2042 vs 2057 resales

[bookwormde]

Just was wondering what the experts thought was going to happen to the OKW market after the resale 2057 contracts start to enter the market. From what I can see the (at DWD) reasales (adjusted for booked/borrowed points and MF) sell for about 10% less for the new resorts and about 15% for older resorts (with obvious exceptions BC is high and SS is low due to “popularity”). If you apply the 15% model to the DVC offering price of $96 for 2057 OKW that leaves you a resale area of about $82. If you use the discounted differential of $15 for the upgrade, that leaves you at $67 and if you use the $25 figure it really throws the market out of order. I know Disney can ROFR but then they would only get the $15 for the upgrade instead of the $25 which they are asking of members now and would likely end up with a lot more contracts than they want in inventory for an “older” resort.

I know I probably over think things but have considered waiting for the 2057 to start on the market in a year or so to get the best value (and so I can transfer it to my children so they can take me to DWD in 25 years). Also concerned about a drop in 2042 prices if I bought that now. I guess Disney could raise there price on OKW but that is restricted by demand and comparisons to other resorts.

Thinking about pulling the trigger on buying in but this is one of the factors which I am not sure of.

bookworm

 

[LoveToDisney]

I'm guessing not many that sign up for the extra years are going to be selling them anyway....they paid extra to add those extra years and why do that if they plan to sell.

 

[Deb & Bill]

Personally, I don't give a flip. We didn't extend our OKW points because I'll be 91 going on 92 if I'm still alive. And I didn't want to strap our son with monthly dues in the range of $25 a point.

 

[blizzard]

I'm guessing not many that sign up for the extra years are going to be selling them anyway....they paid extra to add those extra years and why do that if they plan to sell.

See, and the way I looked at it was that - unless I was planning to sell, there was no need to do the extension. I figured that once the 2057 contracts hit the resale market, the 2042's will sell for significantly less (only as high as DVD is willing to prop up the market). If someone was thinking of selling sometime in the future, I would think that the extension would be the only way they could get anything close to what the new properties fetch.

My hope is that the prices on the 2042's will drop low enough that it makes sense for us to buy more points as an add on.

 

[gargoyle007]

Personally, I don't give a flip. We didn't extend our OKW points because I'll be 91 going on 92 if I'm still alive. And I didn't want to strap our son with monthly dues in the range of $25 a point.

We made an offer that is in ROFR for SSR. I wanted the extra years because we are going to deed the DVC to our kids in our wills. Maintenance fees rising in the 3% annual range will probably stay close to inflation. I'm thinking that whatever maintenance fees they pay will still make the DVC a bargain since they will be sharing 400 points that are PAID FOR. When I was seventeen I pumped gas @ 33 cents a gallon. We're paying 10x that now and yet still go to Disney.

 

[dvc at last !]

See, and the way I looked at it was that - unless I was planning to sell, there was no need to do the extension. I figured that once the 2057 contracts hit the resale market, the 2042's will sell for significantly less (only as high as DVD is willing to prop up the market). If someone was thinking of selling sometime in the future, I would think that the extension would be the only way they could get anything close to what the new properties fetch.

My hope is that the prices on the 2042's will drop low enough that it makes sense for us to buy more points as an add on.

I agree.

 

[RobDoc]

... If you apply the 15% model to the DVC offering price of $96 for 2057 OKW that leaves you a resale area of about $82. If you use the discounted differential of $15 for the upgrade, that leaves you at $67 and if you use the $25 figure it really throws the market out of order. ...

The pricing for OKW thru DVC is already $101. All OKW contracts purchased thru DVC have the extended years - they are not selling OKW contracts with the 2042 expiration.

 

[DVC Mater]

The pricing for OKW thru DVC is already $101. All OKW contracts purchased thru DVC have the extended years - they are not selling OKW contracts with the 2042 expiration.

What an awesome money maker for DVC. Snatch up 2042 OKW contracts under ROFR for dirt cheap, and just make em 2057 points and sell em for so much more....genius

 

[kfalsey]

do you think beach club with 2042 end date will have an increased offering time too like okw

 

[Frankiesmom]

How do they work the offerings for the increased time? We are currently awaiting ROFR for VWL with an end date of 2042. When are they likely to offer an extension? Or is this something I should even be concerned with? TIA!

 

[spatter1234]

Sorry for the dumb question, but now you can get OKW points until 2057? I haven't kept up like I should. Also, is OKW the only resort you can extend the contract for?

 

[RobDoc]

Sorry for the dumb question, but now you can get OKW points until 2057? I haven't kept up like I should. Also, is OKW the only resort you can extend the contract for?

Presently, OKW is the only resort with the extended expiration. Most resales for OKW still have the 2042 date, but all OKW sales thru DVC have the extended date - January 31, 2057.

There has been no mention of offering the extension for other resorts ... yet.

Stay tuned!

 

[DisFlan]

Personally, I don't give a flip. We didn't extend our OKW points because I'll be 91 going on 92 if I'm still alive. And I didn't want to strap our son with monthly dues in the range of $25 a point.

That's exactly how we feel about our BWV points. If we're still around, I'll be 94 in 2042 and my DH will be 101. If our son decides he wants them, he can do what he pleases with them...keep 'em, dump 'em or buy something else. Heck, he may want to sell them to help cover our nursing home bill. We likely won't a) know the difference or b)care.

DisFlan