OKW extension

[macemc12]

For those of you that have purchased OKW since the extension offer a few years ago, has DVD contacted you to offer an extension on your recently purchased contract? Is there talk of another extension offer In the future?

Sent from my iPhone using DISBoards

 

[WebmasterDoc]

If you are a recent resale purchaser interested in the extension, you should contact Member Accounting for information. The cost is currently $25 per point but the original limited offer was for $15 per point, later raised to $20 and now to the full approved amount.

There has been no announcement from DVC about extensions for OKW or any other DVC Resort since 2007 when the original extension was proposed and voted on by the DVD/DVC boards. Those buying the extension will get no use of the points until 2/1/42 unless they are allowed to borrow them for use during their 2041 Use Year.

 

[Dean]

For those of you that have purchased OKW since the extension offer a few years ago, has DVD contacted you to offer an extension on your recently purchased contract? Is there talk of another extension offer In the future?

Sent from my iPhone using DISBoards

The value wasn't there at $15 which is one of the reasons it didn't have very good acceptance, at $25 it's an even worse value even though one could adjust for inflation.

 

[macemc12]

Thank you for the info!

Sent from my iPhone using DISBoards

 

[Deb & Bill]

The value wasn't there at $15 which is one of the reasons it didn't have very good acceptance, at $25 it's an even worse value even though one could adjust for inflation.

Agreed. Why pay for something you might not even use?

 

[Dean]

Agreed. Why pay for something you might not even use?

For OKW it's even worse than that as I see it. There's the issue of how the resort will be configured and the fees in the time after 2042. The scenarios as I see them are the following:

1. Keep the entire resort open in it's entirety and try to rent through CRO or use for exchange bait.
2. Reduce the size of the resort in some way which may be a problem since all of the buildings will still have owners.
3. Try to renew the timeshare aspect of the then unsold portions by methods such as another extension or a new sales/give away option as the time grows near.
4. Some combo of the above which is the most likely IMO.
5. Condo sales
6. Employee housing

I don't see #1 being feasible given the current volume anticipated (roughly 1/3 extended from what I've been able to gather) but should control maint fees if they take that route. #2 has the issue I noted above and will likely represent a significant increase in fees. The small buildings are inherently more expensive to operate and the fee controls for OKW have rested mostly on the economy of scale. #3, I don't see a new sale per se but I could see them offering a second extension and using them as a sales incentive for other new sales. IF they change they're sale approach, I could see them using the villas to house those in for a sales incentive. #5 I could see. #6, they've already done this in other areas.

 

[disslot]

Honestly I dont see what the rush is about. I mean think of it, when the original contract expires, disney is going to HAVE to offer another deal just to keep the place operational.

They locked themselves into the extension so they HAVE TO fill the rooms now for that extension. So they are going to have 80% of their rooms unsold at that point. They are going to come back to all the owners at that point with a discount, else the place will loose money.