New Restrictions Announced on Resales: Effective Jan 19

[ParkHoppers]

Now let’s see what the minimum direct points buy in will be at Riviera. What was minimum buy in at CCV? I know minimum direct points for benefits is 75 but not clear on the rest.

 

[jsand99]

Do you already own DVC and are adding on, or considering buying in now for the first time? I think it would depend on the resort, and how often you think you'd want to stay there. I think if you got into ROFR by the 19th, that contract would have enough value, depending on what you paid for it and how you plan to use it, that it maybe could still be a decent proposition. For after 1/19, I think anything goes. If I had a friend who was unsure about whether to buy in, I would say to wait until the dust settles and we see what is going on. A lot would depend on what resale prices do, especially for the DVC1 resorts, and whether you'd be happy staying there for the next 20+ years.

This will be our first contract. We toured DVC on our November trip and made an offer on an AKV resale contract later that month. Disney took that contract in December. We found another yesterday and we were going to try again until this news broke.

 

[jsand99]

Really the only thing that's giving me pause now is the thought of the contract being completely worthless and not being able to at least give it away if we needed to get out from under the maintenance fees. If I knew that I would be able to get out when I needed to, even by just giving it away, I would go ahead and jump in. Does anyone think it's even remotely possible, barring another great depression, that a DVC membership could become completely unwanted?

 

[The Jackal]

Now let’s see what the minimum direct points buy in will be at Riviera. What was minimum buy in at CCV? I know minimum direct points for benefits is 75 but not clear on the rest.

If you are already a member it is 75 minimum. I think If not a member it is at least 100. I can’t remember the exact amount.

 

[deerh]

Think with this new restriction, it will raise the "14 resorts" resale price... Glad we bought 20 years ago... Don't know if I like the direction DVC is going.. But we have made our DVC worth it in the last 20 years... But, I see why they are doing it... Didn't say I like it....Rivera resale will be very low.. But... Stay tuned!!!

 

[KSkywalker17]

Now that I've had a chance to read other views and go over the release a few times, I don't think this is "the end of the world, sell/buy right now!" situation. If you're looking to buy DVCI after 1/19, it still makes a lot of sense to buy resale. These points are still good at 14 awesome resorts at the best locations on property. Buying resale in DVCII, if you can sneak a good deal past Disney, will likely never make sense unless you're absolutely in love with the resort and are investing knowing it's value is likely to drop.

 

[Marionnette]

Is there any reason now to consider buying into DVC versus just renting points? My wife and I found a contract yesterday that we were considering making an offer on and then I came across this news on the broker's website. The comfort of knowing that I could sell my contract if I needed to was a big draw, but now I'm afraid of possibly getting stuck with it down the road like some have with other timeshares. This on top of the maintenance fee increases has really turned me off. How much will maintenance fees be in 20 years?? Can anyone tell me why buying into DVC now has advantages? I can't get past the thought of 20 years from now having to pay thousands in maintenance fees for a membership with no value.

The advantages haven't changed from what they were in the past. You're paying for future vacations now and will save money (over time) vs. paying as you go. Owning is still cheaper than renting, but you have to be in it for the long haul in order to reach the break even point.

There's no way to tell how this will affect resale prices. On one hand, all of the 14 original resorts will still have the ability to book at each of the others. And in a sense, that's no different than the day that I bought my most recent contract. The inability to book at the newer resorts may not have a huge impact on the resale value of a BCV contract to someone who wants to swim in SAB. BLT ownership will still appeal to people who want to walk to the MK from their hotel. OTOH, when the 2042 resort contracts expire, almost half of the legacy resort will disappear. Owners who buy resale at the remaining resorts after 01/19/19 will see their options significantly reduced. That's going to seriously impact their resale value, especially if (when?) DVC repackages those 2042 resorts as all new versions of their former selfs, complete with the "you can't book here if you bought resale" clause.

 

[DeeCee735]

We also bought a long time ago, in 2000. We purchased a few add on's through 2007, always direct. I'm pretty confused about how this may effect resale prices for our contracts, if and when we ever decide to sell. We always hoped that when we are too old to use it, that our adult married children would take over the maintenance fees and continue to use the points. That's our continued hope, so I don't think too much about the implications of the changes on the resale market. I guess when and if the time comes.....

That said, I'll agree I don't like these changes much at all..

 

[KAT4DISNEY]

Really the only thing that's giving me pause now is the thought of the contract being completely worthless and not being able to at least give it away if we needed to get out from under the maintenance fees. If I knew that I would be able to get out when I needed to, even by just giving it away, I would go ahead and jump in. Does anyone think it's even remotely possible, barring another great depression, that a DVC membership could become completely unwanted?

Only if the parks close. Or somehow DVC managed to become more expensive than booking an onsite hotel room. That's probably unlikely as they keep increasing prices at a good clip. The last thing would be if it became impossible to book a room but as long as one can do 11 months then because the system is first come first served except for the fixed week options that also is unlikely. One thing of note is that flexible does mean you aren't guaranteed to be able to book the exact room type you'd like.

 

[DeeCee735]

"Resale contracts purchased for the existing 14 Disney Vacation Club Resorts will only be able to exchange Points into those 14 Resorts."
I'm reading "exchange points" as not just using home resort points to book non home resorts at the 7 month window, but actually having to exchange the points through RCI or perhaps through Disney itself (for a fee). Anyone else? (I didn't read every post here so if I missed something similar, my bad!)

