2 small contract or 1 big?

[vikequeen]

We are looking at adding points to our membership (probably buying direct) I plan to split our purchase into two smaller contracts instead of 1 bigger to make it easier to pass on to my kids or sell ofF if we need to some day. I don’t see any real downside to this. Am I missing something? TIA.

 

[Drewferin]

Additional closing costs is the real downside. For small contracts this can be another $10 or more dollars per point.

 

[BlueRibbon]

If buying direct, I can't see a downside. I'm with you on the pros though. Much easier to pass on to kids or if the worst should happen, easier to sell.

 

[ELMC]

I think it would be easy to justify the extra closing cost when you factor in that smaller contracts typically fetch higher prices on the resale market. Now certainly a lot can change between now and the future time you might be selling, but that's held up pretty well over the years. I would suggest that if you are spending the money to buy direct, you spend the extra few dollars to get the contracts structured exactly how you want them.

 

[Great3]

I think the advantages far outweighs the cons. Yes, there are two closing costs. The biggest con if you are buying resale is trying to match up use years and waiting for the right contract to show up, and negotiating. With direct, this big frustration is not there. I would purchase smaller contracts as well, I personally think 200 points is the maximum I would own for any DVC points contract. It just much easier to sell, as you have a bigger audience size looking versus a bigger contract when it comes time to resale.

Great3

 

[Dean]

We are looking at adding points to our membership (probably buying direct) I plan to split our purchase into two smaller contracts instead of 1 bigger to make it easier to pass on to my kids or sell ofF if we need to some day. I don’t see any real downside to this. Am I missing something? TIA.

I tend to recommend against doing this until you get of sufficient contract size to make 2 truly stand alone contracts and the size gets to be a deterrent from a possible resale standpoint. Effectively under around 350-400 I'd do it as one contract if the only reasons was resale or legacy options. If you're 60 and the kids are 40 and stable it might be reasonable but just for the possibility in the future of giving one to each, no. It's more expensive to do so often by as much $10 per point, the cost is simply too high in most situations. But every situation is different so you'll need to consider yours. Now if you haves other reasons where it makes more sense and are the main issues like buy one now and one later and/or to get different home resort priorities, that's different. And sometimes you can find a single owner selling multiple contacts and it is treated more like the larger single contract.