Another Expiration Question

[JimNY]

I see a lot of talk about the pros and cons of buying resale or from DVC and which resorts, etc., but rarely do I see the extra 12 years of ownership mentioned if you buy at SSR. This seems to be a huge factor, in my opinion, am I missing something? Also, is DVC ownership "willed" to your children, or does your ownership expire when you do?

Thanks,
Jim

 

[Tiggery]

Yes it can be willed to children.
While the extra 12 years may be important if this is your wish, we on the other hand have no children and do not have any plans to have any. We will probably be either dead or not in a fit state to transatlantic travel when our BCV contract expires so to us it makes no difference at all.

 

[JimNY]

Thanks, Tiggery

 

[plamp]

Originally posted by JimNY
I see a lot of talk about the pros and cons of buying resale or from DVC and which resorts, etc., but rarely do I see the extra 12 years of ownership mentioned if you buy at SSR. This seems to be a huge factor, in my opinion, am I missing something? Also, is DVC ownership "willed" to your children, or does your ownership expire when you do?

Thanks,
Jim

I thought a lot about this issue before choosing to go for a resale. SSR at $85 per point is for 50 years. In resale to get equal value over time of 38 yrs points should cost
$64.60 each, but they go for $68 to $78 plus closing cost. But if you find a resale with unused points included, since they have value that could, and in my case did, lower the per point cost closer to $64. The bonus points will be used in my case to have some nice vacations right away!
The other plus with resale is I could afford more points overall: 210 as opposed to 175 new.
Finally, you may want to choose a resort other than SSR.
If I thought I would be selling my contract at some future point then I guess SSR/50 yrs makes more sense, but I sensed that I or my family would be keeping our DVC resale for the entire 38 years.
This thread has more on this subject:
http://www.disboards.com/showthread.php?s=&threadid=648863

 

[tjkraz]

Originally posted by JimNY
I see a lot of talk about the pros and cons of buying resale or from DVC and which resorts, etc., but rarely do I see the extra 12 years of ownership mentioned if you buy at SSR. This seems to be a huge factor, in my opinion, am I missing something?

Many people tend to discount the additional years on the premise that a dollar in, say, 2043 is worth only pennies today.

While that is true, the whole point behind DVC is to pre-pay for your vacations. The extra long contracts at SSR enable one to fight off the impact of inflation on Disney rack rates for 12 additional years. I shutter to think what rack rates might look like in 2043, and I'll be pleased as punch if I'm around to enjoy it for just the cost of our Maintenance Fees.

I guess the real question is this: If I take whatever dollars I would have spent for the longer contract at SSR (vs. OKW, BCV, etc.) and invest that money for the next 38 years, will I then have enough left to cover 12 more years of trips? Maybe yes, maybe no. Personally, I'll take the extra years, thank you very much.

One can also assume that we will reach a point where resale values at SSR will exceed the other (current) resorts due to the additional years. In 2030, I have to believe that SSR points with 24 years remaining would have to be more than any other resort with just 12 years left. Not that we're planning to sell, of course.

 

[Granny]

If you hang out on these boards, you will see the additional 12 years mentioned often as a benefit of buying at SSR. My guess is that the importance of that has a direct correlation to someone's age and their projection of being able to enjoy those extra years or not.

Yes, ownership can be willed, or sold. And yes, at some point a SSR resale will have to be worth more than the original resorts resale values.

 

[pplasky]

The extra 12 years was a main factor of our decision to go with DVC rather than resale. While I agree my DH and I won't problably be able to use it in 50 years, we are planning on leaving it to our children. It would virtually be "free resort stays" for them and their families. If they decide to sell it, than so be it, but an extra twelve years is alot more vacations.

 

[Beca]

I think the extra 12 years at SSR is a HUGE factor for some people, but for others...there is other, overriding factors.

SSR (although, I'm SURE it is beautiful), doesn't have the same appeal to me as some of the other resorts. Since it is by far the largest resort, getting into SSR will be relatively easy to do. If you do not have the "home" advantage for VWL or BCV...they may become VERY difficult to get into (as well as standard or BW view rooms at BWV).

With children...it is VERY important to me "which" resort we stay at. I am an obsessive planner, and bought at both of my home resorts so that I can guarantee getting into them at certain, very busy DVC times. As an SSR owner...I could not do this. Also, I bought fewer BWV points than I would've had to purchase at SSR because I knew I could call day-by-day at the 11 month window and have a pretty good chance of snagging standard view rooms at BWV, at a 30% savings in cost....which seems to me to make those points more valuable.

Although, I don't own at OKW, I really envy those who own there...their point system is SOOOO cheap (and yes, the rooms are sooo big!!!), they can REALLY stretch their points there (and buy fewer of them).

I also figured in that the REAL cost of DVC is in the maintenance fees...you really spend a lot more there than on your purchase price...and, those fees can get real pricey if you don't love where you own. Who knows what is going to happen in 38 years...maybe DVC will decide to offer extensions of years to its "owners" who want to buy...maybe they will just "re-issue" points to a new generation of owners...maybe Disney will be wonderful, and maybe it will be "passe"....and maybe a big hurricane will just come and wash up the whole state of FL (something I am NOT hoping...but, with what is happening now...who KNOWS!!).

The only thing I really know is this....my DD will only be TWO right now!!!! And, in 16 years she will be grown and gone (okay...maybe gone ), then I will still have 20 more years to enjoy this contract and hopefully use it some with grandkids. Beyond that...who knows?!!! But, I would rather have 38 years of the "home" advantage to "ensure" that I get VWL every other Christmas, and BWV standard views when I can...because that is truly where I want to stay (and, hope I can get OKW some as well). For me, the difference in owning where you have "dreamed" of, and owning "where DVC is selling at the time" makes 38 years seem truly magical!!!

Now...if DVC offers a 50 year "CRV"....I'm ALL over that one!!!!



Beca

 

[mydogdrew]

A lot of folks tend to average the benefit of DVC over the life of the contract which makes SSR look like a great deal. If the 12 years were on the front end rather than the back I would agree that SSR is the way to go. The fact is that you can hunt and find a DVCI contract with banked points that can be rented to yield a net cost in the $60 range (with 2005 points intact) vs. $85 for SSR. So much depends on which resort you prefer (regardless of price), but I would be inclined to purchase for $60 and invest the difference. You can buy a 12 year SSR contract in 2042 resale with the investment proceeds if you want.

The fact that we even debate this issue is a tribute to DVC. Imagine trying to justify a developer purchase for any other timeshare? As you probably know, timeshare resales typically sell for 10-20% of developer prices resale.

It is possible that MF will outpace the $ rates for rooms at Disney in the future (they certainly have over the last couple of years). This could continue with DVC year after year (not a prediction) and your initial investment would be worthless long before 2042. The fact that you were committed to 12 extra years of dues would be a liability, not an asset in that case. Of course, I don't believe this to be the case (I do own DVC after all) but it is a risk and the further out in time you go the riskier it is.

I think the extra years at SSR is a good thing but I wouldn't pay a premium for it.