Advantages of buying small contracts?

[kimisabella]

I know the basic concept of DVC, and DH and I are interested in purchasing. However, we have just upgraded to a bigger home (bigger mortgage) and we couldn't afford a large contract (150+ points) right now. I have heard that the smaller contracts (25 - 50 points) sell very fast and are priced right for us. What are the advantages of these contracts - other then the fact you can get your foot in the door at DVC?

 

[CarolMN]

Unless you don't want to finance and cannot pay cash for the 150 minimum contract without it, I can't think of any advantage to the smaller contracts other than you get to be a DVC member.

Once you have a contract (of any size) you are a member and recieve the same benefits and perks as any other DVC member.

Most smaller contracts go for a higher price per point than the larger ones - due both to closing costs and the higher price needed to get past ROFR for new members. Apparently, Disney buys back many of the smaller contracts if the buyer isn't already a member, so you may have to offer more than you think to actually get the contract. It must cost DVC more to adminsiter multiple members with smaller contracts than it does fewer members with more than 150 points.

Best wishes -

 

[bobbiwoz]

Lots of people who have recently bought smaller contracts, come on the boards to say that they've done an add on. So, buying a small contract and then keeping a small contract, is a very hard thing to do.

Bobbi

 

[ACDSNY]

The smaller contracts sell faster in case you ever have something come up in your life that would require you to sell the contract. We did smaller contracts so we could easily divide them amongst our two young adult children later in life. All at the same resort and UY so they are easy to manage.

 

[Anewman]

Flexibility.

If you own 300 points in one large contract and later decide that you only need 150(or anyother number), you can not just sell part of it.

 

[utahkennedys]

Being in the DVC with minimal investment, and being able to sell your contract within a few hours are great reasons to me, and why we bought a small OKW contract. We plan to use it every other year, and my maintenance fees are so low! I can add to my points directly through Disney now depending upon our needs. Personally, we couldn't use 150 points a year b/c that would be 300 every other year! Plus, I sometimes stay at Marriott Vacation Clubs, and this trip HGVC for amazing steals...But I love DVC and the perks!

 

[las3888]

We are like you and didn't want to buy 150 points up front, so we started with a smaller contract, but I think it was more like 100 points. We didn't have a real hard time finding/buying it, but as mentioned, they do get snapped up pretty quickly, so you have to monitor the major reseller's web sites daily and be ready to move quickly!

The disadvantage to me has not been a big deal until this year when Disney has started enforcing their rule of only being able to transfer in or out points from your contracts 1x per use year. We ended up buying 2 smaller contracts after our initial contract, and if we have a 2BR booked with other family, we need to transfer points since we don't have enough points in one contract alone to do so. Now there are different ways to handle that kind of transaction, and they don't necessarily mean transferring points, but it is helpful if you need to do so. It is better to buy a small contract from a reseller to get started, then when you want to add on, to buy from Disney so you can avoid being penalized like this. (It actually pains me to say that since we have been big fans of resale).

Good luck!

 

[ArnyVee]

I agree, the best thing about small contracts is the fact that you can sell them off really quickly. I liked jumping into DVC with a smaller contract because my non-Disney Wife needed a affordable way to show that DVC was worth it. Now, a couple of years later, we have an offer out on a 210 point contract! Looks like I'm winnin' her over

 

[Pluto 2]

if you buy a 25 point contract you get the same benefits of someone that has the maximum number of points which is 5,000.
you get the 100 dollars off on annual passes
you get the same percentage off on wdw restaurants.
you get the same off on the waterparks and disney quest.
etc
a 25 point contract might be a little hard to buy when your not a member i heard that disney has been snatching them up when the people who are buying are not yet members. so maybe you want to add a little bit to the price so disney might not snatch it up as easily.

 

[spiceycat]

I would go with 50 or more - so you can stay 5 days in a studio (OKW or BWV standard view). 60 points for others.

advantages -
you own a part of WDW!!!! what could be better!

all the discounts (as mentioned) even the annual pass discounts.

staying onsite - all the onsite perks - EMH, DME, package delivery, using your ID to buy with, etc

plus a few dinning discounts that only DVC members have - okay very, very few but I do like the Macdonald's one.

 

[dwelty]

My wife and I are looking to add on points with a small contract. Looked at the resale sites and found that small contracts (under 100 points) are selling for MORE than I can add on thru Disney! And Disney will not charge closing costs for a member add on. Also Disney will make it a seperate contract, so it will be easier to sell down the road. I think resale can be the way to go for larger contracts, but not the small ones, go thru Disney.

Let me clarify the above comment, with the incentives (including the 2 APs) which we buy ever year anyway, our per point add on for SSR came to roughly $85.00 per point. If you do not usually buy annual passes, then resale is still a good deal for add ons.