New Restrictions Announced on Resales: Effective Jan 19

[CarolMN]

I am curious why Disney didnt just go ahead and limit ALL resort resales to home resort bookings.
Obviously they can do anything the want with the new resorts that have not opened yet.

Is it possible (hopefully) that the language of the existing deeds for the "legacy 14" resorts precludes them from doing so?

They didn't limit the existing members to home resort bookings because they can't. This is typical language from a Multi-site Offering Statement which applies to the 14 "classic" DVC resorts:

"Membership in the Club is an “appurtenance” to each Ownership Interest in accordance with the governing documents for each DVC Resort. Therefore, when you purchase your Ownership Interest in a DVC Resort, you automatically become a Member of the Club. Your membership in the Club follows your Ownership Interest and cannot be separated from it. For example, if your Ownership Interest is sold or otherwise transferred, the new Owner of your Ownership Interest will become the Member".

You will not see this language in the Offering Statements for the Riviera or subsequent resorts.

 

[lntx]

They didn't limit the existing members to home resort bookings because they can't. This is typical language from a Multi-site Offering Statement which applies to the 14 "classic" DVC resorts:

"Membership in the Club is an “appurtenance” to each Ownership Interest in accordance with the governing documents for each DVC Resort. Therefore, when you purchase your Ownership Interest in a DVC Resort, you automatically become a Member of the Club. Your membership in the Club follows your Ownership Interest and cannot be separated from it. For example, if your Ownership Interest is sold or otherwise transferred, the new Owner of your Ownership Interest will become the Member".

You will not see this language in the Offering Statements for the Riviera or subsequent resorts.

Well....so much for the Disney Vacation Club, right?? Ugh, makes me want to sell my 200 pt VGF resale contract (purchased in 2014) today. And we're no longer looking into buying direct at Riviera, as we were looking forward to. This makes me sad.

 

[CarolynFH]

They didn't limit the existing members to home resort bookings because they can't. This is typical language from a Multi-site Offering Statement which applies to the 14 "classic" DVC resorts:

"Membership in the Club is an “appurtenance” to each Ownership Interest in accordance with the governing documents for each DVC Resort. Therefore, when you purchase your Ownership Interest in a DVC Resort, you automatically become a Member of the Club. Your membership in the Club follows your Ownership Interest and cannot be separated from it. For example, if your Ownership Interest is sold or otherwise transferred, the new Owner of your Ownership Interest will become the Member".

You will not see this language in the Offering Statements for the Riviera or subsequent resorts.

If they create a new Club (DVC II), they could include this language but restrict trades by resale owners to DVC II resorts, couldn't they?

 

[Jerry5788]

I guess the bright side of this is that the original DVC locations have the best locations. Grand Riveria will be nice I am sure but location falls in comparison to BCV and BWV. Point chart could be cheaper than BCV but can't be lower than BWV. This becomes a bigger concern when they start to expire in 2042 as they will likely roll them into the new club (DVC II).

 

[AdamsMum]

So I'm wondering if the sales people will just avoid the subject of resale not being able to book at other resorts, or will they be up front about it? They aren't really obligated to bring up what the future holds if buyers have to sell, are they?

I think most new direct buyers don't have much knowledge of the resale market and may not ask these questions.
I guess it's buyer beware.

 

[AdamsMum]

I guess the bright side of this is that the original DVC locations have the best locations. Grand Riveria will be nice I am sure but location falls in comparison to BCV and BWV. Point chart could be cheaper than BCV but can't be lower than BWV. This becomes a bigger concern when they start to expire in 2042 as they will likely roll them into the new club (DVC II).

I'll be 85 in 2042, I don't think I'll mind.

 

[iheartglaciers]

I'll be 85 in 2042, I don't think I'll mind.

I think it mainly becomes a concern if you wanted to sell at that point. For instance, I have two small CCV contracts. If I wanted to sell one after 2042, I wonder if the resale price would be affected since there will be less resorts in the mix then (for resale buyers).

 

[Jerry5788]

I'll be 85 in 2042, I don't think I'll mind.

I think it mainly becomes a concern if you wanted to sell at that point. For instance, I have two small CCV contracts. If I wanted to sell one after 2042, I wonder if the resale price would be affected since there will be less resorts in the mix then (for resale buyers).

Yeah I will only be 54 but even then it would hold not much resale value as I look to take that to buy another DVC resort

 

[kniquy]

So I'm wondering if the sales people will just avoid the subject of resale not being able to book at other resorts, or will they be up front about it? They aren't really obligated to bring up what the future holds if buyers have to sell, are they?

I think most new direct buyers don't have much knowledge of the resale market and may not ask these questions.
I guess it's buyer beware.

I guess in their sales pitch they can always tell them if they want out their options would be to transfer to another family member or to sell on the resale market -and leave it at that. It would be then that the purchaser would need to research the restrictions on the resale purchaser and make an assumption that - hey my contract is going to have very little value to someone else so i'm not going to be able to sell it for as much as say a poly contract that has access to 14 resorts.

The pixie dust of the Rivera purchase will eventually wash out after it is too late for someone to get out. Then the real shock will set in when they are underwater and the only way out is foreclosure. So speaking of that -- does a foreclosure on a DVC timeshare affect someones credit?

 

[aoconnor]

So I'm wondering if the sales people will just avoid the subject of resale not being able to book at other resorts, or will they be up front about it? They aren't really obligated to bring up what the future holds if buyers have to sell, are they?

I think most new direct buyers don't have much knowledge of the resale market and may not ask these questions.
I guess it's buyer beware.

