Direct Purchase Old Resorts

[Rockenroller]

Hi,

I was looking for 200 direct points for one of the old resorts. I am purchasing cash no finance.

If Disney have the 200 points I was wondering if I should ask if these could broken down into x2 100pt contracts, but looking for advice if this is advisable or not, or even if they can break this down into a smaller contract at this point.

I am not currently a DVC member, this is my first purchase.

Is this possible for breaking down 200 points at an old resort to x2 100 point contracts when purchasing direct?

Is there a benefit in doing this?

How much extra will it cost me in closing?

Will this be harder to manage than one 200 point contract assuming the same use year.

Any thing I haven't thought of?

The reason for doing this is to give to my kids or have the option to drop some at a later date if I need the cash.

 

[Sandisw]

Yes, they will break it down for you. The biggest benefit would be that if you need to sell down the road, you can sell part of your membership vs. the whole thing,

Now, there will be a slightly larger cost to do it...but I believe it is minimal.

The contracts will function the same way as one contract, but be listed as two. You will also receive MFs as two different bills, but total amount owed will be exactly the same,

 

[CanadaDisney05]

General advice is to split the contracts up small as it makes it easier for possible resale/estate planning. When you buy direct from Disney they can easily do it. Points will cost the same no matter how you split it up.

The only thing to note is that you have to pay the closing costs on each contract. Part of the closing costs are going to be a per point cost, so your paying those costs however you slice it. Part of the closing are a per contract cost, so those will be extra. At the end of the day, it will probably cost an extra couple hundred bucks or something like that

 

[Rockenroller]

General advice is to split the contracts up small as it makes it easier for possible resale/estate planning. When you buy direct from Disney they can easily do it. Points will cost the same no matter how you split it up.

The only thing to note is that you have to pay the closing costs on each contract. Part of the closing costs are going to be a per point cost, so your paying those costs however you slice it. Part of the closing are a per contract cost, so those will be extra. At the end of the day, it will probably cost an extra couple hundred bucks or something like that

 

[Rockenroller]

And do you think for 200 points 100 split is a good choice if I need to sell at some point that 100 points are desirable in the market?

Am correct in thinking that if I gift each of these contracts to my kids at some point they will retain the member benifits as each contract at this point will be the 100 minimum for the blue card.For example isDisney increases this to 200 pints for blue card in the future these contracts will be grandfathered in even when gifting to my children?

thanks

 

[Best Aunt]

When I first bought into DVC, I called and told the Guide (DVC salesperson) that I wanted to buy the minimum number of points which was required for an initial direct purchase direct from Disney, but I wanted it split: part on a contract for an old resort and the rest on a contract for the newest resort. He said he didn't think he could do that. He also tried to use math to convince me to buy all my points at the newest resort.

I stuck to my guns. I told him to check with his supervisor and get back to me. He called me back and said he could sell me exactly what I wanted.

This was years ago, but people here have reported lately that some Guides have been difficult and/or given them inaccurate information at times. So if you decide you want to buy two contracts of 100 points each and the Guide gives you a hard time, don't just give in and buy what the Guide wants to sell you. He or she might have a financial incentive to try to convince you to do something other than what you want.

Also, look for the threads here about good Guides and bad Guides, and choose someone who people thinks is a good Guide.

 

[Sandisw]

And do you think for 200 points 100 split is a good choice if I need to sell at some point that 100 points are desirable in the market?

Am correct in thinking that if I gift each of these contracts to my kids at some point they will retain the member benifits as each contract at this point will be the 100 minimum for the blue card.For example isDisney increases this to 200 pints for blue card in the future these contracts will be grandfathered in even when gifting to my children?

thanks

Yes, the benefits will transfer with the gratuitous transfer, I’m doing that now,

Since the minimum is 100 points, you would have to split the 200 as 100 and 100. If you split into contracts that are any smaller and then sell, the contract you transfer would lose the benefit as that Person wouldn’t hsve 109 points any longer.

For example, say you did 100, 50, 50. You then sell 100. Since you would still own 100, you’d have benefits. However, if you then wanted to transfer the 50 points to different children, they would lose the benefits since they would no longer have the minimum.

