1200 point OKW contract for resale

[disneyberry]

Made my jaw drop to see this listing this morning.

Can't believe someone bought 1200 points and didn't break it up into smaller contracts! Must be one of the original owners from DVC's launch.

They're gonna have a hell of a time selling that. It's probably going to get snapped up by Disney in ROFR.

 

[disneynutz]

May have not had the option to break up older contracts and/or purchased by a corporation or company who didn't really care.

Bill

 

[BrittanyLynn]

I saw it this morning as well and wondered what the story was. That's a lot of vacationing. ; )

 

[dsnydaddy]

If I could, I would. 1200 points would be a blast to use every year.

 

[KAT4DISNEY]

That's about the same as buying a PVB Bungalow fixed week now.

 

[a742246]

What are they asking for per point?

 

[nalajms]

It's listed for $52 pp. Sadly that's not the most expensive listing! The 2bd fixed week VGF listing beat it by $20k.

 

[suebeelin]

That's 17/18 nights in a 3bd grand villa at Okw even during magic/premiere season.

Perhaps the original buyers bought that many points intending to have the grand villa for 2.5 wks every year.

Alternatively, that's 24 nights in an Okw grand villa during the month of January. Or 49 days of a 1bd, from jan 1-feb 20!!

Just dreaming...

Regardless, that's a huge contract, particularly for back then.

I wonder how much it will sell for, and if it sells for $10 less than listing at $42pp, whethe it will be taken during the ROFR process. Id love to track this contract and sales info for curiosities sake!!

 

[bellablue2]

that contract has been on the market for at least six months. back in october, there were two such.

 

[DVCcurious]

My problem isn't really the purchase price. I mean I could come up with the $53k for a one time cost, and it's only double the cost of a 250 point BLT contract.

But the dues. The dues would be a beating. 1200 X 5.50 is like $6600 (off the top of my head so I could be wrong). That's the real problem with the contract. I don't think I could afford the dues even if the contract was free!

 

[tasha99]

You could rent the unused points to pay the dues. As someone mentioned above, I wonder if some of the huge contracts were purchased by corporations. Seems like it could be a nice perk to give to clients. There are corporate Club 33 memberships (where, I don't know--if I did, I'd be all over trying to weedle my way into a reservation).

 

[davidl81]

Buying that contract would make sense if you were planning on mostly just renting out the points. Right now it would be very easy to get $12 a point on rentals. So if your dues were $6600 a year you would only need to rent out a Little less than half of you points to cover your dues. Let's say you rent all of them at $12 a point you would get $14,400 a year. Minus the 6600 dues you would net $7800 a year renting points. It would take you seven years to recover your intinal capital investment (not accounting for time value of money and buying them at $50 a point). Maybe a bit more depending on final closing cost, etc. after the seven year mark you could then just rent out the 600ish points needed to pay your dues and then you would basically have a free 600 points a year. I am assuming that dues will increase about the same amount that point rentals are increasing.

I need to stop typing this as I think I am talking my self into buying this contract.

 

[suebeelin]

My concern is renting out points and the rare yet very real potential liability that comes with that....

 

[DVCcurious]

Actually you don't even need to worry about the pay-back period if you're looking at this as an investment. At least in the next 10 years I'd assume you could re-sell the contract for the $50 you paid for it. So you'd be getting $7800 per year on a 50k investment: 15% rate of return.

If I wasn't so good at trading stocks I'd jump on this. But I've been trading stocks since August 2009 and I've averaged about 18% per year, so I can easily surpass the 15% this contract would give.

 

[mtm65]

I would be concerned that the value of the contract would decline as it gets closer to the expiration date. What if Disney restricted the renting of points? Nonetheless, I would love to own this one

 

[Quellman]

I would be concerned that the value of the contract would decline as it gets closer to the expiration date. What if Disney restricted the renting of points? Nonetheless, I would love to own this one

There is something in the book (if anyone bothers to read it). I don't have mine handy at the moment, but they can take action against you if you book something like more than 14 reservations per year for which you are not a guest. I have not been around too long, but haven't read stories of someone getting busted by Disney for it.

 

[supersnoop]

I would be concerned that the value of the contract would decline as it gets closer to the expiration date. What if Disney restricted the renting of points? Nonetheless, I would love to own this one

There is something in the book (if anyone bothers to read it). I don't have mine handy at the moment, but they can take action against you if you book something like more than 14 reservations per year for which you are not a guest. I have not been around too long, but haven't read stories of someone getting busted by Disney for it.

There can be no restriction on renting points; it's real estate and you own it, renting is specifically allowed. However, there is a restriction against using your ownership for "commercial purposes." I imagine that's vague for a reason. Some people have a guess about how Disney defines "commercial purposes," but nobody knows for certain.

 

[DVC Doctor]

This is now listed as "sale pending"