New Restrictions Announced on Resales: Effective Jan 19

Discussion in 'DVC-Mousecellaneous' started by 3 Hobbits 2 Disney, Jan 6, 2019.

  1. jodybird511

    jodybird511 Mouseketeer

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    I'm sure this was addressed somewhere above or on one of the other threads about this topic, but now I'm not remembering...it's been a couple days since I read on this particular thread. What about people who have direct contracts or grandfathered resale contracts, and then buy a post-1/19 resale contract? How in the WORLD is the system going to be able to figure out which points can be used where? Or is the assumption that if you are direct or grandfathered, you will have the booking benefit for ALL of your points (I doubt it)? Thoughts? Or point me to another response that already addressed this?
     
  2. LAX

    LAX DIS Veteran

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    I think individual contracts will be "tagged" with the restrictions.

    LAX
     
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  4. KAT4DISNEY

    KAT4DISNEY Glad to be a test subject

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    According to old marketing material and articles about DVC when Disney Vacation Club started they were very specific about using RCI as the "Exchange" option. And if I recall correctly the minimum point requirements had a lot to do with being able to exchange into RCI. It was the number of points required to exchange into a 2BR thru their system. They always had exchange in mind when starting.
     
  5. KAT4DISNEY

    KAT4DISNEY Glad to be a test subject

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    They've always had to keep track of what contracts qualify for what and when just because of the home resort priority. Then they had to add more following the 2011 resale restrictions regarding use in the Disney Collection. This just adds another layer to something they've always had to do since they opened their second resort.
     
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  6. deerh

    deerh DIS Veteran

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    We bought BWV 20 years ago and completely agree with that statement! We are "paid off" and just pay dues, as the "rack rates" rise 3-4-5%/year! We are now in the "gravy" years so to speak... Would not sell-Hopefully.. If we do, we have still "made off like a bandit" on WDW and accommodations and the occasional Disney Cruise (one for us).. So far..... We bought CCV in 2017, and planning to do the same and keep it for many years...
     
  7. hakepb

    hakepb DIS Veteran

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    So, how long until David’s starts up an 11-month reservation swap service?

    Every now and then, we’ve seen posts wondering if a reservation swap service exists. (ie a BWV owner books F&W 11 months out in exchange for a BRV December reservation 11 months out)
    DVC’s 7 month window has been OK enough that few wanted the additional work.

    But now there will be classes of RRV and the 14 original resorts resale owners that may want to swap, but can’t through Disney...but some enterprising 3rd party could offer a solution.
     
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  8. Chuckdlc

    Chuckdlc Earning My Ears

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    So that I'm clear, if I were to make the 1/19/19 cutoff and I purchased (for example) Hilton Head points, I can still use those points at any of the original 14 (or potential new dvc properties)? I wouldn't be limited to just Hilton Head correct?
     
  9. The Jackal

    The Jackal Mouseketeer

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    Yes you would be grandfathered
     
  10. Marionnette

    Marionnette Children see magic because they look for it

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    Yes, but... (because there's always a "but")...

    You could still book the original 14 (DVC I) if you were to miss that deadline. You just would not be able to book at the new resorts.

    HHI dues are among the highest in DVC. The buy-in price is not the biggest cost of owning. The dues are what get you, year after year after year. You may want to consider one of the DVC I resorts if it's your intention to use your points mainly at a WDW resort.
     
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  11. Chuckdlc

    Chuckdlc Earning My Ears

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    Thank you, I'm sort of in an interim stage where I was thinking of buying HH and then purchasing points for BLT or Poly, etc, to book the major parts of our stays. In reality buying HH would serve the dual purpose of providing access to the DVC booking portal and providing some cheaper points. At some point in the future, I would buy 100 directly from Disney. Math I'm thinking about is, dues at HH are (hypothetically) $250 more per year than OKW. But, I was able buy a HH property with 20 more DVC points for the same price as 20 less points OKW property. I would then have to purchase those 20 points from a member at about $16 per point. That's $320. So, it all sort of comes out in the wash. Resale on HH after 1/19 though is going to tank a bit.
     
  12. Mikey15

    Mikey15 Mouseketeer

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    So in rough numbers, I guess you're talking about ~100 OKW points at ~$100/point vs. ~120 HHI points at ~$83/point. Dues on OKW would be ~$723, plus transferring 20 points at $16, so $1,043. Dues on HHI would be $1,027. I guess I see what you're saying. For comparison sake, you could also look for a ~120pt OKW contract. $2,000 more upfront, dues $868, payback ~11 years, probably not worth the upfront capital.

    Since you're looking at transfer points and owning not necessarily where you want to stay though, it's probably also worth comparing to just renting points where you want to stay. At $17/pt (David's, 7mo window), renting 120 points per year is $2,040. At $16/pt (deal with an owner), it's $1,920. If you're dropping $10,000+closing costs for HHI, the payback on $1,027/yr vs. ~$2,000/yr is again a 10-11yr payback with a lot of upfront capital. I don't know if I'd rush into that.

    FWIW if you think resale will tank after next week, it'd be better to wait for that tanking, UNLESS you really want to book Riviera/Reflections.
     
  13. KAT4DISNEY

    KAT4DISNEY Glad to be a test subject

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    They need to make a commission on the exchange and 1 night for 1 night is not going to be comparable in most cases. They already do this thru the existing system without any of the intricate difficulties that would come from doing a true swap. Just rent out your points and rent somebody elses. It's the best way to get an agreement on if the exchange is equitable. The other is more a needle in a haystack.
     
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  14. hakepb

    hakepb DIS Veteran

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    Yes, there would need to be a fee or in combined with renting out additional points for cash.
     
  15. mjh8955

    mjh8955 DIS Veteran

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    This may have already been addressed, if so I'm sorry I missed it.
    Let's say a person was to buy a DVC timeshare directly from Disney for the Riviera, and then for whatever reason, perhaps financial, they resell it. The person who buys their points via the resale market then would have access to only the Riviera?? The Riviera and the 14 older DVC resorts?? How will that work? Because they will come on the resale market someday.
     
  16. JETSDAD

    JETSDAD DIS Veteran

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    So far reports from MS and what resale companies have been told, resale Riviera will only be able to book Riviera.
     
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  17. mjh8955

    mjh8955 DIS Veteran

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    So far reports from MS and what resale companies have been told, resale Riviera will only be able to book Riviera.
    ____________________________________________________________________________________________

    What possible incentive would there be to own at the Riviera then??
     
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  18. JETSDAD

    JETSDAD DIS Veteran

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    Excellent question.
     
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  19. Marionnette

    Marionnette Children see magic because they look for it

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    People are speculating that it will be so awesome that the restriction won't be a huge negative. Plus....gondolas! :rolleyes:
     
  20. hakepb

    hakepb DIS Veteran

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    Ahh, age old “Buy where you want to stay” vs “why would you buy where you want to stay?”

    So far, I haven’t seen enough details about Riviera to make it my “where I want to stay”.
    The greatest positive announced so far, seems to be potential Epcot/fireworks views (but it won’t be Illuminations). Insiders seem to suggest luxury, but I’ll wait for actual details.
     
  21. Wakey

    Wakey DIS Veteran

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    Because probably with 90% of people, what happens if they resell it, will be lost on them when they impulse buy and sign a bundle of documents without reading them.
     
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