2042?

[your friend]

Does anyone think DVC will offer an extension on the 2042 resorts? They did it for OKW right?

 

[dianeschlicht]

Since OKW extension was not particularly successful, I'm going to doubt they will offer it for the others for awhile. MAYBE when it gets close like in 2042, but a lot can happen to Disney and DVC between now and then. I think they really jumped the gun by trying to do it too early at OKW.

 

[wiltonken]

I heard from a reliable source that it will be offered next to Boardwalk owners. I did not get a timetable but it is going to happen. They are currently working out the details.

 

[Breyean]

Since OKW extension was not particularly successful, I'm going to doubt they will offer it for the others for awhile. MAYBE when it gets close like in 2042, but a lot can happen to Disney and DVC between now and then. I think they really jumped the gun by trying to do it too early at OKW.

The OKW situation is interesting, and I speak as an owner there who did the extension (actually our son decided HE wanted it and paid for it, but still in the family, although my wife and I will be long gone).

DVC has been ROFRing quite a bit at OKW for almost a year now. Seems since I was first ROFR'd on a VGC add on last year, and the broker told me that same day she had at least 2 OKW contracts also bought back for the first time she could recall, people have been reporting ROFRs there.

Now, when DVC does this, they resell those points as part of extended contracts. This has to help them in the long long run, because since so few of us bought into the extension ourselves, I've been wondering what OKW will be like after 2042. It's one thing if Disney buys contracts back and pays the MF on them, but if a majority of the contracts just END, then who will be paying for the upkeep of that large resort after 2042?

By ROFRing and reselling them as extended, DVC is getting more points out there after 2042. Will it be enough to keep the resort open? And functional?

 

[OldGrizzly57]

I heard from a reliable source that it will be offered next to Boardwalk owners. I did not get a timetable but it is going to happen. They are currently working out the details.

I have heard the same. Going to happen, just don't know when.

Griz

 

[hakepb]

The OKW situation is interesting, and I speak as an owner there who did the extension (actually our son decided HE wanted it and paid for it, but still in the family, although my wife and I will be long gone).

DVC has been ROFRing quite a bit at OKW for almost a year now. Seems since I was first ROFR'd on a VGC add on last year, and the broker told me that same day she had at least 2 OKW contracts also bought back for the first time she could recall, people have been reporting ROFRs there.

Now, when DVC does this, they resell those points as part of extended contracts. This has to help them in the long long run, because since so few of us bought into the extension ourselves, I've been wondering what OKW will be like after 2042. It's one thing if Disney buys contracts back and pays the MF on them, but if a majority of the contracts just END, then who will be paying for the upkeep of that large resort after 2042?

By ROFRing and reselling them as extended, DVC is getting more points out there after 2042. Will it be enough to keep the resort open? And functional?

It's easier with OKW if a portion of the resort is unused and they do not see demand to sell the rest, DVC could just tear down some buildings.

That would be more difficult with a hotel resort like BWV, especially with the balance of standard, pool and BW views.

 

[fmer55]

I have heard the same. Going to happen, just don't know when.

Griz

and how do you think they would approach newer resales since they have limited what you can use them for?

 

[dd08]

and how do you think they would approach newer resales since they have limited what you can use them for?

Easy:
Charge more for the extension than if bought direct. Legally they could do it for any resale, not just the newer ones.

 

[Dean]

I go back and forth on this subject. Ultimately I think they have to extend most of the resorts including all at WDW. I think HH and VB are at risk for not being extended. I think they'll do it differently that they did with OKW, they really have to. They priced it too high and they enforced it with a Special assessment option that FL law and the POS do not give them the authority to do. Had I still owned OKW you can rest assured it would have been tested in court and if they try the same option with BWV, the legal challenge will come. However, I am aware of the corner they've backed themselves into by tying the club ownership to the land lease. There really isn't a good way to do it far ahead. My guess is they'll tie it to some type of perks or VIP option including maybe an additional retail purchase, or else they'll do it later in the course, say with about 8-10 years to go.

 

[hakepb]

I wonder why extend at all?

(3) 15 year extensions (if they extended 3 different times)cost $45/ point Or they could let the old contract expire and sell new points at the going rate of $160.

 

[Chuck S]

I wonder why extend at all?

(3) 15 year extensions (if they extended 3 different times)cost $45/ point Or they could let the old contract expire and sell new points at the going rate of $160.

I tend to agree with this scenario. I think they will let the current contracts expire and take time to fully rehab the resorts, then resell the points as "new" with a discount to those people (or their heirs) that had been part of the original purchase. It is better to do a full rehab with the entire resort vacant, that way they aren't working with only a handful of rooms at a time, can make all the construction noise they'd need to make and they won't have to work around a schedule to accommodate guests with reservations.

 

[jennypenny]

I had a chat with my guide about this in the fall (he's been there since the beginning). He said the current plan was to offer extensions but much closer to the expiration dates. He said the thinking was that older members (we were talking about BWV and BCV) may have purchased at the newer resorts in the meantime and the demand to extend wouldn't be as large as you'd expect. There would also be families where the original owners had passed and the current owners weren't as interested in being owners. (basically--extensions won't be a big issue)

He did say they would certainly offer extensions to the *successful* DVC properties. Made me think HHI and VB (at the least) would be sold off near the end. I wondered if that meant that properties like SSR might be shopped around near the end, but it's too far off to know what the world will look like then.

 

[BUDDYBEAR]

YES I THINK SO

 

[Dean]

I wonder why extend at all?

(3) 15 year extensions (if they extended 3 different times)cost $45/ point Or they could let the old contract expire and sell new points at the going rate of $160.

There's no money to be made in selling for 15 years either way and the resorts will likely need far too much rehab to get them ready for a full new RTU. My thinking that they'll have to extend them in one way or another is that they have such an infrastructure that they'll need the additional owners to fuel their management habit.

 

[dianeschlicht]

or else they'll do it later in the course, say with about 8-10 years to go.

That's exactly what I think. I think their big mistake at OKW was doing it after only 15 years of ownership on a 50 year contract. I really think they used that money to do the refurbishment this time around. It wasn't a really great use of money either, as far as I'm concerned.

 

[Dean]

That's exactly what I think. I think their big mistake at OKW was doing it after only 15 years of ownership on a 50 year contract. I really think they used that money to do the refurbishment this time around. It wasn't a really great use of money either, as far as I'm concerned.

IMO, they backed themselves into a corner with OKW both with the price and the method. That means that if they do it sooner, they have to be enough different that it doesn't upset the OKW owners and that's for those that extended and even more, those that didn't. I've always felt their best choice was to tie the extension to a min retail purchase as an incentive.