I messed up - and I need collective advice - ASAP - edited pg 3 with decision and Thanks

[lovethesun12]

While the market might be "hot", traditionally large contracts take a while to sell. I wouldn't buy it with plans to immediately sell it. Likewise, I wouldn't buy it and strip the points to rent them, with the plan on immediately selling the stripped contract. Both of these are highly speculative ways to "save $2k".

I agree. On that note, even in a hot market with smaller contracts it might not be worth it.

To illustrate, I bought a 50pt poly contract early last fall at $130pp. At one point got cold feet after selling (just felt like covid would never be over, I don't feel like that anymore thankfully,lol).

I calculated that I would have to sell at $162pp to just break even on that (that value would be different for everyone of course; for me it includes FIRPTA fees, realtor fees, etc). That's a pretty significant increase just to break even. While it's doable now on the 50pt contract I bought (if I wanted to), I'm not sure it would be (at least not immediately) on anything 150pts+ even in the current hot market.

Going on the fact you said you wouldn't be able to afford them both at once I would be really cautious about putting yourself in a position where you *need* to sell one when you can walk away from one of the contracts right now with no penalty.

 

[ILoveMyDVC]

Honestly, big picture the $2k is not a lot of money and may not be worth the time to do anything other than lose the deposit and move on. Consider it DVC tuition.

$112-$34988-300-SSR-Apr-0/20, 519/21, 300/22, 300/23

stripping the contract you could rent the 519 and at least half the 300 in 2022.
Rent 669 points at an average of $15 per point, so income of $10k
But you will probably need to pay a year of dues. $2200 or so?

you could also keep the SSR and rent it every year to reduce your dues on other contracts.Fairly easy to rent SSR points for double the dues at $55pp.

renting the 669 produces 10k income, apply that against the contract (minus say $2200 for a year of due) and it cost you around $27 sell it and you should do better than losing $2k but whole process would take at least a year unless you can cram a lot of rentals into the next 3-4 months.
Renting takes a lot of time, so depends on how you value your time.

I'd be more comfortable "renting" by transferring the points -i've done it that way a few times over the years. Do you know the going rate? If I could clear 7K, I could easily afford this contract and then make a decision at leaisure.

 

[ILoveMyDVC]

By the way, THANK YOU, to all who are contributing. The Dis community is a strong force and I appreciate it.

 

[vicarrieous]

By the way, THANK YOU, to all who are contributing. The Dis community is a strong force and I appreciate it.

Just a friendly reminder, Of those 519 points in 2021 only 300 would be allowed to be transferred as you can't transfer banked points.

 

[ILoveMyDVC]

Just a friendly reminder, Of those 519 points in 2021 only 300 would be allowed to be transferred as you can't transfer banked points.

XOXOXOXO

 

[DVCanadian]

I'd be more comfortable "renting" by transferring the points -i've done it that way a few times over the years. Do you know the going rate? If I could clear 7K, I could easily afford this contract and then make a decision at leaisure.

Sorry I don’t know the going rate for transfers. Check the transfer board or the Facebook groups for renting and transferring.

transferring may be lower than renting as you are dealing with existing owners who would need to want your SSR points, they may try to squeeze you on price. Renting, you can use those SSR points to book perceived premium resort reservations (under 7 months) for more than you can probably get from transfers. Good luck!

 

[AliceIn]

If you are worried about affording it, then the 2K loss seems the most prudent. You need to account for both best case and worse case scenarios. If you were able to transfer the 300 points, that is $4,200. I don't know what the demand is to transfer that many points with existing owners, especially now when so many people have points to burn. You can only do a single transfer per year. Renting the points would likely be the most reliable way to recoup some of the costs. If you are able to sell the stripped contract quickly, and pay the 8% commission, you would likely make a small amount of money, depending on the amount that you'd have to pay each month for the financing payments.

Worst case is that you can only rent some of the 300 points, and then have a long period of time that the contract may sit because it's a large one. If you are financing, and you can't afford the payments for a long wait, the worst thing that can happen is that Disney forecloses. You may end up losing a lot more than 2k.

My advice is look at the ROFR threads and see how often you see people buying large contracts at SSR. Also look at closing time to see how many months you may have to continue to make payments after you accept an offer and then calculate how much money you are really looking at.

If it were me, I'd cut my losses at $2k because the long term worry that I'd be carrying alone would be too much for me to have to bear for several months. Anxiety is awful, and this would cause me a lot of it.

 

[ILoveMyDVC]

If you are worried about affording it, then the 2K loss seems the most prudent. You need to account for both best case and worse case scenarios. If you were able to transfer the 300 points, that is $4,200. I don't know what the demand is to transfer that many points with existing owners, especially now when so many people have points to burn. You can only do a single transfer per year. Renting the points would likely be the most reliable way to recoup some of the costs. If you are able to sell the stripped contract quickly, and pay the 8% commission, you would likely make a small amount of money, depending on the amount that you'd have to pay each month for the financing payments.

Worst case is that you can only rent some of the 300 points, and then have a long period of time that the contract may sit because it's a large one. If you are financing, and you can't afford the payments for a long wait, the worst thing that can happen is that Disney forecloses. You may end up losing a lot more than 2k.

My advice is look at the ROFR threads and see how often you see people buying large contracts at SSR. Also look at closing time to see how many months you may have to continue to make payments after you accept an offer and then calculate how much money you are really looking at.

