Buying OKW

[Lola_Stark42]

I’d like to hear from those that have recently purchased OKW. Do you feel that you are getting a good value for the remaining time on the contract? I made an offer on what I feel is a great deal. The contract is not extended. Then of course I was reading more while waiting on ROFR, and seeing the long term math equations where you can figure out the cost basis. Unless I did the math way wrong, if I bought from Disney directly, I’d get 50 years of use on the contract, but pay a high premium for the points. And more than double what I’m paying resale. However, the cost over the lifetime of the contract would be lower, since it’s a longer contract. (I hope I’m making sense).
Anyway, if you bought at OKW, or any of the properties really that end in 2042, do you feel that it’s still a good value for you?

 

[CarolynFH]

I’d like to hear from those that have recently purchased OKW. Do you feel that you are getting a good value for the remaining time on the contract? I made an offer on what I feel is a great deal. The contract is not extended. Then of course I was reading more while waiting on ROFR, and seeing the long term math equations where you can figure out the cost basis. Unless I did the math way wrong, if I bought from Disney directly, I’d get 50 years of use on the contract, but pay a high premium for the points. And more than double what I’m paying resale. However, the cost over the lifetime of the contract would be lower, since it’s a longer contract. (I hope I’m making sense).
Anyway, if you bought at OKW, or any of the properties really that end in 2042, do you feel that it’s still a good value for you?

If you buy OKW direct from Disney, you won’t get 50 years. Your contract will expire in 2057 (DVD extends all 2042 contracts to 2057 when they get them back via ROFR or foreclosure.) The 50-year term is only for a brand-new resort like CCV (which probably only has 49 years left now).

 

[miTnosnhoJ]

A resort has the same “expiration date” whether you buy resale or direct.
The most recent resorts have a 50 year life from when they first went on sale. Some of the earlier resorts had shorter lives, like 40 or 45 years. OKW was originally 50 years starting 1991. Later an extension was offered that goes to 2057. You may be able to find a resale that bought the extension but there are fewer of them than those that end in 2042 If you buy direct from Disney, you would get the extension. So depending on whether you get the extension or not, you would be getting 24 years of points or 39 years of points at OKW.

 

[chalee94]

Then of course I was reading more while waiting on ROFR, and seeing the long term math equations where you can figure out the cost basis. Unless I did the math way wrong, if I bought from Disney directly, I’d get 50 years of use on the contract, but pay a high premium for the points. And more than double what I’m paying resale. However, the cost over the lifetime of the contract would be lower, since it’s a longer contract.

Please check out the DVC Resource thread in the stickied section. It would have told you that even an extended contract expires in 2057. (Plus a lot of other useful information.)

Also, a lot of these equations don't consider the time value of money. But most of us have a natural understanding that paying $10,000 tomorrow hurts a lot worse than paying $500 per year for the next 20 years.

If you search for some threads about the OKW extension, you'll probably run across Dean's warning that there is extra uncertainty about the extended contracts since we're not sure what Disney will do if a significant number of OKW contracts expire in 2042. (Part of the resort could be shuttered - just don't know.)

But DVC is a luxury purchase, so if you can afford it and OKW makes you happy, that's the main thing.

 

[Lola_Stark42]

I apologize for the confusion. I did not mean to imply if I purchased OKW direct from Disney that it would be a better value than resale. The thread I was reading was using Poly and AKV as examples, and did the math using the dollar amount of the points, the amount of time left, yearly dues, etc. I’ve seen other threads that do the math in a similar fashion, where the overall cost is broken down into x dollars per point/year/etc. So I started doing the same math with my own resale contract vs buying say Copper Creek directly. Because it’s 24 usable years vs 50, it came out to seem to be a better deal to buy direct, save for the immensely more expensing purchase price.
I apologize if I’m not explaining it well. I don’t recall the exact name of the thread I was reading when I stumbled across that math equation. (I’m also terrible at math, so when I was plugging in my own numbers I could have been off)
My question was mainly does anyone buying resale where the contract has 24 years left feel they are still getting a good value for their dollar, even if it’s half the usable years left?

