Finding the unicorn- Subsidized Aulani

[varyth]

Same! We recently joined DVC and are visiting Aulani for the first time in September. A resale contract with subsidized fees would be super tempting, but I wonder if we chose an unpopular UY.

 

[Ashlotte]

We are sale pending on our sub Aulani contract. We just took whatever we could find, so ended up with a June UY, but would have preferred Feb-April.

 

[NorCalDisFan]

Aulani Subsidized August UY with double points just posted on sponsor’s site.

As expected, it's gone quickly.

 

[varyth]

Board sponsors just put up an AUL subsidized contract - March UY, 200 points. Good luck to those who are actively looking!

 

[Ashlotte]

I also see two 215 October UY contracts with a different seller! It's a good day to be in the market for a subsidized account.

 

[Paul Stupin]

Board sponsors just put up an AUL subsidized contract - March UY, 200 points. Good luck to those who are actively looking!

Not worth it for the price they’re asking, or even $10 less, when non subsidized contracts are going for a great deal less money.

 

[NorCalDisFan]

Not worth it for the price they’re asking, or even $10 less, when non subsidized contracts are going for a great deal less money.

What is a proper subsidized price? +20pp than regular? I'm curious since I'm a potential buyer. Thanks in advance.

 

[Paul Stupin]

What is a proper subsidized price? +20pp than regular? I'm curious since I'm a potential buyer. Thanks in advance.

Everyone is always drooling over these things, but it can take years and years for the actual savings on dues to compensate for the higher price. I’ve been reading about some standard Aulani contracts going for 105-115, in which case I would think a subsidized could justifiably go for between 135-140.

 

[Ashlotte]

What is a proper subsidized price? +20pp than regular? I'm curious since I'm a potential buyer. Thanks in advance.

Here's the math I used to figure out the value. I'm sure someone better at math has a better formula, but this is what I was using.

Aulani expires in 2062, so has 39 years of points left.

200 points per year x 39 years = 7,800 total points over the remaining life of the contract

An Aulani contract selling at $115 per point (a good, but not impossible deal) would be a $23,000 buy in. Divided by the amount of points left (7,800) means that each point cost $2.95. Add the 2022 maintenance dues of $8.67 per point, and the real cost per point would be $11.62.

A subsidized account selling at $155 per point (way overpriced, IMO) would be $31,000 buy in. Divided by the amount of points left would have each point costing $3.97. Add the 2022 subsidized maintenance dues of $6.52 and the real cost per point is $10.49.

Even at this inflated buy in cost, it is cheaper over the length of the contract. I personally think that price is too high.

The other contracts I saw were $129, which, IMO, is a great deal (I am sale pending on one that was $135). $129 x 200 = $28,800/ 7,800= $3.31 + $6.52 = $9.83.

To compare it to a new direct account, $207 x 200= $41,400/7,800= $5.31 + $8.67 (regular dues) = $13.98. (Which is why the rental companies paying $15.50 are not paying nearly enough.)

 

[Jgc014]

Here's the math I used to figure out the value. I'm sure someone better at math has a better formula, but this is what I was using.

Aulani expires in 2062, so has 39 years of points left.

200 points per year x 39 years = 7,800 total points over the remaining life of the contract

An Aulani contract selling at $115 per point (a good, but not impossible deal) would be a $23,000 buy in. Divided by the amount of points left (7,800) means that each point cost $2.95. Add the 2022 maintenance dues of $8.67 per point, and the real cost per point would be $11.62.

A subsidized account selling at $155 per point (way overpriced, IMO) would be $31,000 buy in. Divided by the amount of points left would have each point costing $3.97. Add the 2022 subsidized maintenance dues of $6.52 and the real cost per point is $10.49.

Even at this inflated buy in cost, it is cheaper over the length of the contract. I personally think that price is too high.

