Qestion about Future Resell Value

[Dean]

Originally Posted by pinnocchiosdad

Trust me, if you ever find your self in a financial situation that leaves no option but to sell your points, you will be highly concerned with the value of your points. Unfortunately many members found themselves in that situation the last few years.

And that's exactly the reason I encourage people to minimize risk going in by not overbuying either resort or number of points, not finance, and to get the best/cheapest deal possible.

[pinnocchiosdad]

Originally Posted by tmavery

OK- one other question. I have rented before and paid Dave's DVC $13 per point. What are your opinions on future rental prices per point?

Cash is not the issue in my situation - we can afford the cost of DVC purchase up front. I am not looking at this as an investment, I am trying to figure out whether renting points over the next 12-15 years is a better decision or whether DVC ownership is better.

Thanks in advance for your help!

Points can be rented on the for rent board for $8 PP and sometimes less.

[AllieV]

I've been watching the resale market for the last 10 years. My estimates have shown about a 20-25% decrease in that time, depending on which resort you're looking at. So it decreases at about the same rate as inflation increases, 2-2.5% a year. Just my observation.

I do think this is an important consideration when buying. Not everyone can predict or secure their future today and some may need to sell. You may also need to count it among your assets someday, so overall financial planning would warrant wanting a good estimate of resale.

[Deb & Bill]

Originally Posted by AllieV

I've been watching the resale market for the last 10 years. My estimates have shown about a 20-25% decrease in that time, depending on which resort you're looking at. So it decreases at about the same rate as inflation increases, 2-2.5% a year. Just my observation.

I do think this is an important consideration when buying. Not everyone can predict or secure their future today and some may need to sell. You may also need to count it among your assets someday, so overall financial planning would warrant wanting a good estimate of resale.

The drops in resale prices were not spread out over a long period of time. They were more of a sudden drop around 2007 or 2008 and it kept fairly steady after that, with small increases or decreases. It was about the time DVC stopped ROFR for a period of time.