Major DVC Change - Resale Market Only original 14 resort access

[TheMaxRebo]

In reality, if the resale market for the new points is being cut out, that makes the points less valuable - even as an initial investment.

I think others have been saying this same thing, but it appears Disney is banking on people not totally understanding this - or Disney is just assuming there are enough people who think "I'm never going to want to sell these points anyway..."

I think it is a combination - I think Disney would prefer you buy direct from them so if they can do something to increase the liklihood of someone buying direct from them vs resale they will do it ... and I think they know this might lower the overall value to *some* people who do the analysis, but I think they think the first part outweighs the second part

 

[mb168]

EDITED: Ok, my coffee has kicked in I think and I'm processing better. This seems like they're just thinking ahead to 2042 to start weeding things down.

I just logged in to DVC to book a room this AM and saw this news so came here to see what others were saying. The way I read it on the member site, as I interpret it, doesn't match up with what everyone is saying as reported from third party sites. Here's what the Member site says;

Update to Disney Vacation Club Resort Access for Contracts Not Purchased Directly from Disney

Effective January 19, 2019, only Members who purchase directly from Disney will be able to use their Vacation Points at the 14 existing Disney Vacation Club Resorts or future Resorts—such as Disney’s Riviera Resort or Reflections – A Disney Lakeside Lodge. Resale contracts purchased for the existing 14 Disney Vacation Club Resorts will only be able to exchange Points into those 14 Resorts.
​

The way I interpret this is that if you buy resale after Jan 19, you can't use them "at the 14 existing Disney Vacation Club Resorts OR future Resorts" unless you exchange points. To me this sounds like if you buy resale ANYWHERE after 1/19 you'll have to exchange points in to ANYWHERE. Is that not what anyone else sees?

 

[JETSDAD]

I just logged in to DVC to book a room this AM and saw this news so came here to see what others were saying. The way I read it on the member site, as I interpret it, doesn't match up with what everyone is saying as reported from third party sites. Here's what the Member site says;

Update to Disney Vacation Club Resort Access for Contracts Not Purchased Directly from Disney

Effective January 19, 2019, only Members who purchase directly from Disney will be able to use their Vacation Points at the 14 existing Disney Vacation Club Resorts or future Resorts—such as Disney’s Riviera Resort or Reflections – A Disney Lakeside Lodge. Resale contracts purchased for the existing 14 Disney Vacation Club Resorts will only be able to exchange Points into those 14 Resorts.
​

The way I interpret this is that if you buy resale after Jan 19, you can't use them "at the 14 existing Disney Vacation Club Resorts OR future Resorts" unless you exchange points. To me this sounds like if you buy resale ANYWHERE after 1/19 you'll have to exchange points in to ANYWHERE. Is that not what anyone else sees?

Whenever you use your points at a non-home resort right now that is also considered an exchange. Nothing will change with respect to the legacy resorts.

 

[littlestar]

I just logged in to DVC to book a room this AM and saw this news so came here to see what others were saying. The way I read it on the member site, as I interpret it, doesn't match up with what everyone is saying as reported from third party sites. Here's what the Member site says;

Update to Disney Vacation Club Resort Access for Contracts Not Purchased Directly from Disney

Effective January 19, 2019, only Members who purchase directly from Disney will be able to use their Vacation Points at the 14 existing Disney Vacation Club Resorts or future Resorts—such as Disney’s Riviera Resort or Reflections – A Disney Lakeside Lodge. Resale contracts purchased for the existing 14 Disney Vacation Club Resorts will only be able to exchange Points into those 14 Resorts.
​

The way I interpret this is that if you buy resale after Jan 19, you can't use them "at the 14 existing Disney Vacation Club Resorts OR future Resorts" unless you exchange points. To me this sounds like if you buy resale ANYWHERE after 1/19 you'll have to exchange points in to ANYWHERE. Is that not what anyone else sees?

No. Legacy resorts are not changing when you buy them resale. You still have access to all 14. The contract language is clear on “the club” and Disney cannot change the contract. When we bought into DVC in 2002 that contract language was the reason we bought into the club.

 

[DisFanDad]

In reality, if the resale market for the new points is being cut out, that makes the points less valuable - even as an initial investment.

I think others have been saying this same thing, but it appears Disney is banking on people not totally understanding this - or Disney is just assuming there are enough people who think "I'm never going to want to sell these points anyway..."

I have seen many current owners (on various sites) saying this means they will NOT buy at DRR because of the resale value. The depreciation of the asset will just be too ridiculous. The moment you buy it the asset will be worth 1/2, 1/3, maybe 1/4 what you paid for it. Who would buy any major asset like that ? If your car would be worth 1/3 its value the moment you bought it, not even having driven it off the lot, I wouldn't touch it.

