Extra cost to split direct purchases into smaller contracts

[Redheadprincess]

Can anyone tell me the extra cost to split larger points into smaller contracts on a direct purchase? Looking at Riviera and it seems like smaller conttacts would be better for resale years down the line.

 

[Duckbug.Ducktales]

It's about $6-700 per contract. Ask them to remove the optional title insurance. Smaller contracts after better for downsizing later if you ever want to. Back in 2020 we bought 250 pts, one 120 contract and another for 130. How many points are you buying?

(Were originally only going in for 100-125 total to stay in studios, but then saw many comments online about people wishing they had purchased more at the start. Glad I listened to that because we like to stay in 1BRs now!)

 

[Redheadprincess]

It's about $6-700 per contract. Ask them to remove the optional title insurance. Smaller contracts after better for downsizing later if you ever want to. Back in 2020 we bought 250 pts, one 120 contract and another for 130. How many points are you buying?

(Were originally only going in for 100-125 total to stay in studios, but then saw many comments online about people wishing they had purchased more at the start. Glad I listened to that because we like to stay in 1BRs now!)

I'm thinking 200, but we are still waiting on a resale contract on ROFR, but we have had 3 taken already since December, so getting tired and may just go direct.

 

[SleeplessInTO]

From my recent-ish memory: There’s a document prep fee of $250 and a tax of $18. The rest is the optional title insurance. For a 50 point contract the total (including title insurance) was about $400.

 

[Duckbug.Ducktales]

Just looked at recent purchases and it ranged from $350ish ($250 doc fee, $18 recording fee, and $86 taxes) fora small purchase... to $670 (higher taxes and the fee was $29) for a bigger contract

 

[lorie13]

Just purchased 2 VGF 100 point contracts, removed title insurance, the closing cost for each contract was $413.40, each had the $250 documentation fee, recording fee of $18.50 and the City/County Tax fee of $144.90, this is based on purchase price of the contract.

 

[CarolMN]

Just purchased 2 VGF 100 point contracts, removed title insurance, the closing cost for each contract was $413.40, each had the $250 documentation fee, recording fee of $18.50 and the City/County Tax fee of $144.90, this is based on purchase price of the contract.

The Add-on Tool says the estimated closing costs for a 100 point VGF contract is $282.43. So, 282.43 - 18.50 -144.90 = $119.03. I assume that is the cost of the title insurance. That's about 0.5% of the cost of 100 points. (A bit more for you since you bought enough to get the incentives, though).

For us, it was worth spending 0,5% to protect $15,525 (we bought 75 points), even though the risk is probably quite small.

 

[Redheadprincess]

The Add-on Tool says the estimated closing costs for a 100 point VGF contract is $282.43. So, 282.43 - 18.50 -144.90 = $119.03. I assume that is the cost of the title insurance. That's about 0.5% of the cost of 100 points. (A bit more for you since you bought enough to get the incentives, though).

For us, it was worth spending 0,5% to protect $15,525 (we bought 75 points), even though the risk is probably quite small.

Thanks, this is perfect, looking at splitting 200 points into 2, 100 pt contracts at Riviera. I think of we were to go resell years down the road it be better because of the restrictions.

 

[Duckbug.Ducktales]

Thanks, this is perfect, looking at splitting 200 points into 2, 100 pt contracts at Riviera. I think of we were to go resell years down the road it be better because of the restrictions.

Smaller contracts are also sold for more pp than larger ones.

 

[SLThomas318]

We started splitting our purchases into 2 small contracts (we have 2 kids so figured it would make things easier down the road AND small contracts sell quickly and for more $/pt resale if we want to downsize)…

I don’t have exact numbers without looking, but you essentially pay for 2 closings vs 1. They will give you any developer discounts based on the total points though…

 

[Cyberc1978]

For 200 points I’d would split into 4 separate 50 contracts. Smaller contract sell for more than the larger ones.

however if you don’t have the perks already you could consider a 150 and a 50 points contract.

 

[Red Dog Run]

Can anyone tell me the extra cost to split larger points into smaller contracts on a direct purchase? Looking at Riviera and it seems like smaller contracts would be better for resale years down the line.

I just did this with 2 GFV2 contracts. Removed title insurance and opted for a 50 and a 75 pointer. Cost $250 extra.

 

[Duckbug.Ducktales]

For 200 points I’d would split into 4 separate 50 contracts. Smaller contract sell for more than the larger ones.

however if you don’t have the perks already you could consider a 150 and a 50 points contract.

Oh, good point about perks. OP isn't a member yet from what I understand, so it would be better to split 150 + 50 (100 pts at RVA doesn't go far anyway), so that if you sell the 50 pt, the 150 still retains the direct/blue card perks. 150 is the current minimum.

 

[havoc315]

Pay a bit more in closing costs but it's worth it --
If you ever re-sell, you actually can get significantly more per point for a smaller contract.
If you ever want to downsize, or split your points among your children some day... easier with multiple small contracts.

 

[Sandisw]

Oh, good point about perks. OP isn't a member yet from what I understand, so it would be better to split 150 + 50 (100 pts at RVA doesn't go far anyway), so that if you sell the 50 pt, the 150 still retains the direct/blue card perks. 150 is the current minimum.

New members must have one contract at 150.

 

[RKS03]

I’m an existing blue card member but will likely sell existing contracts after purchasing direct at VGF2. To maintain blue card status, do I need to have at least one 150 point contract? Was thinking about breaking up 300 point purchase into 3 100 point contracts but wouldn’t do that if I’d lose blue card status after selling my existing points.

 

[Riker143]

What is the smallest contract they will split? If I want to buy 75 points, will they do a 50 point contract and 25?

 

[Sandisw]

I’m an existing blue card member but will likely sell existing contracts after purchasing direct at VGF2. To maintain blue card status, do I need to have at least one 150 point contract? Was thinking about breaking up 300 point purchase into 3 100 point contracts but wouldn’t do that if I’d lose blue card status after selling my existing points.

If you add on the VGF2 contracts as a current owner...before you sell...., they will let you split into 3 100's. Once you sell the old ones, you will then be required to maintain 150 for the blue card as that is what is what is effect today when you were buying the VGF2 points. So, you would only be able to sell one of those 100 point contracts in the future if you want to continue as a blue card.

IMO, I would make one of them 150 and then split the other two as 75 and 75 so that you have a way of meeting the 150 once the current, grandfathered contracts are sold.

 

[Sandisw]

What is the smallest contract they will split? If I want to buy 75 points, will they do a 50 point contract and 25?

If you are a current owner, the will only split a 75 into a 50 and 25 if the resort you are buying allows for purchases of 25 points. Right now, RIV, CCV, and VGF all require a minimum of 50 points so I do not think they will allow it if you are buying one of those resorts. But, it doesn't hurt to ask your guide.

If you are buying a different resort that allows for a purchase of 25, then you should be all set. New owners must buy 150 and they will not allow any splits lower than that.