OKW?'s about extended years/

[joandegennaro]

Ok so here are the details. We bought OKW direct from Disney in order to get the extended years. In our early 40's with children who love to go there for vacations that don't necessarly include visiting the parks. Planned to will the DD's equal amount of points with the extended years. Love, love,love OKW as do DD's. So now my question. If we were to buy a resale contract that doesn't enclude extended years in order to have bigger villas or stay longer do you think Disney will allow the purchase of the additional years near the end of the original contract?

 

[Mississippian]

The value of the extended years, when you calculate the time value of money, is about $3 to $5 per point. A benefit to be received 31 years from now simply is not worth very much at all, particularly when it involves paying member dues each year.

Nobody knows what Disney will do in 20 years, but I would guess they will allow people to pay to extend their contracts. At one time they were allowing OKW owners to extend for $15 per point, but that was such a bad deal that few did so.

 

[RobDoc]

OKW owners still wanting to purchase the extension will pay $25 per point. When DVD voted to extend the contracts, $25 was the price of the extension, but when they initiated the program they discounted the purchase by $10 so that those opting to accept the extension when it was offered in 2007 paid $15 per point. That price was valid until March, 2008.

There have also been resales with the extension available, so you might take a look for those too before a direct purchase - currently at $90 direct from DVC.

Enjoy!

 

[joandegennaro]

OKW owners still wanting to purchase the extension will pay $25 per point. When DVD voted to extend the contracts, $25 was the price of the extension, but when they initiated the program they discounted the purchase by $10 so that those opting to accept the extension when it was offered in 2007 paid $15 per point. That price was valid until March, 2008.

There have also been resales with the extension available, so you might take a look for those too before a direct purchase - currently at $90 direct from DVC.

Enjoy!

We wanted to buy direct as I'm not a very patient person so waiting out the resale process for out first contract wasn't something I could do...plus I wanted the extended contract or so I thought. Lesson learned after the fact on how much I might have saved. Now that I would like to add more my concern becomes making it fair for the DD's after we are gone. No hurry to add on more yet...will keep watching for the resales with extended contracts but was wondering what other Dis'er thought might happen with the contracts that expire in 2042.

 

[Jason@dvcstore]

will keep watching for the resales with extended contracts but was wondering what other Dis'er thought might happen with the contracts that expire in 2042.

I think this was already stated but if you buy a contract from The Timeshare Store, Inc.® that expires 2042 you are allowed to pay Disney $25 once it closes to extend it until 2057. Disney hasn't declared a timeline for that so if you wanted to extend the contract in 2039, 2040 or 2041 I am sure that Disney would take your $25 per point.

Jason

 

[DizGirl20]

I can't answer your question but I understand your dilemma about being fair. We have 2 contracts, both at AKV, one for 100 points and one for 160 points. We have 2 DDs... so in order to be fair, we have to buy 60 points somewhere down the road. Problem is I really want a BCV contract and those end earlier than AKV. Oh boy. What to do, what to do. The things we do for our kids!

 

[tjkraz]

Now that I would like to add more my concern becomes making it fair for the DD's after we are gone.

Reality check: The kids may not even WANT the contracts, or be able to afford them, down the road. Hard telling what challenges life may present along the way.

It stands to reason that come 2042 DVC will have a lot of 15-year contracts at OKW left. They will own the points of every owner who did not extend--a number which appears to be quite large.

Or you could always buy a SSR or AKV contract that just has 10+ years remaining. Many options available.

As a previous poster said, the present value of the years 2043-2057 is quite small. If you can find a '57 contract that's only $5 or so more than a '42 contract, go for it. Otherwise I'd just buy a '42 contract and worry about those latter years in another three decades.

 

[joandegennaro]

Reality check: The kids may not even WANT the contracts, or be able to afford them, down the road. Hard telling what challenges life may present along the way.

This of course is true, but you do want to leave them something that is equal for each, what they decide to do beyond that is up to them. Right now they both say yes they want it. Not looking at more that 150 points each so the cost of the dues should be manageable for them even if they increase 3 or 4 times what it costs now still in range of a vacation that requires airfare.

