Just back with OKW news! 50 years contract upgrade!

[AKV707]

I do think this is good news for OKW owners. This will get interesting. This could havbave DVC exercising ROFR more frequently on OKW resales. They can buy a 2042 contratct and resell those points at current rates with a 2057 expiration. If this expands to all of the 2042 resorts, that would make pricing at all current DVC resorts the same essentially.

Whatt's next, $5 per point for SSR owners to extend 5 years?

 

[Wigit12]

DS and his wife will be late 50s in 2042 also. But they are expecting our first grandchild now. I think we will ask them if they'd want the extension ( and the responsibility of dues payments).

We probably wouldn't extend just for our use. I'm guessing they'll say yes though

 

[mjy]

I too have to wonder if the offer is extended to BW, will I consider it. I will be 87, DW will be 83, DS will be 59 and DD will be 57, so do we ask them what they think, now, at 23 and 21. Should we charge them for the extension?

"Hey kids....family meeting. What are you doing in 35 years?"

In the spirit of the rumored news, don't ask them, tell them: "Hey kids, this is what's going to happen. If I don't hear from you, I'll be sending you a bill!"

 

[PamOKW]

I think this is more for DVC's benefit -- a lot easier for them to sell points with an end date in keeping with what they are currently selling. I imagine, that it's a legal requirement that they need to offer an option to current owners. I don't see any real value to myself except for how it might effect any future decision I might have to sell.

The one dream this seems to put the kabosh on is the plan many of us were looking forward to when they announced the opening of the first DVC retirement homes!

 

[mjy]

We have 310 OKW points, so it would cost us $4,650 (at the "bargain" price of $15) to extend points 35 years from now. If I was going to put another $4,650 into DVC, I'd MUCH rather have 45 points for the next 35 years at some other resort, like maybe VWL.

I know what you mean.

I presently have 670 points at the Boardwalk. Assuming the same offer there ($15/pt), that would be $10,050 to extend. That would be nearly 100 points at a new (put CRV in here!) place.

 

[ebenmax]

So if WDW is currently selling OKW points for $92 pp., will they begin charging $92 + $15 = $107 pp on the resale market which makes them the highest of all DVCs? OR will they stay lower because it is an older resort? Should be interesting. . .

 

[CarolMN]

So if WDW is currently selling OKW points for $92 pp., will they begin charging $92 + $15 = $107 pp on the resale market which makes them the highest of all DVCs? OR will they stay lower because it is an older resort? Should be interesting. . .

I think they will charge the same price for OKW as they are charging for SSR & AKV. There may be different incentives -my guess is no incentives for OKW at least to start, but the "list" price per point will be the same.

When/If CRV or GCV begin selling, I think the price will go up for all the resorts DVC is still selling. That's pretty much how they've done it in the past - they use incentives for the slower selling properties.

JMHO. YMMV.

 

[Mai Ku Tiki]

Hi! Wondering what other DVCers think....

Suppose in 5 yrs, I want to sell my contract ending in 2042. Won't it almost automatically have to be priced ALOT less than an equal contract at same DVC ending in 2057?

So unless we KNOW we'll NEVER sell our contracts, won't we need to buy the extended yrs to mainain decent resale?

Can't imagine selling ever, unless they finally break ground for that long-dreamed of POLY DVC!!! But others may some day need to sell. I know no one was ever supposed to consider DVC an investment, but the reality has proved otherwise for many.

And what will this do to OKW resales starting in SEPT when this is publicly announced???

 

[CarolA]

Well, the only question for me is do I have to add this to sell the points? I was planning to put my OKW points on the market next year. (It would be a stripped contract if I tried to sell it now... hmmm.....)

 

[Goofy DVC]

Well, we finally have an answer to all those "What is Disney going to do in 2042 " threads. They're not knocking OKW down, that's for sure.And, Disney 's gotta keep up with maintenance and the like.

 

[CarolMN]

Well, we finally have an answer to all those "What is Disney going to do in 2042 " threads. They're not knocking OKW down, that's for sure.And, Disney 's gotta keep up with maintenance and the like.

Yes, and I'm a little worried that our dues are going to go up to reflect the extension - even for those who elect not to extend. After all, it seems logical that it will cost more to keep a resort in top shape for 15 years longer.

 

[Mai Ku Tiki]

If considering a purchase of an OKW resale within next 12 mos., would it be wise to bite now or wait til after SEPT when contracts ending in 2042 MIGHT become lower priced due to competition from contracts ending in 2057???

ps...CarolA...keep my pm handy ...We fell in love with OKW this last trip and WILL buy there unless prices fall drastically on retirement communities near Mickey's house real soon!!!

 

[tjkraz]

Suppose in 5 yrs, I want to sell my contract ending in 2042. Won't it almost automatically have to be priced ALOT less than an equal contract at same DVC ending in 2057?

