New DVC Member Advice Needed--Breaking Up Contracts

[buck0086]

A few days ago I posted a thread asking about being able to add points since I had not yet signed my contract. It seems that I can do that. But that discussion led me to another issue--breaking up into multiple contracts. We currently have 270 points at BLT and I was initially going to change that to 320 points with two 160 point contracts. I'm gathering that smaller contracts are more valuable and flexible to sell if necessary (although I hope to keep them for all 50 years). I've had people suggest doing a 160-100-60 or a 160-8-80. I'd like some more input as to what I shoudl consider and what breakdown would be best for my situation. Keep in mind that I'm a newbie and don't have knowledge or experience regarding what would happen years down the road with multiple contracts. Thanks for all your help!

Buck

 

[hakepb]

The other contract size thought is inheritance. You cannot break up a contract in your will so you may want to will points without sharing?

 

[Crystal_27]

Buck, how you break down your contract is really your preference - - whatever makes the most sense to you. As long as you keep your second and third contracts under 100 points, you will be a good candidate should you ever need to (heaven forbid - LOL) sell them on the resale market. Maybe go to the DVC resales and research whether there is a difference in price point if buying 100 versus 80 points and see if that sways you either way?? Also, you might want to ask your Guide to see if he/she has any suggestions for you as to which way to go?

 

[Mtnman44]

Clarification:

You can't "break up" an existing contract. Once you sign the paperwork and close, it is written in stone.

"Breaking up" a purchase simply means buying several smaller individual contracts instead of one big one. For example Disney would treat the following 320 point purchase thusly:

160 point initial purchase
80 point add on (no closing cost)
80 point add on (no closing cost)

Add ons are sub contracts to the master account and for all intents and purposes are exactly like owning one big 320 point contract in terms of how you can use your points.

 

[buck0086]

Thanks for the clarification.

I believe that I should be able to break up my contract of 270 points as I have not yet signed the documents.

I'd like to add 50 points to the 270 I have already paid for. I'm now trying to figure out how I'd like to divide up those points. Thanks.

Buck

 

[chalee94]

I'd like to add 50 points to the 270 I have already paid for. I'm now trying to figure out how I'd like to divide up those points. Thanks.

if they are all at the same home resort, i'd just go with 160+60+50+50. 50-60 pt contracts are easier to sell and should bring in slightly more money than a 100 pt contract.

if you want separate home resorts, then it can be a little more complicated to keep track of...but with one home resort, it would work the same as having one 320 pt contract.

 

[Sandisw]

I think there was a thread that suggested that someone that just bought BLT (it was on your original thread) got to break up with 100, 70 and 70 for their 240.

In your case, I would ask if you can get the first contract for less than 160 (ask them to please check with a manager as sometimes this works in getting something that is supposedly "not allowed").

If you can, then I would do 100, 100, 60 and 60. This would give you 4 contract to split between your 2 children (I believe you said you had 2) in the future.

Good luck!!!