Does anyone else think the OKW 15 year extension will add value?

[lurontravel]

Does anyone else believe that the OKW 15 year extension will add value to their ownership? I think if we decide (doubtful) to sell we'll have better resale value then those who don't extend. I suspect that my children will enjoy the extra 15 years even if I don't, and they are a big part of my enjoyment at WDW. They continue to enjoy going there frequently and I expect that to continue. My husband is not convinced.

 

[CarolAnnC]

Well it may or may not add $$ value but it certainly would make a contract sell quicker on the resale market, I would think.

I purchased my OKW points with the intention of holding them and not selling.. Now something may come along and require one to sell the points, but it is not in my long range plan.

If I am to purchase more DVC I will purchase points that I can use in my lifetime. I will be long gone by 2057 lol.

 

[JimMIA]

Everyone's answer to this question will be different, because everyone's personal and family situation is unique.

My personal answer is, if I'm going to invest more money in DVC, I'm going to invest in points I can use NOW...and for the next 35 years. Not points that don't kick in for 35 years.

If holding a 2042 OKW contract reduces my resale value...I'll take my lumps.

 

[icydog]

Everyone's answer to this question will be different, because everyone's personal and family situation is unique.

My personal answer is, if I'm going to invest more money in DVC, I'm going to invest in points I can use NOW...and for the next 35 years. Not points that don't kick in for 35 years.

If holding a 2042 OKW contract reduces my resale value...I'll take my lumps.

I was thinking about the new incentive with no money down and no interest until 2009 as an advantage to reupping. But you make a good arguement. We just bought AKV and those will be good until 2057 but I won't be. In 2057 I'll be 111. My children will be 87. In 2042 I'll be 96 and my kids will be 65 which of course makes the most sense. I don't mind paying for my kids or grandkids but planning for my great grandkids is just too much to think about.

 

[Dean]

It will add value but no where near $15 per point in the near future, IMO. One would likely be FAR better off investing the money and buying in again in the distant future than doing the extension now or simply adding points that will expire later such as AKV. I'd estimate that $5-10 per point is a more reasonable estimate of the LONG TERM value of doing an extension in the near future, leaning toward the low end of that range for most situations.

 

[utahkennedys]

I think the value will come down the road meaning OKW values won't decline as quickly in 20 years or so as they would have. It was a no brainer for us as we are only 33 yo and we know our kids will want to use it.

 

[dvc at last !]

subscribing...

We need to decide this, too !

 

[dianeschlicht]

We all kicked this around in a very long thread a while back, and I think many of us who are quite sure we will be pushing daisys before the extenstion time arrives, have decided it is not going to be enough value to warrant spending the extra thousands of dollars needed now. We decided quite early and quite easily that we would NOT extend. We wont sell anyway, since DS has already said he wants it when we no longer use it. He also will be mid 60's by the time the original expires, and will still have our AKV points, so he was okay with not extending also.

 

[sjdisneywedding]

whether or not it makes sense to extend is a personal decision and rightfully so

but, as to whether the extension will add value to your contract, I think that absolutely it will. to think otherwise is simply being shortsighted, IMO

 

[rinkwide]

...$5-10 per point is a more reasonable estimate of the LONG TERM value of doing an extension in the near future, liening toward the low end of that range...

Fixed that for you.

 

[eva]

I think that you will see a split on what people are going to do. I am not thinking about how old I will be in 2057. But I am thinking about our age in 2042. We will both be in our 70's and hopefully still taking trips to WDW. My DGM made it to 99 and her mother to 98. (Sorry, DGF only lived to 88.) Both traveled and enjoyed their lives up to a their mid 90's. DMIL is 75 and still taking trips by herself to Europe. So for us the extension was a no brainer. And guess what ? We still bought 200 points at AKV too. I absolutely refuse to go until 2057! Gees, I'll still only be 93 years old! Now I wish they would offer the extension at BCV.

 

[Jeremy&Susan]

Hey All - Let Compound interest calculation show you your answer.

Take the $15 bucks you would have invested today in extending your OKW vacation points life.

Invest this $15 in a CD (being conservative) at 4.5%.
After 25 years you would now have ................. $45
That is a $30 return on your investment.

Invest this same $15 in a the stock market with a traditional rate of return of 10%.
After 25 years you would now have ................. $162.52
That is a $147 return on your investment. WOW


I am thinking that extending the life of this contract wont return either the low 4% rate of return or the 10% rate of return.

I vote for not extending your contract, but that is from the head not the heart. If you really love OKW and want to leave your great grandkids and great great gradkids something, go for it.

Merry Christmas .....

 

[Buckeye Fan]

IMHO, I think this is going to depend on where Dis sets the ROFR floor. People are going to pay what Dis requires them to pay. I can't imagine that they wouldn't, but if Dis does not differentiate between contracts expiring in 2057 versus 2042, people may get a little more in resale, but sellers are going to know what is passing ROFR and make offers accordingly. Those contracts could act similar to low point or loaded contracts in the market today. They will sell for more, but how much more??? However, if Dis ups the 2057 ROFR floor, then it's going to force people to pay whatever minimum they set. I thought someone said OKW with the extension is selling for $98 through Dis? So you would think it would be lower than $98.

