Theoretical Question....tell me if I am nuts to think this.

[stocker1042]

The wife and I purchased a 160pt. BLT contract direct back in 2010. We paid cash. I think we paid somewhere around $20,000 after all was said and done.

As time has gone on, we enjoy using our points. We even purchased an additional 50 direct at Beach Club so we can bank points to get in there every three years for Food and Wine. Also as time has gone on, we have learned that we dislike staying at BLT. It really does not fit our style.

What we have found is that we really like OKW and Vero on occasion. Since 2010, we have found it increasingly difficult to get certain dates at OKW at the 7 month mark. Since we don't stay at BLT at all, the 11 month booking advantage does not help us at all. We don't use our points for cruises, RCT, etc. We do other vacations on our own dime.

So, I did some digging around today and here is what I found:

My 160 point BLT contract seems to be worth somewhere around $18,000 or so. Selling it through a broker would eat up a small percentage but I would still clear at least $17,000.

OKW contracts seem to be around $15,000 with the same point value. Agreed, I would have some closing costs in there but once again, I'd be under $16,000 when all is said and done.

If I sell my BLT and buy and OKW, I will walk with cash in some way. Or, I could buy a slightly larger OKW contract and have more points to play with. I see that OKW dues are slightly higher but only by .70ish cents a point, which for me is only about $112 a year.

The cash isn't a big bonus to doing this, but having the ability to book our favorite resort at 11 months is. I really don't care about when they expire. I am 41 and my wife is 48. By 2042 we will be living in Florida anyway (and hopefully still alive!) The difference in life of the contracts does not mean too much to me because out lives will be quite different by 2042. We have no kids to worry about either.

What, if anything, is wrong about my train of thought? Be honest.

 

[bumbershoot]

I'm having the same thoughts, and we financed! Ignoring the interest paid (lol) we'd come out ahead to sell and buy at a resort we've stayed at (unlike Bay Lake so far).

 

[mort1331]

Nothing that I can see. There are cases like yours that you can end up even or ahead by selling and repurchasing somewhere else. I am assuming that your looking at the resale market for OKW.
Additionally you might be able to get one of the extended contracts, I know you said that didn't matter to you, but might be a bonus.

 

[stocker1042]

Those extended contracts seem a bit tougher to find, but yes. That would be a bonus.

 

[supersnoop]

Seems like a solid plan to me.

My 160 point BLT contract seems to be worth somewhere around $18,000 or so. Selling it through a broker would eat up a small percentage but I would still clear at least $17,000.

This is the only part I'm not sure you've got right. Brokers tend to charge 10%. At $18,000, you'd clear $16,200.

 

[davper]

I wonder if it would be possible to make a swap, either through Disney or through another private owner and using a title company to avoid the broker?

 

[stocker1042]

Ahhh...10%. Yikes. I was thinking 5%. Doing a swap through Disney was going to be my first call. They might be willing to do that since they have first right of refusal anyway.

 

[disneynutz]

I'm a firm believer in buying where you love to stay especially as booking at 7 months continues to become more of a challenge.

Why own a DVC interest if you are forced to stay somewhere you don't really care for just to use up your points?

Bill

 

[freediverdude]

I have a feeling this would turn out to be about an even trade after all the fees are said and done, maybe come out a few hundred ahead. I am surprised that you're saying you can't get into OKW at 7 months though. But true, that's why I purchased where I did, because even if Disney takes away all the trading options, I would still be happy staying at my home resort every year. Disappointed that I couldn't try other resorts, sure, but still happy with where I could stay.

OKW was very relaxing when I stayed there, I can see why some people prefer it. Eating breakfast out on the balcony watching the wildlife, and no crowd, bus, or park noises was very serene and calming. BLT would be almost the opposite experience, in the middle of everything, lots of hustle and bustle, all the sounds from the park next door, monorail going by, etc.

 

[Savagekids]

I see all of your logic expect for not getting OKW at 7 months. It seems there are always rooms at OKW and SS when I'm looking for a trip about a month out. But maybe you're looking for a bigger room than I am.

 

[stocker1042]

Sometimes we do like to splurge on a larger room. That can be troublesome at times. What I have noticed is this...in 2010-2014 there was never a problem getting a room. For some reason, the last two trips we attempted to book we could get some of the nights and not others.

 

[LisaS]

Since 2010, we have found it increasingly difficult to get certain dates at OKW at the 7 month mark.

What dates and room type have you had trouble booking? I was under the impression that OKW did not book up as quickly as some of the other resorts, even during the busiest times of the year. Just curious. If you are booking a GV then I can understand but I would be somewhat surprised to hear you are having problems booking a 1BR.

