DVC RESALES
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Old 12-26-2012, 01:11 AM   #1
oktracy
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Aulani Subsidized Dues Resale Purchase

Just curious, has anyone out there successfully purchased an Aulani resale contract with subsidized dues? Is DVC excercising ROFR on these contacts? I do see subsidized dues contracts listed for sale by the major resellers. I guess I was just wondering what my chances are if I decided to make a bid. I am still on the hunt for that ideal contract.....
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Old 12-26-2012, 07:42 AM   #2
htmlkid
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I would seriously doubt that Disney would allow the subsidy to be carry forward in a resale. Also remember too that even on a contract with regular MF's there is a developer subsidy and another subsidy adding up to over$2 a point that will eventually expire.
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Old 12-26-2012, 08:37 AM   #3
tjkraz

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The subsidy does follow transfers-of-ownership but Disney is typically very aggressive in ROFR on subsidized contracts. At least that's the case with Vero and they have even more reason to ROFR Aulani.

With the subsidy approaching $2 per point, over the next 50 years it will cost DVD $80 or so per point. It only makes sense for them to spend a little more to buy back the subsidized contracts to avoid the much bigger liability down the road.

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Also remember too that even on a contract with regular MF's there is a developer subsidy and another subsidy adding up to over$2 a point that will eventually expire.
The builder's subsidy is designed to cover the excess operating costs of common area amenities which are not yet being supported by a full slate of owners.

Take something like the main pool. Operations of the pool must be fully funded from Day One even though only a fraction of the points have been sold. As more points are sold--and more owners share the cost of these amenities--the subsidy dwindles organically with no adverse impact on dues.
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Old 12-26-2012, 05:56 PM   #4
oktracy
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Thanks for all of the great info!!! Just not sure what to do. I am considering purchasing a 160 to 180 point contract but don't know whether or not I should purchase resale or direct. Any advice would be great! Thanks in advance.
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