Looks like no changes in restrictions on resales this year?

Discussion in 'DVC-Mousecellaneous' started by 312BillB, Dec 13, 2012.

  1. 312BillB

    312BillB Earning My Ears

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    I've been monitoring this closely as I'm currently awaiting my first contract to come through in the used market. The rumors that resale inventories will be restricted to the resort at which they purchased appears to be false, or at least that is what I gathered after watching the tweets from dvcnews. Good news for us in the used market! :cool1:

    Hopefully this was all a marketing ploy to get new resales and that this won't ever happen, which would totally hose the initial investment from those who bought direct through Disney and plan on reselling some day.
     
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  3. disneynutz

    disneynutz DIS Veteran DIS Lifetime Sponsor

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    Disney would never announce anything negative in a open forum. If you notice all of the announcements were positive. If hard questions are asked during the face to face, in the past they promised to get back to you, for me they never did.

    :earsboy: Bill
     
  4. spruce

    spruce DIS Veteran

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    A timeshare is a prepaid vacation, not an investment. The value to buying one is gained through many years of use.
     
  5. 312BillB

    312BillB Earning My Ears

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    Agreed - however I wouldn't buy into a timeshare knowing full well I'd lose 75% of value after day 1 because of different rules for the new buyer creates a different fair value of the ownership. My first question before I bought was, "how easy is it to get rid of it if I needed to?" even though I don't have that intent. But, people's circumstances and habits change.

    I would guarantee I'd never buy new if that rule was ever implemented...
     
  6. 312BillB

    312BillB Earning My Ears

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    I think you commented about this in a previous post and I forgot about that point. Maybe I spoke too soon, but I'm hoping not....
     
  7. Missyrose

    Missyrose DIS Veteran

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    This! :thumbsup2 Bill and nearly every other truly knowledgeable person on this board all agreed there was zero chance and restrictions would be announced at the annual meeting. It's the wrong forum for it. The executives have to mingle with members afterward, so there's little chance of announcing anything that would induce blowback.
     
  8. bighoo93

    bighoo93 Mouseketeer

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    A prepaid vacation is an asset. It has a value. There are certain actions Disney could take to purposely demolish the value of that asset. Just because it is prepaid vacation lodging doesn't mean that it has no monetary value. It is an asset with value just like any other. Some people will be in a position where they need to sell their DVC points in the future, from some unforeseen circumstance perhaps (I bought my points from a widow, though I don't know if this is why she was selling). It makes sense to consider this possibility before making such a substantial purchase.
     
  9. DebbieB

    DebbieB DIS Veteran

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    The last restriction was announced in January 2011, so it did not come at an annual meeting. Nothing controversial comes out at these meetings.
     
  10. Chuck S

    Chuck S DVC Boards Co-Moderator Moderator

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    There are a LOT of timeshares that work that way...and DVC is, at it's core, a timeshare. A timeshare with a great location, and nice units (well, better than most, not as nice as some), but still any timeshare isn't going to hold value in the resale market. Especially a limited time lease timeshare like DVC. It will lose resale value continually, slowly, but continually, as there are fewer and fewer years to actually use it.
     
  11. spruce

    spruce DIS Veteran

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    Every time I tried to list my timeshares as an asset to a bank to show net worth the bank disregarded such property as an asset. Timeshares have always been a losing proposition to those wanting to sell. Disney subsidized and proped up the resale value for years with rofr. That's why every other timeshare in my stable was a resale costing no more then 3k. Disney had a value with financing that worked for us back in 98 when purchase price was close to $63 per point. I would never entertain a direct purchase today because dvc is too expensive yet the market is bearing their prices. If I ever add on again it'll be a resale in 10 or 15 years when prices are really in the toilet. Resale is a bargain vs direct but resale is still currently overvalued compared to other timeshares that are 20 years old.
     
  12. Sammie

    Sammie DIS Veteran

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    DVC and any time share should be considered a luxury purchase and never an investment. The value is in the using of it, not the selling of it.

    Much like a membership to a golf club or country club or even rental of a luxury car.
     
  13. DougEMG

    DougEMG DIS Veteran

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    And a car is nothing more than a means of transportation, but that doesn't mean I don't want to be able to sell it at some point instead of driving it till the end of it's life.
     
  14. spruce

    spruce DIS Veteran

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    You'll be able to sell both at market value not necessarily what you think it is worth. Car sales were proped up a few years ago by the government, remember the gas guzzlers rebates. Dvc proped up value with rofr. What's the difference, the market will level itself. My Mom has 7 timeshare weeks and thinks she should get thousands more than reality because they cost xxxx each. I can't get her to understand that her value was in the use of those weeks for over 20 years. There is a reason timeshares sell for $1 on eBay. If you look at ownership any other way then a luxury prepay with the value being in using it maybe timeshares aren't for you because because when you resell it, typically you lose money from your acquisition cost.
     
  15. DougEMG

    DougEMG DIS Veteran

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    If a timeshare is selling for only a few dollars on eBay, then the market is saying that the future use of that timeshare for vacations is only worth a couple of dollars. If you buy a timeshare on day one and sell it on day two and can only get pennies on the dollar even though all that 'future use' is still there, that implies to me the timeshare was seriously overpriced.
     
  16. bighoo93

    bighoo93 Mouseketeer

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    Are there people on these boards who are saying they are buying DVC so they can sell it later at a profit?
     
  17. jarestel

    jarestel DIS Veteran DIS Lifetime Sponsor

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    I think there are many who view the purchase of the timeshare as an investment and as such expect it to retain a certain level of value over time. Whether this is an appropriate mindset for time share purchases is certainly open to debate, but nevertheless it exists.
     
  18. bighoo93

    bighoo93 Mouseketeer

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    That's very different though. The admonitions are to not buy and expect its value to increase (which I think is quite obviously good advice). That is different from expecting it to retain some value, which is extremely reasonable. Thus far, those who expected DVC values to be worth zero on resale have been wrong. Maybe that will change, but history is often a useful guide. As long as Disney remains an extremely valued brand and WDW an extremely attractive destination for visitors around the world, DVC points will have value on the secondary market. If either were to dissolve, DVC point value on the secondary market would collapse. Oh, and of course if Disney purposely destroys the value of secondary market points by restricting their use in a significant way.
     
  19. spruce

    spruce DIS Veteran

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    There used to be many who sold for profit but that has pretty much ended.
     
  20. spruce

    spruce DIS Veteran

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    Yup, Disney is grossly overpriced but has the theme parks and Magic to draw buyers in.
     
  21. DougEMG

    DougEMG DIS Veteran

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    I doubt there are that many people that plan to do that. And while I don't consider my DVC an investment, I definitely consider it an asset (a depreciating asset though).
     

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