Discussion in 'Purchasing DVC' started by wdrl, Aug 9, 2010.
Question. Did you tell them how much wanted to pay? How did you get the $55? Thanks!
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I guess because I'd like to try the same and I'm at wdw now. Maybe if u could even pm me the contact? Please...
I really don't see how you bought direct for 55 per point. What was the total cost you paid on your contract before your down payment?
See previous responses. He didn't pay 55/point, and you won't either. At least not direct. Don't go to DVC expecting that kind of deal, it isn't happening. Resale? That's an easy price point to hit.
Alladin72 did not pay 55 a point. They let there guide talk them into thinking that because in March 2013 they will have 350 points. They were able to do this with fancy talk and this years points advertised as extra points and also focusing on monthly payment as oppossed to final number. The fact is they will have paid $19250 for 175 annual points when all is said and done. And this is before they pay any finance charges.
To Alladin72, 63*175=11025 as opposed to 19250. One smooth talking salesperson(er, i mean guide), you had there.
Either way you are going to have a lifetime of memories, so congrats and enjoy!
Just want to make sure everyone lurking on this thread is clear, Aladdin72 did NOT pay $55 per point for SSR. He has mistakenly (on at least a couple of different threads now) put forth a formula that says since he got his 2012 points in addition to the upcoming 2013 points, that MUST mean he only paid half the price per point. And clearly, that isn't how it works.
Now if Disney was giving Aladdin72 an extra 175 points per year for the duration of the contract (haha, yeah right), then Aladdin72 could argue he paid $55 per point.
But for the purposes of others trying to gauge their own purchase, you WILL pay $110 per point for SSR if you buy direct. And they probably will attempt to sell you in the same way as Aladdin72, by making you think those current points are a gift instead something they have to give you when you buy a contract.
There's no saving money when it comes to buying direct, you're only saving time and effort.
Did your guide actually tell you that you only paid $55/point? I sure hope not. Buying 175 points at $55/point means you would have only paid Disney $9,625 for your contract. The fact that you got current year's points is nice, however it is not the same as paying $55/point. We bought a resale contract a couple of years ago for $70 per point. The contract had all current year's points that we were able to bank, and in our case we did not have to reimburse the seller for the MFs they had already paid on those points. While getting that year of points free of MFs gave us more bang for our buck, ultimately we still paid $70 per point, not $35 per point. You have to look at the number of points in your contract that you get year after year, not the number of points you have for your first reservation using current year points plus a year of banked points.
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In November 2012, Disney Vacation Development reacquired 23 deeds containing 5,003 points. As has been the case since August 2011, the majority of the deeds (17) and points (3,938) were for the Old Key West Resort.
In the last 12 months, DVD has reacquired 28,310 OKW points, significantly more than any other DVC resort. Although this amount may appear sizable, it accounts for less than 0.37% of OKW's 7.6 million points. Also, it should be noted that DVD has sold 60,268 points to the general public in the last 12 months.
In December 2012, Disney Vacation Development exercised its Right of First Refusal on 29 deeds containing 6,869 points. This is the largest number of points reacquired in a single month since I began tracking this data in June 2010.
All but two of the reacquired deeds were from Old Key West. Since June 2010, DVD has exercised ROFR on 192 OKW deeds containing 41,193 points, more than any other DVC resort. Beach Club Villas is a distant second with 145 deeds and 30,644 points reacquired in that time period.
Since November 2011 the Orange County Comptroller's website no longer displays the consideration paid by DVD to reacquire deeds for the DVC resorts located at Walt Disney World. However, the Indian River County Clerk, which records deeds for Disney's Vero Beach Resort, recently modified its website and is now displaying the consideration amount on real estate transactions.
In December, one Vero Beach deed containing 216 points was reacquired by DVD. The consideration amount for this deed was $5,242.88, indicating that DVD paid $24.27 per point to reacquire this deed.
That sure is a lot of OKW contracts taken by ROFR. Personally I woldn't even bother trying for an OKW contract these days. Lucky for DVC that there are others that still do.
But we really don't know how many OKW deeds are passing ROFR. 29 ROFRed deeds might be only a fraction of all the OKWs deeds that are being processed on the resale market.
Since I no longer have access to the prices paid by DVD for OKW deeds, I don't know what the average ROFRed deeds was selling for. In the past -- when sale consideration amounts were part of the data displayed by OCC -- DVD seemed to set a very narrow price range for BCV at which they exercised ROFR. For example, resale prices above $84 were passing ROFR, prices below $80 were usually being ROFRed, and the middle area was hit or miss. I wonder if DVD is considering OKW deeds in the same manner, with a price range in the mid $50s.
That would be great information to have as we are probably dealing with a very small percentage of the overall resale sample here on the DIS. But I can say that 100% of the OKW contracts Doug and I tried to purchase were RORF'd if that helps.
In early 2012, I had four OKW contracts got to ROFR, all of them got taken by Disney. After that I gave up on OKW.
More out of curiosity rather than trying to analyze this issue to death, I took a quick look at Notices of Waiver of Right of First Refusal filed in December 2012 by DVD with the Orange Comptroller Comptroller. Of 258 Notices recorded in December, 33 were for Old Key West. Of those 33 Notices, 22 were for gratuitous transfers and 11 were for selling from an owner to a third party.
As I was scanning the Notices one of the surnames caught my eye. An OKW owner who had a deed ROFRed by DVD also had another OKW deed in which DVD waived ROFR.
This is very interesting. Why does Disney want OKW back so badly and not the others? I'm happy to see SSR is low on their ROFR list... that's where I want to buy.
The conventional wisdom here, says that DVC is trying to mitigate a problem they will have in 2042. They offered OKW owners an extension & only a small percentage of owners took them up on the offer. So they buy up the 2042 expiring contracts & re-sell the points with the extended 2057 expiry date, so that in 2042, they don't suddenly own 75-80% of that resort.
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I don't know why this is a problem (owning 75-80%), because in 2042 all those that did not accept the longer contract just lose it to Disney anyway. That's going to happen to all of DVC contracts that expire in 2042.
I guess I'm not understanding the interest in purchasing all those contracts yet. It just brings to mind when Disney bought up all the land that is now WDW... if DIS had existed then, people would be watching all that buying and realized something was up.
Unknown why Disney does what they do but it usually is tied to profit. Some of the management decisions made by the former executives running DVD/DVC may be in question or they may want to now take a different direction.
I would think that Disney would want to tear down, build new, and sell new and add additional units to the same resort foot print.
Maintaining a building that is 50 plus years old can be expensive. Yes I know that the owners pay for the maintenance but at some point the cost will be too high.
It's a problem because Disney will instantaneously own the bulk of an old hotel that they have to pay ongoing costs on, whether the WDW rental market is ripe for more inventory or not. But, they can't really make any drastic changes to it because it has to continue operating as a DVC property under the current rules for another dozen years.
When Disney offered the OKW extension what was the deal? Did people how to pay to extend or were they just invited to keep paying their annual MF's?
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