I think DVC's ROFR will largely determine that. It will be interesting to see if DVC maintains that $15 spread in ROFR (i.e. $70 ROFR on 2042 contracts and $85 ROFR on 2057 contracts.) If they DON'T, it defeats the purpose of extending unless you are fairly confident you will be around to use it or have it earmarked for a child / grandchild.

In other words, why spend $15 to extend if it's only adding, say, $12 to the resale value of the contract? Of course, I doubt we'll know the answer to the ROFR question until after 2/29/08, at which time the add-on will be ridiculously overpriced.

And what will this do to OKW resales starting in SEPT when this is publicly announced???

Hard telling.

Right now OKW resales seem to be asking in the mid-$70s. For people who are set on OKW, they could buy for about $75 and then pay the $15 add-on fee after closing. That would get them 50 years for around $90 per point.

The most attractive alternatives--financially--would be SSR resale in the mid-$80s for 47 years or AKV new in the mid-$90s for 50 years. They are all pretty much in the same ballpark.

Assuming that DVC starts selling the 50-year OKW contracts at the current $104 with $8-10 off, it puts the price pretty close to the sum one would pay going resale with the extension.

 

[JimC]

This might present an interesting situation if not enough DVC owners want to buy the extension.

I know the developer of a timeshare is required to own a small percentage of the property in order to be able to refurbish and repair units. Does anyone know if there is a maximum percentage they can own?

I doubt there is a maximum. I guess they could always become "commercial renters" since their ownership would be of declared inventory.

How would you determine DVC's ownership percentage today if extensions are offered? I guess it would be some prorated ownership allocation determined by the number of points owned by DVC out of total points available to contract extended expiration of 2057.

 

[dianeschlicht]

Is the upgrade going to be free for those who don't respond? Automatic sales? I think the guide had that part wrong!

I agree! Wonder what the legal ramifications would be in that???

 

[pilferk]

Yes, and I'm a little worried that our dues are going to go up to reflect the extension - even for those who elect not to extend. After all, it seems logical that it will cost more to keep a resort in top shape for 15 years longer.

Eh, I don't know.

Your dues currently contribute to a "hedge" fund that's set up to bear the costs of refurbs and replacement of common items (rooms, walkways, parking lots, etc) and areas (lobby, restaurants, pools). The setup has always allowed that, at the end of 50 years, the resort should be in the same shape it was when it was new (I know...not in practice, but from a useability standpoint). I don't think anyone expected a REDUCTION in dues as the expiration date approached.

Now, for those that stick around AFTER the 2042 date, we won't know. I mean, it will depend on what Disney does with OKW contracts. At 2042, all the "non-upgraded" contracts will roll over to Disney, I guess. So you'll have the same number of points paying dues, ultimately....what Disney will do with those contracts, or what costs will be, I won't even hazard a guess. But I'm not sure I see any cause to be IMMEDIATELY worried about dues.

 

[dvcbrad]

Personally, I would like to see some sort of current perk or incentive added in to justify spending the additional $15 per point. How about a one-time incentive equal to your current year's points if you extend, similar to developer points on new sales? That would certainly make it more enticing (one can only hope DVC is reviewing these posts, right)!

Anyway, if it's merely just to extend an additional 15 years, I'm not sure I see any big benefit to doing so. At this point in time, our plan is to hold on to our points and use them until we can't, anyway, which I'm sure will be long before 2057, so the resale value is really not a consideration for us. However ... we might give it serious consideration if they did include some sort of current incentive as part of the offer. Otherwise for us ... I doubt it.

 

[salmoneous]

If considering a purchase of an OKW resale within next 12 mos., would it be wise to bite now or wait til after SEPT when contracts ending in 2042 MIGHT become lower priced due to competition from contracts ending in 2057???!

Right now the resale market seems to put very little value on post-2042 years. SSR seels for about $5/point than OKW. I doubt the difference between 2042 and 2057 OKW contracts will be much greater until we get closer to 2042.

 

[salmoneous]

The setup has always allowed that, at the end of 50 years, the resort should be in the same shape it was when it was new

Huh? Is there anything in our contract that say this? I've always felt our maintenance goes to pay for things for *our* benefit. I sure didn't expect to pay dues to turn over a pristine resort to Disney. (Though maybe that clause in the contract and I missed it.)

 

[dianeschlicht]

Hi! Wondering what other DVCers think....

Suppose in 5 yrs, I want to sell my contract ending in 2042. Won't it almost automatically have to be priced ALOT less than an equal contract at same DVC ending in 2057?

So unless we KNOW we'll NEVER sell our contracts, won't we need to buy the extended yrs to mainain decent resale?

(snip)
And what will this do to OKW resales starting in SEPT when this is publicly announced???

I had the exact same reaction when I saw this news here. The only reason I would extend is for the resale value, and then I would have to determin if I thought the added resale value for OKW with an extra 15 years was high enough to warrant doing the add-on. My inclination is to keep one OKW contract as is, and maybe sell the other one ASAP! We have 380 OKW points, so I'm not likely to want to pay that much.