We just closed on our first purchase too - only 70 points at OKW. We wanted something we could afford to pay cash for, and we knew we could always add on later. Plus, since right now it's only DH, me, and DS (10mos.), we can get by on a studio most of the time. I already have our next 4 vacations planned: 5 nights in a studio this Dec. = 40 points. 5 nights in a one-bedroom in June '06 = 130 points (using banked '04 points and the remainder of '05 points). If things go as planned, we won't go again for a year or so after that because we'll be expecting baby #2 sometime in early 2007 (I know, I know - it's hard to schedule those things ...but I'm a planner, what can I say?). That means we'll have all of our '06 points and '07 points to use in '07-'08, so we'll do another 5 nights in Dec. '07 ...possibly in a one bedroom, which will use up 90 points. That will take us into 2008, and at that point I'm guessing we'll want to buy another small contract so we can continue to stay in one bedrooms twice a year. If for some reason our financial circumstances won't allow that, we may have to "rough it" and stay in a studio again.
Sorry this is so long ...I just wanted to give an example of how far a small contract will stretch!