Future of Resales/ROFR

[tammymacb]

Let me start by saying that when I say future I mean "reasonably close future" not 20 years from now..

I'm wondering what the long time Dis players are thinking about the future of resale and the probability of ROFRs with all the significant changes going on. First of all, with the cost of food, gas, heating and loss of equity of homes, I think there WILL be folks who make the choice to sell contracts to pay more pressing bills. Now, I'm not saying everyone, I'm not rich and am in the process of buying my first contract. But, I'm the original owner of my home and have not overextended myself with the real estate boom. Lots of people, unfortunately, have.

Also, with the release of Kingdom Towers. There are folks on here that have already said that they'll be selling off other contracts to buy in.

IMHO, I think there will be an increase in available resale points and I'm thinking that Disney may loosen up on the ROFR's for awhile. ( Of course, that's admittedly also wishful thinking ) Between their own new properties, they'll have a LOT for sale..

What's your opinion? Do you see a shift in the resale market?

I also want to add, the economy will figure itself out, people will continue to buy and in a few years, this won't be an issue. I'm talking about now.

 

[Chuck S]

If the Kingdom Towers has the high points per night, as well as a high purchase price per point, as rumored, I think Disney will continue to use ROFR to protect that selling price. It wouldn't necessarily be a good selling point for folks to go to timeshare discussion boards and read that they could buy resale for 1/2 price or less than the new product, with lower maintenance fees, and still be able to stay in the tower.

 

[rocketriter]

I suspect that as long as DVC continues to develop new buildings and sell shares, they'll continue to prop up the price of resales as well. But when they reach a saturation point (has to happen, but probably not in the very near future) and stop promoting buildings, they have less motivation to do so and will stop. Then resale prices will plunge to levels more commensurate with other timeshare resales. From my point of view, as long as they maintain the buildings and services well for the length of my contract without large raises in dues, I don't care either way.