Buying small contracts over time

[PinkPixel]

I don’t want to take out a loan to buy DVC membership, has anyone bought 25 or 50 point contracts over time all in same use year and resort ? Can you buy 25 direct from Disney first or do you have to buy resale and then add on with Disney if you want to get membership (still don’t see the benefit for this) or keep adding resale? Is there any obvious disadvantage to this other than not having enough points? Does it make booking complicated? Does it make selling your membership harder? I would possibly bank them for a year, than borrow maybe until I have enough points.

 

[RoseGold]

I wouldn't do this because closing is just brutal on contracts that small, and the price per point is higher. I'd just rent points or stay Swolphin.

It actually makes selling easier. For booking, depends on what you are booking. It's easy to have stranded points in little contracts.

 

[wnielsen1]

You have to buy resale first to buy contracts this small. If you buy direct from Disney as a brand new member, you need to purchase 150 points. If you go resale, you can buy any size and become a member and buy direct add-ons (add-ons must be same use year and deed titled the same, but can be any resort). From the sell side, smaller contracts are always easier to sell.

 

[hhisc16]

I don’t want to take out a loan to buy DVC membership, has anyone bought 25 or 50 point contracts over time all in same use year and resort ? Can you buy 25 direct from Disney first or do you have to buy resale and then add on with Disney if you want to get membership (still don’t see the benefit for this) or keep adding resale? Is there any obvious disadvantage to this other than not having enough points? Does it make booking complicated? Does it make selling your membership harder? I would possibly bank them for a year, than borrow maybe until I have enough points.

Since Disney would not sell us a master contract less than 125 pts last year, we started with a 50 pt resale. Then we bought a 25 point resale with different UY. Then we bought a 25 pt direct. The closing costs on the resale contracts were high, but we still saved about 30% over direct prices after everything. All 3 of our contracts are the same resort.

If we ever want to sell, then our small contracts are worth more. (We paid cash for all 3 contracts.)

When we book, we have 2 UY, so we have 2 membership numbers. We did it on purpose for booking (1 UY for WDW and 1 UY for HHI).

We also like having 2 UY for more OTU points if we need to purchase them.

 

[PinkPixel]

You have to buy resale first to buy contracts this small. If you buy direct from Disney as a brand new member, you need to purchase 150 points. If you go resale, you can buy any size and become a member and buy direct add-ons (add-ons must be same use year and deed titled the same, but can be any resort). From the sell side, smaller contracts are always easier to sell.

Is there a min for direct add ons? I could potentially add on multiple times a year, but can’t/ don’t want to go all in cash at once. I need to work up to a pretty decent contract to get what I would want 2 bedroom, etc at GFV. I’ve been regularly spending 5-7k on deluxe resort rooms annually, so would want to stick with my current spending but have it turn into a 2 bedroom DVC point contract. Haven’t done the full math to see how long that would take…because it’s a lot of points and the rooms are never available cash and I still feel weird about renting.

 

[hhisc16]

Is there a min for direct add ons? I could potentially add on multiple times a year, but can’t/ don’t want to go all in cash at once. I need to work up to a pretty decent contract to get what I would want 2 bedroom, etc at GFV. I’ve been regularly spending 5-7k on deluxe resort rooms annually, so would want to stick with my current spending but have it turn into a 2 bedroom DVC point contract. Haven’t done the full math to see how long that would take…because it’s a lot of points and the rooms are never available cash and I still feel weird about renting.

The minimum for direct add on for sold out and active resorts varies. Some are 25 and some are 50 pt minimums.

 

[wnielsen1]

Add-ons for existing members:

• Anything financed through Disney is a 50 point minimum.
• CCV, RIV and VGF are all 50 point minimums regardless if financing or not.
• Other resorts are 25 point minimums if paying cash.

 

[PinkPixel]

Since Disney would not sell us a master contract less than 125 pts last year, we started with a 50 pt resale. Then we bought a 25 point resale with different UY. Then we bought a 25 pt direct. The closing costs on the resale contracts were high, but we still saved about 30% over direct prices after everything. All 3 of our contracts are the same resort.

If we ever want to sell, then our small contracts are worth more. (We paid cash for all 3 contracts.)

When we book, we have 2 UY, so we have 2 membership numbers. We did it on purpose for booking (1 UY for WDW and 1 UY for HHI).

We also like having 2 UY for more OTU points if we need to purchase them.

Interesting! So you use your wdw points at a different time for HHI. Smart!

 

[KAT4DISNEY]

I don’t want to take out a loan to buy DVC membership, has anyone bought 25 or 50 point contracts over time all in same use year and resort ? Can you buy 25 direct from Disney first or do you have to buy resale and then add on with Disney if you want to get membership (still don’t see the benefit for this) or keep adding resale? Is there any obvious disadvantage to this other than not having enough points? Does it make booking complicated? Does it make selling your membership harder? I would possibly bank them for a year, than borrow maybe until I have enough points.

You would need to purchase a resale contract 1st to be able to buy contracts of that size direct without 1st buying a 150 point contract direct.
Selling is easier if it ever came up but as already mentioned because of some fixed closing costs it's also at a higher expense. Still, to not borrow it's not a bad plan but just an FYI about closing costs on the back end if you did sell. They generally sell for a few dollars more a point so might be break even. Paperwork for every contract though.

