 more as the dues is about $3 lower and the expiration date is longer, so the savings of buying VB would be lost in about 5 years of ownership and then VB would actually cost more than SSR.

HOWEVER - it appears that I may be changing my mind and anyone that wants to buy VB over Poly and only plans on being a DVC member for 5-10 years, then it seems that buying VB is the better option. of course, this assumes that the DVC member is going to use it for 7 month bookings as all points are equal then. Even at 11 months, I am not sure buying Poly is worth that MUCH money over VB as it is very EASY to book SSR at 7 months.

 

[gandyeye]

I am in the process of purchasing a resale BCV contract. I never considered buying direct, but I did consider buying at OKW or SSR because of the per point price difference. However, we really like to be in the BWV- BCV area and after finding out how hard it is to book at 7 months there, we decided to purchase at BCV (after our BWV contract was taken in ROFR).

Your argument is excellent, especially given that people are more likely to be able to make a 150 point purchase at VB without financing it. The interest alone would cover several years worth of dues at VB.

 

[DVC Doctor]

Interesting, I just received a group email from fidelity that has two new VB contracts for sale

200 point February VB @ $51 that has only 130 points for 2016
400 point April VB @ $43 stripped and no points or dues until 2017 (you can book and borrow starting April 2016)

I would consider offering $43pp for the February 200 contract and $38p for the April 400 contract and I like the 400 point the best.

Imaging buying DVC for $38pp ???

*** Disclaimer - I am definitely NOT associated with this broker ***

 

[freediverdude]

Yes...BUT....think what the annual dues would be for those 400 points. About $3200 per year just in annual dues, lol. But you're right, cheap initial buy in.

 

[DVC Doctor]

Yes...BUT....think what the annual dues would be for those 400 points. About $3200 per year just in annual dues, lol. But you're right, cheap initial buy in.

The annual dues for 400 Poly points would be $2,400 so VB would only be $800 more per year, but the real shocker is that you can buy 400 VB points for $15,200 and it would cost $66,000 for 400 poly points.

So, saving $50,800 buying 400 VB points instead of 400 poly points when they are the SAME at 7 months is insane savings.

If you are paying $800 per year in increased dues at VB over Poly you have a LONG way to go before burning $50,800.

So my idea is if you only want to join DVC for 10 years or less, it is way cheaper to buy VB than Poly.

 

[KAT4DISNEY]

The concern might be that you are buying offsite only to stay at WDW. There may be a few select times of the year that it could be a bit of a problem but that is few. However if they were important to your friend then it might not be such a good deal.

Funny thing though - I was looking at a resale email earlier today and thinking how VB had not been rising quite as fast as other resorts and the gap was getting larger - and thus more appealing.

 

[DisDadDVC]

For a 5-10 year holding period (which is what 90% of people probably do), I would definitely buy VB over PVB. Unless of course you only wanted to ever stay at PVB...

 

[disneynutz]

Buying cheap doesn't help if you have trouble booking at 7 months.

Bill

 

[DisDadDVC]

Buying cheap doesn't help if you have trouble booking at 7 months.

Bill

Yes, but if you are willing to take whatever is available, then buying cheap can be a good move. If you have your heart set on VGF or BCV every time, then it is probably a bad move.

 

[disneynutz]

Yes, but if you are willing to take whatever is available, then buying cheap can be a good move. If you have your heart set on VGF or BCV every time, then it is probably a bad move.

True but my guess is that as the buyer becomes an experienced Disney vacationer they will find their likes and dislikes changing, less time in the parks, a more relaxed vacation, naturally finding that they enjoy one resort more than the others.

Bill

 

[DVC Doctor]

Buying cheap doesn't help if you have trouble booking at 7 months.

Bill

That applies to EVERYONE that buys (even $165 Poly) as all DVC members are locked into their home resort at 11 months. Imaging buying Poly fixed lake view and NOT knowing about the loud boat horn and then you regret that you are locked into that resort at those high prices.

