Flipping Resale contract advice

[Apeters430]

I bought SSR 100 pts contract OCT use year over covid for $102 a point. We had been going back and forth with buying more direct at RIV but the new poly tower put that on hold. We still need a few more points I think to hold us over until then. I see people mention flipping their resale contract to buy direct when there is good incentives and I am wondering how I would go about figuring out if that's a good idea for us. Any advice ?? New summer incentives look good and even with resale restrictions we do like RIV. We aren't big 11 month out bookers and take multiple trips a year. Only 11 months out trip we would probably book is a long weekend in Dec. I know sometimes people sell their resale and buy on direct cab end up with more points, and similar monthly payment since direct has better interest rates ( I think so )

 

[VWLforever]

Fairly straightforward calculation. Figure out what you want to buy and what that would cost in total. Figure out what you would get if you sell- base this calc on the lowest price you would accept minus a broker commission. Good for you if you get a higher dollar, but wisest to base your math on the worst outcome and hope for better, rather than the other way around. Then look at the dollar difference between the two and see what it would cost.

11 month booking is one thing. If you book at all often inside seven months, then for sure stick with SSR, the points are way cheaper and inside seven months points from any resort are equal. If you want to stay at RIV most of the time and will consistently be able to book there before the 7 month window, then proceed accordingly.

Finally, don't buy a timeshare on credit. Disney's rates are bad to horrible (9.9%-16.9%). To be clear, there is nothing unethical about using credit to buy a timeshare. But the purpose of owning a timeshare is to save over the medium to long term versus what the vacations would cost just paying cash. If you're paying 16.9% interest, your savings will erode and then disappear really quickly.

My input is that there are a few things in life well worth buying on credit. A primary home, basic transportation, and education are good examples. Outside of that, credit can really hurt you if you let it. So for my own decision making process, if I were going to plunk down a lot of money to change resorts, I'd save that up first and then buy with cash. YMMV.

 

[sndral]

Can you just buy OTU points as needed to tide you over until you’re ready to buy Poly2?
There are a lot of SSR resale contracts on the market right now & even assuming you get a timely offer, you’ll need to deduct the commission & taxes on your gain plus paying off what you owe will likely leave you w/ very little cash towards a much more expensive direct purchase.
As for interest rates - just compare your interest rate on your resale w/ DVC’s rates but realize you’ll likely need a much larger loan to buy direct than you currently have, so I doubt there’s a scenario where your monthly payments would go down. Also, keep in mind that Riv MFs are the highest of the WDW resorts, so if you sell SSR for Riv your MFs will go up too.

 

[Brian Noble]

Can you just buy OTU points as needed to tide you over until you’re ready to buy Poly2?

If this doesn't work, what about transferring points in from another member?

Buying something to bridge a few years' use sounds like a bad idea to me.

 

[RoseGold]

Are you going to be able to keep up multiple trips a year with no APs? I'm considering selling as the AP mess seems to be going badly.

 

[DVCanadian]

I’d look at it this way:

You bought 100 restricted SSR resale points for $10,200 (100x$102).
You can sell it for approx $13,500 (100x$135) maybe more, maybe less.

As a member you could buy 150 Riv direct unrestricted points and qualify for “perks” for 150x$189=$28,350. I figure you need more points at RIV due to the point chart, I think 150 is minimum for blue card.

You could buy the RIV direct and then sell the SSR resale. Don’t sell SSR first or you don’t qualify for member pricing, this is the flip part.

So you can convert your 100 restricted points to 150 unrestricted blue card points for an additional $14,850 (net).

Me, I’d take that $15k and buy another 100 SSR because more points are better.

 

[Apeters430]

Are you going to be able to keep up multiple trips a year with no APs? I'm considering selling as the AP mess seems to be going badly.

I have an AP and I should be renewing next month

 

[harmon54]

Ideally yes you could do this. In practice SSR is not selling well right now because it keeps getting taken at lower then $130 but no one seems to want to pay a over $130 so now contracts just sit.

 

[Sunnyore]

Are you going to be able to keep up multiple trips a year with no APs? I'm considering selling as the AP mess seems to be going badly.

Funny.. I’m buying more points to support multiple trips a year to justify me having an AP as a West Coast member . Wish Premier would come be brought back.