Thinking about buying resale at OKW

[curtessey]

Seriously thinking about buying a resale - possibly at OKW. Is there an official Disney site to go through? If so, any benefits to going through Disney as opposed to an outside sales agency? Any advice is appreciated. Thank you!

 

[lovin'fl]

Direct will cost more per point, a lot more. But closing costs are cheaper, you get a fully loaded contract (all points from current UY forward, where resale contracts might not have points until 2017 or 2018) and you get your points right away. You also will qualify for all the perks and benefits, like AP with DVC discount. But the price per point will be way more. Resale is very safe, as long as you go with one of the known resale brokers. It does take about three months to go through the process and the contract can be taken by DVC in ROFR (no financial loss to you). You have to pay in cash or secure your own loan. Direct has loan options as well as ability to pay by CC (and if you have Chase Disney Visa you can get rewards dollars that pretty much are equal to the closing costs).

 

[curtessey]

Thanks Lovin'fl for your quick response. We took the tour at DLR last month, but we really don't want to do a 45 or 50 year contract, which is why I was thinking OKW would be good to look into a resale. I asked the agent about it, but he didn't really seem to want to give us any info on the resales. So, if I want to look into buying a resale through Disney, do you know who I would contact? Just DVC?

 

[lovin'fl]

Thanks Lovin'fl for your quick response. We took the tour at DLR last month, but we really don't want to do a 45 or 50 year contract, which is why I was thinking OKW would be good to look into a resale. I asked the agent about it, but he didn't really seem to want to give us any info on the resales. So, if I want to look into buying a resale through Disney, do you know who I would contact? Just DVC?

Direct through Disney...the agent/guide you did tour with could sell it. You can call DVC and ask for a guide and say you are interested in buying.

 

[kniquy]

Definitely you should go resale especially for older resorts. It will save you approx 40% vs direct. There are a number of resale companies. just search DVC resale. DVC would rather sell you the current resorts of Poly and Hawaii and not the older resorts. If you want any of the direct purchase benefits (AP discounts TIW card, shopping and dining discounts) then you have the option of once you purchase resale you can do a small direct add on (25 points) in order to get the benefits. Sometimes it makes sense to purchase the small add on for those benefits, but not always the case.

don't want to do a 45 or 50 year contract,

Most people won't actually keep the contract until the end so i would not factor that into your decision making process. It kind of depends upon your age and family make up so maybe plan that you will keep the contract for the next 15-20 years. Your life will likely change dramatically in that time frame.

Thankfully DVC has a pretty good resale value compared to many other timeshares. So say you buy a contract at a resort that has 40 years left even if you use it for 20 years and decide to sell -- the next person will still have 20 years left on it and you could sell it at a pretty good price to recoup some of your investment. I would not exclude those resorts with longer contracts -- the longer contract is probably more attractive because in the example i noted above. If you purchase a contract with a 2042 expiration and you want to sell after owning for 20 years that contract will only have 6 years left -- people are not going to pay much for a contract that only has 6 years left.

FYI OKW does have some contracts on the resale market with an expiration of 2057 (I believe) because at one point in time members were offered an extension for a longer expiration.

 

[lovin'fl]

By the way, just for clarity: direct is buying through DVC, even when buying older resorts. Resale is buying through an outside broker.

 

[_auroraborealis_]

OKW is $140 per point if purchased through Disney.

Assuming a 100 point contract, if purchased through a resale broker, those same points would cost ~$80-90 per point. Which is to say, for 100 points, direct would be $14,000, and resale would be $9,000 if you landed on the high end.

Now, sure, you do save on closing costs purchasing direct, but... if your closing costs are $5k you did it wrong. Very very wrong.

 

[KAT4DISNEY]

There is no such thing as resale thru Disney so asking them about it is like asking them about their competition. Yes, you can buy OKW direct thru DVC buy that is not a resale and doesn't have the lower resale price.

 

[lovin'fl]

OKW is $140 per point if purchased through Disney.

Assuming a 100 point contract, if purchased through a resale broker, those same points would cost ~$80-90 per point. Which is to say, for 100 points, direct would be $14,000, and resale would be $9,000 if you landed on the high end.

Now, sure, you do save on closing costs purchasing direct, but... if your closing costs are $5k you did it wrong. Very very wrong.

Yeah, direct is really only good when buying smaller contracts where the cost difference isn't as great. I did 55 and then 25 and then another 25 at BWV direct. Bought over course of 2 years when we had the cash for it but put it on our Disney Case Platinum to get the 2% rewards dollars.

 

[curtessey]

By the way, just for clarity: direct is buying through DVC, even when buying older resorts. Resale is buying through an outside broker.[/QUOT



Thanks for the explanation!

