Poly SAME ASSOCIATION: Finally the answer I've been waiting for!

[tidefan]

VGF2 went for $161/pp direct...maybe they do need the money

VGF1 even just started at $145/pp... and that was in 2013

 

[Robbie Cottam]

VGF1 even just started at $145/pp... and that was in 2013

145 in 2013, is $192 adjusted for inflation today. Before incentives BPK was 217,

Riviera is still 217

Putting the new tower on the market at a price below Riviera, before incentives, would seem odd

 

[GoingSince1990]

VGF2 went for $161/pp direct...maybe they do need the money

This “$161/pp direct” shows how clever the MB promotion was. People weren’t really paying $161, on an apples-to-apples comparison with a normal direct purchase, they were paying $181 and renting out the first year’s points at $20/pp.

 

[GoingSince1990]

145 in 2013, is $192 adjusted for inflation today.

However, if you paid $145 in 2013 and rented out your points at an average of $18/pt for 10 years, after paying the MF of about $6/pt on average, you would have now gotten back around $120. Any investment where you pay $145, and is still worth over $160 10 years later, during which time you have received $120 in positive cashflow, is very attractive, and those who bought VGF1 in 2013 should be feeling very good indeed about their purchase.

 

[Robbie Cottam]

However, if you paid $145 in 2013 and rented out your points at an average of $18/pt for 10 years, after paying the MF of about $6/pt on average, you would have now gotten back around $120. Any investment where you pay $145, and is still worth over $160 10 years later, during which time you have received $120 in positive cashflow, is very attractive, and those who bought VGF1 in 2013 should be feeling very good indeed about their purchase.

Interesting,
Almost like you have read my posts on how if you lost money on DVC, you did it wrong....

However, I have changed my tune slightly, The value you find in a DVC purchase is not the rental income or the resale value, those are bonuses....

The value is found in the vacation with or without the family:
Favorite resorts, pools, restaurants,
Hearing when can we go back to this resort or that,
The memories (most of them) some I'm working hard to forget

That is where you need to look for DVC value

 

[GoingSince1990]

Interesting,
Almost like you have read my posts on how if you lost money on DVC, you did it wrong....

However, I have changed my tune slightly, The value you find in a DVC purchase is not the rental income or the resale value, those are bonuses....

The value is found in the vacation with or without the family:
Favorite resorts, pools, restaurants,
Hearing when can we go back to this resort or that,
The memories (most of them) some I'm working hard to forget

That is where you need to look for DVC value

Right, most people do not rent out their points year in, year out, but use them for vacations. But as a math nerd and former quantitative finance person, in order to analyze an investment I need to put a dollar value on those vacations people are getting. And I think of the dollar value of a DVC vacation as the possible rental income you are forgoing by taking that vacation. In other words, if the going rate of a rental is $18/pt, the value of a trip using 150 points is $18*150 = $2700. For me and my family personally, the value of the DVC points is even higher, because we love the DVC villas much more than hotel rooms, and the cash cost of renting a villa (even assuming they are available, which they are often not, especially the GVs) tends to be much higher than the equivalent of $18/pt. The bottom line is that to a pure investor who rents out their points each year and never visits WDW, VGF has been an excellent investment. And to people like my family who love the DVC villas, it has been an even more excellent investment.

 

[Robbie Cottam]

Right, most people do not rent out their points year in, year out, but use them for vacations. But as a math nerd and former quantitative finance person, in order to analyze an investment I need to put a dollar value on those vacations people are getting. And I think of the dollar value of a DVC vacation as the possible rental income you are forgoing by taking that vacation. In other words, if the going rate of a rental is $18/pt, the value of a trip using 150 points is $18*150 = $2700. For me and my family personally, the value of the DVC points is even higher, because we love the DVC villas much more than hotel rooms, and the cash cost of renting a villa (even assuming they are available, which they are often not, especially the GVs) tends to be much higher than the equivalent of $18/pt. The bottom line is that to a pure investor who rents out their points each year and never visits WDW, VGF has been an excellent investment. And to people like my family who love the DVC villas, it has been an even more excellent investment.

I used to have that viewpoint; however, even as well as I have done, DVC is not a financial instrument. I tried for years to make that case.....

I can make the case that it saves my family money on hotel rooms, but in reality, it just makes us go on more vacations, and I'm expensive to take on vacation....

I would argue that the pure investor, who rents out points, the time for ROI is to long to be viable. Now once you are 15 years into a contract, knowing you can always realize about 10 to 12 dollars a point, isn't bad. I guess if you in it for the long game you will do alright....

But DVC is better if you use the points, and know in the back of your mind you can rent them if needed.

I will agree DVC is an excellent investment in your family.

