Future of ROFR

[a742246]

Now that GF is being sold, my guess that Disney will not be ROFR as many contracts. Afterall, with GF going for $145 a point for a 50 year contract, why would anyone want to buy an older resort with fewer years for basically the same price.
My guess resale prices will begin to fall again.

 

[bman388]

Now that GF is being sold, my guess that Disney will not be ROFR as many contracts. Afterall, with GF going for $145 a point for a 50 year contract, why would anyone want to buy an older resort with fewer years for basically the same price.
My guess resale prices will begin to fall again.

I just bought a 250 pt SSR contract on the resale market. The contract exprires 2054 which is 41 years from now and I would be 80 years old. At the end of the GF contract I would be 89. So contract life is not that big of a deal to me. Oh.. and I paid $50/pt for the SSR contract. That saved me about $24,000.. That is a big deal to me! So I think the resale market will be alive and well

 

[Meggysmum]

I just bought a 250 pt SSR contract on the resale market. The contract exprires 2054 which is 41 years from now and I would be 80 years old. At the end of the GF contract I would be 89. So contract life is not that big of a deal to me. Oh.. and I paid $50/pt for the SSR contract. That saved me about $24,000.. That is a big deal to me! So I think the resale market will be alive and well

I think the original poster means that will the rate of ROFR on resales slow down. Disney has been grabbing lots of resale contracts back to supply the direct purchasers who want to buy in to the older resorts. Now that a new resort is being sold for a reasonable amount will that mean the waitlists shorten for direct purchasers and those of us that buy resale will be able to rest easier through the dreaded ROFR process.

 

[bman388]

Ah.. I see that point after re-reading it.

 

[River Country]

Yeah i agree here. I already have 160 SSR and will more than likely add more on the resale market and probably pay 8-10k for 150 pts as opposed to buying it direct like i did last time. Its a major savings and i will be 77 when this expires so i think the re-sale market will be alive and well also. I really think its too early to determine what impact VGF will have on the re-sale market pricing.

 

[kedkin]

Do you think the price per point will drop in resales if there is fewer contracts getting ROFR?

 

[DougEMG]

For the smaller resorts like VWL, BCV, BWV and VGC there is always going to be high demand. People want to own at those resorts because they want to stay there and as the number of DVC members increase the chance of booking one of those resorts at 7 months decreases.

Contract length isn't an issue for a lot of people, the real issue is location.

 

[nalajms]

Now that GF is being sold, my guess that Disney will not be ROFR as many contracts.

I think there will be just as many ROFR, if not more. New DVC buyers will buy in at VGF. Then realize they can buy a sold out resorts that like more than VGF or because it's harder to get rooms at 7mons!

If they ever take away the other options for point use on direct contracts, the competition for rooms at 7mon will be even worse

 

[rojen]

End date means a lot to me, being thirty. The classic resorts expire right as I plan on retiring. There's no way I'd consider anything older than SSR. The earlier end dates haven't seemed to affect resale prices, but as we get closer to 2042, that should change. And with the reportedly cluster of the OKW extension, who knows how long you'll own your interest. GFV looks like a decent buy at $145

 

[River Country]

End date means a lot to me, being thirty. The classic resorts expire right as I plan on retiring. There's no way I'd consider anything older than SSR. The earlier end dates haven't seemed to affect resale prices, but as we get closer to 2042, that should change. And with the reportedly cluster of the OKW extension, who knows how long you'll own your interest. GFV looks like a decent buy at $145

Really $145 a decent buy???

100 points =$14,500 VGF Contract end 2063

160 points =$9,840 SSR Resale and ends in 2054

 

[bman388]

Really $145 a decent buy???

100 points =$14,500 VGF Contract end 2063

160 points =$9,840 SSR Resale and ends in 2054

Or for us..

250 points = $12,500 SSR Resale and ends in 2054

 

[nyck]

Really $145 a decent buy???

100 points =$14,500 VGF Contract end 2063

160 points =$9,840 SSR Resale and ends in 2054

I sold my SSR years ago and I am glad to be rid of it. I buy where i want to stay now. Unless u want the treehouses there really is no need for an 11 month window at SSR. SSR and OKW are the last to fill up during a busy season. So if $145 is a good deal for someone who wants the 11 month window, a great location, and like that resort, more power to them

 

[bman388]

I sold my SSR years ago and I am glad to be rid of it. I buy where i want to stay now. Unless u want the treehouses there really is no need for an 11 month window at SSR. SSR and OKW are the last to fill up during a busy season. So if $145 is a good deal for someone who wants the 11 month window, a great location, and like that resort, more power to them

I do agree with this. To each their own!

