OKW extension

[disfanmelK]

Hi! I have been reading these boards daily (or more!) to get information on DVC and I think we are ready to take the plunge. We are looking at purchasing a resale at OKW and I am trying to find if you can still purchase an extension on an OKW contract. Is this still possible to purchase through Disney after I close on my resale? Also, does anyone have the pricing on this?

TIA! You all have given me such great information!

 

[5forDiz]

If you are considering purchase at OKW via resale you may find a member selling an extended contract; but if it is unextended think that it is still possible to purchase the extended years from Disney afterward.

Last I heard (in July/August) it was $20 per point to extend OKW contract to 2057, with expectation that price would increase to $25 per point.

Any OKW contracts purchased directly through Disney will already be extended to 2057 but you would have to purchase the minimum number of points required by Disney for an initial buy-in (160 points) which may be more points than you need or want to purchase. But as you probably know a resale gives you ability to become a dvc member purchasing a contract with less points.

I don't know how cost effective, however, purchasing an unextended OKW contract via resale really turns out to be when you figure in the additional cost per point you will then pay to Disney to extend it to 2057

Another alternative would be to purchase a better priced small resale contract; perhaps at SSR (2054 expiration ) or AKV ( 2057 expiration ) and then do an add-on contract through Disney for OKW for the number of points you'd like to own there ( 25 points is minimum add-on purchase ) - this would get you extended OKW contract and there is no closing cost / fees for an add-on purchased through Disney ( you would have to purchase 50 points minimum if you wanted to finance the add-on ).

Good luck

 

[chalee94]

it would probably be a lot easier (and cheaper) to buy a resale that has already been extended at the $15 price point, or else buy an OKW contract direct from disney at $101 per pt.

if you buy a resale and are still able to extend it, it would cost an additional $20-25 per point.

 

[Dean]

it would probably be a lot easier (and cheaper) to buy a resale that has already been extended at the $15 price point, or else buy an OKW contract direct from disney at $101 per pt.

if you buy a resale and are still able to extend it, it would cost an additional $20-25 per point.

IF you can find an extended contract that fits ones needs, I'm sure that would be cheaper. Cheaper still would be a SSR contract that is a later expiration date. An alternative would be to buy a smaller OKW or similar contract resale (or AKV 100 pt retail) and then add on through DVD for OKW. If one must own OKW buying the non extended contract and simply riding it until 2042 is likely a better option than extending or looking for an already extended contract.

 

[VLee]

So I think that answers my question, too...

If you already own DVC, then you can buy OKW (minimum 25 pt) through Disney, which would be extended? Is this right??

 

[RobDoc]

Any OKW purchase made thru DVC directly will have the extended contract - member or not. Existing members can purchase a minimum of 25 points, others would need to buy 160 points. There would be no closing costs in either situation.

Resale purchases of the non-extended contacts could extend currently for $20 per point, so as long as you can buy an OKW resale for $81 or less (including closing costs), you could match a direct purchase from Disney.

OKW owners had the option to extend contracts for $15 per point thru last February. The extension is still available at $20 per point and could be rasied at any time to $25 which was the amount approved by the Board last at the September, 2007 meeting which validated the extension.

 

[Mtnman44]

Correction: With Direct purchases DVC picks up the closing costs for add ons but for first time purchasers they do share some of that cost with the buyers. It depends on the contract size, but it is around $200. Again, this is only for initial contracts, not add ons.

Any OKW purchase made thru DVC directly will have the extended contract - member or not. Existing members can purchase a minimum of 25 points, others would need to buy 160 points. There would be no closing costs in either situation.

 

[RobDoc]

Correction: With Direct purchases DVC picks up the closing costs for add ons but for first time purchasers they do share some of that cost with the buyers. It depends on the contract size, but it is around $200. Again, this is only for initial contracts, not add ons.

Nope - except for those making an initial purchase at AKV and BLT there are no closing costs to buy at the sold out resorts from DVC. Since the OP was asking about OKW, there would be no closing costs on a purchase directly from DVC. OKW, VB, HH, BWV, VWL and BCV can all be purchased thru DVC with no closing costs. I'm not positive about SSR, but that too will have no closing costs in the near future.

 

[Mississippian]

Hi! I have been reading these boards daily (or more!) to get information on DVC and I think we are ready to take the plunge. We are looking at purchasing a resale at OKW and I am trying to find if you can still purchase an extension on an OKW contract. Is this still possible to purchase through Disney after I close on my resale? Also, does anyone have the pricing on this?

