Contract Extensions

[maciec]

Thinking about adding on at BWV'S or BCV's do you think that Disney will do contract extensions on them in the future? The reason I ask is because I spoke with a broker today who believes that they won't because when they did if for OKW it turned into a nightmare for Disney and that it was just a mess.

Just looking for other opinions. I'm trying to talk my dh out of buying Grand Floridian when it becomes available.

 

[CMOORE185]

I wouldn't completely discount the possibility for a extension at these resorts. Problem is only DVC knows when or if.

 

[lnevo]

I asked my guide the on Sunday about buying BCV or BWV and she said to wait until they extend the contracts. No dates or anything of course.

 

[Chuck S]

I'm not sure, given the Right To Use nature of the DVC property lease with Disney, that there is any "neat" way for them to extend...other than waiting for the current contracts to expire and giving current owners a discount on a repurchase.

If a lease is extended, it would again entail ALL the owners of that resort either accepting or declining the extension, and their would be deeds to file and notarize, just like with the OKW extension. I'm sure far fewer OKW owners extended than DVC had anticipated.

 

[maciec]

I just can't imagine that they wouldn't do extensions because these resorts are sooo popular.

 

[Muhlenberg]

You only "know" what "is" right now. And right now the older resorts expire in 2042. HOWEVER, anything is possible, and I'm willing to bet that Disney will find a way to deal with it, especially if there is a money-making opportunity. I wouldn't rely on info from guides...they're salespeople...and they want to make a sale. They can spin things in order to make the sale, as we all know.

You'll have to weigh the pros/cons of buying/staying at each resort. But you can bet on VGF being $$$, both in the buy-in amount (compare VGC, BLT, and Aulani) and in the number of points per night, thereby requiring you to buy MORE points there if that's where you want to stay exclusively. I'm willing to bet that the points chart for VGF will be 10% to 20% higher than that of BLT.

Only you can know what works best for you. And don't forget to check resales.

 

[Chuck S]

But also remember that once the resorts expire, assuming they will release and reissue points as a "new" resort, they can make the point charts anything they want,even doubling the points contained in a resort to lower the "dues per point" for better sales.

 

[maciec]

But also remember that once the resorts expire, assuming they will release and reissue points as a "new" resort, they can make the point charts anything they want,even doubling the points contained in a resort to lower the "dues per point" for better sales.

Good point! I am really trying hard to talk him out of GF. I just cannot justify spending that much money. I think I have him almost convinced to add on via resale at BWV!

 

[dianeschlicht]

I just can't imagine that they wouldn't do extensions because these resorts are sooo popular.

Well, just look at WHY people didn't extend at OKW, and I think you might understand. Most of the people who purchased OKW did so 15-20 years ago. Most of us are now in our "September" or later years, and having maintenance fees and a timeshare to manage as we move into our 70's and 80's and beyond is not something we necessarily want to deal with. Since our contract will expire when we are in our mid 90's, we saw no reason to extend and spend money now on something we obviously wont be using.

 

[CMOORE185]

Good point! I am really trying hard to talk him out of GF. I just cannot justify spending that much money. I think I have him almost convinced to add on via resale at BWV!

You could compromise, buy BWV now with a small add on when GF starts selling.

 

[CMOORE185]

Well, just look at WHY people didn't extend at OKW, and I think you might understand. Most of the people who purchased OKW did so 15-20 years ago. Most of us are now in our "September" or later years, and having maintenance fees and a timeshare to manage as we move into our 70's and 80's and beyond is not something we necessarily want to deal with. Since our contract will expire when we are in our mid 90's, we saw no reason to extend and spend money now on something we obviously wont be using.

Great point, I would not do an extension now for this very reason, unless my children really wanted to keep it after I am gone.

 

[lnevo]

I wouldn't rely on info from guides...they're salespeople...and they want to make a sale. They can spin things in order to make the sale, as we all know.

In this case, they were postponing a potential sale until the contracts are extended...not much of a sales tactic there which is why I mentioned it...

 

[hakepb]

It seems BCV should of been sold with a 2052 contract length (2 years later?, SSR sales began with 2054 contracts, but before BCV everything else was 2042..) so there should be life in the BCV building. I do wonder about SAB and will there eventually be a very expensive re-construction?

Overall it sure looks like DVC would make more money by letting existing contracts expire, then sell as new resorts...but it seems DVC has been ROFR'ing more OKW contracts lately..

 

[chalee94]

Thinking about adding on at BWV'S or BCV's do you think that Disney will do contract extensions on them in the future? The reason I ask is because I spoke with a broker today who believes that they won't because when they did if for OKW it turned into a nightmare for Disney and that it was just a mess.

keep in mind also that OKW is a standalone resort - it's just OKW in that area.

if they extend BCV or BWV, they would need to get buy-in from the hotel division depending on what they wanted to do with the attached BC/YC and BWI hotels.

anything is possible but extending BCV/BWV is a lot more complicated than extending OKW...and the OKW extension was definitely a mess.

 

[Dean]

Thinking about adding on at BWV'S or BCV's do you think that Disney will do contract extensions on them in the future? The reason I ask is because I spoke with a broker today who believes that they won't because when they did if for OKW it turned into a nightmare for Disney and that it was just a mess.

Just looking for other opinions. I'm trying to talk my dh out of buying Grand Floridian when it becomes available.

No one knows for certain, likely not even DVD at this time. I would agree that OKW was a disaster and the route they took (Special assessment if not declined) violated the POS and state law as I read them. Plus the terms of the OKW extension, which was a disaster in many ways, likely tied their hands. IMO, if they do extend, it'll either be in a totally different way than with OKW (such as tied to an add on) and/or much later in the term of the RTU.

 

[gracelrm]

What about VWL - any chance they'll do an extension there? It's my home resort!

 

[Dean]

What about VWL - any chance they'll do an extension there? It's my home resort!

It's likely they'll do the rest as a set if they offer extensions at all, at least for the WDW 2042 resorts.

 

[Greysword]

Thinking about adding on at BWV'S or BCV's do you think that Disney will do contract extensions on them in the future? The reason I ask is because I spoke with a broker today who believes that they won't because when they did if for OKW it turned into a nightmare for Disney and that it was just a mess.

Just looking for other opinions. I'm trying to talk my dh out of buying Grand Floridian when it becomes available.

Bottomline, how old will you be in 30 years? If it is 60 or older, don't worry about it, as you may not care about it then. Who knows what new resorts DVD will build in the next decade or two, and you may want points there.

However, rule #1 on the DVC DISBoards is: Buy where you want to stay! If DH wants to stay at VGF and you want to stay at BWV, sounds like a two resort family with enough points to go every other year! LOL! ...Thats how we got both VGC and BLT (mmmm monorail)

 

[DenLo]

I just can't imagine that they wouldn't do extensions because these resorts are sooo popular.

I think that's a perfect reason not to extend the contracts. Then Disney can build new hotels and perhaps even new DVC resorts and sell them all over again.