Complicated Question... (long)

[JimV]

Okay, here is the scenario:

As a gift to my wife, I purchased 320 points in two 160 point contracts for AKV with an October use year. We were on the DCL NYE cruise and got an incentive of 160 developer points for use in one year (since we were over 225 points).

I purchased 320 since I looked at the point requirements for a 2BR during most of the weeks we would use it. I picked AKV because I liked the longer contract and SSR looked too much like a moderate resort for me (sorry -- no flames from SSR lovers please ). I was told that the others were all "closed".

I am paying cash and paid off the first contract last week and was going to pay the second this week (putting it on a points credit card and immediately paying off the CC).

So now I am on the DVC boards here and I am realizing a couple of things:

1. I would really rather have ownership in BWV or BCV. I know my wife would prefer the restaurants and my boys would prefer the activities and pools.

2. I hadn't really realized the value of banking and borrowing since I could use points from last year, this year and next year combined when making a reservation. That means that during a three year window, I have 960 points.

3. So that made me realize that with a 160 point contract at AKV I could have 480 points every three years there.

4. And if there was a way to shift my investment to the BCV I could have 160 points there and have preference for the 11 month window at a resort that DW would probably prefer.

5. We will probably not go to WDW every year (every other is likely). And would like to try different places.

Is there anyway to cancel one deed/contract and shift it over to BCV since I have not paid off the second contract yet?

I should have spent the time researching this and just bought on the resale market instead of giving in on the cruise, but I was told by current DVC members on the cruise that the incentives while on the cruise were great, and I didn't want to lose those (and thereby violating my "don't buy until you're ready principal ).

So you guys think that 320 points for AKV is the best option? Or should I go back to my guide and try to get two contracts and shift 160 points to another resort?

Oh yeah, part of the reason we bought was to use points at other places like the Grand Wailea in Hawaii in 2009 for our 25th anniv. trip.

Thanks for the guidance for a nervous buyer.

 

[sjdisneywedding]

well you have some tricky things going on there, in my opinion

personally for me , if I was going every year I would want those points split up into 2 contracts to make use of booking windows at different resorts.

Now, if you tend to make your ressies inside of 7 months there is no reason to even bother as all points are essentially the same once you hit the 7 month mark(although technically that could change at any time, its not a set in stone booking window)

the other issue I foresee is the 1 trip every other year thing to WDW. you are really going to have to be playing around with banking and borrowing

2008 trip -- use 2008 and 2009 AKV
2010 -- use 2009, 2010, 2011 BCV points
2012 -- use 2011, 2012, 2013 AKV points
2014 -- use 2013, 2014, 2015 BCV points

this is very simplified
but as you can see you havent touched 2010 AKV points or 2008 & 2012 BCV points

theres a boat load of ways to use those points; but its never going to be neat and easy if you are only going on 1 trip every other year

 

[Chuck S]

To answer another part of your question, no, there is no way to simply trade one home resort for another. You would have to pay off your AKV contract, sell it via resale, then purchase BCV.

I think having your 320 points as two contracts of 160 is a good idea, as that way if the need arises , you can sell 160 points. Individual contracts can't be broken up. Also it is easier if you have two heirs, that way they each can have their own 160 point contract rather than trying to share a single contract.

 

[browniemtb]

I have the same thing about major purchases, think them out. But I also understand when your already in the Magic atmosphere it is hard to say no especially when they are throwing incentives at you. For us it took 7 years to pull the trigger and the people here on the DIS have educated me more than any guide could or would.

In your situation you may have to keep your AKV contracts but I will says its great that you split them up. When we bought our guide was ready to write up a 310 points on one contract, that is until a posed the question on the DIS. So I too split the contract....If you think your family will enjoy the Boardwalk area better than you can always book AKV for your trip in the 7 to 11 month window and try to switch into BWV or BCV after the 7 month mark. There will be times of the year that both the Boardwalk resorts may be difficult to get into...example F&W Oct and first part of Nov. Points wise we based our purchase on April vacation or Christmas time...both whioh take a lot of points for a stay.

