First Purchase...1 or more Contracts???

[disneySCLA]

Hello All:

First post here! I have read alot of great information on these DVC boards and looking forward to share my experiences once we become members very soon! We are looking to purchase points at VGC. I have read here how some have preferred to purchase multiple contracts v. one contract in the beginning. We are looking at purchasing 200 points and our Guide said it was possible to purchase 100pt contract and 2 50pt contracts if we chose to do so.

My question that I hope some of you can help answer is: What are the advantages/disadvantages with having multiple contracts (same UY) versus one single contract? Any input is greatly appreciated.

Thanks.

Steve, Cindy, Lauren & Alyssa

 

[notaclue]

We just bought 200 pts at SSR and opted to go for 2 contracts instead of 1. We have 2 daughters and when the time comes that we no longer use the points or when we die, we will deed 1 contract to each daughter. That eliminates any arguments between the girls as to who gets what and who gets to use what. The price is the same either way you do it, you just have to sign double the paperwork with 2 contracts.

 

[wdwnut]

It is also easier to sell the smaller contracts if you need or choose to do so.

 

[wulfekamp]

Welcome Home.....

 

[chalee94]

My question that I hope some of you can help answer is: What are the advantages/disadvantages with having multiple contracts (same UY) versus one single contract? Any input is greatly appreciated.

Advantages:

1) You get more money if you decide to sell them (and smaller contracts usually sell more quickly than larger ones).
2) You can divide them among heirs if you get 2 – 100 pt contracts. A single 200 pt contract cannot be divided.
2b) If you decide you don't need 200 pts but only 150 or so...you can sell a 50 pt contract and keep rolling. Again, a single 200 pt contract cannot be divided.

Disadvantages:

Since these 2 or 3 contracts have the same UY and home resort, and will be co-ordinated under the same membership number, they function as a single contract when you call MS. Easy. No disadvantages that I can see…

 

[disneynutz]

We purchase in 50 point units for resale purposes.

Bill

 

[DenLo]

The only disadvantage of having all small contracts (4 - 50 point) is that if you sale all of the contracts, you have 4 closing costs versus if your points were in two 100 point contracts you would have only two closing costs.

I don't feel it's really difficult to sale any contracts between 25 and 100 points. You might get a few more dollars per point for the 25 and 50 point contracts, but you might end up with more closing costs that you might have to pay (unless you can get the buyer to pay the closing costs).

Since you have two daughters, I would think it would be nice to have two 100 point contracts that each girl could inherit one contract and their points would be equal.

 

[nukker7]

Smaller contracts are easier to sell to people like me cause I havent even gotten my points and Im ready to add on.

 

[disneySCLA]

Thank you all for your great input! We will be purchasing multiple contracts very soon! Stay tuned...

Thank you again!

 

[tinkerfan1]

We just bought 200 pts at SSR and opted to go for 2 contracts instead of 1. We have 2 daughters and when the time comes that we no longer use the points or when we die, we will deed 1 contract to each daughter. That eliminates any arguments between the girls as to who gets what and who gets to use what. The price is the same either way you do it, you just have to sign double the paperwork with 2 contracts.

Our reasoning was the same as this person. We have multiple contracts so they can be left to multiple children when the time comes that we can no longer use them.

 

[disneynutz]

Our reasoning was the same as this person. We have multiple contracts so they can be left to multiple children when the time comes that we can no longer use them.

Just food for thought. When we asked our adult children about their preferences, the answer was the same from both. "What makes you think that we want to vacation at Disney like you do?"

Bill

 

[ACDSNY]

The only disadvantage of having all small contracts (4 - 50 point) is that if you sale all of the contracts, you have 4 closing costs versus if your points were in two 100 point contracts you would have only two closing costs.

I've sold 3 small contracts and the buyers have paid the closing costs each time. I would not consider this to be a disadvantage as this is negotiated during the sale.

We have all our contracts at 100 points or less.