But yes, I imagine many people wont realize this, heck many people don't even know there is a resale market, or a rental market.

 

[DisFanDad]

EDITED: Ok, my coffee has kicked in I think and I'm processing better. This seems like they're just thinking ahead to 2042 to start weeding things down.

I just logged in to DVC to book a room this AM and saw this news so came here to see what others were saying. The way I read it on the member site, as I interpret it, doesn't match up with what everyone is saying as reported from third party sites. Here's what the Member site says;

Update to Disney Vacation Club Resort Access for Contracts Not Purchased Directly from Disney

Effective January 19, 2019, only Members who purchase directly from Disney will be able to use their Vacation Points at the 14 existing Disney Vacation Club Resorts or future Resorts—such as Disney’s Riviera Resort or Reflections – A Disney Lakeside Lodge. Resale contracts purchased for the existing 14 Disney Vacation Club Resorts will only be able to exchange Points into those 14 Resorts.
​

The way I interpret this is that if you buy resale after Jan 19, you can't use them "at the 14 existing Disney Vacation Club Resorts OR future Resorts" unless you exchange points. To me this sounds like if you buy resale ANYWHERE after 1/19 you'll have to exchange points in to ANYWHERE. Is that not what anyone else sees?

I get WHY you are reading it like that, it was my first assessment as well (I actually had to edit the title/original post), but I think its been clarified that the 14 resorts will still have access to each other even after resale after Jan 19.

BUT - what I think is interesting is that I can see others reading it this way as well, like maybe disney purposely worded it in the scariest way, to almost imply that the legacy resorts would become "home only" bookings after resale to scare even more people off resale or to depreciate that market further ? I don't know, but the wording there could have been a whole lot clearer.

 

[jsand99]

I just got off the phone with my DVC guide. I was told that resale buyers of Riviera would be restricted to booking only at Riviera. He said he expects that to have an impact on resale and if that is a concern I would be better off with one of the current resorts. He also said that current resale owners and direct owners would be able to exchange into Riviera and future resorts just as they exchange into other resorts now. I asked him about this becoming a "DVC2" and he said that was not the intention and he couldn't fathom Disney doing that.

 

[hakepb]

I have seen many current owners (on various sites) saying this means they will NOT buy at DRR because of the resale value. The depreciation of the asset will just be too ridiculous. The moment you buy it the asset will be worth 1/2, 1/3, maybe 1/4 what you paid for it. Who would buy any major asset like that ? If your car would be worth 1/3 its value the moment you bought it, not even having driven it off the lot, I wouldn't touch it.

But yes, I imagine many people wont realize this, heck many people don't even know there is a resale market, or a rental market.

Unless no one will want to rent points at DRR, the value won’t drop that much. In today’s market, commercial-type renters won’t pass up buying $100 DRR points that make a profit only booking DRR.

 

[jade1]

I have seen many current owners (on various sites) saying this means they will NOT buy at DRR because of the resale value. The depreciation of the asset will just be too ridiculous. The moment you buy it the asset will be worth 1/2, 1/3, maybe 1/4 what you paid for it. Who would buy any major asset like that ? If your car would be worth 1/3 its value the moment you bought it, not even having driven it off the lot, I wouldn't touch it.

Agreed. I won't add on there because of it.

However, if it sells for say $200, and resales pop up for $50-I would buy that in a heartbeat and only use those points there. (I just don't see it passing ROFR.)

I have been at the site enough to know if the point structure is even close to the legacy, a $50 resale would be a great investment in staying there.

Would prefer a "smaller" resale contract (most are buying that way for resale value anyway) and maybe use it every 3 years in a bank/borrow scenario.

 

[DisFanDad]

Agreed. I won't add on there because of it.

However, if it sells for say $200, and resales pop up for $50-I would buy that in a heartbeat and only use those points there. (I just don't see it passing ROFR.)

I have been at the site enough to know if the point structure is even close to the legacy, a $50 resale would be a great investment in staying there.

Would prefer a "smaller" resale contract (most are buying that way for resale value anyway) and maybe use it every 3 years in a bank/borrow scenario.

Yea I totally agree with your thinking here, in virtually every respect.

I'd add on a small contract as well for ever 2nd or 3rd year, but if the price is low enough (which I imagine it will be), disney will snag it in ROFR.

 

[jade1]

Yea I totally agree with your thinking here, in virtually every respect.

I'd add on a small contract as well for ever 2nd or 3rd year, but if the price is low enough (which I imagine it will be), disney will snag it in ROFR.

Yea without ROFR, a $50 50 point contract ($2,500) would get you about a week every other year in a studio, certain times of the year.

