OKW Extension ?

[dvcbrad]

There may actually be 60% or so extending, people may have kids, or are planning for grandkids. a lot of folks may want to leave the next couple of generations the "gift of magic." Many times we have seen people posting that they wouldn't consider DVC because it wasn't a "forever" deeded timeshare that they could pass on in perpetuity, like some sort of legacy.

the benefit is points at $1 a piece
the incentive is $10 off initially

not sure why anyone would ever expect DVC to give the points away

sure heres 15 years worth of points just because

I'm not going to get into a debate, but why do they give points for new sales? It's to incentify one to make a purchase.

IMO, that's what they needed to do here. The benefit doesn't kick in until 25 years from now - too far out for my taste!

 

[Chuck S]

They are giving three incentives, actually, but even so, it isn't something I'd consider because of age. I think folks that are extending are doing so because they feel they or their family will be able to use it.

The incentives are 1) 1 year no interest 2)$10 per point discount 3)a lighthouse collectable thingy.

Giving developers points for new contracts of 160 points or more is quite different, given they are looking at about $15,000+ minimum for the sale versus $3450 to extend an original 230 point OKW contract.

 

[dvcbrad]

I think folks that are extending are doing so because they feel they or their family will be able to use it.

Chcuk, I agree that it's moe of an emotional decision rather than a financial one. I'm not convinced it can be justified financially, although some here believe that it can.

The incentives are 1) 1 year no interest 2)$10 per point discount 3)a lighthouse collectable thingy.

Fair enough, but not enough incentive for me. (Darn, and to think, I won't be getting the lighthouse thingy! Whether or not you intended or not, that did make me laugh. Thanks.)

 

[Chuck S]

Fair enough, but not enough incentive for me. (Darn, and to think, I won't be getting the lighthouse thingy! Whether or not you intended or not, that did make me laugh. Thanks.)

I did. While I'm sure the collectable is nice enough, I doubt seriously that it actually tipped the scale for someone to extend

 

[OKW Lover]

do we have a poll or anything going on here for this? seems the same people keep posting over and over how no one is buying in to this extension.

is there any way to determine the % being extended?

We did do the extension. We did it even though its likely that we will expire before even the original date arrives because we want our children, grandchildren and yet to come great grandchildren to enjoy it too.

 

[mommacat56]

BTW, if DVC hasn't heard from you one way of the other, Quality Assurance is calling on the phone.[/QUOTE]

I got a call a few weeks ago from "Chris in Quality Assurance" reminding me of the 0% financing deadline (today). I decided to extend only 1 of my 4 contracts. I'm looking forward to DVC Ko Olina! Boy does Hawaii sound good to me right now (we're getting freezing rain tonight)!

Mary

 

[rsinj]

.

 

[sjdisneywedding]

Do you know what the cost of a night at a DVC resort will cost 35 years from now? Of course not.

For the $15/point, like DVC in itself you are locking in the maximum you will pay - just an insurance policy. You have no idea if the payoff will have made sense financially until it comes time to use it.

For the $2250 (yes, in today's dollars) we've guaranteed that our future costs will be no more than the then current annual maintenance. Neither you, nor anyone else knows today what a night in a DVC property will cost in 35 years (though I'd say there's a very high probablility it will be significantly higher than it is today). We've guaranteed that we have no other future costs to DVC other than maintenance. In our case, the $2250 is a small price to pay for the guarantee that provides. For some people with 1000 points or more, it is really a financial decision today - that they can't or don't want to come up with an extra $15,000+ today or finance that kind of money. For these people, the "alternative investment" reasoning doesn't work - because they aren't going to set that money aside or don't have it anyway.

We had the money available, have absolutely no risk that if it were "invested" whether it would keep up with inflation or the price of points going forward.

If you can justify buying an insurance policy, this is really no different. Those who don't buy have the unknown risk, those who do buy have no risk. Simple as that.

