Logic of small point contracts

[glamdring269]

Quick background:

2 adults, 0 kids.
Own 75 pts at BRV. (resale from 2013)
Travel every other year on average.
Prefer studios.

We are looking to add maybe 50-100 points and are considering either a resale or direct purchase. One thing I'm curious about is whether we should buy one contract or potentially break it into multiple contracts, especially if buying direct since the closing costs are so much lower. If we buy direct I'm thinking we would more than likely go the 50 point route but I'm actually considering the following options:

50 points Resort A (or breaking this into 2x 25 point contracts)
OR
50 points Resort B (or breaking this into 2x 25 points contracts)
OR
25 points Resort A
25 points Resort B

Thoughts?

 

[_auroraborealis_]

It really depends the resorts. Some resorts, even a 3-year point usage, 25 points is not going to get you much, even in a lower season.

 

[Marionnette]

Quick background:

2 adults, 0 kids.
Own 75 pts at BRV. (resale from 2013)
Travel every other year on average.
Prefer studios.

We are looking to add maybe 50-100 points and are considering either a resale or direct purchase. One thing I'm curious about is whether we should buy one contract or potentially break it into multiple contracts, especially if buying direct since the closing costs are so much lower. If we buy direct I'm thinking we would more than likely go the 50 point route but I'm actually considering the following options:

50 points Resort A (or breaking this into 2x 25 point contracts)
OR
50 points Resort B (or breaking this into 2x 25 points contracts)
OR
25 points Resort A
25 points Resort B

Thoughts?

I'm assuming that neither "Resort A" nor "Resort B" will be BRV? I'm just wondering what you feel would be the advantage of having 1 or 2 25-point contracts at other resorts?

 

[DM3MD]

I say 50 points is the sweet spot for a small contract. It's enough points that it's useful (especially with banking/borrowing) and allows you to still net a decent return if/when you sell... some of these 25 point contracts get a lot of potential "per point" profit eaten up with closing costs that the buyer pays but the seller never sees.

 

[disneynutz]

Prior to DVD charging for closing costs, all of our direct buys were 50 pointers. Any that we sold, were gone in one or two days and at a premium price.

Bill

 

[chalee94]

50-ish pt contract is a better choice than 25. i'd stick with BRV unless you have a new plan to switch every other year between BRV and this new contract's resort...

(just a reminder for anyone reading this thread who is confused: no, you cannot mix pts from different resorts at 11 months out - if the OP buys a new contract at Resort X, those pts could not be used at BRV until the 7 month window and vice-versa.)

 

[glamdring269]

To be clear regarding BRV, we would either split stay (as we are in December) or would sell points from the BRV contract. To be quite honest if we had to do it again we would probably own at a different resort than BRV. The contract was ridiculously cheap back then so I don't really feel bad about it though.

I agree regarding 50 points though. It does seem like the sweet spot for an EOY 1-week studio arrangement. 100 points at a resort of choice would probably go a long way, especially if using some of the BRV points to stay at BRV or another location depending upon availability. We like AKV quite a bit and have found no problems using the BRV points to pay for Jambo house rooms.

 

[4luv2cdisney]

I don't know if I'd bother with breaking them down to 25's. Is that for future sell-off potential? I think there will be a lot of 25's on the resale market at some point and $600 closing costs on 25 points adds $20/pt to the cost of the contract.

 

[suebeelin]

Remember to factor in closing costs on each and every contract. Is it worth it? Up to you....