2042 Expiration

[mamaofsix]

For us, a 2042 resort is actually much more appealing than a later expiration. We haven't bought into DVC yet, but are considering. I like the idea of 2042 because it means I'm only locked into 20 years of annual dues. We would be spending waaaaaaay less over the lifetime of the contract. We're pushing 40, and I'm not sure we're still going to want to own DVC in our 70s. And I don't really want to pass down a contract to our children upon our death - locking them into either paying annual dues as well or having the headache of reselling their portion.

So, I guess it just depends on the person / situation.

And as the current pandemic climate has shown, there really isn't a high level of certainty that Disney will still be the company it is now, 40 years down the road...

 

[Hopfather28]

I think an important consideration with 2042 resorts is the relatively lower point per night cost. For instance we stay 9 nights in a studio. At PVB that is around 250 points in the summer. At BCV that's about 160 points. So cost wise that does play a roll. All of that said. I'll be retiring in 2042 so I'm not about to buy a resort I don't have a shot of enjoying in retirement.

 

[Disneysweetheart23]

For us, a 2042 resort is actually much more appealing than a later expiration. We haven't bought into DVC yet, but are considering. I like the idea of 2042 because it means I'm only locked into 20 years of annual dues. We would be spending waaaaaaay less over the lifetime of the contract. We're pushing 40, and I'm not sure we're still going to want to own DVC in our 70s. And I don't really want to pass down a contract to our children upon our death - locking them into either paying annual dues as well or having the headache of reselling their portion.

So, I guess it just depends on the person / situation.

And as the current pandemic climate has shown, there really isn't a high level of certainty that Disney will still be the company it is now, 40 years down the road...

Thanks for responding. We are in a similar situation as you, so this helps add some other considerations for thought.

 

[Albee]

Here is something I thought of the other day to ponder. When these 2042 resorts expire will Disney offer longer DVC extensions to members or change them to vacationing resorts or revamp totally & resell like Rivera. Will that mean that Re-sale DVC members with different DVC Home Resorts, with later expirations, will have less options to choose from to stay in 2042 & beyond? It would be like Rivera is now, Resale DVC members cannot book there.

 

[MJ NH]

I think you will be right.

 

[Sandisw]

Here is something I thought of the other day to ponder. When these 2042 resorts expire will Disney offer longer DVC extensions to members or change them to vacationing resorts or revamp totally & resell like Rivera. Will that mean that Re-sale DVC members with different DVC Home Resorts, with later expirations, will have less options to choose from to stay in 2042 & beyond? It would be like Rivera is now, Resale DVC members cannot book there.

While no one knows for sure, I believe the 2042 will be resold as new resorts, with new point charts, and with the same resale restrictions that were put in place with RIV.

So, at that point, the pool of resorts to trade into will shrink for resale owners.

 

[Albee]

So resale prices will fall, I wonder how they will handle that? Eventually when buying resale a person will definitely want to buy where you want to stay as that will be the option, or very limited.

 

[Sandisw]

So resale prices will fall, I wonder how they will handle that? Eventually when buying resale a person will definitely want to buy where you want to stay as that will be the option, or very limited.

Disney doesn’t really care about resale value. I think that is why we have seen the product changed over the years, They want people to buy direct.

 

[OKW Lover]

Disney doesn’t really care about resale value. I think that is why we have seen the product changed over the years, They want people to buy direct.

This is mostly true. However, once the delta between resale and new becomes "too large" (whatever that may be) Disney will feel the impact as buyers find the resale market more attractive.

 

[chalee94]

This is mostly true. However, once the delta between resale and new becomes "too large" (whatever that may be) Disney will feel the impact as buyers find the resale market more attractive.

This is a logical assumption. It makes sense to me.

But this is not what the rest of the timeshare industry has experienced. Non-DVC timeshares sell for thousands direct but pennies on the resale market.

I think that industry delta is part of why DVC management has been moving DVC toward the industry standard over the last several years... Lots of people still "feel" that purchasing direct is more "legitimate" and "magical" while resale is akin to a dark alley purchase from some guy in a trenchcoat...even if the math and logic dictate otherwise...

 

[pineapplepalms]

We bought BWV resale two years ago and I absolutely feel like it's been worth it for us. I love the Crescent Lake area and BWV in particular. Being able to walk to our two favorite parks is something we really value. Even though it expires in 2042, that's still a lot of vacations with our kids as they grow up. Since we're in our 30s, we didn't want it to be our only contract, so we also own at other resorts with longer contracts. We've used our points to stay in 1BRs and a GV at BWV and the GV stay was amazing. Owning BWV still allows us to stay in these rooms for much less than paying cash even though it's not the most economical option for a DVC home resort.

 

[mamaofsix]

While no one knows for sure, I believe the 2042 will be resold as new resorts, with new point charts, and with the same resale restrictions that were put in place with RIV.

So, at that point, the pool of resorts to trade into will shrink for resale owners.

