DVD land lease extentions

[jerseyduke]

Do people think/know if this will happen at other resorts like it did with OKW?

 

[WilsonFlyer]

I've heard a lot of people say that if it happens, they sure hope it doesn't happen like OKW.

You probably won't get that , but once some of the the old timers elaborate, you will.

 

[disneynutz]

Do people think/know if this will happen at other resorts like it did with OKW?

My understanding is that the land lease is between the association and one of Disney's companies.

The contract extensions IMO will depend on the profit of selling an extension versus knocking down the building, building new, and selling new contracts.

Bill

 

[hakepb]

The OKW extension was initially sold at $1/year ($15/15 more years) and is now available for $1.67/year

New DVC points are going for $3/year of the term ($150/50 years)

..what would now make DVC more money?

(Aparantly DVC doesn't even love buying resales at 50% of cost because new buildings are more profitable)

 

[sweetdana]

Do people think/know if this will happen at other resorts like it did with OKW?

I believe with bc and bwv both will be tore down n resold for a few reasons.

1) points per night are to inexpensive for locations. Compared to location resorts. Bwv stand room are cheaper ssr. The rooms could be 10 points more a night, and many would still be chose prior to SSR./ OKW / AKV.
2) they can make them both significantly taller and get more rooms. Parking might need a fix, but adding a parking fee or a small structure might fix that.
3) bwv needs a new pool and a market place. And they both need grand villas.

Maybe they will do a small extension on 1 to have them a few yrs apart. But that is my opinion.

 

[Deb & Bill]

In Feb, 2042, they can start renovations on all the expired resorts, raise the number of points to stay and sell more points than they did before.

The OKW extension was not the great money grab DVC thought it would be. Why would I spend $15 a point for years I am never going to see? OKW isn't called the DVC Retirement Village for nothing. I bet OKW has more older owners than any other resort.

 

[chalee94]

Do people think/know if this will happen at other resorts like it did with OKW?

1) i doubt it, personally

2) if they do, it'll probably be overpriced,

but post #2 was funny: definitely NOT "like they did with OKW."

 

[DebbieB]

You have to consider member age. I will be 82 in 2042, not interested in extending. Most of the people who bought in the first 10 or 15 years of BWV are most likely going to be past retirement age. You would be leaving expensive dues to your kids or heirs.

 

[SpaceMountain77]

Given its popularity, size and lack of grand villas, I am inclined to suspect that BCV contracts will expire in 2042 with significant changes made to the property thereafter.

Admittedly, I am the most curious about VB and HHI. If resorts are extended in order of age, then these resorts should be next.

The action DVC takes with VB and HHI will speak largely to its future direction. If contracts are extended, then it will be reasonable to assume that DVC is interested in maintaining resorts outside of DLR and WDW. However, if the contracts are not extended, then it would seem likely that future development would be focused on DLR and WDW.

Our contracts have paragraphs and sections dedicated to a discussion of resorts being removed from the system. If time continues to pass and extensions are not offered for VB and HHI, I would wonder if it was a sign of a potential sell-off.

 

[Chuck S]

I bet OKW has more older owners than any other resort.

I beg your pardon! We are not old, we are "experienced in life."

 

[Dean]

The OKW extension was initially sold at $1/year ($15/15 more years) and is now available for $1.67/year

New DVC points are going for $3/year of the term ($150/50 years)

..what would now make DVC more money?

(Aparantly DVC doesn't even love buying resales at 50% of cost because new buildings are more profitable)

Technically it was always $25 per point for the extension but they offered discounts early on to get it to $15 then $20 IIRC. Even at $15 it was far too expensive IMO.

As for whether extensions will happen, none of us know. There are a lot of factors on both sides of the equation and both sides contain factors that would seem to force that choice. One bet I'l make is it won't happen like it did at OKW.

 

[Deb & Bill]

I beg your pardon! We are not old, we are "experienced in life."

Funny, Chuck, except I can't roll on the ground laughing any more. Too much experience in my life.

 

[DVC92]

Remember, in the near future, the MFs for 2042 and 2057 members will be different with respect to the reserves. Unfortunately, DVC has failed to share information as to its implementation with the membership although it was agreed to by them in response to a complaint with the Timeshare Bureau.

 

[Dean]

Remember, in the near future, the MFs for 2042 and 2057 members will be different with respect to the reserves. Unfortunately, DVC has failed to share information as to its implementation with the membership although it was agreed to by them in response to a complaint with the Timeshare Bureau.

It really doesn't come into play until you get within the last hard refurbishment cycle, so maybe the last 12 years or so. I wouldn't expect much difference until after that and likely not much until you get within the last soft refurbishment cycle, 6-7 years or so. Even then I doubt we'll see a detailed breakdown. Also, the last year or two the fees will be different based on UY and based on whatever rationing plan they come up with since there are not enough villas at the other 2042 resorts to use all points. I wouldn't want to be a 2057 owner at OKW then unless they can come up with a plan to get a lot more people on board with the extension. I think all the 2042 options, esp OKW, are going to be really cheap late.

 

[DVC92]

It really doesn't come into play until you get within the last hard refurbishment cycle, so maybe the last 12 years or so. I wouldn't expect much difference until after that and likely not much until you get within the last soft refurbishment cycle, 6-7 years or so. Even then I doubt we'll see a detailed breakdown.

I believe it should occur much sooner than that based upon the estimated remaining useful life expectancy for reserve components set forth in the yearly statement. Some of the components last as long as 30 years, but I believe nothing is showing quite that long at the present time.

 

[Dean]

I believe it should occur much sooner than that based upon the estimated remaining useful life expectancy for reserve components set forth in the yearly statement. Some of the components last as long as 30 years, but I believe nothing is showing quite that long at the present time.

I personally doubt you'll see any changes or differences before 10-12 years out and won't be surprised if it's much less. Don't hold your breath. I can't think of much that would come into play that's not already in place. Buildings, HVAC, roof, siding won't factor in unless they go to replace them much later. Interiors like cabinets, floors, and soft goods will all be within the window I noted. From what I understand insurance companies are starting to reduce the life expectancy of many items like roofs. I'm being told by builders that a 30 yr roof is now only 15-20 yrs from an insurance perspective. It sure will be interesting when we get close to the end of the RTU though.