50 point contract

[klynn]

What would be the reason for someone who currently does not own DVC to only buy only a 50 point contract (from a private party)? Is it just less expensive way to get into DVC? If I bought only a 50 point contract now and later bought additional points, say 150, would it work the same as if I had bought 200 points to begin with? Or are there downfalls to buying seperate contracts? TIA

 

[sean-1966]

If you bought a 50 point contract you could always bank or borrow one year. That's 100 points every 2 years. Enough for a studio certain times of year.

 

[DVCLiz]

What would be the reason for someone who currently does not own DVC to only buy only a 50 point contract (from a private party)? Is it just less expensive way to get into DVC? If I bought only a 50 point contract now and later bought additional points, say 150, would it work the same as if I had bought 200 points to begin with? Or are there downfalls to buying seperate contracts? TIA

Yes, that's exactly the reason. It's cheaper to buy a 50 point contract and add on later. Once you own more than one contract, the points can be combined, depending on your home resort and Use Year restrictions. If you bought a 50 point contract now, via a resale or a private party transaction, and then next year you bought a 150 point contract of the same Use Year from Disney, you'd be able to make plans based on all two hundred points.

 

[vascubaguy]

My first contract was only 40 points and I purchased that number because I had enough cash to pay out-of-pocket without any financing or pulling from other sources. Those 40 pts (at OKW) was enough to get me 5 nights in a studio in October (which is when we typically plan to go).

Of course, by the time I closed, I had already decided to add-on and ended up buying more points at SSR. I purchased these points direct thru DVC so I got the same use year as my OKW contract. So, technically I have 1 main contract and 1 sub-contract. The only time the points are differentiated between is if I want to book at more than 7 months out. At 7-11 months I can only use the 40 OKW pts for ressies at OKW, and can only use the 110 pts at SSR for ressies at SSR.

Just to add that if you purchase the 2nd contract via resale, it is likely that you will have two completey different contracts (and 2 contract numbers). These can be a little more difficult to manage because it can involve transferring points between contracts. However, it is doable and many DVC members on here do exactly this.

HTH

 

[keishashadow]

You can also "buy where you want to stay", not the current offfering they're selling, for the res. advantage.

As stated earlier, we paid cash for initial contract & for subsequent add-on.

Good luck.

 

[Beca]

For many people (my mom included) 50 points is enough. It gets her 5 days in a studio for much of the year (especially early Dec when she loves to go). She paid about $3800 for the points, which got her 5 nights a year for 37 years...$100 per year, plus $200 per year MN fees. Basically, 5 nights in a deluxe resort for the price of one. It is EXACTLY what she wanted.



Beca

 

[JimMIA]

If I bought only a 50 point contract now and later bought additional points, say 150, would it work the same as if I had bought 200 points to begin with?

It would work EXACTLY the same if you bought both contracts at the same resort, with the same use year. If you have contracts at different resorts, you can only use the points you have at a particular resort for bookings in the eleven-month window. At seven months, it doesn't matter. If you have the same resort, but different use year, the points will work about the same, but you'll have two sets of banking deadlines to keep up with. If you have different resorts AND different use years, you will have both booking and banking differences.

Or are there downfalls to buying seperate contracts? TIA

Well...if you buy both contracts resale, you will have two sets of closing costs. Hopefully, that would be offset by lower prices.

There are actually advantages to having multiple contracts. If you have separate contracts, you will find that smaller contracts are easier to sell.

To me, the real disadvantage to buying a 50 point contract right now is Disney has been ROFRing small contracts like crazy, even at high prices. Six months ago, you could buy a 50 point contract and have it clear ROFR, but they've been getting hammered recently. My theory on that is the administrative upkeep on small contracts is just too much hassle for them, so they want to make them go away.

 

[IndianaDVCMember]

We own one contract for 240 points, one for 100 points, and two contracts for 50 points. The advantage of having several smaller contracts is you can not re-sell part of a contract, but a collection of smaller contracts allows you to modify your total points as need be. We will be in a position to down-size when we enter the empty-nest phase.

 

[mikey13v]

Having one small contract gets you the perks of DVC. Right now you would be able to get the DVC discount on AP's and Annual Golf membership, as well as other discounts around the world. This could almost cover the cost of your annual dues. Even if you go often, staying at other hotels when you don't have enough points, you are a card holding member.
If you only want to go to WDW every 2 or 3 years this may be just the right amount of points to accomodate your lodging. If you decide to go more often, you can have a transfer of points from another member instead of renting, which can make booking easier.
As said before, if you decide to sell, a smaller contract will sell quickly. And, of coarse, you can always add-on in the future, which is almost inevitable.