Large Polynesian Contract

[Friendlyadvice2]

I've seen many "interesting" DVC purchases (contracts, mortgages, purchasers, and nominees) over the years, but I don't recall a larger purchase-price contract than what I saw this morning. During the course of my ROFR and deed analysis, I noticed a 1000 point Poly contract. I would assume this was purchased with the intent of using one of the over-the-water bungalows. The tax stamps alone were $1,120. Obviously that equates to a $160,000 contract price. I was even more surprised to see the $144,000 in financing they obtained via Disney. Being a numbers guy and assuming the purchaser has the means to afford this, I so would have financially structured this differently and avoided accessing expensive capital from Disney. To each there own. Congratulations to the buyer.

 

[Minniesgal]

Just because they took Disneyfinance doesn't mean they will be paying for it with Disney finance. We financed our purchase to help with cash flow as we needed to liberate savings to pay it. We then settled the finance within 60 days and paid next to no interest and didn't lose interest in our savings account as we could give notice.

 

[Friendlyadvice2]

Obviously the buyer can pay the mortgage in full at any time and maybe that's what's going to happen here. However, there is more to the cost of financing than just the interest rate. Orange County charges a mortgage tax of $.35/$100 of obligation and an Intangible property tax of $.002/$1 of obligation and a $10 filing fee per mortgage page. If this buyer bought spur of the moment and was just trying to "liberate" funds, it cost them $802 in filing taxes/fees to do so plus whatever interest rate Disney charged them. Probably not a factor for someone making this large of a DVC purchase, but definitely a cost for the average person. Does Disney cover the cost of these filing fees for Direct sales?

 

[curan69]

I guess if you can afford a contract this big you would not worry about how difficult a 1000 point contract would be to sell.

 

[disneynutz]

I guess if you can afford a contract this big you would not worry about how difficult a 1000 point contract would be to sell.

There have been other large contracts at other resorts that were been listed for almost a year.

Too bad that the guide didn't offer to break it up into 200 pointers.

Bill

 

[KAT4DISNEY]

There have been other large contracts at other resorts that were been listed for almost a year.

Too bad that the guide didn't offer to break it up into 200 pointers.

Bill

Yep - this will be an elephant for sale if they ever needed to do that. Or maybe they'll just use it for bungalows a few times and let Disney take it back......

 

[AnnaS]

I would hope the guide would advise buyers to split up such a contract. I don't care how well off one is - it should be recommended, at least mentioned to the buyer that it is possible and maybe wise to split it up. Maybe it was mentioned - we really don't know. Wish them the best and years of enjoyment.

 

[~MandR~]

Sounds like a crazy amount of points, at first. In reality it is only a week in a bungalow during dream season. That amount of points won't even cover a week in magic or premier season.

 

[Gillyrose779]

Didn't I read it on here that someone bought at least 3 fixed weeks for the Poly Bungalows. I can't remember the amount but it was more than 160K. I think the guy received money from an estate.

 

[Tunseeker1]

I was thinking it was for a few fixed weeks also.

 

[dizfan]

There are several fixed week bungalow contracts for more than 1k points which may be even more difficult to sell.

Didn't I read it on here that someone bought at least 3 fixed weeks for the Poly Bungalows. I can't remember the amount but it was more than 160K. I think the guy received money from an estate.

There have been a couple posts indicating someone at the preview center claimed a person bought 5 fixed week PVB bungalow deeds.
To date, the most I have seen is someone bought back to back fixed week PVB bungalow deeds.

When looking at the fixed week bungalow deeds, there are several over the 1K mark.

Keep in mind, it can be many months after someone signed the contract before it shows up on the county web site. For reference, there was a VGF deed signed in June 2014 that did not show up on the county site until March 2015.

 

[Dean]

Anyone who'd buy this many should go for the fixed week, it doesn't make sense to be that close and not do so.

 

[DizGirl20]

Someone remind me again - what's the highest number of points a member can own?

 

[KAT4DISNEY]

Anyone who'd buy this many should go for the fixed week, it doesn't make sense to be that close and not do so.

Personally I think it would be much more prudent to split the contract up into smaller ones vs a fixed week.

 

[supersnoop]

Someone remind me again - what's the highest number of points a member can own?

Last I heard, it was raised to 5,000 points.

 

[Jennasis]

I have NO idea, but is it possible that someone bought those points with the intent to rent them out rather than use them? Would a place like David's buy a bug chunk of points like that to rent for Bungalows? On the other hand could it be a couple of people who went in on the points together?

 

[disneynutz]

Someone remind me again - what's the highest number of points a member can own?

Disney will change the policy if it means a sale so the limit is meaningless.

Bill

 

[KAT4DISNEY]

Disney will change the policy if it means a sale so the limit is meaningless.

Bill

I thought I had read recently - and it might have been related to a Poly purchase - that someone had to get a waiver on the point limit. And it was, of course, given by DVC.

 

[dizfan]

Last I heard, it was raised to 5,000 points.

I thought they changed a few years back to 8000 total points, with 4000 at a single resort.

I thought I had read recently - and it might have been related to a Poly purchase - that someone had to get a waiver on the point limit. And it was, of course, given by DVC.

There were a few posts indicating someone working at the preview center told them someone had to get a waiver to buy 5 fixed week PVB bungalow weeks. I believe this was early-mid February.

As of the end of March, the county deed data does not have any master contract number with more than 2 fixed week bungalow weeks. They could have bought them with different master contracts, but it's more likely no one ever bought 5 fixed week bungalow deeds.

NOTE: it's still possible DVD has not sent the all or any of the rumored 5 fixed week deeds to the county. For example, in March 2015 VGF deeds, someone signed their contract in June of 2014. Approximately 9 months later, the deed shows up in the county data.

 

[disneynutz]

I don't remember reading an official published number but like I posted above, Disney will change the max to make a sale. It all about the money.

I'm still waiting for the 1000 point VIP club to be announced.

Bill