What is DVC resale?
Understanding the basics of DVC
Disney Vacation Club (DVC) is the Disney version of a vacation ownership program or timeshare.
Disney Vacation Development created the program in 1991 to offer Disney club members the opportunity to buy a small part of an official Disney Resort.
When you become a member of the Disney Club, you purchase a real estate interest and sign a contract with Disney.
The Disney Vacation Club works on a point system. For every year you’re a DVC member, you are awarded points until that contract expires. Most contracts are 40 years on average.
DVC contracts are properties with divided ownership/use of rights. These properties are resort condominium units that come with full access to different Disney theme parks and resorts.
The membership works on a point system, where you earn points for about a year, and those points can be redeemed for a lavish stay at a Disney resort.
An example of how the points work is this: A Disney resort deluxe studio will cost about 17 points a night.
And a three-bedroom grand villa will cost you a whopping 112 points a night. Some DVC members purchase and sell DVC points online for other members.
The Disney vacation club can (for some people) be a cost-effective way of taking Disney vacations. This is an excellent option for people who take annual Disney vacations.
DVC Prices in 2021
It’s not a secret that the prices of a lot of things have gone up the past two years, and the world of DVC is not exempt.
The DVC market has been (and still is) experiencing inflation in prices. The price per point as of 2021 starts at $120 per point and can go up to $295.
Points at the Grand Californian resort are $300 per point, which would have been unheard of a couple of years ago.
But with Disney’s hotel costs continually on the rise and outpacing inflation, the steep price of $300 per point, DVC remains a benefit to members, economically.
If you are buying DVC directly, you could save up to 50% off your annual Disney vacations.
I know you are probably wondering who would purchase DVC or invest in vacation clubs in our current climate.
You should find out that twelve out of the 15 DVC resorts were “sold out” early this year, meaning all points for that particular resort had been sold out.
So you may opt to purchase resale where there are more options steadily available and at a lower upfront cost.
DVC Resale Prices In 2021
You can purchase any of the DVC resorts on the resale market at a fraction of the cost.
Your savings can multiply when you buy resale since you’re saving an additional 33% to 54% off your DVC membership.
In 2020, DVC point prices averaged on the resale market at $121.
That price rose 27% to $154/pt. This surge in selling price is mainly due to a shortage in supply, coupled with an increase in demand.
If you are trying to purchase DVC right now, you will probably be happy to hear that DVC prices on the resale market are negotiable. They also tend to be more affordable.
Before you set out to buy DVC resale, it’s important that you are mindful of these three costs. Price cost, closing costs, and annual dues.
DVC prices usually include the annual allocation of points times a price per point.
Here is an example of how that works: 100 points X $70 per point equals $7,000
Closing costs are mainly set by the closing agency; they also normally include everything to do with the legal transfer of the property, from the seller to the buyer.
They also include items such as recording the new deed and the title insurance policy.
Conclusion
DVC can be a tricky investment, especially in 2021. This is mainly because due to the current global crisis, people aren’t vacationing all that much, especially to a place as crowded as Disneyland.
So if you own DVC in 2021 it’s possible you would yield as much from your investment as you would have from previous years when travel restrictions weren’t as strenuous.
However, even with inflation of prices, there is still a demand for DVC!
This is because some people are using DVC as a passive investment. Each point accumulated averages at about $295.
This means you can purchase DVC, rack up points and resale their points or contracts.
The resale market offers the opportunity for you to purchase DVC at a fraction of the price. It can also multiply your savings by 50% if you pick the right seller.
If you are in the market for DVC, try looking at resale websites to ensure that you get the best bang for your buck.
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