The other contracts I saw were $129, which, IMO, is a great deal (I am sale pending on one that was $135). $129 x 200 = $28,800/ 7,800= $3.31 + $6.52 = $9.83.

To compare it to a new direct account, $207 x 200= $41,400/7,800= $5.31 + $8.67 (regular dues) = $13.98. (Which is why the rental companies paying $15.50 are not paying nearly enough.)

I think the one thing you are not accounting for is the opportunity cost of paying an additional $8k upfront for the subsidized contract. In addition to having more liquidity initially, if this was invested for the next 39 years and earned about 5% annually, which isn’t crazy, you would have about $53.5k at the end of your contract’s life. Therefore, you need to determine if the dues savings is able to more than make up for this.

The right subsided contract can certainly be a good play though. Congrats on finding yours!

 

[Ashlotte]

I think the one thing you are not accounting for is the opportunity cost of paying an additional $8k upfront for the subsidized contract. In addition to having more liquidity initially, if this was invested for the next 39 years and earned about 5% annually, which isn’t crazy, you would have about $53.5k at the end of your contract’s life. Therefore, you need to determine if the dues savings is able to more than make up for this.

The right subsided contract can certainly be a good play though. Congrats on finding yours!

Yes, true. I'm sure there are lots of things I'm leaving out with my very simplistic equation (I am definitely no math whiz!), and opportunity cost is certainly something to think about.

I also don't plan to keeping the contract until it expires and plan to sell after twenty years or so, while it still has value. I'm assuming/hoping that subsidized contracts still sell for more, so hopefully I'll be getting that additional cost back.

 

[Great3]

To compare it to a new direct account, $207 x 200= $41,400/7,800= $5.31 + $8.67 (regular dues) = $13.98. (Which is why the rental companies paying $15.50 are not paying nearly enough.)

Agreed, at $15.50 / pt payout, it's not nearly enough. However, thankfully, the Rental Broker / Board Sponsor of DisBoards is now paying $18 / pt.

Congrats on get Aulani subsidized contracts, I have two of those. Started out with 100 points June UY, and than added in 200 points Feb UY, so at a total of 300 Aulani points now.

Great3

 

[sipnride]

Board sponsors just put up an AUL subsidized contract - March UY, 200 points. Good luck to those who are actively looking!

Who are the board sponsors and why does everyone refer to them in that way?

 

[Sandisw]

Who are the board sponsors and why does everyone refer to them in that way?

www.dvcresalemarket.com

 

[Great3]

Who are the board sponsors and why does everyone refer to them in that way?

Sorry, I thought it would be obvious. Referring to https://dvcrentalstore.com/ for rental of DVC points, and family of companies that Sandisw is referencing.

 

[Twohsieh]

Hello all. I can't believe how much the Aulani contracts have gone up in price. We purchased a AUL subsidized contract with an April UY (270 points) at the end on 2020 for $100/point. The seller listed this contract at $95/point, but there was a little back and forth bidding with another buyer, which I lucked out in winning.
I suppose the demand is creating the price to go up. We love going to Aulani so we are very thankful for having this contact.

Good luck to everyone who are searching for contracts and pending offers.

 

[Ashlotte]

Just spotted another subsidized account with an October UY. 215 points at $135 pp. No points until 2023.

 

[NorCalDisFan]

Just spotted another subsidized account with an October UY. 215 points at $135 pp. No points until 2023.

I checked 215 points + $129 pp listing above and it's also no point for 2022 UY.
maybe duped listings in another blocker because 215 points Oct UY + no point until 2023 + subsidized seems so unique.

 

[Ashlotte]

I checked 215 points + $129 pp listing above and it's also no point for 2022 UY.
maybe duped listings in another blocker because 215 points Oct UY + no point until 2023 + subsidized seems so unique.

I agree, that is odd, but they are at different companies. I assume the companies check all of that before posting the listing?

 

[DVChris]

New subsidized loaded Feb 250 pointer for $123 posted today in case anyone is looking!