Need your opinions please on OKw 15 year

[goldilocks_63]

I haven't filled out my response form yet for the okw 15 year extension.

I plan on keeping OKW another 5-10 years when my parents pass away. THey love going to OKW every spring break, but after they are gone, I wont need that many points.

My q is do you think I should buy the extension for the purpose of keeping up the resale value. I know it's hard to know what prices will do... but opinions please.

To summarize our position, we have plenty of points, but would also like to start going to other locations and trades dont seem like a good value. Also, money is tight right now because we just bough a new house. - The old house is selling at a great discount at end of Jan. but at least it's selling.....

Goldi

 

[Chuck S]

We are in a similar position. Mom is 83, I am 49. Both of us will likely be in the ground by the time 2057 rolls around, although with medical technolgy, I suppose it is possible for me to around at 106. But, will the extension add some to the resale value? Other than that, I'd basically be extending for whoever inherits my estate.

I think most folks in our position will not extend. But right now, we are still trying to decide.

 

[jcodespoti]

No, I would not hold on to it for resale value only. It is to much of a risk. In my unprofessional opinion you might get a bump from the extension, but it may not last the 5-10 years.


Joe in CT

 

[Caskbill]

Chuck, don't age yourself so quickly.....

According to my calculations, if you're 49 now, then 50 years from now (in 2057), you'll be 99, not 106

You'll still be young! Maybe you should reconsider that extension....

 

[Chuck S]

Chuck, don't age yourself so quickly.....

According to my calculations, if you're 49 now, then 50 years from now (in 2057), you'll be 99, not 106

You'll still be young! Maybe you should reconsider that extension....

Doh! You're right, of course. I guess I didn't have enough coffee yet this morning.

 

[Buckeye Fan]

In my humble opinion with no credentials to back it up, it would have mattered to me. We just purchased back in January and had OKW been available with a 2054 or 2057 expiration date, we would have purchased at OKW. Instead, we purchased at SSR.

Plus, OKW has some of the lower MFs of the other resorts, so yes, as a buyer, it would have mattered to me. Just my two cents!!!

 

[RobDoc]

In my humble opinion with no credentials to back it up, it would have mattered to me. We just purchased back in January and had OKW been available with a 2054 or 2057 expiration date, we would have purchased at OKW. Instead, we purchased at SSR.

Plus, OKW has some of the lower MFs of the other resorts, so yes, as a buyer, it would have mattered to me. Just my two cents!!!

You would have been willing to pay $15 per point more for a resale purchase last January? So instead of $75 for an OKW resale, it would have raised the price to $90. Last January, OKW could be purchased thru DVC for $92 with the 2042 expiration. At this time, with the 2057 expiration, OKW purchase thru DVC is $96 per point. So, while DVC is charging current owners $15 per point to add the extension, they have only raised the selling price by $4.

Actually, If I had purchased OKW thru DVC last January at $92 per point and now was given the "option" to extend for an additional $15 per point I would be rather upset that those purchasing now can buy at $96 thru DVC.

I can certainly understand how a buyer would like to have the additional years, but whether buyers will be willing to "reimburse" the seller for the additional years remains to be seen and is the real question being asked in the thread.

As already suggested, I would not suggest buying the extension with the expectation that it would bring a higher resale value. If your family will benefit from the additional years in another 35 years, then it may be worthwhile.

 

[CarolAnnC]

OKW was my initial DVC purchase and I never considered any resale value at any time. I was purchasing a vacation ownership that would eventually expire and would be used by myself and eventually my children with their families.

If I am going to lay out any additional monies at this time, it will be to purchase Grand Californian points. Now that is something I can use in my lifetime!! LOL!

 

[Buckeye Fan]

I understood the question and agree that this remains to be seen. I think what's going to drive this the most is the ROFR floor. If Dis sets the floor at $75 - 80 per point for both non-extended and extended contracts, that's what sellers are going to pay. You guys know as well as I do that people who truly research before they purchase are looking at those ROFR threads and making offers accordingly. If Dis sets the floor for extensions higher, say $88 or $90 per point, that's what they'll sell for and people will get their money back.

