Alittle ciphering about a 25 pt OKW contract!

[tvwalsh]

I was thinking about buying a 25 point contract on the resale markets. I was having trouble finding a June use year or even a 25 point contract with points.

I then thought about a 25 pointer directly from DVC at $101/pt. Much more expensive? Not if you figure that the OKW extension is worth $15/point. That brings it down to $86/pt. Also there is no closing cost, about $300, or another $12/pt. We are now down to about $74/pt. I would get both my 2009 and bankable 2008 points, lets say that is worth another $250 or $10/pt. Now compares at $64/point. I also can get another $25 by charging it on my Disney visa giving me a comparable price of $63/point vs. a 2042 expiring stripped contract. Not too bad.

 

[dianeschlicht]

Sounds like a deal!

 

[mvc1997]

Will they allow a 25 pt add on??
I thought you had to buy at least 100 pts.????

 

[hellerjw]

Its my understanding that they still allow 25 pt. add-ons. They initially were going to force 100 pt. min. add-ons at BLT but when they released the 2010 point charts and so many complained about the higher point costs next year and the poor timing of the changes I think they rethought their strategy and backed it down again.

 

[robinb]

I think that small-point resales are more attractive to people who want to get their feet wet with DVC rather than people who already own. The closing costs are always way too much in proportion to the number of points purchased.

 

[5forDiz]

tvwalsh thanks so much for pointing this out

 

[Mickey'sApprentice]

Just in case some newbies are reading...

new folks can only purchase 25 points through resale. However, if you are thinking about this...

You can stay 5 days at OKW every other year. It will cost ya about $2500 and $125/yr., or $250 per trip. This can be deducted monthly for about $10/month. So...for about $10 mo. (plus the buy-in), you can stay in a Disney Deluxe resort every other year.

 

[Mississippian]

I then thought about a 25 pointer directly from DVC at $101/pt. Much more expensive? Not if you figure that the OKW extension is worth $15/point. That brings it down to $86/pt. Also there is no closing cost, about $300, or another $12/pt. We are now down to about $74/pt. I would get both my 2009 and bankable 2008 points, lets say that is worth another $250 or $10/pt. Now compares at $64/point. I also can get another $25 by charging it on my Disney visa giving me a comparable price of $63/point vs. a 2042 expiring stripped contract. Not too bad.

The 15-year extension is not worth $15 per point. DVC was able to sell these extensions to the hard of thinking for that, but the present value is only about $3 per point. It really is the worst possible waste of money a person could choose, except for lighting cigars with $100 bills.

 

[Bob Price]

The 15-year extension is not worth $15 per point. DVC was able to sell these extensions to the hard of thinking for that, but the present value is only about $3 per point. It really is the worst possible waste of money a person could choose, except for lighting cigars with $100 bills.

 

[JimMIA]

The 15-year extension is not worth $15 per point. DVC was able to sell these extensions to the hard of thinking for that, but the present value is only about $3 per point.

Just because DVC sold some extensions for that price doesn't mean the extension was worth $15. If you look at the listings and ROFR thread, you'll find that $3 is much more like the actual value today.

I said at the time (along with many others) that if I were going to put more money in DVC, I'd rather put it into points I can use today -- not points I won't receive for 33 years!