Remember: Disney owns the land. DVC holds a 50 year ground lease. They sell you the improvements - the building. So, when 2042 comes around, Disney gets a new hotel for free.
As noted, we don't know if or how. An easy bet it they won't do it similar to OKW but one of the problems is that they would have a problem doing something that was perceived as cheaper but similar without compensating the OKW members. That's not to say they couldn't do so, just it would create issues. I'm torn as to whether they will do it for any resorts or pick and chose. I'd say that VB and possibly HH are an easy no. I'd say the most likely course is a cash extension late in the game, say 5 yrs out and they'll offer OKW the new deal as well. Personally I'd start offering them now as a sales incentive for new retail purchases in lieu of other discounts.
Bill
To me it'd come down to price including dues. For OKW I think there is additional risk if they don't offer any additional extension options to include many more owners. But I wouldn't hesitate to buy a 2042 resort even for younger people if the price and other parameters worked out. They actually represent less long term risk in some ways than does DVC after those resorts exit if that's the way things go. A 30 something y/o will be mid to late 50's or 60 by the time 2042 rolls around. There will always be options going forward if Disney and DVC remain a viable option or a given person. I do feel that SSR is the best value to buy in if WDW is the plan but if AKV becomes a fair amount cheaper, and I think it will over time, then they may switch places.
I agree with that point, as I said at the time, the max cost that was reasonable was $8 pp for the extension and that $5 was a more reasonable price still. Even at free, DVD still wins in the long run.
Well that's just it. If average ownership is 13 year on a 27 year contract, the new owner today will be trying to sell it with only 14 yrs left.
One incentive is to cont to make a profit on DVCMC and to control fees as well as potentially to minimize their costs in a transition. For OKW, any any that offer extensions that are optional, they also run the risk of owing those dues. It's unlikely they'll be able to recoup enough on rental to do so. Resales will offer limited options without significant upgrades. IMO a more reasonably done extension is the best option unless they're prepared to doze the areas and start over or at least do major upgrades, renovations.
Money now is better than money in 25 years... I read somewhere that an extension could not be offered until the resort was 25 years old. When will that be for WLV? next year?
