New Borrowing Rules

[Sandisw]

Oh, ok. Well I guess if it were to help with the issue temporarily. But could they make it a permanent resale restriction in the future?

That is a good question, but I don’t believe they could, All the changes so far have to do with perks and trading into BVTC.

Banking and borrowing is different so I think that would be a pretty hard one.

In terms of resale, it could have an effect on stripped contracts because now the borrowing is going to be less, I am going to guess this will be in place for at least A year.

It does mean that current resale brokers will have to inform new buyers of the temporary change.

On the flip side, it might help to stabilize those contracts that have all the current UY points in them.

 

[SL6827]

This all has really opened my eyes about how little I knew about DVC when I bought my contract. But it was such a small contract so I didn't really jump into the deep water. But it makes me wonder how many people there are that does buy in at a much larger standpoint and they know about as much as I did about the legalities of DVC.

 

[EM Lawrence]

I think/agree the phrasing of “from time to time” would make it difficult for them to suspend banking and borrowing permanently. But that does not mean its impossible. I guess the overriding principal that they have to operate in the best interest of the owners would be a really difficult hurdle to overcome. Its hard to think of a scenario where discontinuing banking/borrowing would be in the best interest of the owners. So that is reassuring.

 

[Sandisw]

This all has really opened my eyes about how little I knew about DVC when I bought my contract. But it was such a small contract so I didn't really jump into the deep water. But it makes me wonder how many people there are that does buy in at a much larger standpoint and they know about as much as I did about the legalities of DVC.

I can say from all the posts on this site since the shutdown, I am going to say a lot.

I myself spent this time reading over the POS and even though I felt like I knew alot already, there were some eye opening things as well,

 

[CastAStone]

I'm amused at all the things that people think/hope will reduce the price of DVC on the resale market. Obviously there are a lot of people who hope the prices will go down. I'm not one of them.

I’m sure those of us who would prefer prices are lower in the near future will rapidly change our perspective once we buy in/add on.

Ive been trying not to root for it because I know on the other end of a distressed sale could very well be someone selling something they don’t want to at a price that doesn’t make them whole, likely through no fault of their own.

 

[SL6827]

I think/agree the phrasing of “from time to time” would make it difficult for them to suspend banking and borrowing permanently. But that does not mean its impossible. I guess the overriding principal that they have to operate in the best interest of the owners would be a really difficult hurdle to overcome. Its hard to think of a scenario where discontinuing banking/borrowing would be in the best interest of the owners. So that is reassuring.

Well after the attempt to raise the lock off premium to benefit themselves, I say nothing is ever off the table to try, especially to resale purchasers. But hopefully not.

 

[SL6827]

there were some eye opening things as well,

Care to elaborate?

 

[Sandisw]

Care to elaborate?

That points owned by DVD don’t have to follow the same rules, including the 11 month booking one,

How often TWDC and WDPR waive liability to the entire system, but how much control Disney has over operations because we hire them as property managers,

How they could apply a special assessment for certain damages without any vote of members, And, the only way for owners to have any type of vote via the board would be to find all owners of your specific unit and get at least 60% of them to all agree to what a vote would be...otherwise, the board gets to make all decisions.

Those are just to name a few!

 

[zakdavid]

Oh, ok. Well I guess if it were to help with the issue temporarily. But could they make it a permanent resale restriction in the future?

It's not a resale restriction it's for everyone direct or resale.

 

[Great3]

I’m sure those of us who would prefer prices are lower in the near future will rapidly change our perspective once we buy in/add on.

Ive been trying not to root for it because I know on the other end of a distressed sale could very well be someone selling something they don’t want to at a price that doesn’t make them whole, likely through no fault of their own.

Oh, a good sale price on a DVC contract also means way more more In losses in 401k retirement funds. I rather pay more for my DVC contract if that means I don’t lose in the retirement planning aspect. You can’t have both parts of your cake and eat it too.

Great3

 

[Great3]

That is a good question, but I don’t believe they could, All the changes so far have to do with perks and trading into BVTC.

Banking and borrowing is different so I think that would be a pretty hard one.

In terms of resale, it could have an effect on stripped contracts because now the borrowing is going to be less, I am going to guess this will be in place for at least A year.