 

[tom1944]

For me, with no restrictions, there's zero chance in hell that I'd add on direct. Resale points get the exact same 11-month booking advantage, and i don't need any more points to qualify for perks. There's no benefit whatsoever.

If I cannot get a 1 bedroom at 7 months occasionally, I might consider POLY resale points to use every 3 years.

I think 4 days every 3 years would be fine.

 

[winnieforme]

Yes, and the was a flipper rehab.

The poly tower is all new construction,

A lot more expensive ….

so more likely RIV and Disneyland prices? right now poly is $250/pp

 

[DVC Doctor]

What does everyone think about buying the new poly but having the old poly expiration date - technically you are losing 8 years.

 

[Robbie Cottam]

What does everyone think about buying the new poly but having the old poly expiration date - technically you are losing 8 years.

I think,

It is what it is

If you buy late in the sale of any resort, you'll lose a couple of years....

even at 250 a point, you'll still have 40 years that's 6.25 per point per year plus dues.... you can't rent poly points for 17 dollars a point... (simple round number math here)

That said, I'll most likely pass

 

[DVC Doctor]

you can't rent poly points for 17 dollars a point...

Why not???

 

[TCRAIG]

Guides will say anything if they think it will help them make a sale. They are about the same as a new car salesman.

I’ve personally have never found that to be true with my DVC guides..

 

[Robbie Cottam]

Why not???

I'll rephrase

You can rent distressed poly points for 17 dollars a point..... but if you want to have booking priority and get the nights and rooms you want, you'll be paying a lot more than 17 dollars per point.

Is that better?

Or are you looking for something else

 

[BeachClub2014]

I was curious whether guides have received any additional information on the Poly Tower and its association status. Here's an excerpt from an email that I sent to my guide earlier today:

"I hope this email finds you well. I have been watching the construction process of the new tower being built at the Polynesian Resort with great interest. I have been reading some internet narratives about whether the new tower will become a new DVC resort with restrictions on resale contracts similar to what I have at the Riviera Resort or whether it will be added to the existing Polynesian Villas association. Can you shed some light on this, please? Will the tower be a new association of some sort with similar restrictions to Riviera, or will it be folded into the existing PVB association without restrictions?"

Here's the response that I received:

"Good to hear from you. We currently don’t have any information about restrictions or association. It’s slated for late 2024. As I get new information I will be able to share what they have shared with us. I’ll be sure to put you on my interest list so I can reach out."

So, if this is the done deal that many believe it to be, my guide sure doesn't know that or is forbidden to say.

 

[MarkNC2Disney]

I’ve personally have never found that to be true with my DVC guides..

Me either.

 

[davidhr]

I was curious whether guides have received any additional information on the Poly Tower and its association status. Here's an excerpt from an email that I sent to my guide earlier today:

"I hope this email finds you well. I have been watching the construction process of the new tower being built at the Polynesian Resort with great interest. I have been reading some internet narratives about whether the new tower will become a new DVC resort with restrictions on resale contracts similar to what I have at the Riviera Resort or whether it will be added to the existing Polynesian Villas association. Can you shed some light on this, please? Will the tower be a new association of some sort with similar restrictions to Riviera, or will it be folded into the existing PVB association without restrictions?"

Here's the response that I received:

"Good to hear from you. We currently don’t have any information about restrictions or association. It’s slated for late 2024. As I get new information I will be able to share what they have shared with us. I’ll be sure to put you on my interest list so I can reach out."

So, if this is the done deal that many believe it to be, my guide sure doesn't know that or is forbidden to say.

TBF, I never take what guides say as “official”. Multiple times I’ve had to explain things to them or ask them to investigate it because I found in these forjms before them that something is happening and they have no idea about it lol

 

[DanCali]

What does everyone think about buying the new poly but having the old poly expiration date - technically you are losing 8 years.

You may be losing 8 years, but if you sell it any time in the next 30 years (probably more likely for most, than keeping past 2055) then you will net a lot more money from the sale if it will not have the resale restrictions.

 

[BeachClub2014]

TBF, I never take what guides say as “official”. Multiple times I’ve had to explain things to them or ask them to investigate it because I found in these forjms before them that something is happening and they have no idea about it lol

Sounds like you may need a new guide.

I hear what you're saying, but I guess I trust my guide more than I would resale agents or faceless names on the internet. Ultimately, I will wait until DVC puts something out in writing to settle the issue.

I was just sharing the official word from my guide, take it for what you will.

 

[Robbie Cottam]

Sounds like you may need a new guide.

I hear what you're saying, but I guess I trust my guide more than I would resale agents or faceless names on the internet. Ultimately, I will wait until DVC puts something out in writing to settle the issue.

I was just sharing the official word from my guide, take it for what you will.

Like the POS
That will put this discussion to bed....