My 160 point BLT contract seems to be worth somewhere around $18,000 or so. Selling it through a broker would eat up a small percentage but I would still clear at least $17,000.

I second what supersnoop said. I think most of the brokers charge 10%.

I see that OKW dues are slightly higher but only by .70ish cents a point, which for me is only about $112 a year

Closer to .80ish per point. 2015 dues for OKW and BLT are $5.8370 and $5.0504 respectively so the increase will be $0.7866 per point for 2015, $125.856 for 160 points.

 

[stocker1042]

Thanks for the input.

 

[chalee94]

Ahhh...10%. Yikes. I was thinking 5%. Doing a swap through Disney was going to be my first call. They might be willing to do that since they have first right of refusal anyway.

even at 10%, i think you'll come out way ahead right now with OKW resale prices. (the big "risk" is that you'd wish you still had a contract with some value on it in 2042 instead an expired OKW contract.)

never heard of disney doing that sort of swap. they don't buy back contracts (except in extremely rare cases - i think they offered BCV about 50cents on the resale dollar several years back.)

 

[pmaurer74]

Seems like a solid plan to me.

This is the only part I'm not sure you've got right. Brokers tend to charge 10%. At $18,000, you'd clear $16,200.

There are a few brokers doing 7% until the end of the month.

 

[Minniesgal]

I think your logic is sound but to me your margins are too small to make it worth doing for financial reasons.

However, if you do it because you want to own OKW then thats another story.

 

[Deb & Bill]

I wonder if it would be possible to make a swap, either through Disney or through another private owner and using a title company to avoid the broker?

Not possible. You have to sell it.

 

[stocker1042]

OK. I'm really going to need to give this some thought. I would really like to have the advantage to book at 11 months but the loss in value after brokerage fees might just make me gamble by keeping it. I can't believe they get 10% when most of the real estate world only works on 4-6%.

 

[Dean]

The wife and I purchased a 160pt. BLT contract direct back in 2010. We paid cash. I think we paid somewhere around $20,000 after all was said and done.

As time has gone on, we enjoy using our points. We even purchased an additional 50 direct at Beach Club so we can bank points to get in there every three years for Food and Wine. Also as time has gone on, we have learned that we dislike staying at BLT. It really does not fit our style.

What we have found is that we really like OKW and Vero on occasion. Since 2010, we have found it increasingly difficult to get certain dates at OKW at the 7 month mark. Since we don't stay at BLT at all, the 11 month booking advantage does not help us at all. We don't use our points for cruises, RCT, etc. We do other vacations on our own dime.

So, I did some digging around today and here is what I found:

My 160 point BLT contract seems to be worth somewhere around $18,000 or so. Selling it through a broker would eat up a small percentage but I would still clear at least $17,000.

OKW contracts seem to be around $15,000 with the same point value. Agreed, I would have some closing costs in there but once again, I'd be under $16,000 when all is said and done.

If I sell my BLT and buy and OKW, I will walk with cash in some way. Or, I could buy a slightly larger OKW contract and have more points to play with. I see that OKW dues are slightly higher but only by .70ish cents a point, which for me is only about $112 a year.

The cash isn't a big bonus to doing this, but having the ability to book our favorite resort at 11 months is. I really don't care about when they expire. I am 41 and my wife is 48. By 2042 we will be living in Florida anyway (and hopefully still alive!) The difference in life of the contracts does not mean too much to me because out lives will be quite different by 2042. We have no kids to worry about either.

What, if anything, is wrong about my train of thought? Be honest.

I wouldn't do so and here's some of my thoughts. Long term BLT will be worth more so while you may end up whole or with a little money in your pocket, what you own will be worth less than at OKW than BLT. Plus I don't think you'll have any problems getting OKW if you try at day one 7 months out and use the waitlist. Personally I'd just add on more points at OKW than fool with this even if I had to rent some of my points. Also, OKW is concerning to me for long term dues as it transitions after the 2042 RTU expiration.

I wonder if it would be possible to make a swap, either through Disney or through another private owner and using a title company to avoid the broker?

Agree, this is not possible directly. The only way to do it privately is still a sell and rebuy with ROFR and 2 closings.

 

[KAT4DISNEY]

Sometimes we do like to splurge on a larger room. That can be troublesome at times. What I have noticed is this...in 2010-2014 there was never a problem getting a room. For some reason, the last two trips we attempted to book we could get some of the nights and not others.

And waitlists have not worked?

Currently brokers are competing for contracts and you can contract to sell for 7-8% which is something that one of the brokers has also done for a long time for repeat customers. I'd suspect if you bought an OKW thru them would continue to be an option.