 

[miTnosnhoJ]

I apologize for the confusion. I did not mean to imply if I purchased OKW direct from Disney that it would be a better value than resale. The thread I was reading was using Poly and AKV as examples, and did the math using the dollar amount of the points, the amount of time left, yearly dues, etc. I’ve seen other threads that do the math in a similar fashion, where the overall cost is broken down into x dollars per point/year/etc. So I started doing the same math with my own resale contract vs buying say Copper Creek directly. Because it’s 24 usable years vs 50, it came out to seem to be a better deal to buy direct, save for the immensely more expensing purchase price.
I apologize if I’m not explaining it well. I don’t recall the exact name of the thread I was reading when I stumbled across that math equation. (I’m also terrible at math, so when I was plugging in my own numbers I could have been off)
My question was mainly does anyone buying resale where the contract has 24 years left feel they are still getting a good value for their dollar, even if it’s half the usable years left?

Yes.
A simple formula that gives a cost divided by years is not very accurate. It is important to consider the time value of money. What this means is that the highest value to you is the vacations you will take over the next five years, and then over the five years after that. The purchase price, even for a resort that has 50 years to run, is heavily front loaded in the first few years.

To make this intuitive, how much would you be willing to pay today for a place to vacation for the next 24 years? Let’s say that this would be the price of OKW. Then how much would you be willing to pay today for vacations that would start 25 years from now, and go on for 25 years after that? Probably not much.

Money today is worth more than money far out in the future. Same with vacations.

The Timeshare Industry is based on the fact that people don’t understand this.

 

[chalee94]

My question was mainly does anyone buying resale where the contract has 24 years left feel they are still getting a good value for their dollar, even if it’s half the usable years left?

I'm just saying it's a very personal decision.

If you personally feel like OKW is the resort you prefer, then contract length should not be a deal breaker. (Again - due to the time value of money thing.)

But OKW is a larger resort so it is often available at 7 months out. If you are younger and have a strong preference for a longer contract, don't feel bad if you lean towards buying SSR or AKV or something as a better value. (Assuming ROFR takes the OKW contract.)

 

[Pluto80]

We just bought resale at OKW, it was a good price, and we love the resort, so we were very happy with our purchase

 

[meggybear17]

We went through this ourselves. We are in the final closing process of a OKW resale, our deed was just recorded yesterday. We got such a great deal at $75/point that we were comfortable with the shorter term left. No one knows what will happen at the end of the contracts and we wer good with having OKW for the next 20ish years as we feel that’s when we will be getting the most use out of it (we have young children.)

 

[Lola_Stark42]

We went through this ourselves. We are in the final closing process of a OKW resale, our deed was just recorded yesterday. We got such a great deal at $75/point that we were comfortable with the shorter term left. No one knows what will happen at the end of the contracts and we wer good with having OKW for the next 20ish years as we feel that’s when we will be getting the most use out of it (we have young children.)

That is very good information! Thank you for sharing. Would you mind telling me what the details were on your contract? UY and points on it? I am very happy with the price that was agreed on. But of course I started second guessing myself as to whether I should have gone for another resort to have more useable years left, but that would come with paying easily $20 per point more. I am glad you are happy with your purchase.

 

[meggybear17]

That is very good information! Thank you for sharing. Would you mind telling me what the details were on your contract? UY and points on it? I am very happy with the price that was agreed on. But of course I started second guessing myself as to whether I should have gone for another resort to have more useable years left, but that would come with paying easily $20 per point more. I am glad you are happy with your purchase.

250 points, June use year. $75/point, all 2017,2018 and 2019 points available.

 

[Lola_Stark42]

That’s a really great deal meggybear17!

 

[meggybear17]

That’s a really great deal meggybear17!

We were shocked it passed ROFR!