Might by DVC from a friend

[Dean]

Thanks so much for the information. There is no way I am looking at spending $17K for a timeshare. We go now with free dining and I think $17K is alot of money and then would have to pay $1700 in maintenance a year? Just seems like an awful lot of money to me. Will probably stay with a moderate with free dining!

It may end up being a sweetheart deal for you but if it is, DVC may take it ROFR.

 

[chalee94]

Will probably stay with a moderate with free dining!

yeah - if you're happy with a moderate and looking for deals like free dining, then DVC would probably not be a good value for you...

 

[Mtnman44]

Regardless of friend or good price, I would never saddle myself with a large single contract like that. Even if I wanted/needed that many points, I would definately aquire them via multiple smaller contracts. Smaller contracts are much easier to sell, and at a better price. This gives you more options with your ownership and less overall risk.

 

[ELMC]

Thanks so much for the information. There is no way I am looking at spending $17K for a timeshare. We go now with free dining and I think $17K is alot of money and then would have to pay $1700 in maintenance a year? Just seems like an awful lot of money to me. Will probably stay with a moderate with free dining!

You make a very good point. DVC is a great way to save money on Deluxe accommodations. If you are happy staying at moderates and getting free dining (as many, many people are) then buying DVC will probably seem like an added expense to you with very little value. It sounds like DVC may not be a good fit for you.

Regardless of friend or good price, I would never saddle myself with a large single contract like that. Even if I wanted/needed that many points, I would definately aquire them via multiple smaller contracts. Smaller contracts are much easier to sell, and at a better price. This gives you more options with your ownership and less overall risk.

Great point. One thing to consider, though, is that you can usually buy larger contracts for less. You also have to pay only one closing cost. So although the exit strategy is better for smaller contracts, getting in is also more costly. Two ways to combat this would be to try to negotiate a lower price when buying and to have the seller pay the closing costs when you do buy.

 

[Dean]

Regardless of friend or good price, I would never saddle myself with a large single contract like that. Even if I wanted/needed that many points, I would definately aquire them via multiple smaller contracts. Smaller contracts are much easier to sell, and at a better price. This gives you more options with your ownership and less overall risk.

Given that smaller contracts add cost, likely around $1500-2000 on this size contract, I think it depends on the situation.

 

[chalee94]

Smaller contracts are much easier to sell, and at a better price.

this is true right now.

but in the long run, smaller contracts are headed for zero, too.

 

[Mtnman44]

Yep, but the current difference in per point price between small and large contracts is not enough to offset the negatives in owning a large contract. in my opinion at least. 30 to 50 years is a long time. A 300 point contract could be a boat anchor where as 6 50 point contracts would be much easier to offload and currently, seem to sell instantly.

this is true right now.

but in the long run, smaller contracts are headed for zero, too.

 

[Mtnman44]

300 points based on a hypothetical $65 per point cost is 19,500 plus $300 closing is $19,800.
300 points based on 3 100 point purchases at $70 per point plus $900 in closing costs is 21,900.

So the difference is $2,100 that is a 10% premium in this hypothetical. Totally worth it to me, all things considered, especially with the 30+ years of costs, it is a tiny fraction in exchange for distinct advantages and reduced risk.

Given that smaller contracts add cost, likely around $1500-2000 on this size contract, I think it depends on the situation.

 

[Dean]

300 points based on a hypothetical $65 per point cost is 19,500 plus $300 closing is $19,800.
300 points based on 3 100 point purchases at $70 per point plus $900 in closing costs is 21,900.

So the difference is $2,100 that is a 10% premium in this hypothetical. Totally worth it to me, all things considered, especially with the 30+ years of costs, it is a tiny fraction in exchange for distinct advantages and reduced risk.

I think your slightly underestimate the price difference for three contracts over one but the principle stays the same, I think the real difference for your situation is more in the $3-4K range for your stated assumptions all else being equal. Assuming one doesn't plan to sell later, in effect you're paying extra for a potential option that a large % of people will never need. I think you're also classifying a 300 pt contract as large and I would not, I'd look at it as small to medium. I also think that the benefit and demand of smaller contracts will diminish over time due to the resale limitations from a year ago. I doubt that a 10% penalty is worth it for most people, much less 15% or more which I think is more realistic, even though you MIGHT be able to later recoup around half of the difference if you did sell later.

 

[ELMC]

300 points based on a hypothetical $65 per point cost is 19,500 plus $300 closing is $19,800.
300 points based on 3 100 point purchases at $70 per point plus $900 in closing costs is 21,900.

So the difference is $2,100 that is a 10% premium in this hypothetical. Totally worth it to me, all things considered, especially with the 30+ years of costs, it is a tiny fraction in exchange for distinct advantages and reduced risk.

Not to nitpick, but your closing cost estimates are a bit off. The 300 point closing would be around $525 and the smaller contract closings would be $425 (x3) for a total of $1275 and a difference of $750. Plus, as Dean said, I think there would be a larger gap between the price per point.

 

[DougEMG]

I think we can all agree that in general smaller contract sell for more $/point than larger contracts. So if you can get 4 50 point contracts for the same closing as a 200 point contract, buy the 4 50 point contracts (and they all have the same number of banked/current point).

I have seen resellers offering 2 contracts for 1 closing costs. In that case it would certainly make sense to get the two seperate contracts.

Otherwise figure out the price difference and then decide if that "insurance" premium is worth it.

Myself, I just have medium to large contract (250 up to 400). I wanted the lower upfront costs. A bird in the hand is worth 2 in the bush

 

[Dean]

I think we can all agree that in general smaller contract sell for more $/point than larger contracts. So if you can get 4 50 point contracts for the same closing as a 200 point contract, buy the 4 50 point contracts (and they all have the same number of banked/current point).

I have seen resellers offering 2 contracts for 1 closing costs. In that case it would certainly make sense to get the two seperate contracts.

Otherwise figure out the price difference and then decide if that "insurance" premium is worth it.

Myself, I just have medium to large contract (250 up to 400). I wanted the lower upfront costs. A bird in the hand is worth 2 in the bush

One can do it yourself for under $50 per contract. Timeshare traders will do it all for under $150 per contract but won't do escrow or title ins. I bet they would bundle. Most won't bundle. It's also possible to list multiple ROFR and matching contracts on one paper in some cases.