I can only answer for myself, but had Dis put the floor at $90, would I have paid it over my purchase at SSR? I would have and here's why...

1) DH and I are still young enough to care about the additional 3 years and have 2 kids that our contracts can benefit in the future should we not care anymore!!!
2) We have 390 points. The difference in the purchase price would have been $2,340 ($90 dollars pp vs. $84). Throwing MFs out of the equation, that is about a $780 investment per year to benefit from 390 points worth of travel. That's pretty cheap.
3) At OKW, your points go further.

Would I pay $90 knowing that the ROFR floor was around $82? Absolutely not. I would wait on the right contract/seller to come along.

Would I pay for an extension for resale purposes only? Whoooo. That's a big gamble. I probably would not. Would I pay for an extension thinking I would use it, but possibly benefit if I sold it? Not sure.

Oh, one other thing I think will influence this is what happens with VWL, BCV and BWV.

GREAT thread and interesting to think about from both sides. Hmmmm...

 

[JimMIA]

We decided against the extension for two reasons.

First, we don't want the extra years at any price above zero, and we certainly don't intend to pay $15 per point for points that even my kids will never use.

Second, and even more importantly, there are better things to do with the money. For me, the question is not, "Is this a good deal?" The real question is, "Is this my best option?"

We have 310 OKW points, so our extension price would be $4,650. If I were going to spend that amount of money on vacations, I would either buy a different timeshare resale, or I'd buy a small DVC add-on.

In either case, I would be getting vacations options that I can use while those who accept the offer are waiting 35 years for their points to kick in. I'd MUCH rather have a 50-point add-on to use NOW than something I'll never use.

 

[Chuck S]

Oh, one other thing I think will influence this is what happens with VWL, BCV and BWV.

And I think whether the offer is made to extend the other 2042 resorts depends a lot upon how well the OKW extension is received by OKW owners. If the vast majority decline the extension, it likely wouldn't be worth the time and effort to extend the others. It would be more cost effective (assuming the buildings are still viable) to fully rehab the units, and adding the latest technologies and amenities, and resell them for another 50 years as a "new" DVC leasehold...if WDW still wants to do a lease.

 

[goldilocks_63]

I'm 44.... DD is 9, and Grandparents are in 80s but poor health (smoke like chimney one and other one bad heart/ diabetic).

I bought resale around 9/11/2001 (prices dipped), one 230 points at 62 pp +closing and other 150 points 65 pp + closing.... and I have plenty of points even if when I sell these. Why so many points- because I have to stick to school schedule and oKW 2bR over easter for 9 days is around 500 points. So they do get used.....

Paying for the 15 year extension is like $5,000. I started buying my DD SSR & AKV, so it's in a trust. THe OKw I'd have to spend $$ to retitle, so was just planning on letting it go... Or would be fun to buy contemporary when it comes out and that could go into the trust..... I'd love a BCV extension. THat I would do immediately.

I usually am not so wishy / washy.... But I'm hearing a lot of NO -s, any Yes's out there?

Goldi

 

[JimC]

Another probable no. We can not use the extra years and if we were extending for resale purposes we would prefer a new resort over one 15 years old already (we have concluded that the change in resale value will not make the extension worthwhile).

For us to give a yes, we would need to be in our 30s or have children who wanted it. We are in our 50s and our daughters do not want our DVC memberships (If they change their minds later they can make the purchases).

Other options that might have made a difference -- it was offered at OKW's 40th anniversary rather than the 15th; or if they offered it for $5 dollars a point; or if they said $15 per point would be used for a major refurbishment and they added the deferral to ease the additional investment; or if we could lock in the $15 price and payment was deferred with no interest until the 40th anniversary.

