Buying a small add-on and then selling master contract?

[easyd]

I'm planning to relocate to Central Florida in the not too distant future. I know the great debate has always been if DVC owners sell off their contracts when becoming local... I feel like I want to keep the benefits of being a DVC member, and will still want to stay on site sometimes, but not to the extent I do now.

I currently own 130 points at the Poly (fixed week 49/standard view studio). I'm thinking about adding on 25-30 points, and then selling my main contract. That way I can stay on site a weekend or two each year, but won't have the dues and payments for the bigger contract.

What do you think?

 

[Dean]

I'm planning to relocate to Central Florida in the not too distant future. I know the great debate has always been if DVC owners sell off their contracts when becoming local... I feel like I want to keep the benefits of being a DVC member, and will still want to stay on site sometimes, but not to the extent I do now.

I currently own 130 points at the Poly (fixed week 49/standard view studio). I'm thinking about adding on 25-30 points, and then selling my main contract. That way I can stay on site a weekend or two each year, but won't have the dues and payments for the bigger contract.

What do you think?

I've owned as many as 885 points. I sold all OKW points, keeping the BWV and adding AKV years ago. I bought AKV 4*25 with the plan to sell off all but 25 (there was a special at 100 points) for the same purpose. We haven't pulled the trigger though to be honest we've had very few trips where we actually used our points for full trips though one of those is coming up this winter. In your situation I would just keep what you have and see how it goes for a couple of years. I think you'll find you use them more than you're currently thinking. You're in a good position and not that heavily invested and you have a good option.

 

[disneynutz]

I think that you should do what works for you. Maybe wait to change holdings until after you move to see how many points you really want. A fixed contract can be used as regular points.

Bill

 

[drusba]

I am assuming your intent is to purchase an add-on from Disney and not in the resale market, because otherwise your plan would result in the loss of most perks including any merchandise discounts.

I personally would not do what you plan but instead would keep the existing contract. If you sold it, you would likely not recover initial investment, and instead have a loss after any closing and broker costs. You have a set week during the highest DVC demand time of the year at WDW. If I were not going to use that main contract or use it little, I would likely buy the small add-on for your personal use, keep the main contract, and then rent out the main contract, probably through a broker, annually except when you do decide to use it. If, as I suspect, that produced significantly more income per year than the annual dues, then I would likely keep doing that for a number of years before considering selling the main contract.

 

[Sandisw]

You might find that it would be difficult to sell Poly and not lose money. Figure out how many years worth of dues that loss would cover and as mentioned, maybe keep it for a bit to see how things go. There is always the option of trying to transfer some of the point or renting reservations to recoup the extra dues on those 105 point if you find you don't need them. Might be a better short term option. Good luck!

 

[CraigInPA]

I'd suggest renting the fixed week, or converting to points and renting those. It's likely you'd take a loss if you sell the fixed week now. Renting the points out would yield far more than your maintenance fees.

 

[Perelandra]

I'm planning to relocate to Central Florida in the not too distant future. I know the great debate has always been if DVC owners sell off their contracts when becoming local... I feel like I want to keep the benefits of being a DVC member, and will still want to stay on site sometimes, but not to the extent I do now.

I currently own 130 points at the Poly (fixed week 49/standard view studio). I'm thinking about adding on 25-30 points, and then selling my main contract. That way I can stay on site a weekend or two each year, but won't have the dues and payments for the bigger contract.

What do you think?

As others have mentioned, I would rent out the points through Dave's or another reputable broker and decide later. You wil more than cover your dues.

 

[Popouri DVC]

I like the renting the fixed week idea too.

Even if you live in the Orlando area, you may find yourself wanting to use your Poly sometimes. It would be nice to have that option.

 

[Dean]

I like the renting the fixed week idea too.

Even if you live in the Orlando area, you may find yourself wanting to use your Poly sometimes. It would be nice to have that option.

Because using the fixed week automatically eliminates 10% of the points in question, that's only going to work if you are renting something you can't rent on points and even then, you have to rent it for 10% more than you could the points themselves. For those that don't know, when one buys a fixed week you buy 10% more points than the week in question would cost in points. Those points are lost if you use or rent the fixed week, it's essentially a fee for guaranteeing the reservation. IMO the the management of a fixed week ownership is one of the more interesting issues of DVC membership. It creates a lot of variables and aggravations but a lot of options and opportunities. I know how I'd approach it both from a usage and a rental standpoint but I'm more hands on than some are comfortable with.

 

[kapicka]

If you need the money now is a pretty good time to sell. That said, once you have gone through the work and invested the money to own it might be better to save that contract and just rent out some/all of the points to cover dues. That way you still own it. Try to picture yourself a year down the road from now - would you be kicking yourself more if you DO sell and and don't have it available or if you DON'T sell it and don't have that money from the sale?