For "Seasoned DVC'ers" Resale Values When New Resorts Are Offered

[keishashadow]

With all the rumours flying around re new DVC projects, both on-site & off, just curious as to how a new offering effects the Resale market.

I'd like to think that Resale value will increase in price or remain stable, particularly with contracts in the smaller point range,more affordable for the 1st time buyer.

It was our intent to hold one of our contracts until the CR or whatever was offered, sell it (yes, Tom - through your fine co.) and add on @ the new property.

With all the historical charts I've seen on this board, I was hoping someone would recall what usually happens when the next, best thing is offered?

 

[mikesmom]

This is by no means a definitive answer, as I don't really track these things. I don't recall seeing radical changes in resale prices when a new resort opens per se. I do see a rush to buy resale when a price increase in the price per point is announced by Disney. That often does coincide with a new resort.

 

[vascubaguy]

With all the rumours flying around re new DVC projects, both on-site & off, just curious as to how a new offering effects the Resale market.

I'd like to think that Resale value will increase in price or remain stable, particularly with contracts in the smaller point range,more affordable for the 1st time buyer.

It was our intent to hold one of our contracts until the CR or whatever was offered, sell it (yes, Tom - through your fine co.) and add on @ the new property.

With all the historical charts I've seen on this board, I was hoping someone would recall what usually happens when the next, best thing is offered?

This is JMO, but I'd think it would stay relatively stable, but might actually drop in price some. Mostly because you would probably have an increase in resale listings with people doing the same thing you plan to do. Sell a current contract to replace it with the new resort points. (Which if CR opens up a DVC I would imagine we might see a bit of this going on). At that point you'd be increasing the supply but not necessarily the demand for "sold-outs". I do believe though that smaller contracts would still go for the premiums, especially if they have currently available points.

 

[keishashadow]

So when "adding on" @ a new resort, the point price is the same as add-ons @ older resorts?

IMO the CR would command a higher buy-in point price, based on the general public's perception as a known/desireable location.

How would DVC handle selling an off-site (Hawaii, Calif) or "Premium" On-site (CR or AKL):

1. Do you think DVC would equalize this by charging a much higher point usage/night?

2. Would they consider creating a new class/level of DVC membership; perhaps excluding the older TS's?

 

[Happy Birthday Cat]

In the past the resale prices have gone up but it's been more associated with when Disney changes their point prices rather than a new resort opening up. (But remember that past histroy will not dictate future performance ) vascubaguy has a good point regarding supply and demand for points but as long as Disney keeps their point prices up by using ROFR, the point prices of resales should at least hold their own, if not increase.

HBC

 

[Happy Birthday Cat]

So when "adding on" @ a new resort, the point price is the same as add-ons @ older resorts?

In the past it was like that. Now with SSR having more years to its contracts there is a slight difference in cost between it and the older DVC resorts.

HBC

 

[vascubaguy]

So when "adding on" @ a new resort, the point price is the same as add-ons @ older resorts?

IMO the CR would command a higher buy-in point price, based on the general public's perception as a known/desireable location.

How would DVC handle selling an off-site (Hawaii, Calif) or "Premium" On-site (CR or AKL):

1. Do you think DVC would equalize this by charging a much higher point usage/night?

2. Would they consider creating a new class/level of DVC membership; perhaps excluding the older TS's?

From what others have said, when a new DVC is announced, it is sold at the current point price (if it was right now it would be $98 per point). However, they might not offer any incentives for the new DVC, but might continue to offer the incentives at SSR. So you could get SSR for $90 with incentives or $98 at the new location.

The points per night would likely be higher for the newer, smaller or more in-demand locations, so yes that could be one way of making it "more expensive". However, it isn't always the case... for some accommodations it's cheaper to stay at SSR than VWL or BCV. I don't think they'd create a new "class/level" of membership.

 

[keishashadow]

In the past the resale prices have gone up but it's been more associated with when Disney changes their point prices rather than a new resort opening up. (But remember that past histroy will not dictate future performance ) vascubaguy has a good point regarding supply and demand for points but as long as Disney keeps their point prices up by using ROFR, the point prices of resales should at least hold their own, if not increase.

HBC

I hope so - ROFR's a curse when you're going thru it, but a blessing afterwards to stabilize values.

Vascubaguy, Other than I wanted to pay cash, one of the reasons I looked for a small contract was the easy sell aspect.

Notice you're both "going home" soon - enjoy the magic.

 

[vascubaguy]

...
Vascubaguy, Other than I wanted to pay cash, one of the reasons I looked for a small contract was the easy sell aspect.

Me too... if CR or AKL is announced I would probably sell my small contract and add-on there.

Notice you're both "going home" soon - enjoy the magic.

Not soon enough... my first DVC stay isn't until March 2006... although in the meantime we are heading to DL!!!
Thanks!!!

 

[gppnj]

It was our intent to hold one of our contracts until the CR or whatever was offered, sell it (yes, Tom - through your fine co.) and add on @ the new property.

I would be "forced" to do that as well if there was ever a DVC at AKL.

 

[keishashadow]

Me too... if CR or AKL is announced I would probably sell my small contract and add-on there.



Not soon enough... my first DVC stay isn't until March 2006... although in the meantime we are heading to DL!!!
Thanks!!!

Better put on my reading glasses...we were planning on DL this fall too, but bought DVC instead. Figured we'd get there next year (using points) - not too sure now with the expected spike in airfare. Told my DH we should use those comp'd air tix for LAX. Make sure to post, especially about the new & improved Space Mt.