Contract end date

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spider211

Earning My Ears

Joined

Feb 15, 2014

• Aug 4, 2015

• #1

As 2042 gets closer which is what, 27 years away..who would want to buy in as the year approaches. How will Disney do this when the contracts expire. Start from scratch, starting over, selling at high prices all the properties that expire in 2042. For this reason I am thinking renting is the way to go. Any thoughts?

 

craigkerstiens

Mouseketeer

Joined

Aug 11, 2014

• Aug 4, 2015

• #2

We only recently bought in and thus far have been quite happy with it. We're also younger (near 30) so could probably do with a contract much longer. I figure 27 years is a good amount of time and if we do seem to want more after we would likely be in a position then to get an entirely new contract, or do so in 10-15 years on some that expire later. The price per point that's gradually dropped over time made it easier to not worry too much about the end life of the contract.

As to what will happen there's a decent bit of speculation that Disney may polish things up then sell new ones, or just put them back into a general hotel pool.

 

disBOBney

Mouseketeer

Joined

Feb 2, 2010

• Aug 5, 2015

• #3

spider211 said:

who would want to buy in as the year approaches

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Remember that you are actually buying un-used points and a home resort priority window. So, even if there is only 1 year left to use the points and the price of purchasing those points is less then renting them they are still a good deal. And on top of that the purchaser doesn't have to feel trapped in a long term contract.

 

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MsTessP

Mouseketeer

Joined

Dec 13, 2011

• Aug 5, 2015

• #4

Everybody who purchases expects that they will still have their contract, or pass it down, when the contract expires - be it 27 or 50 years from now. Although some people may have their contracts until the expiration date, the reality is that many, if not most, of DVC owners will be members for around 10 years. When you average in all the thousands - and thousands! - of contracts that have changed hands on the resale market, you will see that many people will sell long before that expiration date for a myriad of reasons. Just going by the numbers, 27 years is still a long, long lifetime in DVC member years. What I certainly would NOT do is buy those older resorts as direct purchases from Disney rather than by resale.

 

KAT4DISNEY

Glad to be a test subject

Joined

Mar 17, 2008

• Aug 5, 2015

• #5

27 years is virtually forever to own real estate property these days.

 

pmaurer74

DIS Veteran

Joined

Apr 29, 2010

• Aug 5, 2015

• #6

I read somewhere once that as the contracts near their end people will rent the remaining points as a bargain compared to going through Disney that it could become a popular thing to do in those final years for bargain hunters.

 

chalee94

DIS Veteran

Joined

Aug 14, 2006

• Aug 5, 2015

• #7

spider211 said:

As 2042 gets closer which is what, 27 years away..who would want to buy in as the year approaches.

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lots of people. but it's true that prices will probably decline at some point so if you are sure that you will be selling in 8-10 years, it is probably better to buy a resort that you like that has a longer contract - just don't come on here complaining if you can't get BCV at the 7 month window...

How will Disney do this when the contracts expire. Start from scratch, starting over, selling at high prices all the properties that expire in 2042.

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no one knows. might refurb if they can. might tear down and build a completely new concept resort. might extend (although the OKW extension went badly - watch the VWL additions to see how they are handled.)

For this reason I am thinking renting is the way to go. Any thoughts?

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if you want to stay at BWV or BCV or a 2042 resort on a consistent basis, ownership is still cheaper over the long run.

but i agree that i would never pay direct prices for an older resort...resale is the best option.