I highly doubt they will flag the resale restrictions to new buyers, it will be in the fine print. Many direct purchasers aren't even aware of the resale market at the time they purchase.

 

[Orsino]

I was thinking that sometimes it's hard to book at your home resort even before the 7 month window opens. I read about people booking the minute the window opens at 11 months, people who can't even do that presumably because other people are walking their resies... So what if you buy resale at Riviera and want to travel at a particular time but can't get a resie at Riviera for that time? If, for the time period that you want, you can't get a resie at Riviera, and you can't use your points anywhere else, won't your points feel worthless?

What I'm predicting are more 'bungalow' type rooms at Riviera that no one books on points and very few studios that everyone else fights over. So the 11 month frenzy for a handful of desirable rooms at Rivera is likely to be unavoidable. Doesn't that already happen with Poly? Except with Riviera, there will be no alternatives.
Buying Riviera resale points is a terrible idea.

DVC choices of late have been bad for consumers. Each one alone is maybe not so bad, but stacking them all together makes it a disaster. I would not recommend DVC to any new buyers at this point. Not worth it anymore, and it is clear that DVC will do whatever it can to undermine the owners. I think those that bought a while ago will be okay, but buying new or even resale now is just asking to be kicked by the mouse.

 

[cep101]

This is crazy to me and disappointing. I was going to change out our SSR points for resorts that we now know we love (Boardwalk and Boulder Ridge) but now I can't and don't want to do that because I was going to buy them on the resale market.

 

[DisneynBison]

I am not surprised at how Disney is making a DVC1 and DVC2. I was curious how they would make it work. It looks like they are banking Riviera being a "Crown Jewel" property and new buyers will overlook the restrictions.

I wonder if some day they allow DVC1 to book into DVC2 but at a say 50% point premium. Basically have 2 point charts. That way there would be more rooms that are unused in DVC1 that they could then sell as cash reservations.

 

[Crabby_Dan]

My (completely unsubstantiated) guess is the point structure and room types are gonna be different for Riviera. Reservation points from the original 14 will not have a 1:1 value. Like trading into RCI. Maybe 1 original point will correspond to 1.5 Riviera, for example. Possibly DVD wants to eliminate resale buyers jumping on cheap resale points to take advantage of that.

Of course I could be totally off the wall. Complete speculation.

 

[aoconnor]

My (completely unsubstantiated) guess is the point structure and room types are gonna be different for Riviera. Reservation points from the original 14 will not have a 1:1 value. Like trading into RCI. Maybe 1 original point will correspond to 1.5 Riviera, for example.

Yikes, interesting. I hadn't thought of that. That would surely piss off the recent direct buyers of DVC I resorts though (CCV, PVB etc).

Someone else said this exchange might work completely differently (no 7 month window etc) since they will need to balance the points going in and out of Riviera with this convoluted new system.

 

[Sarahraegraham]

DH and I have considered buying into DVC, direct or resale. We haven’t pulled the trigger for a couple reasons. However, if DVD provided the option with direct purchase to buy into a home resort and only be able to stay at the home resort, and that restriction dropped the price accordingly, I would do it. Avoids the resale process for me, I feel like I’m getting a bargain, Disney can (presumably) better assess and predict occupation levels at the resorts... it sounds to me that they are moving to eventually have that as the only model, but having the choice would be the best for them and the consumer IMO. All this from a relative newbie so hey, what do I know?

 

[Candlelady]

I'm glad I purchased years ago at BCV for around $70 p/point. Have had many years of wonderful vacations there and feel I've gotten more than my money's worth in memories. Unfortunately we no longer recommend DVC to our friends and family due to all the changes lately. We are already talking about one trip every couple of years instead of our two or three a year.

 

[Capang]

My (completely unsubstantiated) guess is the point structure and room types are gonna be different for Riviera. Reservation points from the original 14 will not have a 1:1 value. Like trading into RCI. Maybe 1 original point will correspond to 1.5 Riviera, for example. Possibly DVD wants to eliminate resale buyers jumping on cheap resale points to take advantage of that.

Of course I could be totally off the wall. Complete speculation.

Funny you bring this up. We spoke to our guide about adding on with Riviera a few months back. There was some discussion it would be different than the others, maybe more moderate or even value type accommodations. I scoffed at the notion DVC would put out anything less than a deluxe that they could charge top dollar for. I'm also not real certain the guide's info on room categories is correct at all, but this new structure does sort of indicate there could be some difference in the types of points needed or some other kind of difference. I'm really curious now to see what Riviera brings to the table.

 

[hakepb]

Would you buy Aulani with this new way that they are treating DVC owners?????

Either way, I’d only buy Aulani if it was an extremely good deal.

When I bought SSR, there were only (5) WDW resorts, and I didn’t expect more resorts to be added.

I also didn’t factor in resale prices, as I expected to keep using DVC and/or pass it onto family. (but direct points were cheaper back then). Really, one shouldn’t buy for resale. In 2010 recession resale points plummeted into the 30’s. Robust resale is a nice bonus but has never been a guarantee.

 

[hakepb]

My (completely unsubstantiated) guess is the point structure and room types are gonna be different for Riviera. Reservation points from the original 14 will not have a 1:1 value. Like trading into RCI. Maybe 1 original point will correspond to 1.5 Riviera, for example. Possibly DVD wants to eliminate resale buyers jumping on cheap resale points to take advantage of that.

Of course I could be totally off the wall. Complete speculation.

A “stock split” may help out sales (just seems so expensive when a point is >$100),

I would guess a 5:1 or 10:1 comparing DVC2 : DVC1 “split” would be needed. Do you want to buy new $50 DVC2 points or used $150 DVC1 points?