 

[Dean]

Thanks Lovin'fl for your quick response. We took the tour at DLR last month, but we really don't want to do a 45 or 50 year contract, which is why I was thinking OKW would be good to look into a resale. I asked the agent about it, but he didn't really seem to want to give us any info on the resales. So, if I want to look into buying a resale through Disney, do you know who I would contact? Just DVC?

If you don't want or need it at some point it can always be sold. If you're just trying to get into the system as cheaply as possible and expiration doesn't bother you, I think there are several better choices. It sounds like you may need to do some more investigation to get enough info to make a good decision. I would recommend against going retail in this situation. What you may want to consider is resale plus a 25 point retail add on. SSR will be the cheapest long term to use here and there, BLT will be second. OKW will be a fair amount more. You mentioned you did he tour at DL, it's not likely you'll get into VGC unless you own there and reserve at or around 11 months out consistently.

 

[Goofy DVC]

Dean, I'm curious as to what long term issues exist for OKW from a cost perspective that don't apply to other DVC resorts?
Thanks.

 

[_auroraborealis_]

Dean, I'm curious as to what long term issues exist for OKW from a cost perspective that don't apply to other DVC resorts?
Thanks.

The 2042 vs. 2057 contract expirations are a real wild card at OKW.

 

[Dean]

The 2042 vs. 2057 contract expirations are a real wild card at OKW.

I agree. It'll likely work out but it adds risk and uncertainty and likely won't be sorted out till near the end of the 2042 members.

 

[Wakey]

From my research I'd echo the point about buying a longer contract. Dvc over the very long term (buying direct) has increased in value slowly, but over the short term when buying resale has increased in value reasonably quickly. If you'd bought 5, 10 years ago resale, you'd get your money back if you sold it on and possibly turn a decent profit.
Whilst there is no guarantee prices will continue to increase, I suspect they will. Countering price increases is the diminution in length of contract, people won't pay as much for a shorter period (but other things do come into play such as resort desirability which is why Beach Club has held up well).
To put it simply, if you buy a 25 year contract and hold it 25 years it lapses and that is it.
If you buy a 45 year contract and sell in 25 years, I'd be surprised if you did not get back at least what you paid and probably a lot more for that remaining 20 years (although taking into account inflationary affect on your original investment, you'd in real terms only recover a chunk of your original investment, but a decent chunk).
I wouldn't dream of buying one of the early finish contracts.

 

[Wakey]

I agree. It'll likely work out but it adds risk and uncertainty and likely won't be sorted out till near the end of the 2042 members.

Imagine (could happen) OKW gets levelled and rebuilt in 2042. Those with the longer contracts could do very well, with compensation or stays at newer resorts.

 

[Dean]

Imagine (could happen) OKW gets levelled and rebuilt in 2042. Those with the longer contracts could do very well, with compensation or stays at newer resorts.

Not without a special assessment, the members would have to pay for such a change. More likely they'll condense the resort in some way and use the rest for college housing and/or rentals. Or they could just close down part of it and raise the dues. Or they could vote to just close the entire thing and pay off the owners for pennies on the dollar. They'll literally own over half the resort in 2042, likely well over half.

 

[a742246]

Seriously thinking about buying a resale - possibly at OKW. Is there an official Disney site to go through? If so, any benefits to going through Disney as opposed to an outside sales agency? Any advice is appreciated. Thank you!

Please note: If you are planing to buy resale, there are two expiration dates on the market for OKW. One with a 2042 expiration date and one with a 2057 date.
I would buy the 2057 date even if its a little more money. If you buy retail thru Disney I believe they only sell contracts with an expiration date of 2057 but I am not 100% sure on that.

 

[Dean]

Please note: If you are planing to buy resale, there are two expiration dates on the market for OKW. One with a 2042 expiration date and one with a 2057 date.
I would buy the 2057 date even if its a little more money. If you buy retail thru Disney I believe they only sell contracts with an expiration date of 2057 but I am not 100% sure on that.

I agree, IF (big if IMO) I were going to buy OKW now, it'd be 2057 given the current difference. If the difference were big enough, the 2042 RTU would still be reasonable and offer some advantages. The reason for the "big if" is the transition for 2042 to 2057 has some risk and uncertainties though it'll likely work out.

 

[Wakey]

Not without a special assessment, the members would have to pay for such a change. More likely they'll condense the resort in some way and use the rest for college housing and/or rentals. Or they could just close down part of it and raise the dues. Or they could vote to just close the entire thing and pay off the owners for pennies on the dollar. They'll literally own over half the resort in 2042, likely well over half.

Don't know about the paying off pennies in the dollar. Many owners of 57 contracts would kick up a major stink, and the publicity would be highly damaging for Disney timeshare business. If they really wanted to take it back prematurely, I think they'd either have to make very good offers or transfer people to a new resort not yet sold out. But who knows....