If you consider that stay on 2 years of dues say $700 ($7 X 50 X 2yrs), that's about $100 a night. Spread that $2,500 investment over 50 years is only $50 a year.

 

[RRB]

I called and spoke to my salesperson (Doug Rapp) today and asked a few questions.
1) regarding "previous DVC direct buyers" and booking the 2 new resorts - the booking process will not change at all (according to Doug). The new resorts will be listed on the DVC website just like the current 14 resorts and you can click to check availability and can book online or by phone just like the current 14, no complicated booking procedure.
2) confirmed the Jan 19 change to the restrictions of resale owners but emphasized two things. First, must have closed the resale contract by 1/19 (no pending sales or being under contract will meet the criteria) and secondly, DVC direct sales of the sold out legacy resorts (at the really high prices) will not carry any restrictions.
3) There is an in-house DVC meeting on Friday to discuss the 2020 re-allocation point issue. He does not know what the purpose of the meeting is for, maybe just an explanation to the sales force on the subject. Doug said that he has not personally heard any negativity yet about the re-allocation.
4) Doug had no idea when point costs, booking dates or other information will be available for the Riviera Resort

 

[Novakm]

It doesn’t matter what the home resort priority is. If people lock me out of my resort and I can’t go to their resort, I have been denied. They have reduced availability, with no offsetting benefit for me.

The key to being fair is that for any given day, an equal number of points traded in as traded out of a resort.

If 1 more traded in than out, and I can’t book because of it, I have been denied.

I think in the early days DVC can manage this using their points. But fast forward 10 or 20 years, they may not have enough.

 

[jsand99]

I called and spoke to my salesperson (Doug Rapp) today and asked a few questions.
1) regarding "previous DVC direct buyers" and booking the 2 new resorts - the booking process will not change at all (according to Doug). The new resorts will be listed on the DVC website just like the current 14 resorts and you can click to check availability and can book online or by phone just like the current 14, no complicated booking procedure.
2) confirmed the Jan 19 change to the restrictions of resale owners but emphasized two things. First, must have closed the resale contract by 1/19 (no pending sales or being under contract will meet the criteria) and secondly, DVC direct sales of the sold out legacy resorts (at the really high prices) will not carry any restrictions.
3) There is an in-house DVC meeting on Friday to discuss the 2020 re-allocation point issue. He does not know what the purpose of the meeting is for, maybe just an explanation to the sales force on the subject. Doug said that he has not personally heard any negativity yet about the re-allocation.
4) Doug had no idea when point costs, booking dates or other information will be available for the Riviera Resort

So he is saying even if you are in ROFR before the 19th you will not be grandfathered in? If this is really the case then all of the DVC resale sites are wrong.

 

[jade1]

1) regarding "previous DVC direct buyers" and booking the 2 new resorts - the booking process will not change at all (according to Doug). The new resorts will be listed on the DVC website just like the current 14 resorts and you can click to check availability and can book online or by phone just like the current 14, no complicated booking procedure.

Good info thanks.

If I'm reading this correctly, isn't that number currently at 100%?

I mean not "direct" but grandfathered in as irrelevant-even resales.

If so it's going to be a very small number, at least percentage wise going forward that will fall into the new category even over this next year to even 5 or 10 years I would think.

 

[jade1]

So he is saying even if you are in ROFR before the 19th you will not be grandfathered in? If this is really the case then all of the DVC resale sites are wrong.

That's a tough call right now I would think.

Kinda tough to buy not knowing the end result I would think.

 

[RRB]

So he is saying even if you are in ROFR before the 19th you will not be grandfathered in? If this is really the case then all of the DVC resale sites are wrong.

That is what Doug Rapp said. Posters say he in incorrect.

 

[RRB]

I also asked Doug why the sold out resort point costs were so high for GFV, PV and BLT were so high. He told me there is a tremendous interest in the monorail DVC resorts and people are willing to spend that amount of money for their points. Basically, supply and demand

 

[jsand99]

That is what Doug Rapp said. Posters say he in incorrect.

I just asked two resale companies about this and they said they were told by Disney that contracts had to be in ROFR. Not sure how to know who's right.

 

[WaywardMemphian]

I was nearly ready to pull the trigger on buying Copper Cteek points direct from Disney and then buying some Wilderness Lodge via resale to have the points we needes for the rooms we wanted. We were already flexible on when we go and wanted bigger for shorter stays. Glad I procrastinated, I had my wife sold they would pay for themselves and then we could sell once the kids got grown or keep if the grandkids came along. Glad I didn't. This will kill resales. I know where they did it. To keep the new reaorts from becoming a points rwnting business for those tbat have thousanda of points. I would have done the same if I had the coin back during the great recession. I just wanted enough points to visit and rent out to cover the fees.