Dilema

[maciec]

Currently we have 180 SSR and 120 AKV. I have 0 - 2012 SSR and 55 AKV points. For long and complicated reasons DH wants to sell both contracts and buy 100 BCV and 100 BWV. However, he also wants to go to WDW in January 2013 for the marathon.

So do we sell the stripped contracts now? Rent the points to stay for the marathon if we do

or

Bank the 2012 points and sell when 2013 rolls around and rent for the marathon?

or

Use whatever points we have for the marathon and then sell?

or

your suggestion

While I would love to just go ahead and buy the new contracts we don't have the money to do so first.

 

[Dean]

Currently we have 180 SSR and 120 AKV. I have 0 - 2012 SSR and 55 AKV points. For long and complicated reasons DH wants to sell both contracts and buy 100 BCV and 100 BWV. However, he also wants to go to WDW in January 2013 for the marathon.

So do we sell the stripped contracts now? Rent the points to stay for the marathon if we do

or

Bank the 2012 points and sell when 2013 rolls around and rent for the marathon?

or

Use whatever points we have for the marathon and then sell?

or

your suggestion

While I would love to just go ahead and buy the new contracts we don't have the money to do so first.

I assume the reason to sell and buy back is two fold, please correct me if I'm wrong. I'm assuming you need less points than you have now (though your current points accounting doesn't support it) and that you prefer the EPCOT area essentially all the time. I also assume you do not have either of these financed. The realities of the plan are significant. I'm going to discuss as if you'd be buying back 300 points instead of downsizing for simplicity. First, to sell and buy the replacement is going to cost in the general neighborhood of $8K lost money related to sales commissions, closing costs on 2 new contracts and sales commissions. Put another way, you'll roughly break even to trade the 300 points you have now for the 200 points in your plan.

IF I owned what you did and wanted EPCOT mostly, here's the basic approach I'd take. I'd start saving and make a decision on which of these options was most important to me. For me that would be BWV because it's cheaper pp and ha both the standard view and BW view options. I'd then work those points, banking/borrowing, the 7 mo window and the wait list to get in to BWV and then BCV at times using what I had. If I had too many points with the 400 or so total, I'd rent out the rest or use them for DCL. Even though generally DCL is not a great option for points IMO, I think it's a much better one cost wise that doing the conversion you've mentioned. Even if you decide to proceed, buying one resort but not both for roughly 200 points will only cost you about half the difference, less for BWV and more for BCV. In addition, you'll move from an expiration date of 2054/5057 to 2042 for all points.

It's certainly your families decision, I just wanted to give you a reality check to make sure you knew what you were losing in the conversion.

 

[maciec]

Thanks Dean for the reply.

Actually it IS for less points we would go from 300 to 200 and that we love the EPCOT resorts (good guess). I guess my wording isn't that great now that I look at it. We have the SSR contract which is 180 and the AKV contract which is 120. Both contracts are fully paid for. The new expirations don't really make a edifference to us. Somehow in my husbands head he thinks that this makes better financial sense for us. Me on the otherhand would rather keep both contracts and just do the add-on at one of the other resorts.

 

[Dean]

Thanks Dean for the reply.

Actually it IS for less points we would go from 300 to 200 and that we love the EPCOT resorts (good guess). I guess my wording isn't that great now that I look at it. We have the SSR contract which is 180 and the AKV contract which is 120. Both contracts are fully paid for. The new expirations don't really make a edifference to us. Somehow in my husbands head he thinks that this makes better financial sense for us. Me on the otherhand would rather keep both contracts and just do the add-on at one of the other resorts.

Financially speaking I think what you have will do better long term because we're to the time when RTU properties tend to be affected by the expiration, under 30 years. The financial realities of what you'd be doing are still the same as I posted, just the numbers are a little less. You'd still be throwing away around $6K in value/wasted costs to downsize as posted. Dollar wise just selling off AKV would be the best option, second option would be to keep AKV and do a smaller contract at either BCV or BWV, BWV will be less as well as having the cheaper room options. That approach will cost you only the commission if you keep SSR or around half the wasted money to sell and buy back one contract. Selling and buying only BWV or BCV for around 200 points would only prevent around $1000 if it was BWV but you'd actually pay more for BCV. You have lots of choices and it may be that you want those resorts during a high demand time and/or the specialty views for BWV and thus it may be worth it to you to pay more for less. My vibe from you is that once your husband realizes the money that's lost (thrown away) in this transaction he'll end up just keeping what you have or selling off the AKV contract. I'm guessing you already have experience with trying to get BCV & BWV for your trips with your current points. You might even try selling one and seeing how it goes, you can always buy buck in later for BCV/BWV. This type of info along with the financial realities and your knowledge of your personal desires and situation should help both of you make the best decision for you and your family. I wish you luck, let us know how it goes.

 

[a742246]

A stripped ssr 180 point contract willl probably sell in the 48-50 point range.
With a little luck, you probably can get a BWV contract with 2012 points for
around 55 a point. Note: Selling costs will be about 10%.

Just do the math and you can determine what is good for you.

If you like the epcot resorts better and you go in high demand times with a 11month reservation window. Them by all means the epcot resorts would be a better choice for you.

 

[Sandisw]

WE have sold a few contract to re-buy at the resorts we wanted because when we figured things out, it just made sense to own things that suited our travel needs.

I think there is a chance that you could sell one of the contracts and re-buy at one of the new resorts in time to still book your January marathon trip. While you may not be at the Epcot resort (unless you close before the 7 month window), you can't book those now with what you have so I would give it a try and see how it happens.

I can't speak to the financial aspect because we did end up taking small losses with what we did, but things worked out in a way that we were comfortable with the end results.

Have you considered trying to sell one of the contracts and see what kind of interest you have? If you got a buyer, you could then try to pick up one of the new resorts and own it so you could book that Jan 2013 trip with your new points.

Just a thought--good luck!

 

[maciec]

Thank you all very much for your responses. I "think" what I have talked him into doing is selling the AKV and keeping the SSR for now. I will let you know what we end up doing

 

[Dean]

Thank you all very much for your responses. I "think" what I have talked him into doing is selling the AKV and keeping the SSR for now. I will let you know what we end up doing

I'm sure it'll work out either way. Keep us informed how it goes.