OKW Extension - Any effect?

[Dasha]

Now that some members added more years to their OKW contracts, anyone seen any effect? The only one I thought of was a possible price difference in resales, but none seems to be showing up yet. Could just be those who extended don't plan to sell for a long time.

Could also be only a few members extended.

Any other effects to look for?

Thanks!

 

[CarolMN]

I would be surprised if those who extended are ready to sell now. From various reports (hear-say, every one, LOL), plenty of people accepted the extension. Most of them probably don't post here.

 

[Cruelladeville]

I think a lot of us OKW owners on this board are around the same age, and buying the add on at OKW wouldn't make any sense for us, because most of us will be dead by 2057. I am guessing that those who bought the add on would be slightly younger people, and they wouldn't want to sell off their contract right after they paid Disney another $15-$20 per point. They would have some hope of being able to use those extra years that they paid for.

 

[Saratoga Souris]

Interesting....

I am 44 and added on... so how old are the people who felt they were too old??

 

[Chuck S]

I'm turning 50 this year. I think, really, I'm about the borderline for "too old" unless I were to have heirs that may enjoy the timeshare.

While I may get a few years use out of the extension, unless I am extremely lucky, or there are magical advances in medical science, I would be 98+ years old in January 2057, and realistically, probably unable to get full use of the additional 15 years.

 

[Jason@dvcstore]

I am Jason from The Timeshare Store, Inc. and I wanted to add that we have yet to receive an OKW listing with the extension until 2057.

When we do, we will be sure and note it accordingly on the listing. We will probably have to create a new page of OKW listings so you can see those with and without the extension.

 

[dianeschlicht]

Interesting....

I am 44 and added on... so how old are the people who felt they were too old??

We are in our 60's now. It didn't make sense to us.

 

[jodifla]

I did the extension for two reasons: First, I have a son to pass it on to.

Second, if we did want to sell, OKW contracts with the extra years will almost certainly sell for more down the road. I can even envision Disney dropping its support of the older contracts, which would really cause those contracts to plummet in price.

 

[Dasha]

What do you mean by Disney dropping it's support of older contracts?

Thanks.

 

[Chuck S]

What do you mean by Disney dropping it's support of older contracts?

Thanks.

I believe Jodifla is referring to Disney's Right of First Refusal (ROFR). When an owner sells their interest to someone else, Disney/DVC has the right to buy it, under the same terms, instead of the intended purchaser. They exercise this ROFR for any number of reasons, but most commonly because they may feel the resale price is too low, and that they (Disney) may be able to buy the contract, dissolve it, and sell the points as a new or add-on contract. This has the effect of artificially supporting the resale prices, and also supporting the brand name so it doesn't "cheapen" Disney's perceived value in the timeshare market.

As we come closer to 2042, the contracts with that end date will, of course, become worth less and less as fewer years are left. At some point, most folks believe that Disney will no longer exercise their ROFR, and prices will probably drop substantially on 2042 resale contracts.

 

[dianeschlicht]

I believe Jodifla is referring to Disney's Right of First Refusal (ROFR). When an owner sells their interest to someone else, Disney/DVC has the right to buy it, under the same terms, instead of the intended purchaser. They exercise this ROFR for any number of reasons, but most commonly because they may feel the resale price is too low, and that they (Disney) may be able to buy the contract, dissolve it, and sell the points as a new or add-on contract. This has the effect of artificially supporting the resale prices, and also supporting the brand name so it doesn't "cheapen" Disney's perceived value in the timeshare market.

As we come closer to 2042, the contracts with that end date will, of course, become worth less and less as fewer years are left. At some point, most folks believe that Disney will no longer exercise their ROFR, and prices will probably drop substantially on 2042 resale contracts.

I agree, Chuck, and if it was our intent to sell, we would be doing that now rather than waiting. I figure the 25 year mark is about the time we will see a significant drop in prices. Since we have no desire to sell, and since our "kids" will be past retirement by the time the original contracts expire, I saw no reason to pay now for something none of us will likely see or want.

 

[Jason@dvcstore]

We received three listings today for Old Key West and they all three end 2057. We have them posted as "OKW2057" so you are able to know which ones.

We are working with a web designer as the way we post the Old Key West listings that end 2057 might be changing.

In the meantime, I wanted to let everyone know we do have three of them.

Thanks again to everyone.
Jason

 

[FLYNZ4]

We received three listings today for Old Key West and they all three end 2057. We have them posted as "OKW2057" so you are able to know which ones.

We are working with a web designer as the way we post the Old Key West listings that end 2057 might be changing.

In the meantime, I wanted to let everyone know we do have three of them.

Thanks again to everyone.
Jason

Jason,

I just looked. The OKW2057 is only the code section of the listing... not in the title. I think you would be better served by making it more obvious.

Also... I am speculating (from the terms) that the three contracts are from the same seller. Am I correct that there are closing cost advantages from buying multiple contracts from a single seller. If so, then maybe as you redesign the site, that might also be indicated clearly.

/Jim

 

[bluslag]

What are these extended OKW listings selling for? I know I could look it up but I thought someone might know.

 

[FLYNZ4]

What are these extended OKW listings selling for? I know I could look it up but I thought someone might know.

I think these are the first 3 that TTS has received... and when I looked yesterday they had not sold yet, so I guess we really do not know.

Asking price ranged about $90 - $100 if I remember right... but I didn't pay too much attention.

/Jim

 

[Brian Noble]

From various reports (hear-say, every one, LOL), plenty of people accepted the extension. Most of them probably don't post here.

The most recent quarterly report specifically mentioned the OKW extension. Here is a quote from the release, empahsis mine:

Operating income growth at the domestic businesses was primarily due to
increased guest spending and theme park attendance at the Walt Disney World
Resort and higher revenues at Disney Vacation Club, partially offset by higher
operating costs at the Walt Disney World Resort. Increased guest spending was due
to higher average daily hotel room rates, higher average ticket prices and increased
food and beverage spending. Higher attendance was primarily driven by the benefit
of the shift of the Easter holiday. The increase in operating costs was driven by labor
cost inflation, new guest offerings and volume-related expenses. The benefit from
higher revenues at Disney Vacation Club reflected extensions of the term of
ownership on certain existing vacation home properties and higher rentals of
vacation club units.