The 7 month availability for SSR, OKW, and AKV is quite good that you have lots of great options as a VB owner (disclaimer - I do NOT own any points at VB)

 

[DisDadDVC]

True but my guess is that as the buyer becomes an experienced Disney vacationer they will find their likes and dislikes changing, less time in the parks, a more relaxed vacation, naturally finding that they enjoy one resort more than the others.

Bill

Yes for sure. But for me, I like many different resorts and even if I don't get my "favorite", I am happy with the alternatives. If I can't get BCV, I am happy with AKV even if it wasn't my first choice. I've been to BCV so many times I don't need to go every time. I also like doing split stays which gives me more options at 7 months. If you are a BWV at F&W or bust type of person, then you should absolutely buy at BWV. And that really is the difficulty with DVC and people that ask questions. There really is no one right answer for everyone. What might be great advice for one person is terrible advice for another.

People say "Buy where you want to stay". I say "Buy where you NEED to stay". Otherwise, buy whatever is cheaper.

 

[Dean]

I have been a DVC member for 15 years and love it. I also USED to think buying VB was crazy as the annual dues was so high, but with the current prices of the Poly at $165 and the resale of VB at $50, is it so crazy to consider buying VB over Poly?

Now truth be told, I personally think SSR is the best bang for the buck in terms of buying resale, but what if someone says to you - i want to join DVC for the LOWEST price and only want to be a member for 5-10 years while my kids are young.

Although most DVC members think LONG term (buy and give to to my kids when I die), what about the short term buyers?

If the average person only lives in their home for 7 years before moving, what about buying and selling DVC in that same time period.

Here is the math for a 150 point purchase

Poly
$24,750 price @$165pp
$6pp annual dues

VB
$7,500 price @$50
$8pp annual dues

The difference is the initial $17,250 cost to join poly over VB (and this assumes that you paid cash for both) and if you financed the poly, the prices goes up (of course).

It would take 57.5 years before the cost of VB overtakes Poly in terms of paying $2pp more in annual dues.

If you sold in 10 years, you would pay $3,000 more in annual dues for VB over poly, but are still saving $14,250.

We don't know what the future price for Poly and VB will be in 10 years so that could also affect the price, but even if you give VB away for FREE then you are still saving almost $7,000 over buying Poly.

I have NEVER been a big fan of buying VB just because it is the cheapest resale option, I generally prefer SSR at $20-25 more as the dues is about $3 lower and the expiration date is longer, so the savings of buying VB would be lost in about 5 years of ownership and then VB would actually cost more than SSR.

HOWEVER - it appears that I may be changing my mind and anyone that wants to buy VB over Poly and only plans on being a DVC member for 5-10 years, then it seems that buying VB is the better option. of course, this assumes that the DVC member is going to use it for 7 month bookings as all points are equal then. Even at 11 months, I am not sure buying Poly is worth that MUCH money over VB as it is very EASY to book SSR at 7 months.

Two not great choices for general WDW use IMO. With VB you should compare to the cheapest WDW options assuming that's the goal, not the most expensive. Comparing to SSR VB will certainly cost more long term and have more risk to MF as well as special assessments and likely closer in 2042. In addition you'll have something likely worth no more than you paid for it minus the evolving RTU. VB is a great resort for some situations and buying there to use there and to use at times at other resorts can be a great choice, esp for subsidized contracts but that's about it. The same can be said for HH but a little less so due to the lower difference in dues.

 

[DVC Doctor]

Two not great choices for general WDW use IMO. With VB you should compare to the cheapest WDW options assuming that's the goal, not the most expensive. Comparing to SSR VB will certainly cost more long term and have more risk to MF as well as special assessments and likely closer in 2042. In addition you'll have something likely worth no more than you paid for it minus the evolving RTU. VB is a great resort for some situations and buying there to use there and to use at times at other resorts can be a great choice, esp for subsidized contracts but that's about it. The same can be said for HH but a little less so due to the lower difference in dues.

I 100% agree that SSR is the best value for a WDW resort if you like that resort and location and in my opinion is a better buy than VB.