They love Florida and would go just to get away for a week without the concern of park tickets ect. Just somewhere nice to go and hang by a pool for a week without the expense of airfare. This is exactly why we bought...somewhere to go every year where the weather is usually nicer than home, close enough to drive to and not a huge outlay of money.

 

[Sandisw]

Reality check: The kids may not even WANT the contracts, or be able to afford them, down the road. Hard telling what challenges life may present along the way.

This of course is true, but you do want to leave them something that is equal for each, what they decide to do beyond that is up to them. Right now they both say yes they want it. Not looking at more that 150 points each so the cost of the dues should be manageable for them even if they increase 3 or 4 times what it costs now still in range of a vacation that requires airfare.

They love Florida and would go just to get away for a week without the concern of park tickets ect. Just somewhere nice to go and hang by a pool for a week without the expense of airfare. This is exactly why we bought...somewhere to go every year where the weather is usually nicer than home, close enough to drive to and not a huge outlay of money.

If you really think that having the different expirations will be an issue, then you can always set aside the $25/ppt to allow that contract to be extended at some point in time. This way, you are getting the resort of choice, not having to worry about it right now, but providing for it down the road.

Good luck!

 

[joandegennaro]

If you really think that having the different expirations will be an issue, then you can always set aside the $25/ppt to allow that contract to be extended at some point in time. This way, you are getting the resort of choice, not having to worry about it right now, but providing for it down the road.

Good luck!

This is exactly what I was planning on doing. Just wanted to know if other Dis'er thought Disney would still offer the option closer to the expiry of 2042. I'm fairly new here and was looking for the wisdom of those who has experienced Disney's policies.
Thanks!

 

[Mississippian]

This is exactly what I was planning on doing. Just wanted to know if other Dis'er thought Disney would still offer the option closer to the expiry of 2042. I'm fairly new here and was looking for the wisdom of those who has experienced Disney's policies.
Thanks!

There is no guarantee that Disney will offer to extend the contract for $25 per point in say 2035. But if you were to take that $25 per point and buy two or three stocks for your daughter and make them promise not to sell or trade them (maybe buy them as joint tenants with right of survivorship), the overwhelming likelihood is that the value of their investment would exceed the value of a few DVC points in 2042 many, many times over. They will be able to buy whatever they want.

 

[RobDoc]

This is exactly what I was planning on doing. Just wanted to know if other Dis'er thought Disney would still offer the option closer to the expiry of 2042. I'm fairly new here and was looking for the wisdom of those who has experienced Disney's policies.
Thanks!

DVC set the pricing for the extension at $25 per point back in 2007 when they made the decision to do this. While I suppose they could always end the program (doubtful IMO), they already own the extension for the contracts that were declined by the current owners. I don't think they can raise that price (since they are the ones who set it by a vote of the BoD) and can't see any reason they would not honor it in the future. They have committed to maintaining the resort at least until 2057 and had a number of owners (I understand about 1/3) already purchase the extension - so they have an obligation to maintain the resort and little reason not to extend for others as time goes on.

I don't think they would lower the price below $25, but also feel they can't raise it either (without more legal rangling).

 

[joandegennaro]

DVC set the pricing for the extension at $25 per point back in 2007 when they made the decision to do this. While I suppose they could always end the program (doubtful IMO), they already own the extension for the contracts that were declined by the current owners. I don't think they can raise that price (since they are the ones who set it by a vote of the BoD) and can't see any reason they would not honor it in the future. They have committed to maintaining the resort at least until 2057 and had a number of owners (I understand about 1/3) already purchase the extension - so they have an obligation to maintain the resort and little reason not to extend for others as time goes on.

I don't think they would lower the price below $25, but also feel they can't raise it either (without more legal rangling).

Thanks Doc, this wasexactly the pearls of wisdom I was hopping for. while I don't need the extra years now if I can most likely count on being able to purchase the extra years from Disney (or the kids can if we're gone) then I think I will chance the "rumored" restrictions on a resale. OKW is where we are happy so not being able to use the resale points elsewhere would never be a problem as long as we can get into OKW we are golden.