Opinions on resale purchase: How much do you weigh contract exipiration?

[glamdring269]

Just curious how folks tend to place value on end of contract timing. For example, when comparing contracts such as BWV/BCV vs. AKV how do you account for the fact that you could get 15 more years of value out of AKV?

For us it's kind of a mixed bag. We currently have a VWL contract with 2042 expiration so purchasing a 2nd contract of BWV/BCV basically just buys us more points with greater resort flexibility at a desired location for F&W (which we do enjoy). On the other hand, we thoroughly enjoy AKV but would primarily be purchasing that contract for the 15 year extension as, under current conditions, we know that getting a studio at AKV at 7 months is really not that difficult.

So how do you take this into consideration when comparing contracts? If you had to make a similar choice in the past how did you decide? I know there is no hard and fast rule of thumb so just looking for different opinions on this topic.

 

[jarestel]

For me, the answer would be not at all since by 2042 I would probably have expired along with my contract. Younger folks probably view it differently. Still, 50 years is a long time (50 years ago Disney World didn't even exist) and since the advent of DVC many, many thousands of contracts have been sold by the original purchasers, a large number of whom in all likelihood expected to own them for the full term. Anyway, short answer is I would buy what I wanted, not what might be the better value over 50 years.

 

[bwvBound]

We only have one DVC home resort, purchased 13 years ago. At that time, the "2054" expiration rather than "2042" was a huge draw. Having the full 50 years was the deciding factor between BWV (which we already knew, loved and wanted) vs SSR (pre-opening, sight unseen).

 

[disneynutz]

IMO most owners will burn out after 10 to 15 years if that. Families change, jobs change, taking Disney vacations can grow old and you might want to go in a different direction. For us since we are spending hundreds of thousands of dollars at Disney, owning where we love to stay is more important than the contract termination date which may be extended anyway.

Bill

 

[glamdring269]

Yeah to put one thing into perspective we have no children and in 2042 we will both be in our 60s. This could mean we would want to have another 15 years of DVC ownership that could take us into our late 70s OR it could also mean that the contracts would be expiring at just the right time since we will be living in Hawaii (right????). I do know that we would definitely enjoy the proximity perks of BCV/BWV.

 

[DVC Doctor]

Right now, this is a minor issue, but in the next 5 to 10 years, it will be much more of an issue as when we get within 15 years of expiration, then people will pay much more attention to the older RTU resorts and the newer ones.

BCV will still be popular due to its small size and good location though.

 

[chalee94]

If you really want to stay near Epcot, buy where you want to stay (and book early).

If you like the Boardwalk but don't mind staying at AKV or SSR, then buy the cheapest you can find. But if it would really frustrate you to get stuck in a resort you really don't want, then the savings aren't going to make you feel better about it.

 

[bwvBound]

... OR it could also mean that the contracts would be expiring at just the right time since we will be living in Hawaii (right????).

Oh, yes indeed. There is that warm possibility.

FWIW, I've spent a good chunk of time this week researching logistics for a possible relo to HI. It could happen and one "wants to be prepared." I found a horse property that "could work," we are already familiar with the area and my husband liked the house. (I shop for barn, arena and pasture ... my husband looks at hardwood floors, upgraded kitchen, etc. We have our priorities.)

 

[Ben E N]

This may be complicating an emotional decision too much, but it may be worth it you to decide how much more you like a resort with an earlier expiration vs. one with a later. I would take the price of comparable contracts, divide them by the years remaining, and find the per year cost of each contract. Even if you do not use the whole difference in years, it can be assumed that you could resell a contract with the 15 remaining years vs. one that has expired.
You will find that BCV and BWV have a higher per year cost than AKV, which is a fine thing. If we were all concerned only about price, then we would all be staying at All Star Resorts every year instead of buying into DVC. Just think to yourself if it is worth an extra 20%+ to stay at a particular resort vs. another one.

 

[glamdring269]

I'm actually trying to take the emotion out of this one. It's actually kind of a tough call for us. We stayed at AKL during F&W a few years back and didn't even think twice about the proximity. We then stayed at BWV during F&W the following year and I remember talking about how cool it was to walk to Epcot / DHS but neither of us really thought it was that big of a difference. In terms of the resorts themselves, I think it's a no brainer that AKL is the superior resort (to us) so it's actually pretty easy for me to see the positives on both sides.

Ben, I think one thing you mentioned here that I really need to take into my non-emotional consideration is that 10-15 years from now, if I want to sell, then there is a higher likelihood that a decent market may still exist for AKV.

With all that said, Poly would be awesome but man that place is expensive.

 

[BillPA]

I looked at the 2042 expiration date as an end date to paying dues, 49 years will be more than enough Disney for us. I do not want to leave a bill for dues to my kids. I know right now there is a good resale market, but at the rate Disney is increasing costs, DVC will be in for a serious price drop down the road. I can't justify todays costs for the new DVC units, and only those that have below normal math skills will think it's a good deal. JMHO

 

[rowrbazzle]

It was a big factor for us. I expect to be going to Disney for a very long time so the 2042 contract doesn't get me very far, to say nothing of my kids. The difference in resale prices for some older vs. newer resorts really isn't reflective of the time remaining on the contracts either. As such, it can be just as expensive to spend a week at the Polynesian or Grand Floridian as Beach Club or some rooms at Boardwalk, even though Beach Club and Boardwalk require fewer points. See here for a breakdown of the costs per point as a function of price, dues, and contract years. http://www.wdwmagic.com/articles/19sep2017-best-economical-dvc-resort-to-purchase-fall-2017.htm

If I didn't think I'd need it past 2042 I'd still have some concern about the ability to resell the contract 10 years from now. It really depends on your needs, though.