 

[lchute1158]

Totally ruling out direct sales maybe not a good idea on the more pricy newer resorts.


I am totally in agreement regales is the way to go especially on the WDW classic resorts...with only Animal Kingdom being a great deal compared to direct.

But for example, Aulani is close to the same price if not cheaper depending how you view it from direct sales.

Right now with the promotions a 100 point Aulani contract is 132 a point. Factor in 100 2012 points and 2013 points...half the closing costs of resales...and only 7 months worth of 2013 mf...it is about 66 dollars a point. Most contracts are stripped and you are paying 110 a point plus 1000 to close and all 2013 mf if it even has 2013 points...

Just a flip side argument.

Sent from my iPad using DISBoards

 

[River Country]

I do agree with this. To each their own!

True

 

[Countryrunner262]

I sold my SSR years ago and I am glad to be rid of it. I buy where i want to stay now. Unless u want the treehouses there really is no need for an 11 month window at SSR. SSR and OKW are the last to fill up during a busy season. So if $145 is a good deal for someone who wants the 11 month window, a great location, and like that resort, more power to them

For us, we like the location of SSR.

 

[dmunsil]

Now that GF is being sold, my guess that Disney will not be ROFR as many contracts. Afterall, with GF going for $145 a point for a 50 year contract, why would anyone want to buy an older resort with fewer years for basically the same price.
My guess resale prices will begin to fall again.

I think you may be right, but it depends on what Disney's primary goal with ROFR is. If their primary goal is to provide points for the wait lists, then yes, I think the ROFR rate will go down, because people are going to jump off the wait list and into a lovely Grand Floridian Villa.

Right now, I would bet that sales people are working their way through all the people waiting for sold-out resorts as add-ons and telling them all about the amazing opportunity to buy VGF at the special intro price.

On June 19th, they'll start working through the list of people who were waiting for new points at a sold-out resort.

So that suggests that demand for the older resorts will go down significantly, which means Disney could ease back on ROFRing and still keep the wait list at a few months.

But if Disney's primary goal with ROFR is to prop up the resale price then I don't think things will change much. They might even ROFR more if the sudden influx of new points causes people to sell the resort they have in order to buy VGF, and Disney needs to ROFR the lower-priced contracts to keep the price from dropping too much.

 

[a742246]

The way I see the way things will go in the future. Demand for direct pricing for the older resorts will decline in about 2 months and Disney will exercise
their rights less often due to less demand, and prices for resales will fall. It may take a little bit longer than 2 months. But for the future new DVC direct buyers why would you want buy a BVW, BC, VWL, OKW contract with half the expiration years then the new GF for the same costs?

This is just my opinion, but if I were looking to buy resale I would wait a few months and see what happens.

 

[NoleFan]

The way I see the way things will go in the future. Demand for direct pricing for the older resorts will decline in about 2 months and Disney will exercise
their rights less often due to less demand, and prices for resales will fall. It may take a little bit longer than 2 months. But for the future new DVC direct buyers why would you want buy a BVW, BC, VWL, OKW contract with half the expiration years then the new GF for the same costs?

This is just my opinion, but if I were looking to buy resale I would wait a few months and see what happens.

Although VGF is a beautiful resort, it may not be the perfect fit for everyone. The $ cost & point cost is higher than other resorts. A lot of people buy where they want to stay and length of contract does not always weigh in as heavily as you might think. At least, it did not for us. We are thrilled to be new owners at BWV & BCV. We love those resorts & simply that's where we want to stay.

 

[deploylinux]

VGF seems expensive compared to Aulani, and Aulani direct points are just moderately more expensive than resale. We are on the west coast so our home resort was either going to be VGC or Aulani.

We did just purchase 350 pts at Aulani and my calculations compared to resale suggest that our effective price was close to $118-120/pt whereas resales have been listing on the timeshare store for $100-105/pt for Aulani alone (assuming some points stripped).

VGF direct at an effective ~$140/pt whereas other wdw pts are easily <$100/pt resale would be a completely different calculation - especially with the very high per point use cost. Still, it may be worth it for the access to the limited supply of vgf rooms...but you'd have to really want to stay there.