Opinions on Buying Stripped Contracts

[AllieV]

You will get far different advice if you identify as a seller vs buyer. No one here will advise you to buy a stripped contact. But plenty will tell you how easy it can be to sell one. Don't be discouraged (or your bro).

I watched a "$90 firm" AKV contract sit for months until finally it sold. I assume it sold (not taken off) because a newbie was on here talking about buying a small contract and how they'd found one for $90 and although it was high, it was still slightly less than going direct through disney. It disappeared a week later, as did another identical one. Right after that two more appeared (different number of points but still small) for "$90 firm" and one sold within a week. The other is still sitting.

So it can be done. He only pays a fee if it sells, so he has nothing to lose.

 

[Dean]

Maybe it's just me, but I must really be missing something on the "math" side of this. Worst case I see is that you might be paying for a year you're not using. Regardless, this is a 30 year (at least) investment so it really means nothing beyond that first "stripped" period.

I've seen mention on this thread that stripped contracts should be worth $20 or $30 less per point, but I guess I'm not understanding that. I'm paying $54/pt for my stripped OKW contract. Per point dollar amounts haven't really gone any lower than that (and gotten through ROFR) so I guess I'm missing something.

Not trying to spark a debate, just trying to get a better understanding so I know for next time.

There are several factors and questions. Whether to buy, if so retail vs resale. Assuming buying DVC is a good choice (it isn't for everyone even some that buy in) and that one has decided on resale and a preferred home resort, it simply comes down to price and comparing one contract to another. IMO the most reasonable comparison for stripped contracts is an adjustment of $10 a point for each current UY or future UY point that's not available and that number includes the maint fees if the buyer is paying the fees for the current and future UY. Obviously one needs to look at the big picture including the sheer dollars involved as a 25 point contract will have a lot less impact than a much larger contract. Put another way, one could buy a smaller loaded contract and do as well or better and more cheaply than a larger completely stripped one. In a post below you take the price paid and divide by the remaining years, IMO, that shortchanges the buying power and value of your dollars into the future. Personally $1-2K would be a big deal for me but it might not be for someone else.

 

[lodge]

One thing I've learned from reading these boards is that different people have different motivations.

Our motivation has always been to PLAN... plan, plan, and plan some-more! I often NEED a year out to get all the other travels out of the way! If you have all this year and half of next booked up with holidays (vacations), a later starting to a contract works best.... no worries about paying MF's.

I have deposits on vacations well into the end of 2015! BIG, expensive trips that require a lot of time to pay down. When they roll around, they are SUCH FUN!!