Major DVC Change - Resale Market Only original 14 resort access

[correctcraft97]

I can confirm from a call from a salesman today that resale would not be able to stay at any new resort going forward. I ordered a dvc info pack online and a salesman called today. My first question was, “what can you offer to keep me from buying resale?” His reply was, “you wouldn’t be able to stay at any new resorts after the cutoff date.”

 

[mel&me]

I'm actually surprised that Disney did not do this sooner I remember having old park tickets given to me that had no expire date but could not be used at all parks because they were bought before AK was build,

 

[DisFanDad]

I can confirm from a call from a salesman today that resale would not be able to stay at any new resort going forward. I ordered a dvc info pack online and a salesman called today. My first question was, “what can you offer to keep me from buying resale?” His reply was, “you wouldn’t be able to stay at any new resorts after the cutoff date.”

Sounds to me what he was really saying was "buy resale before Jan 19th"

 

[danikoski]

I'm actually surprised that Disney did not do this sooner I remember having old park tickets given to me that had no expire date but could not be used at all parks because they were bought before AK was build,

If they were park hoppers, that's not true. In 2017, we used park hopper tickets from 1990 and 1991 and absolutely were able to go to AK. I even used a child ticket that was mine, but I am not a child anymore.

 

[danikoski]

Back on topic...I was considering buying the into the Reflections resort by Ft. Wilderness, but this basically killed that thought process. I would probably be more inclined to buy resale at CCV or BRV (not sure whatwthe expiration on BRV) instead. I like the 14 DVC resorts just fine, enough that the hit to resale for a new resort would impact me buying direct into that new resort.

 

[Bearval]

I was speaking of buying new points, I think our current contract wont be affected ..for now ...later when it's only good for 14 out of 20 something resorts for whoever we sell to who knows.

I think "legacy" resorts will have a higher resale value than the new resorts but the value will probably be less than if this new policy didn't go into affect.

I would think the "legacy" contracts will hold their valve better in resale than the "new" resorts since with the new resorts your options are limited in resale. Looks like Disney will be buying them back on the cheap to resell them.

 

[jsand99]

I just had an AKV contract taken in ROFR last month. I have been taking my time and making a list of other contracts of interest. I guess it's time to make another offer but I have a feeling that Disney will take this one too.

 

[kristenrice]

The problem comes if you ever need/want to sell because those resale points would be limited to only Riviera.

....and that could be a HUGE problem. Depending on the resort’s popularity, room types and point structure, it could be difficult for owners to book their preferred rooms. just look at audios at the GFV, for example. If someone buys a resale contract with only enough points for a studio and they aren’t able to book one (or a few years down the road, another reallocation is done to adjust the “lock-off premium”) and suddenly those resale owners are stuck with points they can’t use anywhere else. Personally, I don’t think I would buy resale at Riviera and if I wanted to stay there bad enough, I would probably pay the cash rates for a stay or two. Fortunately, my points are already direct and/or grandfathered so this won’t effect me, but I think it may have a negative impact on sales of the Riviera...unless they are about to offer something huge.

 

[kristenrice]

I am a little confused...

If, after January 19, you buy DIRECT at one of the 14 “Classic” resorts, will you be able to use those points at the Riviera or “Rehab Facility”? Or must your purchase be direct AND from one of the new resorts?

If you can still buy direct at any resort and have access to all of the resorts, then I wouldn’t be surprised to see Disney upping their ROFR game. I can see them snagging contracts and driving up the price of resale to make buying direct seem even more desirable, especially at the classic resorts. I would almost argue that buying a classic resort direct right now (if my assumption is correct) would be a better deal than buying the Riviera...ok, now that I’ve written it down, I see where that would be a bad idea for DVC...now I’ve confused myself even more...

 

[LYSE]

I would think the "legacy" contracts will hold their valve better in resale than the "new" resorts since with the new resorts your options are limited in resale. Looks like Disney will be buying them back on the cheap to resell them.

Yes I agree better value than the new resorts for sure but probably less value than if Dvc kept it as is and allowed access to all resorts new and "legacy" what that difference in value will be we will never know.

 

[MommaBerd]

Rumor is now confirmed by DVC. @kristenrice - Only resale purchases are affected by this new policy. So, if you buy direct from Disney at the legacy properties, you will still have the ability to trade into all resorts.

 

[kniquy]

then I wouldn’t be surprised to see Disney upping their ROFR game

I would imagine that at some point they couldn't swipe up too many contracts as they would then be sitting on all these points and no one to pay the dues. If direct of older resorts allows access to the "new DVC 2.0" then i can't see how buying direct for $220pp (or whatever they set the prices at) to only have access to the 2 new resorts would even compare to buying resale at $150pp and having access to 14 resorts vs 16. I think it would take them opening up 5-6 additional outstanding resorts for their push to buy direct of older resorts to make sense for most people.

