Multiple small contracts vs one larger contract

[sachilles]

Ultimately, we are targeting to have 130-150 points via resale in the next 2 years. Within 10 years cap around 300 points.
We enjoy Saratoga, as we have rented points there.
Our recent vacation pattern has been last few days of Feb into early march. Typically a week later than most peoples February break. Fall back week would be early May. Every few years a parents only vacation in October for food and wine(I have a mass of marriott points for Swan).
Husband, wife and a 10 year old child. We've been content with Studios.
We have been going yearly for the last 6 years. Either staying at moderates, or renting dvc points at saratoga or AKL. The mouse is getting our money one way or another, and I'm ok with that.

Resale makes sense for us, as the only benefit we truly care about would be the DVC gold annual pass, but for as often as we go, an annual pass only makes sense every few years. When it makes sense we can still go platinum, albeit at the greater cost.

We have enough liquid cash to buy 50-100 points now comfortably. We know with a large degree of certainty We could do the same again within the next 12 months. We have no desire to finance anything, though we have the ability to do that at a lower rate than timeshare loan rates if it were the "perfect" contract, and we'd be clear of the loan by this time next year. Though the thought is one year of interest on $5k is less than the closing cost of a second/third contract.

Again, happy with Saratoga. What are the drawbacks of shooting for 150 points. Either buying 150 at once, two 75 point contracts or three 50 point contracts? We think we'd like OKW as well, but we haven't stayed there to know. I personally would be happy at the epcot resorts, but I don't think the contract cost vs duration makes sense for us right now.

As I understand it. Multiple contracts, means more closing costs. More closing costs ultimately give you a higher per point cost. You have the challenge of trying to get your use year to line up. Smaller contracts are believed to go for higher point costs.

Why rush in now, not just wait for 12 months from now? Well, we plan to vacation again at the end of February 2020. Maybe a long weekend trip this fall for for food and wine. I'd like to have the points in place to cover lodging for the February trip or at least partially cover it. By the time we find the right contract, with the right use year, then wait for rofr, then I think we'll be a little late to the party. That being said, if the right contracts don't show up at all, then off course we'll just wait it out.

What are the other benefits/downfalls with the above scenarios? Thanks for your help.

Related question. January or December use year seems like the proper choice, would you agree?

 

[Katie L]

There isn't a January use year - so December seems to make sense for you.

The biggest risk, imo, is what prices do between now and then. Recession? They'll go way down and that's a win if you still feel like you have the liquidity. Barring that, with SW:GE and 50th anniversary, prices could go up dramatically in a year. They've been steady for a yearish now - but who knows... It's all a bit of a crap shoot. And this is why we haven't yet purchased... even though I think I want to.

 

[CraigInPA]

If you go in February and October, you'll want a use year of February. There's still some risk for loss of points if you need to cancel an October trip at the very last minute (in October) because February points are only bankable until September 30.

With the premium charged for under-100 point contracts, the multiple closing costs, and your desire to start with 150 and end with around 300 points, it's not a good plan to buy 2 75's or 3 50's or a 100 and a 50 and try to match the use year and resort up, and expect to get these in under a year. You're setting yourself up for failure, and will end up spending a LOT more than getting one contract around 150 points

I'd suggest looking for a 150 or 160 contract, which are plentiful at most resorts. Based upon your stated finances (100 this year, 100 a year from now), you could buy it with partial financing and pay it off before even a year goes by. While it's generally not a good idea to finance, in your particular case, it may make sense. If you can find a loaded contract, you could even reduce your first year outlay by renting off the points from the current use year (2019) and begin your trips in February with 2020 use year points.

 

[4luv2cdisney]

If you go in February and October, you'll want a use year of February. There's still some risk for loss of points if you need to cancel an October trip at the very last minute (in October) because February points are only bankable until September 30.

With the premium charged for under-100 point contracts, the multiple closing costs, and your desire to start with 150 and end with around 300 points, it's not a good plan to buy 2 75's or 3 50's or a 100 and a 50 and try to match the use year and resort up, and expect to get these in under a year. You're setting yourself up for failure, and will end up spending a LOT more than getting one contract around 150 points

I'd suggest looking for a 150 or 160 contract, which are plentiful at most resorts. Based upon your stated finances (100 this year, 100 a year from now), you could buy it with partial financing and pay it off before even a year goes by. While it's generally not a good idea to finance, in your particular case, it may make sense. If you can find a loaded contract, you could even reduce your first year outlay by renting off the points from the current use year (2019) and begin your trips in February with 2020 use year points.

RE: UY I disagree.

If you travel Fall and winter, the best UY is Sept/Oct.

 

[kboo]

Our recent vacation pattern has been last few days of Feb into early march. Typically a week later than most peoples February break. Fall back week would be early May. Every few years a parents only vacation in October for food and wine(I have a mass of marriott points for Swan).

An October or December UY would work for you

 

[disneynutz]

IMO you need to rent some more points and spend some time at other resorts. Nothing worse than finding out that the resort you bought isn't your favorite and you have to sell the contract to buy the one you really want.

Bill

 

[mustinjourney]

trying to find three 50 point contracts in the same UY is going to be a huge PITA...and will probably cost you at least 10% premium...so as others have said, you're probably financially better off just getting one 150 point contract. Not to mention the hassle of trying to find a matching UY.

Now if you were going to buy direct, then yes, have them split it up. But that doesn't seem to be what you were asking about -- so definitely go one big contract and buy resale.

 

[bumbershoot]

Nothing worse than finding out that the resort you bought isn't your favorite

Lol. There are far worse things. I know you know this, but...


And I found the resort I truly wanted later because it was built later. I love GFV. I feel “meh” about Bay Lake, which we bought before stepping foot in Orlando.

Before GFV I loved OKW; if OKW had the clown pool and the GF service and shower, it would be the perfect resort.
But. They are onsite Disney resorts. They aren’t torture chambers.

I’ve survived keeping bay lake despite not being in love with it just fine.

 

[skippytx]

I'd go with a Feb use year personally.

The problem with your small contract desire is there isn't that many of them. I went to a large broker site and out of 146 SSR listings, 9 of them were under 100 points. None with a Feb use year. Once you get to 100 points things open up a bit. There's some active 100 pt contracts and even a 130 out there right now at decent prices.

Don't focus as much on the initial point cost of a contract. 5 bucks a point either way is going to be a small rounding error when it comes to your total WDW spend while being a DVC member. Find the contract that works for you, and has the points you want.

 

[princessbride6205]

I'm not sure from your post if you've done the math already, but most resale closing costs are $500-600. Make sure you'll pay less than that in your one year of interest and any fees on the small loan.
We also didn't want to finance, so we've purchased a small resale contract (30-120 points) every few years for the past decade. We didn't have a specific future point total in mind, mainly added on when we had the extra cash and found a great contract. Also, you may find by the time you're ready to add on that 3rd contract that you've changed your vacation times and a different UY may make sense for you. We actually have 2 UY because we travel at many times of year.
So I think it's possible to do what you want with a contract now and a contract a year from now, then a future contract a few years down the road. However, like others have said, it can be tricky if you are in a time crunch to get those points and small contracts aren't available. If you decide to purchase multiple contracts a year apart, start looking for that second one a couple months before you think you want to buy. It may take a bit to find the right contract.