 

[JETSDAD]

Our 2 favourite resorts are AKV and BRV with a slight edge going to BRV. When we bought in the spring the 2 factors that pushed us to AKV were the variety of rooms available as well as the expiration date. Whether we use it for the full length or decide to sell, having those extra years we view as a benefit.

 

[4luv2cdisney]

I'm actually trying to take the emotion out of this one. It's actually kind of a tough call for us. We stayed at AKL during F&W a few years back and didn't even think twice about the proximity. We then stayed at BWV during F&W the following year and I remember talking about how cool it was to walk to Epcot / DHS but neither of us really thought it was that big of a difference. In terms of the resorts themselves, I think it's a no brainer that AKL is the superior resort (to us) so it's actually pretty easy for me to see the positives on both sides.

Ben, I think one thing you mentioned here that I really need to take into my non-emotional consideration is that 10-15 years from now, if I want to sell, then there is a higher likelihood that a decent market may still exist for AKV.

With all that said, Poly would be awesome but man that place is expensive.

Are you still staying at VWL or are you using those points to stay at AKL / elsewhere? Do you need all your points there if you buy an additional contract?

 

[glamdring269]

Are you still staying at VWL or are you using those points to stay at AKL / elsewhere? Do you need all your points there if you buy an additional contract?

Good question. We have never actually stayed at VWL. We've used the points in the past for BWV but this upcoming Christmas will be the first time using the VWL points. We do not necessarily need all of the points if we buy an additional contract.

Full disclosure: We bought the contract on the cheap during the bottom a few years ago so weren't as concerned about location as we were value. We knew the contract would be valuable in the sense of definite access during Christmas so did consider that a positive over the typical SSR suggestion of the day. We had also spent some time at VWL before just hanging out so knew if we had to stay there it wouldn't be considered a problem.

 

[4luv2cdisney]

Good question. We have never actually stayed at VWL. We've used the points in the past for BWV but this upcoming Christmas will be the first time using the VWL points. We do not necessarily need all of the points if we buy an additional contract.

Full disclosure: We bought the contract on the cheap during the bottom a few years ago so weren't as concerned about location as we were value. We knew the contract would be valuable in the sense of definite access during Christmas so did consider that a positive over the typical SSR suggestion of the day. We had also spent some time at VWL before just hanging out so knew if we had to stay there it wouldn't be considered a problem.

I have been struggling for months over the end date issue. I really want BWV but a resort with a longer end date seems like a better financial decision. I haven't found anything resale for BWV and am currently on a waitlist for direct. Because I'm not currently a member, want the membership benefits and want a small contract, it's really not a big price difference between direct and resale right now. Eventually, I will likely end up with a second contract somewhere. I would have preferred to buy resale first, direct second at a resort with a later end date. Just isn't working out for me!

So, looking at your situation, as a current member, you could buy a smallish direct contract somewhere with a longer end date (CCV? AKL?) then sell your VWL and rebuy at BWV. Of course, I don't know if the numbers work out for you, but you may find you end up needing less points for the trips you want and saving some $ in MFs even if the outlay is a little more than you were planning. Also, you would maintain membership benefits beyond 2042 if you stick it out til the bitter end!

 

[Shellyred8]

For us, it's all about location. We love staying at BWV because we can walk to EP and HS. We really enjoyed AKV when we stayed there once (the resort was beautiful!), but I really didn't like having to take the bus EVERYWHERE. We also happened to run into some bad bus service when we were there, so that didn't help matters.

Also, we tend to go during busy DVC times (Sept - Dec), and we like to stay at BWV, so having the 11 month booking window there is critical.

So, even though the AKV points were less expensive and the contract was longer, the location of our home resort won out for us.

Good luck with your decision!! Either way, you will be at Disney!!!

 

[scot@dvcstore]

IMO the most important thing is the timeframe you plan on booking reservations versus the deed expiration date. If you tend to book further out than 7 months then probably best to purchase where you would like to stay. Even the shortest deeds still have more than 24 years remaining.

 

[Dean]

Just curious how folks tend to place value on end of contract timing. For example, when comparing contracts such as BWV/BCV vs. AKV how do you account for the fact that you could get 15 more years of value out of AKV?

For us it's kind of a mixed bag. We currently have a VWL contract with 2042 expiration so purchasing a 2nd contract of BWV/BCV basically just buys us more points with greater resort flexibility at a desired location for F&W (which we do enjoy). On the other hand, we thoroughly enjoy AKV but would primarily be purchasing that contract for the 15 year extension as, under current conditions, we know that getting a studio at AKV at 7 months is really not that difficult.

So how do you take this into consideration when comparing contracts? If you had to make a similar choice in the past how did you decide? I know there is no hard and fast rule of thumb so just looking for different opinions on this topic.

IMO ending dates affects value but should not normally drive the home resort choice unless one doesn't care much anyway. Ultimately it's a valuation game if home resort doesn't matter too much. Years on the back end have value but a LOT less than years on the front end. I wouldn't pass over a home resort simply because it ends in 2042 and I wouldn't buy a specific resort just because it has a longer RTU. That's true even for those that are younger but even more true for those of us that are middle aged or more. Between BCV and BWV there is quite a difference in value IMO because BWV is cheaper and you can buy less points or make them last longer because of the standard view option.

 

[glamdring269]

I didn't even think of the direct add on option. A 50 point add on would probably be sufficient for us and should actually give us the option to choose whatever we want with the UY we want with less hassle. At least in theory. I do think buying BWV direct would be way too expensive but might be worthwhile for something like PVB.

In the meantime, I think we may hold off unless some amazing contract pops between now and our December trip. Then we'll have a chance to consider PVB while doing our Christmas resort tour night.