If it were me, I'd cut my losses at $2k because the long term worry that I'd be carrying alone would be too much for me to have to bear for several months. Anxiety is awful, and this would cause me a lot of it.

92% of the time, I am right here with you.

I can technically afford to carry it until December fairly comfortably with no dues having paid them in closing (and again a year later) but 2022 would be a bear with the particular 3 contratcs I'd have and other obligations.

I was going after 4 contracts that added up would have been 11k more than the two I will end up with now (minus this SSR one) becuase I am now ditching 3 of the 4. If that somehow makes sense. I wanted to end up with 1200 points. I will only have 1050 with the 2 contracts plus my existing 1994 points.

The OKW E are almost impossible. I look at 6 sites a day. There is only 2 for sale right now.
1. The guy won't go below $131
2. The woman refuses to answer my offer for full selling price. She's holding out for more. How THAT is legal, I don't know. They should be forced to take down the add but that is a different disucssion.

So, I am not getting rid of my 520 OKW E points under any circumstances.

For a hot second on Vacation a few weeks ago when the resale bug bit, the SSR seemed reasonable - great price - but I will likely never stay there. 28 years, I stayed one night not at OKW.

Thank oyu for beign so raw and honest in your response. I deeply appreciate it.

 

[ILoveMyDVC]

Sorry I don’t know the going rate for transfers. Check the transfer board or the Facebook groups for renting and transferring.

transferring may be lower than renting as you are dealing with existing owners who would need to want your SSR points, they may try to squeeze you on price. Renting, you can use those SSR points to book perceived premium resort reservations (under 7 months) for more than you can probably get from transfers. Good luck!

I looked, I can dump the 300 for 12/13 likely in a day as a transfer.

 

[DVCanadian]

I looked, I can dump the 300 for 12/13 likely in a day as a transfer.

So around $3600 from a quick transfer. Maybe then rent as many points as you want to and then sell it?

seems more time and effort effective to take the loss, in the scale of the 1000 points you are buying $2000 isn’t large.
Or put in some time and effort to come out a few thousand ahead.

 

[Nie0214]

The amount of time even thinking about how to approach this would have me backing out of one (even with a $2k loss). Reselling it would not make your money back and you’d easily lose the $2k in seller commission anyhow. So do you want to lose $2k now or $2k later with tons of time (and financial stress, it sounds) involved?

 

[princesscinderella]

I took the first post by OP to mean that they can’t afford to buy both contracts initially. Maybe I’m mistaken and they can. If you can’t afford to close on both then one definitely has to go. I’d choose the OKWe

 

[ILoveMyDVC]

Sorry I don’t know the going rate for transfers. Check the transfer board or the Facebook groups for renting and transferring.

transferring may be lower than renting as you are dealing with existing owners who would need to want your SSR points, they may try to squeeze you on price. Renting, you can use those SSR points to book perceived premium resort reservations (under 7 months) for more than you can probably get from transfers. Good luck!

I looked, I can dump the 300 for 12/13 likely in a day as a transfer.

 

[MICKIMINI]

Just a reminder, but you've probably already figured out the tax liability on renting or transferring. It's the bottom line. Good luck.

 

[RoseGold]

I personally would just write off the 2k as part of the OKW extended. They are hard to find, and it will likely increase in value, certainly more than the SSR which are a dime a dozen.

Disney is selling boatloads of them direct. The numbers are staggering. OKW extended should actually become increasingly easy to find.

I also own a lot of SSR and will also probably never stay there. I've never even been there.

 

[Brian Noble]

If you are worried about affording it, then the 2K loss seems the most prudent.

Yes, this exactly.

92% of the time, I am right here with you.

Ask yourself what is motivating the other 8%. It does not look like it is finances, because...

If I could clear 7K

I looked, I can dump the 300 for 12/13 likely in a day as a transfer.

...that's about half of what you originally said you needed.

Looking at this with a bit of distance and no skin in the game, it looks like you are working pretty hard to talk yourself out of doing what you know, deep down, you should do. It's hard to admit mistakes, believe me I know! But, the sooner you can, the more likely it is that you can limit the potential damage of compounding the mistake.

 

[ILoveMyDVC]

Yes, this exactly.


Ask yourself what is motivating the other 8%. It does not look like it is finances, because...


...that's about half of what you originally said you needed.

Looking at this with a bit of distance and no skin in the game, it looks like you are working pretty hard to talk yourself out of doing what you know, deep down, you should do. It's hard to admit mistakes, believe me I know! But, the sooner you can, the more likely it is that you can limit the potential damage of compounding the mistake.

YES!!!!! I just want OUT. Throwing good money after bad is never right.

 

[AaronEuth]

Disney is selling boatloads of them direct. The numbers are staggering. OKW extended should actually become increasingly easy to find.

I also own a lot of SSR and will also probably never stay there. I've never even been there.

They are selling three boatloads of SSR direct, so while there is the potential for more OKWe coming into the market, there is 3x as much potential for more SSR points to come into the market. Disney sold 5385 OKW points in March, and 14027 SSR.

 

[RoseGold]

They are selling three boatloads of SSR direct, so while there is the potential for more OKWe coming into the market, there is 3x as much potential for more SSR points to come into the market. Disney sold 5385 OKW points in March, and 14027 SSR.

Sure, but SSR is SSR. When OKW gets ROFRed, it gets extended, so more and more contracts are getting extended.

 

[Brian Noble]

YES!!!!! I just want OUT. Throwing good money after bad is never right.

Good for you. Call the broker and tell them so you can get this off your plate and move on!