 

[sjdisneywedding]

We have 310 OKW points, so our extension price would be $4,650. If I were going to spend that amount of money on vacations, I would either buy a different timeshare resale, or I'd buy a small DVC add-on. .

and if you bought a resale for that amount you would get about 55 points for at most 50 years, for a grand total of 2750 points over the lifetime of the contract

whereas if you extend your 310 points you get 4650 points

so theres a little more that needs to go into it than just I would rather have a 50 point contract I could use now.

its VERY much dependent on your situation

I have said many times before, you can twist and turn numbers all day to get them to look however you want. Usually, oddly enough, you put enough numbers in so you end up with a result pretty close to how you were emotionally feeling anyway

personally I dont care about resale numbers or DVC direct buy price, the only think I am looking at is $1 per point and whether we or someone we pass this onto will be able to use the 15 years

you cant DVC points for $1 point, period, nowadays. This gives everyone the opportunity to go back in time and buy at basically original sale prices

intially if given the opportunity to buy 50 years at $60($1.20 pp) or 65 years at $75($1.15 pp)

I would have bought the 65 years then, I would buy it now.

 

[sjdisneywedding]

For us to give a yes, we would need to be in our 30s or have children who wanted it. We are in our 50s and our daughters do not want our DVC memberships (If they change their minds later they can make the purchases).

.

hope they dont change their minds as it will be at least twice the cost to get the same amount of points

 

[sjdisneywedding]

And I think whether the offer is made to extend the other 2042 resorts depends a lot upon how well the OKW extension is received by OKW owners. If the vast majority decline the extension, it likely wouldn't be worth the time and effort to extend the others. It would be more cost effective (assuming the buildings are still viable) to fully rehab the units, and adding the latest technologies and amenities, and resell them for another 50 years as a "new" DVC leasehold...if WDW still wants to do a lease.

ahh yes, but money in hand now is priceless as compared to questionable money coming in the future.

theres no telling where dvc will be in 50 years, whether demand for a new DVC resort will be there

 

[dianeschlicht]

We decided against the extension for two reasons.

First, we don't want the extra years at any price above zero, and we certainly don't intend to pay $15 per point for points that even my kids will never use.

Second, and even more importantly, there are better things to do with the money. For me, the question is not, "Is this a good deal?" The real question is, "Is this my best option?"

We have 310 OKW points, so our extension price would be $4,650. If I were going to spend that amount of money on vacations, I would either buy a different timeshare resale, or I'd buy a small DVC add-on.

In either case, I would be getting vacations options that I can use while those who accept the offer are waiting 35 years for their points to kick in. I'd MUCH rather have a 50-point add-on to use NOW than something I'll never use.

Jim, you expressed my opinion on this to the letter! I too did not buy in with the expectation that I would sell at any time in the future...either for a profit OR a loss. I purchased for my own use, and the use by my family up until 2042. Since I'll likely be pushing daisys by then, and my 'kids' will be older than I am now, I doubt it's a good deal for us no matter how we slice it. Now, if my 'kids' were truly kids, that might be different.

I always knew there would likely be an extention offered, but I NEVER expected it to be when there was still 35 years left on the original contract! I thought it would come in 2042 when those who would be using it at that point could make the decision. I don't feel like I want to gamble with my or their future, so I'll decline for now.

 

[JudithM]

We decided against the extension for two reasons.

First, we don't want the extra years at any price ...

Second, and even more importantly, there are better things to do with the money. For me, the question is not, "Is this a good deal?" The real question is, "Is this my best option?" ...

Jim, well put! We feel similarly in our household. We decided to put our money into house renovations like our kitchen rather than the OKW extension.

 

[LIFERBABE]

I dont care if they added a million points in 2042. I cant use them and it is too much of a gamble for a luxury purchase that far in advance.

I enjoy my DVC because I can use it now and in the future. This is how I purchase most luxury items. Can I use it now? Can I use it in the Future?

The current extension holds no value for me and my family.

I really dont see us kicking ourselves in 2042 because we didnt extend our OKW!
In the grand scheme of things, it aint that serious

 

[La2kw]

Another no here. I'll buy GCV points instead, since those will most likely already be extended, and I can use my points now instead of waiting 35 years. I don't think we will still be traveling out to Florida after our OKW points expire, but we will probably still be able to get to Disneyland.