Extending term of BCV or BWV???

[amystevekai&bump]

Hi, I have seen mention of the possibility of Disney increasing the end date for other contracts, aside from OKW.

How likely do you think this is??? And When would it happen?? Plus how expensive was it for the existing owners at OKW to do this??

I am considering adding a small contract at either BCV or BWV probably in 2011, and the only thing holding me back is the shorter contract length.

As BCV & BWV are still so popular due to their great location, are disney likely to increase the terms, or just let them expire and sell them again for a premium??

I know no one knows for sure, just wondered what you thought??!!

 

[tjkraz]

I know no one knows for sure, just wondered what you thought??!!

As you say, nobody knows for sure what will happen. The only certainty (IMHO) is that if Disney DOES offer an extension, it will cost far more than those years are actually worth.

The OKW extension covers the 15 year period from 2043 to 2057. It was priced at $15 per point for those who extended within the first 6 months of the offer. (Afterward they were asking $25 per point.)

Using widely-accepted Present Value calculations, the true value of the extension in 2008 dollars was more in the $3-5 per point range. We're talking about pre-paying for an asset that buyers won't be able to use for another 33 years.

Personally I think you're far better off making a decision based upon information available at the time of purchase. Don't assume that there will be an extension offered, nor that it will be priced appropriately.

 

[chalee94]

Don't assume that there will be an extension offered, nor that it will be priced appropriately.

i totally agree.

 

[Dean]

Don't assume that there will be an extension offered, nor that it will be priced appropriately.

I'd word it differently. Assume that IF an extension is offered, it will not be priced appropriately. OKW certainly was not. It's going to be interesting what happens with OKW those last 15 years. At the current situation it appears that less than half the resort will be functioning. Disney has already proven they can't consistently rent those extra units out. I wonder what the fees will be at the time as well. They should have gone for $10 a point at the highest on the OKW extension but now they're stuck. If they offer others cheaper, they'll likely have to refund a portion to the owners that extended already. Or even better would have been to take the approach many other companies have for similar situations, tie it to a retail purchase.

 

[amystevekai&bump]

thanks everyone!! I hadn't realised that the OKW extension had been so expensive and therefore not well received!!

As you say I think I am going to have to assume that the end date will remain at 2042, and decide whether that is good enough for us.

Whilst it will take us until we are 68 years old, our children will only be mid thirties, so it probably won't last for us to take the grandkids!!! The other consideration is we were looking at buying a smaller add on and then just using it every three years by banking and borrowing - with a shorter contract than our current resorts of BLT and AKV, are we going to get in enough vacations to make it a worthwhile purchase??

I know these are all questions I can only answer myself - but as always I love hearing all of your opinions!!

 

[Mickey'sApprentice]

thanks everyone!! I hadn't realised that the OKW extension had been so expensive and therefore not well received!!

As you say I think I am going to have to assume that the end date will remain at 2042, and decide whether that is good enough for us.

Whilst it will take us until we are 68 years old, our children will only be mid thirties, so it probably won't last for us to take the grandkids!!! The other consideration is we were looking at buying a smaller add on and then just using it every three years by banking and borrowing - with a shorter contract than our current resorts of BLT and AKV, are we going to get in enough vacations to make it a worthwhile purchase??

I know these are all questions I can only answer myself - but as always I love hearing all of your opinions!!

We've looked it at like this: our BWV contract will expire when we are 73 and 76. We hope to make an addon purchase at BLT in the future. Our thinking it that we will probably want to slow down at about that time anyway, so it will make sense to just have one contract left. BLT runs out when we are 91 and 94...so maybe we won't miss it too much.

If all else fails...there will still be availability at Saratoga Springs in 2061.

 

[chalee94]

If all else fails...there will still be availability at Saratoga Springs in 2061.

heck, by then the new disney CEO might decide to turn that space into an area where disney guests can learn to paint...or cook. they could call it the "disney institution" or something...