buying resale 2042 OKW - then upgrading to 2057

[martin33]

Hi guys,

I thought I had read previously that new owners of OKW (2042 exp) resale purchases are offered the opportunity to buy an upgrade to change points expiration to 2057? Anyone know if this is the case and if so 1. when does it happen and 2. do you recommend it ?

I see myself holding a contract for 10-15 yrs then likely reselling when kids are older so looking more from a financial strategy point of view which would seem to suggest extending it to 2057 to optimize resale? Any number crunchers feel different?

Thanks

 

[disneynutz]

I would rather see Disney tear down the buildings and start over. New modern built buildings with the latest HVAC, plumbing, better views, better materials and sound insulation.

What Disney does is all about the numbers and what will make them the most money.

Bill

 

[CarolMN]

Hi guys,

I thought I had read previously that new owners of OKW (2042 exp) resale purchases are offered the opportunity to buy an upgrade to change points expiration to 2057? Anyone know if this is the case and if so 1. when does it happen and 2. do you recommend it ?

I see myself holding a contract for 10-15 yrs then likely reselling when kids are older so looking more from a financial strategy point of view which would seem to suggest extending it to 2057 to optimize resale? Any number crunchers feel different?

Thanks

Some have reported that Disney allowed them to extend after a resale purchase when they requested to do so, but AFAIK, there is no offer routinely made. IIRC, the current price to extend is $25/point (but it may be $15). I sure someone else can answer more affirmatively.

IMO, it is not worth it to extend from a financial perspective. The resale price difference between 2042 and 2054 OKW contracts has never even come close to the price Disney charged for the extension. It's been substantially less. IMO, the resale market is the best indicator of the value of the extension. YMMV.

 

[RobDoc]

Hi guys,

I thought I had read previously that new owners of OKW (2042 exp) resale purchases are offered the opportunity to buy an upgrade to change points expiration to 2057? Anyone know if this is the case and if so 1. when does it happen and 2. do you recommend it ?

I see myself holding a contract for 10-15 yrs then likely reselling when kids are older so looking more from a financial strategy point of view which would seem to suggest extending it to 2057 to optimize resale? Any number crunchers feel different?

Thanks

The current cost of the extension is $25 per point for something you will get no use from until February 1, 2042. Since DVC offered the extension in 2007 and had some members purchase, they are in a position where demolishing the resort and building new is not an option until 2057 - over 65 years from when the resort was built.

A resale in late 2041 would be worth more with the extension than without, but paying the initial outlay now still gets you nothing until 2042 and that is for the additional 15 years.

In the past, discussion focused more on applying that same $25 to purchase points that can be used right now on resorts that already have an expiration date of 2054 (SSR) or later (AKV, BLT, VGF, VGC, Aulani).

When resales by those who purchased the extension started hitting the market in late 2007/early 2008, the $15 per point paid at that time was not reflected in the pricing for the extended resales - and still does not seem to be showing any real increase in the perceived value of the contracts.

If that pattern continues, for another 10-15 years it will be interesting to see if the $25 you pay in 2014 will hold value or disappear as soon as the check is cashed.

 

[kenspidey]

The current cost of the extension is $25 per point for something you will get no use from until February 1, 2042. Since DVC offered the extension in 2007 and had some members purchase, they are in a position where demolishing the resort and building new is not an option until 2057 - over 65 years from when the resort was built. A resale in late 2041 would be worth more with the extension than without, but paying the initial outlay now still gets you nothing until 2042 and that is for the additional 15 years. In the past, discussion focused more on applying that same $25 to purchase points that can be used right now on resorts that already have an expiration date of 2054 (SSR) or later (AKV, BLT, VGF, VGC, Aulani). When resales by those who purchased the extension started hitting the market in late 2007/early 2008, the $15 per point paid at that time was not reflected in the pricing for the extended resales - and still does not seem to be showing any real increase in the perceived value of the contracts. If that pattern continues, for another 10-15 years it will be interesting to see if the $25 you pay in 2014 will hold value or disappear as soon as the check is cashed.

In reality in the resale market seems to indicate about a 10 to 15 difference in resale value .... Smaller contracts getting closer to 15 and larger contacts getting 10 more ..... Certainly not worth 25 in any case