Everyone in "the gang" can toss around all the reasons why it makes no sense financially and throw stones at the $15/point today...however, that doesn't mean they are correct. Whether the price were $10 or $15 makes little difference in my mind. $750 difference in our case - not going to break the bank. Would a lower price have been nice - of course. No need to argue whether it is the right move financially or not - we're done and are guaranteed our 50 years.

well what they mean is it doesnt make financial sense for them, so therefore it doesnt make financial sense for anyone

 

[Mtnman44]

Hey, if there is anything else you're looking to buy right now at a very low price and are willing to wait for 35 years before I have to give it to you, please IM me. i have plenty that I'd be willing to let you lock in todays rates on.

Do you know what the cost of a night at a DVC resort will cost 35 years from now? Of course not.

For the $15/point, like DVC in itself you are locking in the maximum you will pay - just an insurance policy. You have no idea if the payoff will have made sense financially until it comes time to use it.

For the $2250 (yes, in today's dollars) we've guaranteed that our future costs will be no more than the then current annual maintenance. Neither you, nor anyone else knows today what a night in a DVC property will cost in 35 years (though I'd say there's a very high probablility it will be significantly higher than it is today). We've guaranteed that we have no other future costs to DVC other than maintenance. In our case, the $2250 is a small price to pay for the guarantee that provides. For some people with 1000 points or more, it is really a financial decision today - that they can't or don't want to come up with an extra $15,000+ today or finance that kind of money. For these people, the "alternative investment" reasoning doesn't work - because they aren't going to set that money aside or don't have it anyway.

We had the money available, have absolutely no risk that if it were "invested" whether it would keep up with inflation or the price of points going forward.

If you can justify buying an insurance policy, this is really no different. Those who don't buy have the unknown risk, those who do buy have no risk. Simple as that.

Everyone in "the gang" can toss around all the reasons why it makes no sense financially and throw stones at the $15/point today...however, that doesn't mean they are correct. Whether the price were $10 or $15 makes little difference in my mind. $750 difference in our case - not going to break the bank. Would a lower price have been nice - of course. No need to argue whether it is the right move financially or not - we're done and are guaranteed our 50 years.

 

[simzac]

lol
how many times can everyone say that about the not being able to use it for 35 years. it doesnt even make sense

I'm beginning to think you must work for Disney. It's makes perfect sense to me. The contract I bought 2 years ago I was able to start using immediately. The extension doesn't kick in until 2043 and I have no idea if I will even still be alive then, so no matter how good you think the deal is, it means nothing to me. And I am an OKW owner, unlike yourself. Why do you continue to shove this down all of our throats

 

[rsinj]

.

 

[sjdisneywedding]

I'm beginning to think you must work for Disney. It's makes perfect sense to me. The contract I bought 2 years ago I was able to start using immediately. The extension doesn't kick in until 2043 and I have no idea if I will even still be alive then, so no matter how good you think the deal is, it means nothing to me. And I am an OKW owner, unlike yourself. Why do you continue to shove this down all of our throats

first, I have always said its up to the particular member, no disagreement there, thats pretty easy

where I get a bit bothered is when those same people who feel its not right for them and shouldnt be told how to handke it are then saying its doesnt make financial sense at all, for anyone, no matter how you slice it

Im telling ya, no dicing words, that it makes financial sense to me and to many many others

also I would not assume to know what and where I own, have you ever asked me what I owned? ever? nevermind the last couple months!!!

 

[rsinj]

.

 

[simzac]

first, I have always said its up to the particular member, no disagreement there, thats pretty easy

where I get a bit bothered is when those same people who feel its not right for them and shouldnt be told how to handke it are then saying its doesnt make financial sense at all, for anyone, no matter how you slice it

Im telling ya, no dicing words, that it makes financial sense to me and to many many others

also I would not assume to know what and where I own, have you ever asked me what I owned? ever? nevermind the last couple months!!!

You stated yourself on the first thread we had on this discussion that you did not own at OKW.

