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View Full Version : Is there a downside that I am missing???


daraweb
03-26-2012, 05:37 PM
So I am very new to all of this and am slowly learning the basics of buying into DVC. We are settled on buying resale and are looking for about 270-280 points at BLT.

Other than 2 separate closing costs, is there a downside to buying 2 smaller contracts that have the same UY?

I know that right now smaller contracts are selling better than larger ones...but I also know that could easily change in the future.

So, other than the 2 closing costs, is there a downside (or an upside I guess) to buying 2 smaller contracts that add up to 280?

Thanks!
Dara

ELMC
03-26-2012, 06:31 PM
So I am very new to all of this and am slowly learning the basics of buying into DVC. We are settled on buying resale and are looking for about 270-280 points at BLT.

Other than 2 separate closing costs, is there a downside to buying 2 smaller contracts that have the same UY?

I know that right now smaller contracts are selling better than larger ones...but I also know that could easily change in the future.

So, other than the 2 closing costs, is there a downside (or an upside I guess) to buying 2 smaller contracts that add up to 280?

Thanks!
Dara

There are a couple of "downsides" that I can foresee. First, just like you said, smaller contracts are going for more than bigger contracts. So that applies to your future resale but it also applies to your current purchase. You're more likely to get a better deal on one larger contract now. Plus, the closing costs are pretty significant. On a contract that size you're going to pay an extra $450 give or take. That's like an extra $3 per point. Finally, by buying two smaller contracts you may have to deal with two different sellers, and you may not be able to get the same deal from both. Once you buy one, you are locked into buying that same UY for your next if you want it structured that way, so you're limiting your options.

If you were buying direct, I would probably recommend buying two smaller contracts. But since you are buying resale, why not take advantage of the economies of scale right now, and not worry about what may happen at some unspecified future date?

disneynutz
03-26-2012, 07:06 PM
Make sure that you buy the same UY and that you title the deeds the same.

Have you stayed at BLT and other DVC resorts?

We own 5 resorts and BLT is our least favorite. I suggest that you make sure that you love your home resort before buying.

:earsboy: Bill

daraweb
03-26-2012, 07:39 PM
Finally, by buying two smaller contracts you may have to deal with two different sellers, and you may not be able to get the same deal from both. Once you buy one, you are locked into buying that same UY for your next if you want it structured that way, so you're limiting your options.
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Actually, the woman we have been dealing with at TSS said that you make the first offer contingent on the second offer being accepted. She said it is done pretty regularly but she also warned about the double closing costs.

Thanks for thinking this through for me. Like I said, I am new to this and have been learning so much from everyone here.

Dean
03-26-2012, 08:26 PM
So I am very new to all of this and am slowly learning the basics of buying into DVC. We are settled on buying resale and are looking for about 270-280 points at BLT.

Other than 2 separate closing costs, is there a downside to buying 2 smaller contracts that have the same UY?

I know that right now smaller contracts are selling better than larger ones...but I also know that could easily change in the future.

So, other than the 2 closing costs, is there a downside (or an upside I guess) to buying 2 smaller contracts that add up to 280?

Thanks!
DaraI agree with the cautions about having them titled the same and the same UY. Depending on the number of points it may be reasonable to have them at different resorts but not for smaller amounts. I think you have the info but you may not have realized the extent of the financial difference. The difference in cost between say two 150's and one 300 will be somewhere around $10 a point, maybe a little more for smaller and a little less for larger contracts. That's the extra closing and higher cost per point for smaller contracts compared to larger ones. That may be reasonable for some but not for others. IMO, it's not reasonable just to get smaller contracts but may be for 2 home resorts or to get some points that are cheaper like OKW or SSR. Also be careful to get them linked up which is a risk of not happening if buying 2 at the same time from different sellers.