Why not Vero Beach or Hilton Head?

[ELMC]

What I was referring to is that SSR and BLT will always be more desirable and have more resale value than HHI or VB as they have a longer RTU, thus they will have an additional 13+ years of life left when HHI and VB expire.

I think as a general rule we tend to overvalue the years left on these contracts. The average ownership of DVC is right around 10 years, which makes the difference between 2042 and 2057 somewhat irrelevant. Remember when Disney offered to extend OKW contracts for $15 per point and the majority refused? I'm not sure how this is any different from a functionality standpoint, yet we seem to talk a lot about the importance of the extra 15 years on the newer resorts.

 

[_auroraborealis_]

I think it fair to think SSR and BLT are less sunk cost than VB and HHI, based on location and length. This is not necessarily overvaluing them, unless you count on appreciation.

 

[CanadaDisney05]

I think as a general rule we tend to overvalue the years left on these contracts. The average ownership of DVC is right around 10 years, which makes the difference between 2042 and 2057 somewhat irrelevant. Remember when Disney offered to extend OKW contracts for $15 per point and the majority refused? I'm not sure how this is any different from a functionality standpoint, yet we seem to talk a lot about the importance of the extra 15 years on the newer resorts.

The value of longer contract duration is either 1) more nights for you to enjoy at Disney or 2) more nights for the person you sell your contract to in 10 years to enjoy Disney (therefore increasing resale value).

On the other hand, longer contract duration does come with more risk. We like to think that Disney will continue to be the powerhouse tourist destination that it is today indefinitely, but if this ceases to be the case, you could be stuck paying maintenance fees for much longer on a less than desirable location (similar to traditional timeshares). FWIW, I don't actually believe this will happen.

 

[zavandor]

The average ownership of DVC is right around 10 years

Currently, 27 years after opening, only around 25% of the OKW contracts have been resold. The vast majority of members have kept their contracts since they've bought them. On average, 1% of total DVC contracts at each resort have been resold each year. There were some statistics posted here on the DIS from data taken from the OC Comptroller website.
It is possible that the average of 10 years is correct for other timeshares, but it's not true for DVC.
People buying 2042 resorts right now are buying contracts with less time remaining than the average time a member keeps his contracts.

 

[igrsod]

Currently, 27 years after opening, only around 25% of the OKW contracts have been resold. The vast majority of members have kept their contracts since they've bought them. On average, 1% of total DVC contracts at each resort have been resold each year. There were some statistics posted here on the DIS from data taken from the OC Comptroller website.
It is possible that the average of 10 years is correct for other timeshares, but it's not true for DVC.
People buying 2042 resorts right now are buying contracts with less time remaining than the average time a member keeps his contracts.

I noticed that about OKW when we stayed there. I got that feeling that it really was HOME to so many families. It really felt that way. I must admit I was a little jealous and wanted to be a part of it. lol
I still toy around with buying direct points here so that I get the extended contract. I really loved this resort. Felt like a vacation to us.

 

[ELMC]

The value of longer contract duration is either 1) more nights for you to enjoy at Disney or 2) more nights for the person you sell your contract to in 10 years to enjoy Disney (therefore increasing resale value).

On the other hand, longer contract duration does come with more risk. We like to think that Disney will continue to be the powerhouse tourist destination that it is today indefinitely, but if this ceases to be the case, you could be stuck paying maintenance fees for much longer on a less than desirable location (similar to traditional timeshares). FWIW, I don't actually believe this will happen.

I agree. My point was simply that too often we overlook the immediate future for the very long term. One is much easier to predict than the other.

Currently, 27 years after opening, only around 25% of the OKW contracts have been resold. The vast majority of members have kept their contracts since they've bought them. On average, 1% of total DVC contracts at each resort have been resold each year. There were some statistics posted here on the DIS from data taken from the OC Comptroller website.
It is possible that the average of 10 years is correct for other timeshares, but it's not true for DVC.
People buying 2042 resorts right now are buying contracts with less time remaining than the average time a member keeps his contracts.

My source for the ten year number was Jerry from the DVC Store on the DVC podcast. Unless I misunderstood him, which is always a possibility, I'm willing to defer to his expertise.

 

[DVC Doctor]

I think as a general rule we tend to overvalue the years left on these contracts. The average ownership of DVC is right around 10 years, which makes the difference between 2042 and 2057 somewhat irrelevant. Remember when Disney offered to extend OKW contracts for $15 per point and the majority refused? I'm not sure how this is any different from a functionality standpoint, yet we seem to talk a lot about the importance of the extra 15 years on the newer resorts.

I totally disagree with this as the average ownership of DVC is MUCH HIGHER than 10 years. In fact, I have heard DVC has the highest percentages of original owners of any timeshare company and think that 80%-90% of members have NOT sold.

Also, resale values of life left on a contract is extremely important (especially when approaching the last 10-20 years of a 50 year contract). The resale market has not totally caught on to this difference, but that day is coming.

If you consider a conservative $2pp value per year for a membership contract - then 15 years for a 200 point contract is worth $6,000 more than one that expires sooner.

To compare the lame OKW extension option is totally irrelevant as it was overpriced and there was no killer need to pay now to extend for something that was still pretty far away. But for two equal OKW timeshares (same point and use year) the one with the extension will definitely be worth more than the one without (but not by the same price Disney charged).

 

[jlb727]

To get back on the topic for this thread, I looked at VB and HH, but I absolutely could not justify the dues and higher possibility of a SSA in the event of another hurricane. Yes, the $300 annually (as it stands) I’m saving by purchasing an SSR contract might not be a lot in the grand scheme, but I have a spot on WDW property at 11 months and I could buy a couple of nice meals for that $300.

 

[Kevin4321]

I would not recommend a first time DVC buyer purchase HH or VB for all of the reasons mentioned, but I think experienced DVC owners may find a lot of value in these contracts under the right circumstances. We have owned for several years so we are familiar with availability at each resort and prefer to stay in 2 bed villas. Larger rooms have more availability at the 7 month window. We purchased a loaded VB 200 pt contract and used it to stay for 6 days at VGC last month. Next year we will use those points and borrowed points to stay at Aluani. We plan to sell them after that. Assuming we get close to what we paid (which is a risk), we will have stayed at two amazing resorts for about two weeks for only the cost of maintenance fees for a few years. Much cheaper than rack rate or even renting.

 

[princessophiali]

Very good points. I did decide after reading/researching that as a newbie to this, I should buy where we would want to stay. So I am on the hunt for a contract! Very excited. Thanks for all the advice/tips.

 

[Deb & Bill]

We don't call OKW the DVC Retirement Home for nothing.

 

[BWV Dreamin]

For no other reason, the MF’s are just too high to justify a purchase at either resort. Special assessment have also been handed to owners for recent storms.

 

[Deb & Bill]

Hurricane Dorian could be a double hitter for DVC. It could hit both VB and HHI.