It does mean that current resale brokers will have to inform new buyers of the temporary change.

On the flip side, it might help to stabilize those contracts that have all the current UY points in them.

I agree, I don’t think banking / borrowing restrictions will be permanent. They even state so that they hope to return to normalcy sooner. It’s just good customer service in their part.

Just answering the question that they leave themselves lots of leeways to changes, that not much is locked down, guaranteed for the owners.

Great3

 

[MICKIMINI]

Many owners sell and make a decent profit on their contracts. A "deal" for a new owner may still give a seller some serious cash and allow them to financially survive this crisis. We sold a couple contracts when our son was in college and it was a great source of cash and a decent profit. We sold three contracts last year for an excellent profit. Spending money is what makes our economy grow. Buying a DVC contract helps a seller.

I applaud that finally, DVC has a plan to move forward. Brokers and sellers need to reevaluate those "stripped" contracts or the market will. I also suspect many pending deals will fall apart based on this news, especially for those buying large contracts for trips that combine years. Those "every other year" and "every third year" owners have a choice to hold, sell or add on at a low price - an unexpected opportunity for them if they have the means. I'm watching for April sales and ROFR, but believe May will be more telling after this news. I'm still in the buying mode!

Edit: I received an email after I posted with lots of stripped contracts just "reduced".

 

[RichV03]

Newbie here, wondering where you guys get your news on the restrictions coming up? We just signed contract, waiting for ROFR. Is this information that only people who own see via their account sign in? Or is there another site that has all this info? I’ve only really come across this forum board to try and get answers to my questions.

 

[Lorana]

Newbie here, wondering where you guys get your news on the restrictions coming up? We just signed contract, waiting for ROFR. Is this information that only people who own see via their account sign in? Or is there another site that has all this info? I’ve only really come across this forum board to try and get answers to my questions.

Yes, Disney sent an email to all existing DVC holders to explain how they were handling the current situation and the current restriction to 50% of points in a contract for borrowing.

 

[RichV03]

Yes, Disney sent an email to all existing DVC holders to explain how they were handling the current situation and the current restriction to 50% of points in a contract for borrowing.

Thank you! Does that include banked points as well? The contract we signed has all of 19 banked into 20 and we were really planning on using them for vacation next year....

 

[Hopfather28]

My wife and I were planning on buying 2 contracts in the near future. One at BCV and one at PVB. The plan was use them to stay at home resort every other year. This definitely changes things and while I'm disappointed it reaffirms that Disney is trying their best to manage this current crisis for owners and patrons.

 

[Deb & Bill]

My wife and I were planning on buying 2 contracts in the near future. One at BCV and one at PVB. The plan was use them to stay at home resort every other year. This definitely changes things and while I'm disappointed it reaffirms that Disney is trying their best to manage this current crisis for owners and patrons.

Was there any notification about changes in transferring rules? Otherwise, you might still be able to do what you plan on doing, just use transferring when you need to. But those transferred points would only be usable at seven months out at the other home resort. Plus if both contracts were the same use year, you wouldn't be able to transfer from one to the other. It would need to be two separate membership numbers.

 

[dceagle01]

Thanks for the info. As a potential buyer, this definitely throws a wrench in my plans lol. I was planning on looking for a contract where I could bank 2020 points, then go in 2021 and borrow from 2022 so I would have 3 years worth of points and then go every 3 years after that and do the same thing to make it where I could get 1 or 2 bedroom villas. I would have to look at getting more points now if I can only borrow 50%.

 

[MICKIMINI]

Thank you! Does that include banked points as well? The contract we signed has all of 19 banked into 20 and we were really planning on using them for vacation next year....

Banked points are good as long as you use before they expire - you were smart to get a loaded contract! Borrowing is the issue here. What is your UY and when is your planned trip?

 

[Sandisw]

Thank you! Does that include banked points as well? The contract we signed has all of 19 banked into 20 and we were really planning on using them for vacation next year....

If your points are already banked, then they will be eligible to normal booking rules,

It is only if you wanted to borrow for a trip. Reservations booked from yesterday afternoon on, will only be allowed to borrow up to 50% from the next UY,

So, by the time you close, when you go to book, if you have enough banked and current UY points to reserve, then this new rule won’t play a role for that reservation.