One contract or two

[farrell74]

After a ton of research on the program, we are finally ready to take the plunge and buy in. I’m currently having a tough time figuring out what size contract to buy. The sweet spot for us seems to be about 250ish points, but I think we can get by with 160-170 for a few years. So, I’m thinking about buying 1 contract now, and then buying a separate contract in a few years. I’m just interested in opinions about that approach. The disadvantages to me are that it is likely that what I pay per point will go up when ready to buy the 2nd contract in a few years, and of course that it may be tough to find the smaller contract with the same UY. I also recognize that I’ll pay more per point for smaller contracts, but that amount is inconsequential to the decision.

The reasons I’m considering breaking it up is primarily b/c it would allow us to test DVC out with less immediate commitment, and maybe more importantly, it makes it easier to sell and/or rent one of the contracts in the future should our needs change (i.e. we may not need 250 points for a while when the kids get older). Just looking for any advice on which approach, what others have done, and if my logic makes sense here.

 

[DisDadDVC]

What home resort are you considering?

 

[disneynutz]

Sounds like a plan, you can always bank or borrow and skip a year if necessary. We have several 50 point contracts and as long as you keep the same UY and title the deeds exactly the same, all contracts will be in the same member account.

The other plan might be to buy a different home resort and bank and borrow to have an 11 month reservation at one resort and the next year book ay 11 months and stay at your other resort.

Bill

 

[Twohsieh]

We bought 300 points at VGC in 2010 on three separate contracts of 100 points each, all with a June use year.
We figured that we would give each of our kids a contract when they are grown up. Also, if by chance we wanted to sell our contracts or our needs changed, it would be easier to off load smaller contracts than one large one. Good luck with buying your DVC contracts!

 

[CarolMN]

After a ton of research on the program, we are finally ready to take the plunge and buy in. I’m currently having a tough time figuring out what size contract to buy. The sweet spot for us seems to be about 250ish points, but I think we can get by with 160-170 for a few years. So, I’m thinking about buying 1 contract now, and then buying a separate contract in a few years. I’m just interested in opinions about that approach. The disadvantages to me are that it is likely that what I pay per point will go up when ready to buy the 2nd contract in a few years, and of course that it may be tough to find the smaller contract with the same UY. I also recognize that I’ll pay more per point for smaller contracts, but that amount is inconsequential to the decision.

The reasons I’m considering breaking it up is primarily b/c it would allow us to test DVC out with less immediate commitment, and maybe more importantly, it makes it easier to sell and/or rent one of the contracts in the future should our needs change (i.e. we may not need 250 points for a while when the kids get older). Just looking for any advice on which approach, what others have done, and if my logic makes sense here.

IMO, you have a good plan for the reasons you cite. Many here assume that the value of resale contracts will continue to increase. I don't share that opinion - many things can happen in the economy and in one's personal situation that could negatively impact the value of a resale contract.

DVC isn't for everyone and it does take time to manage. You'll also be spending more money when you actually use the points - DVC is just lodging. If you find you really don't want to go xx times per year, or don't want to spend the extra money every year, you'll have an easier time getting rid of the obligation.

Good luck with your decision!

 

[Dean]

After a ton of research on the program, we are finally ready to take the plunge and buy in. I’m currently having a tough time figuring out what size contract to buy. The sweet spot for us seems to be about 250ish points, but I think we can get by with 160-170 for a few years. So, I’m thinking about buying 1 contract now, and then buying a separate contract in a few years. I’m just interested in opinions about that approach. The disadvantages to me are that it is likely that what I pay per point will go up when ready to buy the 2nd contract in a few years, and of course that it may be tough to find the smaller contract with the same UY. I also recognize that I’ll pay more per point for smaller contracts, but that amount is inconsequential to the decision.

The reasons I’m considering breaking it up is primarily b/c it would allow us to test DVC out with less immediate commitment, and maybe more importantly, it makes it easier to sell and/or rent one of the contracts in the future should our needs change (i.e. we may not need 250 points for a while when the kids get older). Just looking for any advice on which approach, what others have done, and if my logic makes sense here.

I know some recommend smaller contracts just for the insurance to sell later, IMO that ALONE is never a good choice if one pays the likely $10 or so extra per point. I wouldn't go for multiple contracts for this purpose alone until I got to the point where I could easily do them all as full sized contract. Realistically that's in the 400 or so total range. However, I think there are 2 situations where the added cost can be well worth it and they seem to apply to your situation. One is to start lower and get your feet wet the other for multiple home resorts or a points cow combined with a destination home resort. I wouldn't buy planning to sell later, rather I'd go under on points and make it work for several years rather than buying to sell later. Maybe 200-220 would be ideal given what you've shared. With your thought you're essentially guaranteed to have to add on if it works out but with my suggestion it's unlikely you'd have to do so if you get a loaded contract.