Dee

 

[crvetter]

"Resale contracts purchased for the existing 14 Disney Vacation Club Resorts will only be able to exchange Points into those 14 Resorts."
I'm reading "exchange points" as not just using home resort points to book non home resorts at the 7 month window, but actually having to exchange the points through RCI or perhaps through Disney itself (for a fee). Anyone else? (I didn't read every post here so if I missed something similar, my bad!)

Dee

According the POS and the Buena Vista Trade Agreement when you used your points at another resort you’ve always been “exchanging” them from Home Resort Vacation Points to DVC Vacation Points. I personally don’t think the word exchange is particularly nefarious but I suppose nothing is surprising as of late. Besides the RCI agreement specifically stops us from trading into other DVC resorts because we can’t do anything within 50 miles of Orlando.

 

[KAT4DISNEY]

"Resale contracts purchased for the existing 14 Disney Vacation Club Resorts will only be able to exchange Points into those 14 Resorts."
I'm reading "exchange points" as not just using home resort points to book non home resorts at the 7 month window, but actually having to exchange the points through RCI or perhaps through Disney itself (for a fee). Anyone else? (I didn't read every post here so if I missed something similar, my bad!)

Dee

Technically that's what we have always done - exchange into other resorts from our home resort. We "convert" our points from home resort points to Vacation club points. What is nice is they let us convert back if we cancel and decide to book at our home resort during a home priority period that it still fits in. BVTC is the "exchange company" that oversees it.

And that was all new to me in reading the POS a week or so ago.

 

[CarolynFH]

"Resale contracts purchased for the existing 14 Disney Vacation Club Resorts will only be able to exchange Points into those 14 Resorts."
I'm reading "exchange points" as not just using home resort points to book non home resorts at the 7 month window, but actually having to exchange the points through RCI or perhaps through Disney itself (for a fee). Anyone else? (I didn't read every post here so if I missed something similar, my bad!)

Dee

I’m not reading it that way and am not aware of anyone else doing so. In reality DVC has always exchanged points through the Buena Vista Trading Company when booking non-home resorts. It’s just always been so seamless that we didn’t realize it.

 

[DougEMG]

I wonder why they didn't start this with BLT, or VGF, or POLY. Any of those resorts would of been a better draw to start a new DVCII, rather than with the Riveria. Change in leadership and bonus requirements?

 

[DeeCee735]

I’m not reading it that way and am not aware of anyone else doing so. In reality DVC has always exchanged points through the Buena Vista Trading Company when booking non-home resorts. It’s just always been so seamless that we didn’t realize it.

Yup, I certainly didn't realize it. We usually stay in one of our two home resorts anyway, but have occasionally stayed in the others. I never thought of it as an exchange. Thanks for educating me. I have read the documents in years....last add on was 2011!

 

[DeeCee735]

I wonder why they didn't start this with BLT, or VGF, or POLY. Any of those resorts would of been a better draw to start a new DVCII, rather than with the Riveria. Change in leadership and bonus requirements?

Is Riveria considered a deluxe DVC resort, as the rest, or maybe they're starting a more "moderate" category?

 

[hakepb]

Really the only thing that's giving me pause now is the thought of the contract being completely worthless and not being able to at least give it away if we needed to get out from under the maintenance fees. If I knew that I would be able to get out when I needed to, even by just giving it away, I would go ahead and jump in. Does anyone think it's even remotely possible, barring another great depression, that a DVC membership could become completely unwanted?

Other timeshares will drop to crazy low rental rates of $100/week (or I’ve heard of really cheap rates, might not be that low)

DVC holds value better because they compete with desirable more expensive Disney on-site cash rooms. David’s charges about $400/night for a Poly studio over the summer while Disney is charging $500-700/night. As long as Disney cash rates remain this high, DVC resale prices will remain fairly steady. If Disney drops cash rates, then DVC resale prices will plummet.

 

[hakepb]

Is Riveria considered a deluxe DVC resort, as the rest, or maybe they're starting a more "moderate" category?

I’ve dismissed all the “Rivera is a moderate location” talk until this week...and now I’m starting to wonder.

 

[SpaceMountain77]

Is Riveria considered a deluxe DVC resort, as the rest, or maybe they're starting a more "moderate" category?

Based on everything that has been shared by insiders, on other discussion boards, it seems that Disney's Riviera Resort may be the most lavish resort at Walt Disney World. Gran Destino, Riviera, and Reflections mark the beginning of a hospitality and thematic shift for Parks and Resorts.

 

[miTnosnhoJ]

I can see a new business opportunity here. The traditional resale market will die out for the new resorts - but still be available for the original 14.

In its place, there will be entrepreneurial activity making it easy for someone to retain title to their DVC Contract when they no longer have use for it. Or for their heirs to retain title when they have no use for it. They will do this because the value is concentrated in the initial contract only.

Such a business might have some of the following attributes:

• Original owner or their family retains title.
• A third party handles rentals (which can be for all resorts)
• The third party might take a percentage fee.
• The third party might offer an advance to the title owner so that they can pay dues without going into their own pocket.
• Through technology, the third party handles reservations, but uses the member’s sign-in.
• There may be exploration of a sub-let, where the original owner retains title, but they offer a long-term lease to the third party, who then remarkets the points.
• There may be the opportunity for an owner in financial distress to enter into a sub-let rather than selling at a steep discount or going into foreclosure.
• These entrepreneurs would have substantial market knowledge allowing them pricing power much greater than today’s rentals.
• To a renter, it could look much like today’s rental market, but on a much larger scale.
• There could be 2nd mortgages offered. And/or reverse mortgages.
• More contracts will be held in the form of living trusts.

I’m sure that others can thing of even more lucrative ideas.