I think the effects of these new restrictions will take a number of years to really see an impact. I mean we are over a year out of CCV going on sale and there are a small number of resales. It will certainly be a tough situation for Riveria owners who buy at say $200 per point and then in a year have to sell for personal circumstances and can only get $150pp on the resale market. Hopefully people fully educate themselves when buying into the new DVC system. One of the comforts in buying into DVC whether resale or direct is the strong resale market. These new restrictions will probably have people second guessing getting stuck in - sell or just rent out points.

 

[TheMaxRebo]

Not that this necessarily makes it more "official" but WDWInfo is reporting it as a done thing: https://wdwnt.com/2019/01/new-limitations-placed-on-disney-vacation-club-resale-contracts/

edit: and the DIS reporting it too: https://www.wdwinfo.com/news-storie...le-contract-limitations-beginning-january-19/

 

[unbanshee]

Looks like BlogMickey was able to get a quote

http://blogmickey.com/2019/01/major-disney-vacation-club-resale-restrictions-effective-january-19th/

 

[Turn the Page]

I would imagine that at some point they couldn't swipe up too many contracts as they would then be sitting on all these points and no one to pay the dues. If direct of older resorts allows access to the "new DVC 2.0" then i can't see how buying direct for $220pp (or whatever they set the prices at) to only have access to the 2 new resorts would even compare to buying resale at $150pp and having access to 14 resorts vs 16. I think it would take them opening up 5-6 additional outstanding resorts for their push to buy direct of older resorts to make sense for most people.

I think the effects of these new restrictions will take a number of years to really see an impact. I mean we are over a year out of CCV going on sale and there are a small number of resales. It will certainly be a tough situation for Riveria owners who buy at say $200 per point and then in a year have to sell for personal circumstances and can only get $150pp on the resale market. Hopefully people fully educate themselves when buying into the new DVC system. One of the comforts in buying into DVC whether resale or direct is the strong resale market. These new restrictions will probably have people second guessing getting stuck in - sell or just rent out points.

I agree, I think it will take a few years to see how all this shakes out. However, I will disagree about your assessment of the value of the new resorts vs old resorts. Yes, it would be cheaper to buy resale at one of the older 14 existing DVC resorts. However, I really think expiration date is going to become a problem. $150 isn't such a good deal, even if it is good for 14 resorts rather than just 2, when you consider it is only good for half the length of time, or less, than the newer resorts. The deed expiration date is a massive consideration for us.

Right now some of the contracts hold their value really well, namely BCV, BWV, etc. However, those contracts are half over already. At some point the prices will start dropping when people realize that they're only good for a few more years. At that point it will be really interesting to see how their value compares to Riviera contracts on the resale markets.

 

[TheMaxRebo]

Looks like BlogMickey was able to get a quote

http://blogmickey.com/2019/01/major-disney-vacation-club-resale-restrictions-effective-january-19th/

Whoa, that quote says going forward you can only use the points at the resort you buy at and that is it - not any of the new ones. Unless I misinterpreted before I thought it was if you bought resale for, say, Riviera, you could exchange for Riviera or Reflections or any other new one built, just not the legacy ones. This reads differently than that

"In addition, any points purchased outside of Disney for any new resorts, will only be valid at that resort. The representitve that we spoke with said “starting with Riviera and every resort after that, when you buy resale points you will only be able to use the points JUST at the resort you buy and RCI nothing else.”"

 

[rteetz]

So this is only resale right? If I bought Riviera direct I can still use it at other resorts?

 

[TheMaxRebo]

So this is only resale right? If I bought Riviera direct I can still use it at other resorts?

That is how it seems to be understood - if you buy direct you can trade anywhere and (I think even if there are still some Copper Creek or whatever and as long as you bought direct from Disney you can trade to Riviera) - it is just resale (or as they word it in the Blog Mickey article: "points purchased outside of Disney"

 

[LYSE]

So this is only resale right? If I bought Riviera direct I can still use it at other resorts?

Yes and this is what they are hoping everyone will think "oh so it won't affect me if I buy directly from Disney!"

Only it will because your contact's resale value has been sabotaged.

 

[TheMaxRebo]

Yes and this is what they are hoping everyone will think "oh so it won't affect me if I buy directly from Disney!"

Only it will because your contact's resale value has been sabotaged.

well, I think very few people when they buy think about/worry about when they will sell (or at least what Disney is expecting/hoping)