Any disadvantages to buying 2 contracts at the same time?

[Terry S]

I know you guys will have the answer to this so I wanted to run my thoughts by you. I am planning on purchasing 500 points with BCV as my home resort. I was thinking that I might want to split the contract and purchase 2 - 250 point contracts. My reasoning behind this is that 1) I have 2 kids and would like to give one contract to each kid at some point (they are 4 and 5 now) 2) if I ever get into a financial bind, I can sell one of the contracts with out selling the other one. Those were my advantages. Does anyone know of any disadvantages??

 

[Stinson]

You've hit the main reason for purchasing two contracts. It is easier to sell a contract of 250 points than of 500 points. There is a larger re-sale market for smaller point contracts.

 

[dianeschlicht]

No disadvantages that I can think of unless haveing points at two different resorts is an issue for you. Do you plant to get both contracts at the same resort?

 

[Terry S]

dianeschlicht, I plan on purchasing both contracts at BCV.

 

[dianeschlicht]

Then I don't see any disadvantages. You will want to get both with the same use year month.

 

[Johnnie Fedora]

TerryS,

I feel that several smaller contracts give us the flexibilty to sell off one or more contracts down the road, w/o having to lose all of DVC. Since we own at two resorts (BCV will make 3) we wanted that flexibility to cover all resorts. We have purchased in numerous small contracts over the last several months, and plan to do the same with BCV:

150pts at VWL (July)
50pts at VWL (August)
100pts at HH (November)
50pts at HH (just called today for this one) $62.00/pt with MB!!

Hopefully:
150pts at BCV (2002)
50pts at BCV (2002)

I plan on dividing my BCV purchase into two contracts for the same rationale.

The only disadvatage that I could see with separate BCV contracts is if there was a presale incentive that was a one time offer (i.e. special financing, MB for you first contract, Park Passes, etc.). If there is an incentive tied to your purchase size, I would purchase just one contract at BCV. If not, I will purchase 2.

Can't wait for BCV!!! Hope for a good incentive!!

johnnie

 

[wdw1972]

I have purchased 2 contracts at the same time before. The only disadvantage was having to do twice the paperwork. Each contract has it's own set, so it feels like you are initialling and signing forever - but once that is over, it is definitely worth the *pain*!

 

[Dean]

I'd agree that there are no real disadvantages and there are several advantages. I'd actually split them into 3 if 500 is the final number (or if 450 or more). I'd also consider adding other resorts as part of your points, possibly HH or VB or even OKW. One of the problems is that you can expect the BC dues to come in close to $4 per point and that will be around or close to $2000 per year in addition to the upfront cost and any possible financing charge. I'd recommend saving as much downpayment as you can between now and then. You may also want to consider adding a smaller contract initially then adding on later if you're planning to finance, you could save a bundle in interest. Consider a home equity loan or refi your house if you need financing. Good luck and let us know what happens.

 

[Popovich]

We did the same thing when we bought two BWV resales this summer/fall. We purchased 250 and then 275, both with the same use year and we have one member number. We wanted to have the flexibility of selling one if we needed to or if we wanted to buy at another location down the road. Good Luck!!

 

[Terry S]

Thanks everyone for your replies... I will let everyone know as soon as I sign on the dotted line.

I have my own personal bet going as to weather I will hear about an actual pre-sale announcement date from my guide first or from these boards. My bet is on these boards, so I am counting on you guys!

 

[janette]

If the MB program is still the same there is an added benefit of being able to use it on both contracts.