Only time will tell on this one. It's interesting to me. As a buyer a year ago, I would have purchased an OKW 2057 contract in a heartbeat and would have paid extra for the 2057 expiration date. However, we went with SSR solely because of the 2054 expiration. AKV wasn't available yet. As an owner, would I extend the contract to 2057 or use the $$$ towards points I could use now? Well, I'm 37, so I think I would lean towards something I could use now, which is what you're seeing others say. As a seller, it's a total gamble.

 

[eva]

Hey All - Let Compound interest calculation show you your answer.

Take the $15 bucks you would have invested today in extending your OKW vacation points life.

Invest this $15 in a CD (being conservative) at 4.5%.
After 25 years you would now have ................. $45
That is a $30 return on your investment.

Invest this same $15 in a the stock market with a traditional rate of return of 10%.
After 25 years you would now have ................. $162.52
That is a $147 return on your investment. WOW


I am thinking that extending the life of this contract wont return either the low 4% rate of return or the 10% rate of return.

I vote for not extending your contract, but that is from the head not the heart. If you really love OKW and want to leave your great grandkids and great great gradkids something, go for it.

Merry Christmas .....

That is probably true. But you could use that same argument for all DVC purchases. But if you plan on staying at WDW every year, you really need to compare all this to the possible increase of value in DVC points and the average increase in rooms at WDW. The 200 OKW points I have will cost me $3,000 to extend right now. By your calculations, I would have $9,000 in 25 years with a cd. A week in a deluxe room (with tax) will cost me nearly $3,000 a week right now. Let's say the room rates increase at the rate of the cd, I believe the average is much higher. Then a room will be near $9,000 for just one week in 25 years. Of course, I don't have the maintenance figured. But I still think I am getting a pretty good deal, since I plan on living that long.

To be honest, I don't think most of us bought because of the great savings anyway.

 

[OneMoreTry]

I agree with all those who say buying the extension is NOT worth the money. Remember, you can NEVER beat the house and DVC is the house.

This is well-calculated by businessmen, not mickey mouse. They need a capital infusion and they want to get it from us. This is not something they're doing for our benefit.

Eg. Where do I sign away those years? Hand me a pen now.


In my opinion, the only reason to extend is to get the warm fuzzy feeling of owning until 2057.

 

[dianeschlicht]

whether or not it makes sense to extend is a personal decision and rightfully so

but, as to whether the extension will add value to your contract, I think that absolutely it will. to think otherwise is simply being shortsighted, IMO

I agree with you on one level. I DO think the contracts WITH the extention will have more monetary value than those without, but I do NOT think it will be $15/point more. That makes it something less than a good deal in my book.

 

[Jeremy&Susan]

That is probably true. But you could use that same argument for all DVC purchases. But if you plan on staying at WDW every year, you really need to compare all this to the possible increase of value in DVC points and the average increase in rooms at WDW. The 200 OKW points I have will cost me $3,000 to extend right now. By your calculations, I would have $9,000 in 25 years with a cd. A week in a deluxe room (with tax) will cost me nearly $3,000 a week right now. Let's say the room rates increase at the rate of the cd, I believe the average is much higher. Then a room will be near $9,000 for just one week in 25 years. Of course, I don't have the maintenance figured. But I still think I am getting a pretty good deal, since I plan on living that long.

To be honest, I don't think most of us bought because of the great savings anyway.

I was responding to the original post. The OP was wondering if investing $15/pt would return addtional value to your points on resale. I answered that question.

As far as my opinion on investing in DVC
We own a good deal of points and love the investment.

Dont flame me for answering the question that was asked.

 

[sjdisneywedding]

I agree with you on one level. I DO think the contracts WITH the extention will have more monetary value than those without, but I do NOT think it will be $15/point more. That makes it something less than a good deal in my book.

true true

we wont know the exact monetary value for some time yet

 

[simzac]

whether or not it makes sense to extend is a personal decision and rightfully so

but, as to whether the extension will add value to your contract, I think that absolutely it will. to think otherwise is simply being shortsighted, IMO

It will only add value if you plan on selling your contract someday. I will never sell mine, so no, it does not add any value to my contract.

 

[Dean]

That is probably true. But you could use that same argument for all DVC purchases. But if you plan on staying at WDW every year, you really need to compare all this to the possible increase of value in DVC points and the average increase in rooms at WDW. The 200 OKW points I have will cost me $3,000 to extend right now. By your calculations, I would have $9,000 in 25 years with a cd. A week in a deluxe room (with tax) will cost me nearly $3,000 a week right now. Let's say the room rates increase at the rate of the cd, I believe the average is much higher. Then a room will be near $9,000 for just one week in 25 years. Of course, I don't have the maintenance figured. But I still think I am getting a pretty good deal, since I plan on living that long.

To be honest, I don't think most of us bought because of the great savings anyway.

In general I don't agree that the decision to extend flows from the decision to own. IMO, the $$$ vs benefits are FAR different for the extension than for buying in currently even at the current retail price. Personally I'd be very comfortable extending any contract if I felt the $$$ justified it and I'm pushing 50. I simply don't think the $$$ justify the decision for anyone to extend and that's true for anyone where buying in makes sense and regardless of their age including those in their 20's. I think it's an easy decision at $5 pp and an iffy one that depends on circumstances at $10 per point and absolutely no way to justify $15 per point. IMO of course.