Finding the unicorn- Subsidized Aulani

[MouseOfCards]

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.)

Thanks for the great breakdown. Very eye-opening!

 

[MouseOfCards]

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.

We did our 5th trip there earlier this year. Still love Aulani!

 

[Imurhuckleberry]

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!

FTR, just passed ROFR for our 220 pt subs dues contract

I see a lot about "opportunity cost" in Aulani DVC forums and even general "should I buy DVC" discussions around the web. Figured I'd play devils advocate b/c the concept of "opportunity cost" makes a ton of assumptions. Pls don't take this personally, it's just a contrary view.
Those assumptions and other thoughts:

1. You would actually invest that $ vs spending it somewhere else
2. You wouldn't touch it for 39 years
3. There is no inflation. Take the same 8k, apply 3.8% inflation (avg over the L40 years) and that 8k is "worth" 35k in 39 years. So the true difference in value is 53k-35k=18k
4. DVC is not an investment. This is probably my biggest gripe with this variable. DVC is not cheap and IMHO shouldn't be financed. It should be something you buy if/when you can afford it. It's a luxury, a splurge, a way to guarantee yourself a vacation every year (or 2 years or 6 months, etc). Opportunity Cost is a strategic investing or business tool used to compare one option vs another. Not something to be considered when we're talking about disposable income/$s
5. You plan to keep the contract through it's expiration. Our plan is to keep it until our son ages out. Maybe 10 yrs, maybe 20. Either way, the contract should have value with 20-30 years left on it. And that value should have appreciated over time. If Disney isn't charging higher cash rates in 10-20 years than they are now, it means the economy and the world is likely FUBAR. At which point DVC is the least of our worries

And perhaps my favorite axiom...choice is just the act of hesitation before making a decision. It's a mental wobble. We get anxiety over making decisions. About whether we have considered all of the data. And the data for any situation is infinite. At some point, consideration is just going through the motions. Worrying about things out of our control

 

[Budzooka]

I looked for a subsidized contract about 6 months before I found the one I was looking for. Checked several sites every morning and signed up for several email newsletters. One day this new listing popped up and I contacted the agent and it was only on the market for one day. Had to pay a little more than I planned but still a great deal.

Visited Aulani for the first time last summer with my brother and his family and it was incredible. Look forward to many more stays.

 

[The_MT]

I’m hoping to find a unicorn for Feb or Apr UY 200 pts or less

 

[JGINPL]

Yea that Feb use year sub I’ve been looking for for awhile too especially if I could find one 125 points or less. I’ve only seen 200+ points

 

[geargrinder]

I’m hoping to find a unicorn for Feb or Apr UY 200 pts or less

There's a Feb UY 160 pts at https://resales.*******.com/

 

[The_MT]

There's a Feb UY 160 pts at https://resales.*******.com/

thanks! i'll check it out

 

[The_MT]

There's a Feb UY 160 pts at https://resales.*******.com/

I think this is the same one someone sent to me earlier. Unfortunately the price is way higher than I'm looking to pay especially for a stripped contract, plus it has a delayed close.

 

[geargrinder]

I think this is the same one someone sent to me earlier. Unfortunately the price is way higher than I'm looking to pay especially for a stripped contract, plus it has a delayed close.

Yep, that's the one.

I'm planning on a sub'd Aulani once my AKL and DLH are paid for.

 

[Jimmy Geppetto]

I think this is the same one someone sent to me earlier. Unfortunately the price is way higher than I'm looking to pay especially for a stripped contract, plus it has a delayed close.

Over priced and the Broker is terrible to deal with. Buyer beware with her.

 

[Huskerpaul]

Over priced and the Broker is terrible to deal with. Buyer beware with her.

I bought a contract with her and had no problems.

 

[Sandisw]

I have deleted several posts because it appears we are discussing a broker that is not allowed to be discussed,

I did not issue warnings this time, but please be sure to check that the broker is not in the boards filter. If it is, then yoy can’t discuss that business.

 

[Imurhuckleberry]

I have deleted several posts because it appears we are discussing a broker that is not allowed to be discussed,

I did not issue warnings this time, but please be sure to check that the broker is not in the boards filter. If it is, then yoy can’t discuss that business.

Boards filter? Sorry, I'm new and don't see that

 

[Sandisw]

Boards filter? Sorry, I'm new and don't see that

Here are the rules regarding businesses and what one needs to do if you want to discuss them:

https://www.disboards.com/threads/p...-site-you-wish-to-mention-or-discuss.3821848/

 

[Sandisw]

Gentle reminder everyone. You need to mention a business if you are discussing them.

Saying you see contracts and giving details without mentioning the website is against the rules.

If the website is filtered, then sharing that same info is also not allowed because it is seen as a bypass to guide people to find it.

Basically, if the site can not be discussed then neither can the listings.
Thank you.

 

[geargrinder]

Not to turn this into a rules discussion, but I read the rule differently. The rule is labeled "Advertising".

This is the first sentence of the rule. "We do welcome discussion of DIS advertisers/sponsors as well as other businesses that you have information or questions about. "

I know it's a fine line, but if contract details can be discussed without any information related to the broker, why would it be a violation of the rule?

 

[Sandisw]

Not to turn this into a rules discussion, but I read the rule differently. The rule is labeled "Advertising".

This is the first sentence of the rule. "We do welcome discussion of DIS advertisers/sponsors as well as other businesses that you have information or questions about. "

I know it's a fine line, but if contract details can be discussed without any information related to the broker, why would it be a violation of the rule?

Because by sharing listings, you are discussing that business and information related to it, which is a way to promote them.

The rules state to you must post the link.

Here is what it says;



If the business is filtered, then we do not allow posts about them.

As it’s noted, using names, etc. bypass the rules because it allows others to get to sites that the DiS board..a privately owned site..has decided should not be discussed.

So, if you decide to post things without the link, you risk violating the rules and if you post content without the link because you know the brokers site would be filtered, you are doing so as a way to share the info to get around simply listing the website.

If someone sees a listing, then just post the link. No need to add details of the actual listing because people can simply click the link to get to it.

Basically, there is only one reason to not post the link and that would be because what they are sharing is something from a site they know would show up as filtered

ETA: As moderators, we do allow posts with just names of business to stay when we know that site is not filtered, but it can be a risk to do that unless you are also sure.

 

[The_MT]

I'm under contract for a Feb UY subsidized contract for 160 points, I'm so excited!!!

 

[Ashlotte]

I'm under contract for a Feb UY subsidized contract for 160 points, I'm so excited!!!

Congratulations!