As Disney Vacation Club launches sales for Copper Creek Villas & Cabins, most of the older resorts see their prices climb higher.
While Disney Vacation Club chooses to focus its sales efforts on its newest properties, a resort is never truly "sold out" since DVC is able to reacquire points in small increments. These points are most readily available to existing owners looking to add gradually to their holdings. But buyers of the older properties are faced with dwindling contract lengths and rising prices.
Effective immediately, DVC has increased its direct sale prices by $5 per point on most older resorts.
To add-on additional points at Bay Lake Tower at Disney's Contemporary Resort, Villas at Disney's Grand Californian Hotel or Villas at Disney's Grand Floridian Resort will now cost $185 per point, despite those contracts having as little as 43 years of ownership remaining. The popular Disney's Beach Club Villas is up to $165 per point with only 25 years left on the contract. At the low end of the spectrum, Disney's Hilton Head Island Resort and Disney's Vero Beach Resort can be had for just $115 per point for 25 years of ownership.
By contrast, current DVC members can now buy a full 50-year contract at Copper Creek for $176 less incentives. Discounts on a 200-point purchase take the rate down to about $167 per point.
Naturally these are prices for a purchase direct from Disney Vacation Club. Resale brokers incuding our sponsors at The Timeshare Store offer alternatives which are much more economical than a direct purchase. Resale contracts offer the same rights and privileges as points purchased direct from DVC, except that buyers may be excluded from Membership Magic perks programs and certain non-DVC uses of the points.
For a complete listing of known direct sale rates, visit our Current DVC Pricing & Promotions page.
It will be interesting to see how Disney prices its older DVC resorts as we get closer to January 31, 2042. Beach Club Villas, along with Boardwalk Villas, Boulder Ridge, Vero Beach, and Hilton Head, expires on that date.
Right now, it doesn't look like having an expiration date less than 25 years away is martially impacting demand for those resorts. Perhaps younger DVC members who will only be in their 50s when those resorts expire are hesitant to buy these "2042" resorts. But I think there are still many buyers, including some of the younger owners, who view DVC as a viable commodity if they can get about 10-15 years worth of use out of their ownership.
But at some point in the near future, maybe in the next 5 years or so, more and more buyers will begin to shy away from these 2042 resorts.
When that happens, what does Disney do with its prices for those resorts? Surely, it will have to begin scaling back its price for BCV and the other 2042 resorts. Disney won't be able to price BCV at $165 when there are only 3-4 years left on the life of the deed. We are so use to seeing Disney raise its prices, its hard to imagine that we might see the day that Disney announces yet another price cut on its older resorts.
I suspect demand will rule. You've seen the small trickle of points reacquired at most resorts, so they really don't have to sell these older properties. They could end ROFR entirely and use other recaptured points for cash reservations or one-time-use points.
I suspect foreclosures will increase significantly as we approach 2042. Currently, if an owner wants to get out from under their DVC maintenance fees, they can sell their deed on the resale market. And for some owners, they might actually sell it for more than they bought it originally. But as we approach 2042, the resale market will probably crater for the 2042 resorts. BCV owners might have to give away their deed just to get rid of them. When that happens, owners might decide its just easier to not pay the annual dues and let Disney take back the deeds.
As long as the rental market remains brisk, DVC will stave off the worst of the market crater. In fact, I could see people capitalizing on continued demand for Disney accommodations. If 2037 rolls around and people are virtually giving away contracts, some enterprising individuals will pick them up to use for 5-6 years of rentals.
As for direct pricing, DVC isn't going to be able--or willing--to sell someone a contract with under 10 years remaining. So any discussion of a direct price becomes moot.
Prices will dictate supply/demand. Prices that Disney charges for the rooms. There will be plenty who would be happy to buy and rent, but only if they know they can make a nice enough profit below what Disney charges for rooms.
If BCV is $30/pt in 2032 that's $3/pt plus MFs for the annual cost. MFs will keep rising, but if there's still a healthy rental market people will be happy to make money.
Additionally, if someone thinks they will be going to Disney for 5 times in those last 10 years, it may be a nice discount off what Disney charges to buy the points and use them.
Time will tell at what people believe the risk/reward is worth buying points with fewer years left.