Contract size/dividing question

[Budshark]

We have decided to buy into AKV making it our first property

We need more than 160 pts, but I want flexibility. So - a couple questions on the contract (I probably should be asking our Rep this, but I'm not sure how much to "trust" them on matters like this... )

My thoughts are to buy a 160 contract, then use our membership to get the lower price and buy a separate 50 point contract (can this be done? Is there a wait before you can buy again?)

My idea is that gives us 210 points, BUT, if we don't use it as much as we think we can sell the 160, but still have the 50 and be members. OR... if we do enjoy it, and the Contemporary opens, we can sell the 50 and buy a 160 or 170 at Contemporary. Just more flexibility...

Anyhow - does this work? Is this smart? If I bought just a 210 point contract, can I divide it later making this all a non-issue? What about combining the 50 point into the 160 to make a 210 later? What are the rules around divinding, adding, combining contacts?

Thanks!
Chris

 

[dianeschlicht]

Reduced rate? Not sure what you mean by that, but I can tell you that contracts can NOT be divided later. They remain the same size unless or until you sell and Disney takes them back with ROFR. Only Disney can divide a contract that is returned to them.

As for buying a 160 and 50 point contract seperately....You certainly can do that, and I would reccomend it because the smaller contracts seem to be easier to sell right now. The problem is, there is very little you can do with just 50 points. If you are having these kinds of thoughts before buying, maybe DVC isn't for you. You CAN buy the 160 point and 50 point add on all at the same time.

 

[Budshark]

The problem is, there is very little you can do with just 50 points. If you are having these kinds of thoughts before buying, maybe DVC isn't for you.

I agree on 50 points - however - in a pinch, having the ability to sell the 160 point (and hold the 50 point) allows us more flexibility, the ability to still go every other year to a studio for 5 days, and maintain membership. It is highly unlikely - but an option you'd have by buying a 160 and a 50 versus just a 210.

In terms of the discount - I thought I read/saw that existing members were able to buy into AKV at $93/pt vs $96 (after the $8/disc)- that might be wrong.

Thanks,
Chris

 

[LisaS]

I agree on 50 points - however - in a pinch, having the ability to sell the 160 point (and hold the 50 point) allows us more flexibility, the ability to still go every other year to a studio for 5 days, and maintain membership. It is highly unlikely - but an option you'd have by buying a 160 and a 50 versus just a 210.

In terms of the discount - I thought I read/saw that existing members were able to buy into AKV at $93/pt vs $96 (after the $8/disc)- that might be wrong.

Thanks,
Chris

You are correct on the pricing -- DVC members won't be subject to the $3/pt price increase until early June. However you have to purchase at least 100 points to get the incentive price. A 50-pt add-on will cost you $101/pt until June, then it will go up to $104/pt.

 

[dis-happy]

If you think you're going to resell the 160 point contract any time soon, don't buy it. With new sales going on (and coming with extra points and no closing costs) you'd have to resell your contract at a discounted price, not to mention factoring in brokers' fees. It's a money losing proposition.

 

[Dean]

The problem with your plan is mainly timing plus the number of points you want. You won't get a price break on 50 additional points given the current situation. If you could buy a smaller resale contract and get closed quickly, you might be able to buy 100 AKV points for a reduced price but not 50. You could buy 160 AKV points plus 50 SSR points and get a discount on those. Personally I'd buy the 160 AKV points and wait to see if they announce another resort such as CRV, assuming you truly want AKV as a home resort.

 

[Budshark]

Thanks for the feedback

Obviously I gave the wrong impression about "thinking" of getting rid of points. Thats not the case. My full plan looked like this:

Buy 160AKV and 50AKV now
In 3-4 years buy Contemporary at either 160 or 210 pts depending on usage need.
Having the 50AKV separate would allow us to sell the 50 if 320 pts was going to be enough - but that would be 4-5 years from now.

That was the main thought. But we also decided if we found we were only going every other year, and it was just us and our daughter we could probably sell the 160 and use only the 50 - but that was a huge if and just a fall back that we were playing around with.

Soooo... based on the feedback and the information about the 50 pt plans I think I'll simplify the approach and just buy a 210 pt AKV and wait for the Contemporary or other resort to increase our points if need be. We've figured out for the time being 210 is good based on alternating usage between a big year (family) and a lighter year (just us).

Thanks - Chris

 

[Dean]

Thanks for the feedback

Obviously I gave the wrong impression about "thinking" of getting rid of points. Thats not the case. My full plan looked like this:

Buy 160AKV and 50AKV now
In 3-4 years buy Contemporary at either 160 or 210 pts depending on usage need.
Having the 50AKV separate would allow us to sell the 50 if 320 pts was going to be enough - but that would be 4-5 years from now.

That was the main thought. But we also decided if we found we were only going every other year, and it was just us and our daughter we could probably sell the 160 and use only the 50 - but that was a huge if and just a fall back that we were playing around with.

Soooo... based on the feedback and the information about the 50 pt plans I think I'll simplify the approach and just buy a 210 pt AKV and wait for the Contemporary or other resort to increase our points if need be. We've figured out for the time being 210 is good based on alternating usage between a big year (family) and a lighter year (just us).

Thanks - Chris

Given that I'd buy 160 plus 50 if you plan to buy 210 anyway.