What about a resort like OKW, which has some contracts with a 2042 expiration, and some with a 2057?

 

[heynowirv]

How old will you be in 2042? Will you still want to go to WDW in 2042?

Exactly ,I'll be 88 when our OKW contracts ,and now looking at VWL because we love that as well.BWV is also appealing since as others have noted you can walk to 2 parks, walk the Boardwalk and now take the Skyliner.

 

[ClemTig]

While no one knows for sure, I believe the 2042 will be resold as new resorts, with new point charts, and with the same resale restrictions that were put in place with RIV.

So, at that point, the pool of resorts to trade into will shrink for resale owners.

I doubt the demand will be there for that product. Plus, dumping all of these resorts on the timeshare market at the same time would be a colossal error. I'm thinking Disney is not that stupid. Probably cheaper and more profitable to just offer an extension to current owners.

 

[chalee94]

I doubt the demand will be there for that product. Plus, dumping all of these resorts on the timeshare market at the same time would be a colossal error. I'm thinking Disney is not that stupid. Probably cheaper and more profitable to just offer an extension to current owners.

Disney was profoundly stupid in their extension offer to OKW owners like me. It was a trainwreck. Very iffy from a legal standpoint. Still not sure how it's going to pan out.

So I'll take any bets on offering an extension for 2042 resorts. "Dumping" is hardly the only option, they can do a soft refurb of one or two resorts and rent for cash while the other(s) are in sales. But those cheap standard villas at BWV are definitely going away. And extending BCV means they can't pull it out of the trade pool for resale buyers. BRV is fairly small - not much of an issue either way.

(VB is a safe bet to depart from the DVC system and HHI is pretty iffy.)

What about a resort like OKW, which has some contracts with a 2042 expiration, and some with a 2057?

All of OKW is extended to 2057, the only question is whether an individual owns the extension or Disney.

Since all of OKW is extended, (barring legal shenanigans) it should remain under pre-RIV rules and stay in the trading pool for resale buyers until 2057.

But questions remain about how much of the resort will be owned by Disney in 2042. Will Disney have excess inventory that they might decide to shutter or use as cast housing? Will 2042 owners get reduced dues at the end of the contract related to capital costs that won't benefit them? Some owners may even wind up getting the extension for free due to problematic language in the contracts... Those are some of the reasons why extensions of other 2042 resorts are really, really unlikely.

 

[mlayton14]

I would bet $$$ that Disney won’t extend the 2042 resorts - why would they? They can make minor investments to refurb them and sell brand new leases without having to invest huge sums since the buildings are already built, and already have prime locations.

 

[ClemTig]

I would bet $$$ that Disney won’t extend the 2042 resorts - why would they? They can make minor investments to refurb them and sell brand new leases without having to invest huge sums since the buildings are already built, and already have prime locations.

Because there are several resorts that all come due in 2042, not just Boardwalk. If they offer an extension they don't need to "do" much of anything to collect a fat payday. And in doing so, they keep a large number of people committed to Disney vacations. If they do not extend, they risk losing that pool to other vacation options and have a HUGE surplus of either hotel rooms or new DVC locations to market all at once.

I understand the extension to the OKW owners did not go well. Frankly, from someone outside of that fiasco, there seems to be plenty of blame to go around, including to the OKW owners that acted like spoiled brats when they didn't like the offer.

 

[Lumpy1106]

I would bet $$$ that Disney won’t extend the 2042 resorts - why would they? They can make minor investments to refurb them and sell brand new leases without having to invest huge sums since the buildings are already built, and already have prime locations.

Because Disney. Just like the issues they are going through now with cancelled DVC stays, they, on paper, didn't need to do anything - but they did. Same goes here. They don't want all of those properties to sit vacant, nor do they want to alienate their most fervent visitors. My guess is they will make some sort of offer to the 2042 owners. They may not like it, or may decide that their time in DVC has run its course, but the offer will be made. Not for quite a while though. I would think some time around 2032 the resale price will really start to drop and they'll get serious about it. Until then, expect nothing and enjoy what you have.

 

[zavandor]

I think they will not extend BWV and BCV, too much easy money to do increasing the point chart and reselling the points.
They will sell Vero e HHI to someone else and they'll leave DVC.
They might extend BRV, but not like they did for OKW. I think they'll make a new shorter lease, to align its end date to CCV and resell as new but just for around 25 years, maybe with a bigger discount to existing owners.

More interesting is what they'll do with SSR in 2054. With the resale restrictions in place it'll be very difficult to sell and it's a mountain of points.

 

[CarolMN]

....(snip).....
I understand the extension to the OKW owners did not go well. Frankly, from someone outside of that fiasco, there seems to be plenty of blame to go around, including to the OKW owners that acted like spoiled brats when they didn't like the offer.

Why would you say that? The extension was a poor economic value for the owners. The resale market has never even come close to valuing an extended contract at the price DVD was/is charging for it.

FWIW, I've never owned OKW, but if I did, I wouldn't accept the offer, either.