Have faith you will enjoy your purchase you will be in Disney ny all means. Good Luck and welcome home!!!!

Brownie

 

[JimMIA]

As Chuck said, you can't just "swap out" the contracts.

IF Disney would buy back one of the contracts, they would only pay you about $55 per point on the contract. You could sell one of the contracts in the resale market, but you'd have to pay a 10-12% commission on the sale, which would almost certainly mean selling at a substantial loss.

I see a couple of alternatives to selling.

First of all, where you own may not be as important to you as you think. Unless you're traveling at really busy times of the year, you may be fine at the seven-month window.

If you have too many points, and don't want to sell at a loss, you could rent or transfer the points from one of the contracts. At $10 per point, the $1,600 you'd make will more than pay your dues on both contracts.

You can only do one transfer in or out per UY, so be careful with that. But you may find it fairly easy to find another DVC owner who would like to have all 160 of the points in one UY. Once you transfer the points to the other owner, they can use them, bank them, rent them -- whatever they like -- so it's a much more versatile transaction than renting. I'm sure there are folks who would love to have the 11-month window at AKV for one year, but don't want to buy an entire contract to get it.

You could transfer/rent for a few years until the resale price comes up to where you can sell at break-even -- and you'd still have the points available to use if you wanted to do a big family reunion trip, or take multiple trips one year.

 

[LisaS]

Is there anyway to cancel one deed/contract and shift it over to BCV since I have not paid off the second contract yet?

You have a period of time (10 days?) after you sign the paperwork to change your mind. Did you sign the papers while you were on the cruise or did they send them to you after you returned home and if so, when did you sign them?

Did you pay anything on the second contract yet? You could call your guide and ask if you could purchase points at BCV or BWV instead of that second 160-pt contract at AKV but if you're already past the cancellation date I'm not sure you will get very far. Also, Disney has a loooong waiting list for points at BCV so you could wait months and months for points there. BWV would be easier to get than BCV. There might be a wait but it will be a short wait and they often have points available at least in some Use Years. There are many contracts available on the resale market for both resorts.

 

[JimV]

I just called our guide and unless something weird happens we are just going to pay the second contract off and avoid any kind of short-term financial hit because of losing the deposit or selling/changing the contracts.

Since we have the next two-three years planned out already, it is not a big deal and I have time to figure it out.

Summer of 2008 -- WDW (but can't get rooms at AKV or BCV anyway due to availability on our dates)

Summer of 2009 -- Anniversary trip with points to Grand Wailea in Hawaii

2010 -- probably a nice long weekend and we will book a 3 BR at AKV well in advance.

And miscellaneous little uses of points along the way. Talked to DW and we will probably try for a BCV on resale in a few years after we have had a chance to stay at AKV for a night or two.

Thanks again,

Now back to the real world instead of obsessing about this stuff.

 

[AKV707]

Sounds like a good plan. I also think that you will really enjoy AKV. When Kidani opens, we will have Jiko, Boma, Mara, and the new restaurant at Kidani. The pool at the lodge is great, but it appears that the pool at Kidani will rival SAB. Befor we joined DVC, we stayed at the Swan most of the time. We loved the access to to the BW, Epcot, and DHS. Well, our first DVC stay was at OKW. (no availability at AKV). We waitlisted BCV and BWV. It was during F&W, so no chance there, the waitlist did not come through.

Guess what? We loved OKW! Who would have thought? It was nice to get away from all of the action at a beautiful resort. OKW is now going to be likely our second choice from now on after AKV. And when we joined , we were sure that our second choice would be BWV. So you never know. All of our points are at AKV on two contracts.

Good luck and enjoy your DVC!

 

[Saratoga Souris]

It sounds as if you have done very well with your incentives. Unless you are travelling at very busy times, you should find the 7 month booking window will do in most cases. Your greatest difficulty will likely be BCV - we have never been able to get accomodations there. The number of DVC rooms there is relatively small.
While you can save $$ through re-sale, you can spend a lot of time waiting and often worrying about your purchase in terms of ROFR. In addition, you reallly have to be careful about "stripped" contracts, etc.

All I can say is congrats and.... Welcome HOme