 

[PinkPixel]

You would need to purchase a resale contract 1st to be able to buy contracts of that size direct without 1st buying a 150 point contract direct.
Selling is easier if it ever came up but as already mentioned because of some fixed closing costs it's also at a higher expense. Still, to not borrow it's not a bad plan but just an FYI about closing costs on the back end if you did sell. They generally sell for a few dollars more a point so might be break even. Paperwork for every contract though.

Thanks, lots to learn. I had no idea you couldn’t sell parts of a contract until today and have been causally reading for over a year.

 

[Suzabella]

We started with a 50 point contract and slowly added on when we could afford to pay cash. Figured the interest would even out with the increased closing.

We purchased 2 small contracts resale and 2 direct then found a 150 BRV contract that we 'needed'. I wouldn't do it any differently today.

 

[wnielsen1]

Thanks, lots to learn. I had no idea you couldn’t sell parts of a contract until today and have been causally reading for over a year.

You cannot break up contracts. But if you have a smaller contract (say a 50 pointer), it will sell in the resale market for a higher price per point than say a 200 point contract.

 

[KAT4DISNEY]

You cannot break up contracts. But if you have a smaller contract (say 50 a pointer), it will sell in the resale market for a higher price per point than say a 200 point contract.

But a higher cost per point to sell because of certain fixed sales costs.

 

[kanerf]

I started with a 40 pt OKW resale years ago. Added 50 direct a little later for Blue Card. I have been adding smallish contracts, both direct and resale ever since. I did buy one 150 pt contract at BRV. I like the flexibility and much easier to resell when the time comes.

 

[Sunnyore]

Like you I didn’t want to finance anything and been steadily adding points to my membership. I have 5 so far with largest one 120 pt and rest are 50-75 pts. All same uy but 3 different resorts because I learned quickly I have my favorites and wanted home resort booking advantage for them. Down side is the closing costs aren’t too different from larger contracts so those add up quickly. Plus side is if I ever do decide to sell I will be able to sell them at higher price points and they seem to move faster than larger size contracts. I do mainly studios and with banking and borrowing you can book decent multi-day trips with even a 25pt contract. You’ll learn quickly though that you always want/need more points. With same uy, all my points can be lump together for a booking at 7 months. I wouldn’t recommend buying different uy if you are purchasing small contracts though now borrowing restrictions are lifts it might not be as challenging.

 

[PinkPixel]

I started with a 40 pt OKW resale years ago. Added 50 direct a little later for Blue Card. I have been adding smallish contracts, both direct and resale ever since. I did buy one 150 pt contract at BRV. I like the flexibility and much easier to resell when the time comes.

Good to hear it's worked!

 

[PinkPixel]

Like you I didn’t want to finance anything and been steadily adding points to my membership. I have 5 so far with largest one 120 pt and rest are 50-75 pts. All same uy but 3 different resorts because I learned quickly I have my favorites and wanted home resort booking advantage for them. Down side is the closing costs aren’t too different from larger contracts so those add up quickly. Plus side is if I ever do decide to sell I will be able to sell them at higher price points and they seem to move faster than larger size contracts. I do mainly studios and with banking and borrowing you can book decent multi-day trips with even a 25pt contract. You’ll learn quickly though that you always want/need more points. With same uy, all my points can be lump together for a booking at 7 months. I wouldn’t recommend buying different uy if you are purchasing small contracts though now borrowing restrictions are lifts it might not be as challenging.

Do you book at 11 months with the points at that resort and then try to add additional days with the other resorts points at 7? I understand the other resort contracts have same use year, but not sure how you using that. Multiple trips or split stays?

 

[MICKIMINI]

We have contracts from 125 down to 25 points. The 125 is an OKWE direct blue card contract. I tend to buy cheap, loaded contracts and rent the expiring points and keep it for a few years until I see an uptick in prices and flip it, buy another. We did have two UY's but now have one which is must easier to deal with. At 7 months they can be blended to book reservations.

The issue now is rising closing costs. $500 on a 25 point contract kills whatever deal you are getting. 100 points still costs about $500 to close so you are paying $5 PP vs $20 PP. We have bought four different *twin* contracts which we closed as one saving 50% on closing. We have two 40 point AKV contracts closing together this month. I see them all the time!

Good for you by paying cash! Good luck!

 

[PinkPixel]

We have contracts from 125 down to 25 points. The 125 is an OKWE direct blue card contract. I tend to buy cheap, loaded contracts and rent the expiring points and keep it for a few years until I see an uptick in prices and flip it, buy another. We did have two UY's but now have one which is must easier to deal with. At 7 months they can be blended to book reservations.

The issue now is rising closing costs. $500 on a 25 point contract kills whatever deal you are getting. 100 points still costs about $500 to close so you are paying $5 PP vs $20 PP. We have bought four different *twin* contracts which we closed as one saving 50% on closing. We have two 40 point AKV contracts closing together this month. I see them all the time!

Good for you by paying cash! Good luck!

Love reading how different people approach the program and using different size contracts. The closing costs I had not considered. Definitely something to think about.

 

[Warriorfish5392]

Just closed on a 50 point AKV resale contract. Process was not long or drawn out at all yet... No we are waiting for member set up. Closing costs were not that bad, but again this was my first contract. I would assume buying direct as an add on or new contract might be a quicker experience.