Assumption here...you know what they say...

[ranthony]

Just want to confirm an assumption.

I've been watching the resale market and have noticed that smaller contracts (25-50 points) get scooped up quickly and for a premium. That would lead me to believe that if I were ever to do an "add-on" to my master contract it would be wise to break up those points into smaller increments. For example, if I wanted to add on 100 points at BCV wouldn't it be better to add four 25 point add-ons?

Is there any disadvantage I'm not thinking about?

 

[Donald is #1]

The only disadvantage is that you will need to sign 2 sets of paperwork.

When I added on last year, I did the same thing that you suggested. I bought 100 points and had it split between 2 contracts. Besides the resale value of smaller contracts, I figured that it also gave me more flexibility if I wanted to sell just some of the points.

 

[ldo]

Because closing costs on 25 and 50 points are about the same--we opted for 50 over 25 to get into DVC--or you could do 2 25s and 1 50--but pretty much all 25 and 50s go within a few days--a few weeks tops.

 

[Chuck S]

Because closing costs on 25 and 50 points are about the same--we opted for 50 over 25 to get into DVC--or you could do 2 25s and 1 50--but pretty much all 25 and 50s go within a few days--a few weeks tops.

I don't think current DVC members pay closing costs on add-ons. Only first-time buyers for their master contract.

 

[ranthony]

Can I have my first buy in...say at AKV of 160 points be broken into sub-contracts of 50-50-60 to be resold individually (if it comes to that) or is this only for add-ons?

 

[SanDeeKath]

Can I have my first buy in...say at AKV of 160 points be broken into sub-contracts of 50-50-60 to be resold individually (if it comes to that) or is this only for add-ons?

I believe no. But you CAN get a 160 and then your add on of 65 separately (to make 225, which is where they are offering 160 bonus points right now).

ALso, be careful with the really small contracts. 25 points is not even enough for 1 night at some places. 50-75 are much more "user friendly"

K

 

[DISNEY FIX]

I don't think current DVC members pay closing costs on add-ons. Only first-time buyers for their master contract.

Hi Chuck, I have 2- 150 point contracts (diff. resort and UY) do one or both qualify as master contracts. So if CRV comes out I would be able to buy 2- 100 point contracts from Disney? With it being a diff resort I guess I would get a UY to match one of the other 2 exisating contracts just to keep it simple, does that make sense?

 

[dianeschlicht]

Hi Chuck, I have 2- 150 point contracts (diff. resort and UY) do one or both qualify as master contracts. So if CRV comes out I would be able to buy 2- 100 point contracts from Disney? With it being a diff resort I guess I would get a UY to match one of the other 2 exisating contracts just to keep it simple, does that make sense?

I'm not Chuck, but yes, both of your contracts are master contracts because they have different use years and numbers. You could "add-on" at CRV (should it come to pass) to either or both of your master contracts.

 

[DISNEY FIX]

I'm not Chuck, but yes, both of your contracts are master contracts because they have different use years and numbers. You could "add-on" at CRV (should it come to pass) to either or both of your master contracts.

Is there any downside to doing a add on? It would really be its own contract since it is for a different resort? I think I and reading too much into this.

 

[ldo]

All resale pays closing costs--so if OP ever wants to sell any of her contracts, the buyer would be paying closing costs. Since closing costs are about the same for 25 or 50 points, I imagine many people buying resale might go for 50 points (we did).

 

[pinnocchiosdad]

You just said that the smaller contracts get scooped up at a premium which means a higher than normal price. Why would you want to buy the small contracts and pay more?

 

[ldo]

We did not want to have to buy 160 points from DVC, which is the minimum. We did not want to commit that much $$ and time to DVC. So, we bought a 50 point contract resale, and I would have paid at least $5 more a point than I did. Many people want a smaller "starter" DVC contract---they can pay cash outright, and then they can add-on thru DVC later (we plan to add on 50 points at AKV next year).

 

[123Disney]

We also bought a 50 point contract to start. We didn't want to committee that much $$ either. The contract had several banked points. This enabled us to stay 5 nights split between OKW and SSR the first year. The following year we added on an additional 60 points. We are hoping to add more points soon. This may not work for some but it works for us.

 

[BWV Dreamin]

You just said that the smaller contracts get scooped up at a premium which means a higher than normal price. Why would you want to buy the small contracts and pay more?

This is my thought exactly. Over time, the extra small contracts purchased don't really save you money as most always the buyer has to pay the closing as well. Why buy 3, 50 pt. contracts of say OKW for 85$/pt. plus all the closing on them, vs. a 150 pt. resale at $74/pt. and negotiate splitting the closing?

 

[chalee94]

This is my thought exactly. Over time, the extra small contracts purchased don't really save you money as most always the buyer has to pay the closing as well. Why buy 3, 50 pt. contracts of say OKW for 85$/pt. plus all the closing on them, vs. a 150 pt. resale at $74/pt. and negotiate splitting the closing?

the original point of the thread is that - as a DVC member looking to add-on - would you rather have 3 50 pt contracts that sell for $85/pt or 1 150 pt contract that sells for $74/pt if you needed to sell those 150 pts down the road? (the 50 pt contracts will also sell much more quickly than the 150 pt contract.)

as a buyer, it only makes sense to start small if you can use a smaller contract (are willing to limit yourself to studios, less frequent visits and no trading out) and don't want to have to finance a larger contract. it's just a lot easier to commit $4000-$5000 as opposed to $10000+ for some of us. (subsequent add-ons are free of closing costs so it's usually cheaper to add-on direct rather than look at resales once you are in the door.)