However, I wanted to compare the most expensive (Polynesian) with the least expensive (Vero Beach) and see how much different the prices will be. As I stated, I USED to think the cheap VB contracts were not worth it, but with the recent price spike in SSR and other resorts, the prices of VB are getting really attractive now and IF you take a shorter timeframe of ownership like less than 10 years, it may be the best buy out there.

 

[freediverdude]

I don't think I could do VB or HHI mainly for WDW use. I don't think I would want to have to take whatever I could get at 7 months. I would want at least the option to make sure I could book someplace I was happy with at 11 months.

 

[Dean]

I 100% agree that SSR is the best value for a WDW resort if you like that resort and location and in my opinion is a better buy than VB.

However, I wanted to compare the most expensive (Polynesian) with the least expensive (Vero Beach) and see how much different the prices will be. As I stated, I USED to think the cheap VB contracts were not worth it, but with the recent price spike in SSR and other resorts, the prices of VB are getting really attractive now and IF you take a shorter timeframe of ownership like less than 10 years, it may be the best buy out there.

I think the cheapest to most expensive would be SSR resale to VGF retail when you look over time and include dues. But I suspect the issue you're looking at is whether there is a break point where the savings at HH & VB up front added to the long term dues costs and risks are worth it. There is a break point where it might become reasonable but IMO it has to be a LOT cheaper over the life of the contract to make it worth the risk and limitations. At the end of the day you don't have an 11 month window at WDW and you own something that is more difficult to sell and worth no less than one paid for it. OKW might also be cheaper up front but carries the same risks and limitations other than having a WDW 11 month window.

 

[jnjhuddle]

I considered both HHI and VB for the cheaper buy in for some extra points. I learned that closing costs are about double in South Carolina, so on a 60 point contract, which may cost under $4000 for initial buy in, you are paying $800 in closing costs. If this were a WDW contract closing on that amount of points would be around $400.

As for VB, even with the cheaper buy in, those annual dues just plain scare me. At $8 point MF, why not just rent someone else's points when you need them for $12 per point and no buy in.

As far as difficulty selling, I'm hoping to never have to do this. I purposely chose 2 SMALL contracts with 2042 end dates (I will be 68 and my husband 74 in 2042) so we can enjoy them until then without being a financial drain or burden on us or our children.

My parents have always viewed timeshares as a really bad investment and have seen a lot of their friends get burned with their timeshares (non DVC), as I have as well. I 100% respect and admire my parents financial choices, so was almost embarrassed to tell them I bought a timeshare. However, I think buying into DVC was the right choice for us given the amount of time we vacation at WDW. VB and HHI would be a mistake because we probably wouldn't use it for either place ever.

 

[DVC Doctor]

As for VB, even with the cheaper buy in, those annual dues just plain scare me. At $8 point MF, why not just rent someone else's points when you need them for $12 per point and no buy in.

I hear what you are saying and you can state that for any DVC, especially Poly as the buy in is $165 and dues is $6pp, but MOST people like to control their own destiny and owning at DVC (any resort) is safer and more secure than renting.

Why does $8pp scare you but Animal Kingdom at $6.30 does not?

Again, I started this thread to compare VB to Poly and that's it as I personally think SSR is the best value for resales, but the LOW prices at VB are super tempting to me now and I have never thought that way in the past. Part of this change of thought is the spike in prices for SSR and OKW and all other DVC resorts.

Would you buy VB at $35pp, what about $30pp, how about $25pp.....in other words, at what price would you (or anyone else) buy VB over any other DVC resort???

Hmmmm

 

[mort1331]

I would jump at the 40 mark if it wasnt for the tanking of the Canadian dollar.

 

[freediverdude]

I'm not sure what to think of buying VB and HHI. Another thing that would scare me with those two is the much higher probability of having a big issue due to hurricane or other storm damage or beach erosion. I think that already happened at VB didn't it, and that's why the dues are higher already. But then I guess you're facing the same possibility at Aulani too.