TIA! You all have given me such great information!

Paying the extra money for an extended contract is about the worst deal you can probably do in the entire world. The present value of these extended years is about $3, so anything paid over this amount is money thrown away.

Why not take the $3,000 you would spend on an extension for a 150-point contract and invest it. Yes, I know the market is down today, but in 30 years it will have rebounded just fine. You will have enough in 30 years to buy the extension five or ten times over.

(I've heard some Disney salespeople are actually telling OKW owners that they got such a good deal as first buyers that they shouldn't mind overpaying for an extension. Please!)

 

[Chuck S]

Paying the extra money for an extended contract is about the worst deal you can probably do in the entire world. The present value of these extended years is about $3, so anything paid over this amount is money thrown away.

Why not take the $3,000 you would spend on an extension for a 150-point contract and invest it. Yes, I know the market is down today, but in 30 years it will have rebounded just fine. You will have enough in 30 years to buy the extension five or ten times over.

(I've heard some Disney salespeople are actually telling OKW owners that they got such a good deal as first buyers that they shouldn't mind overpaying for an extension. Please!)

I think deciding about the extension is both an "emotional" and a "practical" decision. The emotional part...if you are fairly young, or have young adult children, you may want to extend to give DVC to them or your future grandchildren.

The practical part is, if you yourself are not likely to live long enough, or be healthy enough, to enjoy the extra years, there is probably no benefit to add the extension.

In my situation, I am at the cusp of the age where I may be able to enjoy it, or may not. I don't have kids, or nieces/nephews. I did not extend. I figured if it turns out I'll am healthy enough and have enough money to travel, and Disney is still "Disney" in 2042, I can extend then if I want to.

 

[OKW Lover]

Chuck is right about the emotional part. We will most likely have expired before the extension does, but we did it so our children, grandchildren, and possibly great-grandchildren will enjoy it.

 

[Mtnman44]

Interesting. I did not know that!

thanks and sorry for mis-correcting you.

Nope - except for those making an initial purchase at AKV and BLT there are no closing costs to buy at the sold out resorts from DVC. Since the OP was asking about OKW, there would be no closing costs on a purchase directly from DVC. OKW, VB, HH, BWV, VWL and BCV can all be purchased thru DVC with no closing costs. I'm not positive about SSR, but that too will have no closing costs in the near future.

 

[msabol01]

When buying direct from DVC are all properties selling at the current rate ($112 per point) or are they priced by resort?

 

[chalee94]

When buying direct from DVC are all properties selling at the current rate ($112 per point) or are they priced by resort?

by resort

 

[disfanmelK]

In my situation, I am at the cusp of the age where I may be able to enjoy it, or may not. I don't have kids, or nieces/nephews. I did not extend. I figured if it turns out I'll am healthy enough and have enough money to travel, and Disney is still "Disney" in 2042, I can extend then if I want to.

I was under the assumption that the extension was a "limited time offer" - is this something that I could wait a few years on (with the assumption that I would likely have to pay $25 pp)? I would really like to be able to wait awhile before I decide.

 

[RobDoc]

I was under the assumption that the extension was a "limited time offer" - is this something that I could wait a few years on (with the assumption that I would likely have to pay $25 pp)? I would really like to be able to wait awhile before I decide.

DVC has not made any suggestion about when the opportunity to extend might end. The price is currently at $20 per point, but that could be changed without notice. I think Chuck is talking about purchasing OKW in 2042 if he is still interested - it's very likely that there would still at least be OKW resales available even if DVC is no longer allowing members to extend (but I'd bet they'd be happy to sell the extensions at that time - or any other time too). I also expect that at some point they will raise the price to even more than $25 per point ... and if not, why not wait until 2042 to buy the extension.

 

[msabol01]

by resort

Thanks Charles.

 

[Chuck S]

I was under the assumption that the extension was a "limited time offer" - is this something that I could wait a few years on (with the assumption that I would likely have to pay $25 pp)? I would really like to be able to wait awhile before I decide.

I'm thinking DVC would probably rather extend the deed, even say in 2040 or 2041, if a member is interested then to close out and open a new membership number. Seems it would be easier to allow late extensions than to process a new contract or a resale. It depends upon the price.