OKW extension

[tvwalsh]

Yes, sjdisney, I would have bought the 65 years and paid the extra $15/pt.! I actually paid only $52 back in 1992, but even back then, the idea that my DVC contract might expire before I did bothered me more than anything else!

 

[rinkwide]

I was at the annual meeting and I feel Jim Lewis did a great job on the presentation and Disney is not resorting to Tactics as suggested. I feel that if you don't trust DVC then sell. DVC holds its value more than any timeshare and you can thank Disney for that. Only a truly lazy peron will not do the 5 minutes to handle the situation. For all those that dont extend you are throwing money out the window. If you cant see that then its a costly mistake.

This is my opinion on this whole matter. Those that want to accuse Disney of all sorts of hidden agendas on this extention are just not knowledgable about real estate law.

Allow me to be the first to personally welcome Mrs. Jim Lewis to the DISboards.

 

[JimC]

Yes, sjdisney, I would have bought the 65 years and paid the extra $15/pt.! I actually paid only $52 back in 1992, but even back then, the idea that my DVC contract might expire before I did bothered me more than anything else!

Interesting comment. When we toured back in 1992 that was an issue for us as well. It was a significant factor that kept us from joining. We could have made it work in our budget but felt accumulating money for a new home was the wiser direction to take at that time.

 

[mickeymorse]

This is a perspective from someone who is just getting into DVC. Since the resort we want is sold out and have to buy resale, and the fact we have young children makes it more appealling to get an extension regardless of any increase in value. That extra 15 years should take me to the end of my days and give any future grandchildren the chance at some great Disney vacations. I hope they do offer something for the other 2042s.

Rob

 

[5infam]

I hope they end up doing this for the other resorts. I own at Boardwalk, and will be in my early 70's in 2042, but I may still want to go to Hawaii or other resorts that may come on line between now and then. Also, my wife wants to pass it down for future use for our kids/grandkids (this is why we bought Marriott in Maui because it is deeded forever and we can give it to our kids) and she is excited to give DVC the $15 per point for this option. I wouldn't say I am excited about it, but I would do it for the possible future benefits. I had considered when SSR came out to sell my BWV and buy SSR to get the extra years, but I paid about $75 per point for BWV, and SSR is more than $90 per point now (I think), so this would be a better option and we love BWV!!!

 

[dianeschlicht]

I do think that OKW is a "test" of the extension. I also don't really think it will necessarily be offered for those DVC resorts that are connected to another non-DVC resort. BWV, BCV, and VWL can all be assimilated into the "home" resort, so maybe no need to extend those. It all depends on how popular DVC is 35 years from now. I expected this extension to come up, but not until about 2040. That would have been fine with me, since the decision would be up to whomever is still around to enjoy it and pay for it. I just see no reason for me to pay for something that is likely to happen long after my demise.

 

[rsinj]

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[DVC92]

I believe the reason it is being done now and going forward is simply because of the structure of DVC as a lease and not ownership.

The reason it is being done now is simply to make money. We do own the property, if only for a limited time period as determined by the ground lease. If DVC waited until 2042 approached, maintenance and upgrade issues would be viewed differently and the reserve fund would be depleted since it would no longer be necessary. They would have to foot the bill for refurbishment if the timeshare began anew in 2042. Now, they collect money for the reserves and make upgrades for 2042 and beyond with non-extenders money; also, they presently get a great cash infusion for doing nothing which they will get to invest to make even more money. Looks like a great deal for them to me.

 

[sjdisneywedding]

The reason it is being done now is simply to make money. We do own the property, if only for a limited time period as determined by the ground lease. If DVC waited until 2042 approached, maintenance and upgrade issues would be viewed differently and the reserve fund would be depleted since it would no longer be necessary. They would have to foot the bill for refurbishment if the timeshare began anew in 2042. Now, they collect money for the reserves and make upgrades for 2042 and beyond with non-extenders money; also, they presently get a great cash infusion for doing nothing which they will get to invest to make even more money. Looks like a great deal for them to me.

why would DVC have to foot the bill if they began anew in 2042?

I would think DVc would just either knock the place down and sell new contracts or refurb the place and sell new contracts

either way the new contracts are paying for it, not DVC

I agree they are making money now and that is good because noone knows if DVC will be around past 2042 so there might not be contracts to be sold, but they certainly wouldnt be footing the bill for anything, the new owners would be

 

[sjdisneywedding]

I do think that OKW is a "test" of the extension. I also don't really think it will necessarily be offered for those DVC resorts that are connected to another non-DVC resort. BWV, BCV, and VWL can all be assimilated into the "home" resort, so maybe no need to extend those. It all depends on how popular DVC is 35 years from now. I expected this extension to come up, but not until about 2040. That would have been fine with me, since the decision would be up to whomever is still around to enjoy it and pay for it. I just see no reason for me to pay for something that is likely to happen long after my demise.

I dont think its a test at all. Im sure they wany as many owners to extend as they possibly can get because its easy money, but they certainly dont need the current owners to extend to make this worthwhile. To me its a no brainer to offer the extensions at the other resorts, even if the %'s of current buyers who extend are lower than first anticipated.

I dont think Disney would ever want to assimilate all those DVC rooms into the rest of non dvc. They are going the other way right now, where they are converting some AKV to DVC and their two new resorts, in Hawaii & DL, are combinations of dvc/non DVC

Also these extensions now make it less meaningless how popular DVC will be in 35 years from now. Thats the point of doing the extension now, they get the money while DVC is going good. It would be a really bad business move to wait until 2042 to let people make the decision, if DVC or WDW or traveling in general is hurting then there is no chance of an extension being successful

 

[rsinj]

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[Jeremy&Susan]

Allow me to be the first to personally welcome Mrs. Jim Lewis to the DISboards.

TOO FUNNY


Hi Jim

 

[Saratoga Souris]

My parents purchased OKW in 1993. In 2003, I decided that I wanted my own DVC so I bought SSR for various reasons.... it was available.... there were incentives....50 year contract!
This year, I wanted to "add-on" but the question was where?? After careful consideration, I chose OKW. I love the quiet areas (pools), the room size and the overall layout. Despite the lure of bonuses at AKV and SSR, I still decided on OKW. I have to say, quite honestly, that without the extension, I would not have considered OKW even though it is my favourite resort.
Since some OKW contracts have become available (I believe that the aging of the OKW population is significant), Disney needed to make OKW a viable buying option for new DVC members. Without the extension, it is not attractive. By extending the contracts, DVC is really committing to the upkeep of this resort, very important!

Having said that....

I think DVC had to offer the members an extension! How could they not? Let's sell new contracts that are 15 years longer than our current members contracts but not offer them an extension? There would have been a "palace revolt"!

My mom will be taking the extension. She is 72 (Dad died last year) and has always seen DVC as something for her kids and grandkids. Better left to all of us than to the TAX MAN...... she already put all of our names on her original contract ......... right of survivorship..........

My 2 cents