Another Dumb Question

[Strikan]

We are just about to purchase DVC direct from Disney for CCV. We have 2 kids and our rep suggested we should split our points into two contracts so they are easier for our kids to deal with later and also in case we ever want to sell off some of our points. Is there any downside to having 2 deeds with same Use Year at same Home Resort rather than one Deed with a larger amount?

 

[BillPA]

This is good advice, I'm surprised a CM mentioned this. The only down side may be a few extra dollars in closing cost.

 

[CarolynFH]

We are just about to purchase DVC direct from Disney for CCV. We have 2 kids and our rep suggested we should split our points into two contracts so they are easier for our kids to deal with later and also in case we ever want to sell off some of our points. Is there any downside to having 2 deeds with same Use Year at same Home Resort rather than one Deed with a larger amount?

This is exactly what we did in 1997, bought two 150-point contracts with same UY to make it easier for the kids to divide when the time comes. (I don't think selling ever crossed our minds.) Functionally it's one contract except that I have to designate which contract to use if I book a stay that uses >150 but <300 points or if I need to borrow.

 

[wnielsen1]

I did the same (bought 2 smaller contracts at CCV). I have 2 kids as well.

 

[miTnosnhoJ]

No downside. Just make sure they are titled identically.

 

[KAT4DISNEY]

The closing costs will likely be a little bit higher but that's it. I agree it's sound advice in general.

 

[Dean]

We are just about to purchase DVC direct from Disney for CCV. We have 2 kids and our rep suggested we should split our points into two contracts so they are easier for our kids to deal with later and also in case we ever want to sell off some of our points. Is there any downside to having 2 deeds with same Use Year at same Home Resort rather than one Deed with a larger amount?

I'd look at the fixed week option but if that isn't worth it to you, that's best IF it doesn't cost you more in closing. IF it does, it really isn't worth it for most people.

 

[BillPA]

FYI, a contract can NOT be split later, that is a 300 point contract can not become 2 - 150 points contracts.

 

[disneynutz]

Prior to Disney charging for closing costs, all of our contracts bought direct were 50 pointers. Makes it so easy to sell, we sell them in one day.

Bill

 

[wnielsen1]

The additional closing costs for me were roughly $140, consisting of filing fees, etc. Well worth the money in case you want to leave to your children or have to sell someday (those 50 point contracts can command a premium in resale).

 

[KAT4DISNEY]

The additional closing costs for me were roughly $140, consisting of filing fees, etc. Well worth the money in case you want to leave to your children or have to sell someday (those 50 point contracts can command a premium in resale).

The premium for selling small contracts is often mentioned however when you consider paying more for closings now for them and there's doc fees for each contract when you sell it's really not anything big. The speed that they sell tends to be the biggest plus and in the end you might end up netting a couple of dollars more per point. It depends on the amount of points being bought but if less than the 100-130 range or so I wouldn't bother splitting unless I were wanting to do something like have the option to split between 2 children. Even 150 points I might be 50/50 on whether I would or not if there were no other reason to do so other than to have smaller contracts.

Back when there were no closing fees for direct purchase it really was a no brainer. Now it's more relative IMO to spitting between children and downsizing considerations and speed of sale although 150-200 points contracts don't necessarily sit around long either.

 

[ELMC]

We are just about to purchase DVC direct from Disney for CCV. We have 2 kids and our rep suggested we should split our points into two contracts so they are easier for our kids to deal with later and also in case we ever want to sell off some of our points. Is there any downside to having 2 deeds with same Use Year at same Home Resort rather than one Deed with a larger amount?

I think the point about splitting for the sake of the kids is more of an emotional sales hook than anything else. The real value is mathematical, as has been discussed already in this thread. As with anything, inquire about the costs and then you'll have to make a personal value judgment as to whether or not it's worth it. Most likely you will be able to recoup the extra closing costs in the form of increased price per point on the resale end. But even if that isn't the case, it's always nice to have options, and multiple smaller contracts give you options. Congrats on your purchase!

 

[LisaDKG]

I wish we had done this with our 200 points at BLT for our 2 kids so we can divide it up equally and easily in the future