Adding-on and selling thought process

[nlenguyen]

For those that have sold contracts to add-on, did you regret it?
I have thought about selling my resale contract back and forth with these newer resorts coming out. This was just our first contract about a year ago but has already gained much value. Would selling it to buy another contract be better or would keeping the contract to rent out the points be better? I am sure there are benefits both ways, but just seeing what people have done. My thought process is selling a contract has additional costs (broker fees and capital gains tax), but renting also is taxable. Keeping those resale points is also nice because I don't think that I would get another contract that low again even with incentives.

 

[sndral]

One thing to keep in mind is that as a member you’ll get initial price incentives when new resorts open, if you sell you’ll have to wait until the new offering goes on sale to the public & possibly miss that lower price. The other factor is the number of points you’ll be allowed to buy, which as a member is usually fewer points than the minimum required for a new buy in.
If you plan to add on you might keep your resale until after you buy the direct contract & then decide whether to sell the old resale contract.

 

[Sandisw]

Not one regret, I have bought and sold quite a few over the years to end up with what I currently have.

We are finally at a point that I own the resorts that make the best sense for us.

 

[CarolMN]

Many who keep to rent end up using the points themselves. Temptation is hard to resist and always there.

Just something to keep in mind.

 

[bakerworld]

There use to be a poster on this forum that said repeatedly not to sell and rebuy. He had all the numbers to support it was a bad idea. However DVC is so inflated now I wonder if the math still holds true. Buying Direct from '72 (?) to '02 (when we joined) points on the primary selling DVC went up ~$50/point whereas currently from '02 to '22 points are up ~$100.

 

[CarolynFH]

Buying Direct from '72 (?) to '02

The Disney Vacation Club, now OKW, opened in 1991.

 

[Duckbug.Ducktales]

We are selling our resale SSR pts currently to help pay off the direct purchase we made recently. It was part of the deal with DH so not really debatable, but it's good because I know I won't end up renting out and I'll just book stuff with it
Also, we only owned it for 2 years, bought loaded and selling stripped, and it went up a lot in that time. Even if we get $5 below asking we'll still make a profit after broker commission and gains tax.

 

[bakerworld]

The Disney Vacation Club, now OKW, opened in 1991.

Sorry about that - I meant from '92, which is when we initially inquired. Still it does make me wonder about the numbers.

 

[CarolynFH]

Sorry about that - I meant from '92, which is when we initially inquired. Still it does make me wonder about the numbers.

Yes, prices for DVC have definitely risen much faster than inflation - or salaries. I'm glad we were able to buy in 1997. We couldn't afford it now, and we don't recommend it to anyone anymore.

 

[RoseGold]

Plenty of people have done private sale on their contracts. That would leave closing costs for one buy (buyer pays on the other end) and paying taxes on the gain of your sale.

Obviously, those matter a lot for smaller contracts and could flip the math. Depends on how big closing costs are relative to your contract.

I can see situations where it would still be a good idea, even if you lose money on the deal, like if you picked the wrong resort or you want to downsize your total holdings.

I would never buy or hold DVC to rent out. Maybe a year or two, but not as a long term plan. Especially with all the controversial decisions Disney keeps pumping out. It's too risky IMO.