 

[Rockenroller]

Yes, the benefits will transfer with the gratuitous transfer, I’m doing that now,

Since the minimum is 100 points, you would have to split the 200 as 100 and 100. If you split into contracts that are any smaller and then sell, the contract you transfer would lose the benefit as that Person wouldn’t hsve 109 points any longer.

For example, say you did 100, 50, 50. You then sell 100. Since you would still own 100, you’d have benefits. However, if you then wanted to transfer the 50 points to different children, they would lose the benefits since they would no longer have the minimum.

So if I bought 2 x100 contracts today so that it covers the current minimum 100 points for the member benefits and pass these contracts to my kids in 10 years l, each of the 100 or contracts would retain the member benefits?

 

[The Jackal]

Yes, closing costs will be a couple hundred more. But if you ever sell the smaller contracts they bring a higher price per point.

Using the two is slightly more difficult, say if your trip uses 150 points you select one and use all 100, then you select the other and use 50. After you do it the first time it is easy. Good luck. Which resort(s) are you interested in?

 

[The Jackal]

So if I bought 2 x100 contracts today so that it covers the current minimum 100 points for the member benefits and pass these contracts to my kids in 10 years l, each of the 100 or contracts would retain the member benefits?

Yes, the minimum is 100 right now and as long as you own it or do a gratuitous transfer it will be grandfathered for full benefits

For the most part the smaller the contract is the faster it sells and for more points. 25-50 point contracts bring almost direct from Disney money, these can sell within minutes of being posted for all resorts . 75-100 are also in demand and usually bring more price per point than 200 point contracts do. When you have some time check out some resale sellers websites and see the prices. Just do a google search for DVC resale contracts. You can tell by the websites which ones sell more, they usually have more contracts and the websites are easy to navigate.

 

[Jenniebee]

So if I bought 2 x100 contracts today so that it covers the current minimum 100 points for the member benefits and pass these contracts to my kids in 10 years l, each of the 100 or contracts would retain the member benefits?

If nothing is changed from the way it stands today, then yes, they will still have benefits. But no one has a crystal ball to see the future and Disney can pretty much change whatever they want at any time, they are pretty clear that no benefits are ever guaranteed. Only you know if this is an actual risk or dealbreaker for you.

 

[Sandisw]

So if I bought 2 x100 contracts today so that it covers the current minimum 100 points for the member benefits and pass these contracts to my kids in 10 years l, each of the 100 or contracts would retain the member benefits?

Yes. I am adding my adult children to one of my currently owned SSR contracts. These points come with the ability to book all resorts and having the kids added keeps those benefits intact.

Of course, I am also buying some RIV points with them as members too!.

 

[Rockenroller]

Thanks. Looking at SSR,OKW,RIV.

So to confirm if you were booking a reservation for the whole 200 points across the 2 100pt contracts it would still be 1 booking, for example you don’t need to make 2 bookings.

I take it doesn’t add any complexity to the banking and borrowing?

 

[Sandisw]

As long as the resorts are the same, it functions exactly the same. Banking, borrowing, etc. won’t change.

 

[anomamatt]

I split all of my direct contracts in two (or more)... last time it was an extra $550 or so in closing costs.

 

[Rockenroller]

Thanks for all your help. I am feeling that from the responses above, the best option is to buy 2 x 100 contracts rather than 1 x 200 as it will allow more flexibility later on however may cost a couple of hundred bucks more just now.

 

[dez1978]

Wouldn’t it be better to buy 100 resale and 100 direct tho? Cost wise anyway?

 

[Rockenroller]

I have been trying to get some points resale and they keep getting ROFR, and Disney seem to keep adjusting the rules about minimum points, riviera restrictions etc, and it’s making me panic a bit about what’s round the corner for the current 14 hotel for resale purchases. The reason for getting the x2 100 direct contracts is that I am hoping to gift them to my kids in say 10 years and hoping that member discounts will follow the contract and they will still be able to use them to stay in any Disney hotel if that makes any sense