OKW resale price

[midnte0708]

OK, now that the details are out about the OKW extension ....

Disney will now charge $96 for 2057 contracts
Disney did charge $92 for 2042 contracts

Resale 2042 contracts have been in the mid-high $70's

Do you think resale 2042 contract prices will stay the same?
and what do you think 2057 resale contracts sell for in the near future???


Sue

 

[MichelleB]

Anyone find it interesting that they want to charge us either $15 or $25 per pt. to increase, but they're only upping their selling price for the extra years by $4?

 

[Mtnman44]

The sad thing is: If you bought OKW direct just a few months ago for $92, you'd have to now pay another $15 for the extention, totalling $107. But now, you can just simply buy a 2057 OKW direct for $96. It's likely they will be around $85 on the resale market soon.

I've expressed this opinion before, but I'll say it again: If you ALREADY OWN OKW, the extention is a complete rip off unless you really really know you will USE it after your current 2042 expiration.

 

[salmoneous]

These are all just SWAGs, but here goes

Do you think resale 2042 contract prices will stay the same? Yep

what do you think 2057 resale contracts sell for in the near future??? $5-7/point more - or about what SSR sells for today.

 

[dianeschlicht]

The sad thing is: If you bought OKW direct just a few months ago for $92, you'd have to now pay another $15 for the extention, totalling $107. But now, you can just simply buy a 2057 OKW direct for $96. It's likely they will be around $85 on the resale market soon.

I've expressed this opinion before, but I'll say it again: If you ALREADY OWN OKW, the extention is a complete rip off unless you really really know you will USE it after your current 2042 expiration.

I think I agree. There is no way we are paying $15 a point for something we are NOT going to be using. If the resale stays low because of it...so be it. I don't intend to sell anytime soon anyway.

 

[wiltonken]

Just a thought. If someone opts for the 15 year extension.

Does that give Disney the right to alter (increase) the point grid from the original commitment total grid of 15 years ago?

Will there be 2 OKW point charts?

 

[LIFERBABE]

It's too iffy for us too.

We pay $15 now and we are completely locked in because if Disney is selling for $96, there is no way we can sell and make your $15 back.

I think that's what they are trying to achieve. People that purchased at $50 may not think its so bad, but we purchased at $80 and to give them another $15 today for a hamburger on tuesday is not flying.

 

[Mtnman44]

On the other hand, if you have an OKW 2042 contract and are thinking of selling, now (or soon) may be the BEST time. I suspect that DVC will be snapping up a lot of OKW ROFRs since they can then turn around and resale them at $96 with a new date of 2057. So, instead of selling at $78 to $80, I'd wait till $85 to $90. If this is indeed what Disney begins doing, then I'm sure the resale market will react with higher prices.

 

[BWV Dreamin]

On the other hand, if you have an OKW 2042 contract and are thinking of selling, now (or soon) may be the BEST time. I suspect that DVC will be snapping up a lot of OKW ROFRs since they can then turn around and resale them at $96 with a new date of 2057. So, instead of selling at $78 to $80, I'd wait till $85 to $90. If this is indeed what Disney begins doing, then I'm sure the resale market will react with higher prices.

Assuming DVD has accumulated alot of OKW points, why would they want to buy more through ROFR? I disagree with the "will ROFR" in a hurry. Instead, I see the opposite. They need to get rid of their inventory, and offering 2057 contracts is a way to do it.I think they will only ROFR 2042's when the price is incredibly cheap.

 

[CarolMN]

Just a thought. If someone opts for the 15 year extension.

Does that give Disney the right to alter (increase) the point grid from the original commitment total grid of 15 years ago?

Will there be 2 OKW point charts?

No. All that is happening is that DVD extended the term of the land lease (by paying the WDW entity that actually owns the land a fee that amounts to $25 per point). The extension does not give them the right to make changes in the point charts

Of course, the existing contracts already give them the right to alter the point charts - but any increases must be offset by decreases.

 

[Mtnman44]

Well here is my thinking: DVC has extended the lease term. However, that means nill to them unless DVC can sell those years to someone. I doubt many OKW current owners will extend (I could be wrong, but assuming they do not) that means DVC will have to find new owners for those years. It makes infinately more sense to sell those years to people now by way of new 50 year contracts. The best and easiest way to do that will be to buy the relatively cheap resale contracts and then "convert" them to a full priced 50 year contract. This converstion is totally free for them. It's instant profit. They have essentially printed up some more money.

Assuming DVD has accumulated alot of OKW points, why would they want to buy more through ROFR? I disagree with the "will ROFR" in a hurry. Instead, I see the opposite. They need to get rid of their inventory, and offering 2057 contracts is a way to do it.I think they will only ROFR 2042's when the price is incredibly cheap.