Looking to buy OKW--?? about extended contract

[hockeyprincess]

We are looking to make our first DVC purchase, plan to do so by the end of the year with some pixie dust....Question about OKW- would you NOW purchase the old contracts or go ahead with the extended 2057 contracts? I have no idea what the cost is to upgrade the 2042 contracts? Thanks in advance!

 

[Disney_Villain]

The intial offerering for the 15-year extension (now expired) was at $15/point. After that it was to be $25/point, but DVC is holding to $20/point (for now) for those who missed the deadline.

Depending on what price you get an OKW resale contract for, it might be better to get an old contract and extend it yourself. There are a lot more 2042 contracts listed for resale, so buying a 2042 contract (to me) would be my first choice - to have more options for UY and number of points. However, it really depends on what price you can get a 2057 contract for in comparison. DVC sells them for $101/point with no closing fees.

We bought OKW in 2006 via resale . . . for very cheap ($80/point) and then extended it for $15/point earlier this year. Overall, we got OKW 2057 for $95/point. That's better than $101/point direct from DVC.

If you were to buy an OKW contract for the same price that we did ($80/point) and pay $20/point to extend it, you'd probably be better off buying at $101/point direct from DVC and avoid the resale closing costs. OKW 2042 resale contracts have sold for <$80/point and that's what I would suggested targeting if you go that way.

Hope that helps (and makes sense)!

 

[Terry S]

There are some extended OKW contracts up for sale for $89 per point. You will have to take a look at them on TTS site and see if they are what you are looking for as far as number of point and use year.

 

[5forDiz]

. . . . DVC sells them for $101/point with no closing fees.

I think this may not be the case regarding closing fees on a direct buy through Disney - I believe a first time purchaser does pay closing fees but then for future add-on contracts purchased directly through Disney you would not pay closing fees.

Can someone confirm this ?

 

[Disney_Villain]

I think this may not be the case regarding closing fees on a direct buy through Disney - I believe a first time purchaser does pay closing fees but then for future add-on contracts purchased directly through Disney you would not pay closing fees. Can someone confirm this ?

There are no closing costs involved for 1st time buyers or for add-ons. Quoting from AllEars.net:

Other advantages are that Disney offers an attractive financing package with no prepayment penalty and that there are no closing costs involved when purchasing.

http://allears.net/acc/dvc.htm

We initially bought resale, but I can confirm that friends of ours (who live in our city) did buy direct on their last WDW trip and they didn't pay closing fees to DVC.

 

[Disney_Villain]

There are some extended OKW contracts up for sale for $89 per point. You will have to take a look at them on TTS site and see if they are what you are looking for as far as number of point and use year.

If the OP can pass ROFR on one of these 3 TTS listings (assuming that the contracts are match for her desired UY and #/points) then that would be a good deal.

 

[hockeyprincess]

Thank you for all of the responses, of course concerned about passing ROFR, so if we find a contract that is suitable we don't want to worry about not passing. I was not sure if $89 PP was good for a 2057 contract. I thought it was reasonable but feel better about my assumption now that you have said so as well. Also like the idea of buying the 2042 contract and extending if the deal works out better for us. Thanks so much for all of your insight, it has been helpful!

 

[5forDiz]

There are no closing costs involved for 1st time buyers or for add-ons. Quoting from AllEars.net:

Other advantages are that Disney offers an attractive financing package with no prepayment penalty and that there are no closing costs involved when purchasing.

http://allears.net/acc/dvc.htm

We initially bought resale, but I can confirm that friends of ours (who live in our city) did buy direct on their last WDW trip and they didn't pay closing fees to DVC.

Seems to be experiences are not always same for first time purchasers and since the op says this will be her first purchase it would be wise to cover all points & get firm answers from guide re what she is paying for or not based on the particular resort she is interested in purchasing; there seems to be different experiences here for first time buyers depending on time of purchase and resort they purchase. My initial post I neglected to say that at present " older resorts " on direct first purchase buy from Disney do not have closing costs but yet " newest resorts " for most purchasers in fact do involve closing costs as I've read in a number of threads here in past few months & as I recalled reading in past couple of weeks in this recent thread <note post#2> :
http://www.disboards.com/showthread.php?p=26984357#post26984357&highlight=closing cost

Didn't exactly get into words right . . . (apologies) - -