walkitout (walkitout) wrote,
walkitout
walkitout

Florida Real Estate: DVC Part 2

One more look at that diagram:

DVC -> TimeShare Exchange (think Interval International, which DVC gets you access to for a fee) -> TimeShare -> Condo -> Land

In principle, moving _back down_ on this tree should save you money, at the cost of some non-substitutable attribute which is the basis for the increased value used to justify purchasing DVC. If it's _really_ like the refis, there might not be a "real" basis for "increased" value; it could just be a big ole scam. Remember, we're talking about real estate.

In Florida.

But let's have a good hard look at what Disney is offering in the way of non-substitutables.

(1) "Home" resort (the one you buy your points in, which is why a point in one resort, like Vero Beach, may be a lot cheaper than a point in another resort, like Wilderness Lodge) gets you the right to make reservations 11 months in advance of stay.

(2) Being in DVC gets you the right to make reservations 7 months in advance of stay.

I'm betting that Interval members who point into DVC get 6 months, but who knows.

You can (in theory) rent the units in DVC properties for dollars, but actually lining up dates is really amazingly tricky (altho that could change if Disney winds up sitting on a lot of resale points they bought back to support the market). When you buy into DVC (minimum of 160 points in general, 100 in Animal Kingdom on a special -- hmmm, do you think that reflects current economic realities?), you're basically spending (not financed) $16K+ for the right to jump the line. (Disney offers financing, as do some resellers. The financing rates scream chump.)

Kinda like FastPasses, in a way.

DVC resorts are also (almost) the only way to get a full kitchen on-site at WDW.

It's not clear that Disney had a solid handle on what the appealing selling points of DVC were when it started them back in 199x with what is now Old Key West resort. On property, kitchens, game rooms, etc. were clearly understood as desirable. But virtually all the DVC properties have been well away from MK, and the price differential in favor of Wilderness Lodge indicates that was maybe not the best plan. Bay Lake Towers (formerly known as Kingdom Towers -- makes you wonder what they were thinking with _that_ name), a timeshare property associated with the Contemporary Resort (first stop on the monorail) is apparently an attempt to correct this issue.

Ah, the temptation: drive-til-you-qualify led to sprawl and now, with the blah blah blah, everyone wants to be close-in and on public transportation. It is to laugh. While we're laughing, Disney is really working hard to make it so you _don't_ have to have a rental car if you stay on site: they'll bus you and truck your luggage from the airport; they'll bus you around the resort (or boat you, or monorail you); they'll schlep your purchases from the souvenir stand to your room, etc.

BLT is expected to charge a substantial point premium compared to the other DVC properties; I'll put my guess in now at 2x.

When you ask on Disney discussion boards (not official Disney) about where to stay that has a full kitchen and 1-2 bedrooms (there are a lot of families out there with a similar travel strategy -- I didn't have to actually post to see this question. Repeatedly.), what you get are a lot of people plugging renting at Windsor Hills. Even when people specifically say, _NO_, I want a suites hotel with a breakfast buffet, a full kitchen, 1-2 bedrooms and daily service for the room, you get people plugging Windsor Hills. And it is not hard to see why. The travel distance is roughly comparable (since at the locations in question, the dominant time-cost is parking/tram/monorail to get to MK) between hotels and WH, and WH is way cheaper than off-site suites hotels (well, comparable to Enclave; way cheaper than anything else with a kitchen). The comparison to staying in a DVC property is laughable -- it would cost you 4x-8x to reproduce with dollars on property what you get at WH (and as noted above, tough to get that reservation at all). This is a relatively good reflection of the above diagram getting cheaper as you pass through the stages.

Where does a hotel fall on that diagram? Given that WH seems to be a whole lot of investment/vacation rentals owned singly or in small groups by individuals, I'd say the hotels just look like the same, with a larger staff and therefore higher costs.

There are some interesting little cul-de-sacs in this space. You can rent timeshare weeks (floating or fixed). You can rent DVC points. At least with DVC, there's substantial risk on both sides of the transaction so trust is required -- that makes them a little less liquid/fungible than they might otherwise be. Disney will also let you "not use" your points to offset financing charges and possibly annual dues. At least, I _think_ that's why I understood. There's also a bank/borrow set up so you could vacation every other year or every third year in a very luxe way with a lot fewer points.
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