 

[JimC]

We declined after giving it much thought. Can not use the extra years and do not believe it will increase resale value sufficiently to warrant the additional investment.

 

[Dean]

the benefit is points at $1 a piece
the incentive is $10 off initially

not sure why anyone would ever expect DVC to give the points away

sure heres 15 years worth of points just because

I always take estimates from timeshare companies with a grain of salt. 60% coming from them likely does mean 40% or so. We'll sell out in a few months usually means it'll be another year to year and a half plus. Personally I'd be a little worried even at 60%. It is my opinion that OKW is going to cost a lot to upkeep going forward, I think we're already seeing that with the increase in dues there. I wonder what those costs will be in 30 years. If they don't get at least 80% participation it will really skew the numbers and fees down the line.

Everyone should make their own decisions for their own reasons. Still, I can't see how anyone can say it's a good deal, it's just so skewed $$$ wise. I know people want to talk about the cost of WDW rooms but that really has no meaning, the $$$ question to me are what would it cost me vs what I could buy in for at that time and I can't even imagine a time when one would make up the $15 a point up front difference in that comparison.

You seemed to suggest that people wanted DVC to give them away. It's not a question what people want but rather what people feel will give enough value to opt in. I don't think $15 a point will do that, I think $10 per point is about the max one could look at and likely more in the $5-8 a point range even more likely required to get the kid of participation required to make this work long term. And it is my opinion that it's in both DVC's interest as well as the OKW members interest to have as high a participation as possible no matter how low the cost. As I noted earlier I think they're sitting around scratching their heads because they figured most people would do it regardless and it's not happening.

 

[TisBit]

Everyone should make their own decisions for their own reasons. Still, I can't see how anyone can say it's a good deal, it's just so skewed $$$ wise. I know people want to talk about the cost of WDW rooms but that really has no meaning, the $$$ question to me are what would it cost me vs what I could buy in for at that time and I can't even imagine a time when one would make up the $15 a point up front difference in that comparison.

I will say, while I don't own at OKW, but follow these discussions, that there is also a certain amount of the same logic can be used for DVC as a whole. I think I posted it once before, but a lot of arguments people make against the extension can be used against buying DVC at all.

I think the decision process for the extension is the same as buying DVC...it may be right for you or it may not be. If people are concerned about maximizing their money and returning an investment, etc etc etc....well I don't know how they could justify DVC. We bought at a relatively young age, but we will still be 80+ when our contract expires.

Dean, I think you have made the most logical explanations against the extension, for your own personal reasons, I think other posters have tried to tell people they are dumb to extend...I don't see it that way, it is all relative. I am sure there are a lot of non-DVC'ers that think we are all dumb for buying in to begin with....

 

[sjdisneywedding]

You stated yourself on the first thread we had on this discussion that you did not own at OKW.

yes great observation

fortunately for me and unfortunately for you there are things called resales

 

[Dean]

I will say, while I don't own at OKW, but follow these discussions, that there is also a certain amount of the same logic can be used for DVC as a whole. I think I posted it once before, but a lot of arguments people make against the extension can be used against buying DVC at all.

I think the decision process for the extension is the same as buying DVC...it may be right for you or it may not be. If people are concerned about maximizing their money and returning an investment, etc etc etc....well I don't know how they could justify DVC. We bought at a relatively young age, but we will still be 80+ when our contract expires.

To a degree, the exception is that DVC on the whole does make sense for some people though there are those that buy it as an emotional decision that it will never make financial sense for. They can buy anyway, their choice of course. The problem is that I can't see a situation where this extension makes sense at this price for anyone even if they expect to continue to use DVC after 2042.

I no longer own OKW but wished I still did for slightly reasons, LOL. I voted with my feet because I feel it is effectively at or near the top price wise.

 

[simzac]

yes great observation

fortunately for me and unfortunately for you there are things called resales

Well then welcome home neighbor