Price Increases Mid January

[Wakey]

Suspect there will be a lot of current owners who were eyeing Riviera now letting those thoughts go.......

 

[Madame]

Uh, no, there would have to be interusage agreements in place. The current "club" agreement allows for the interusage of points at all DVC resorts. Riviera would need to be either a separate entity unto itself, the flagship of a new crop of DVCs (DVC II) or part of our current "club" agreement.

I’m not sure at all who’s correct here, but it reads as if I’m partially correct. Grandfathered resales will be able to trade into Riviera & ALL new direct Riviera owners can trade into the existing DVC system.

Legacy resort resales going forward will be limited to legacy resorts, but the direct Riviera buyers will have access to the whole system (not if they buy Riviera resale) so this will put even more stress on popular legacy resorts.

Am I understanding this correctly? And if so, how convoluted.

 

[b2k1121]

Any predictions on the short term resale market effect? We plan to sell an AKV contract in the next few months but wondering if we see a spike in prices the next couple weeks to get 'grandfathered' and then a drop after the 19th.

 

[Ben E N]

Is there any place other than DVCResales that are shedding any information on this? This is a big and complicated bombshell that is apparently taking place 13 days from now to only have it listed on one resale broker's blog. Even DVC themselves gave a couple week's notice before they upped the direct buy in minimum to 75, or quit giving benefits to resale buyers, and this looks like a lot bigger change than either of those.

 

[Brian Noble]

They’re ridiculous. Part of the sales pitch for paying such a high ppp is the healthy resale market.

That's part of the pitch today. It doesn't have to be part of the pitch tomorrow. Plenty of other systems sell just fine without that. Even better, they talk about "investing in your vacations," and people hear "it's an investment!" only to find out that the value of the thing drops 80% once the ink on the purchase agreement is dry.

 

[4luv2cdisney]

Any predictions on the short term resale market effect? We plan to sell an AKV contract in the next few months but wondering if we see a spike in prices the next couple weeks to get 'grandfathered' and then a drop after the 19th.

I'd list it today.

 

[Madame]

Is there any place other than DVCResales that are shedding any information on this? This is a big and complicated bombshell that is apparently taking place 13 days from now to only have it listed on one resale broker's blog. Even DVC themselves gave a couple week's notice before they upped the direct buy in minimum to 75, or quit giving benefits to resale buyers, and this looks like a lot bigger change than either of those.

A leak? Or a planted leak?

 

[Wakey]

I’m not sure at all who’s correct here, but it reads as if I’m partially correct. Grandfathered resales will be able to trade into Riviera & ALL new direct Riviera owners can trade into the existing DVC system.

Legacy resort resales going forward will be limited to legacy resorts, but the direct Riviera buyers will have access to the whole system (not if they buy Riviera resale) so this will put even more stress on popular legacy resorts.

Am I understanding this correctly? And if so, how convoluted.

I suspect it will have to be traded - 1 point in, 1 point out, otherwise I would think Resale owners who cannot stay in Riviera will say they have their own resources diminished with no reciprocal rights and have a legal case. Guessing here. That is why they have left current resale owners grandfathered (also to avoid the negative fallout) - there will be enough of them to guarantee trading in and out between the two clubs is covered points wise.

 

[Wakey]

A leak? Or a planted leak?

Another resale agent said they found out last night but were holding off, but have gone with the news now as DVC Resale Market broke it early. Apparently the official announcement may come tomorrow.

 

[Madame]

I suspect it will have to be traded - 1 point in, 1 point out, otherwise I would think Resale owners who cannot stay in Riviera will say they have their own resources diminished with no reciprocal rights and have a legal case. Guessing here. That is why they have left current resale owners grandfathered (also to avoid the negative fallout) - there will be enough of them to guarantee trading in and out between the two clubs is covered points wise.

Maybe, but for some reason I think you were onto something - that the increase in lockoff premium & point chart manipulation is tied into this in some unknown way.

 

[miTnosnhoJ]

Evidently, Disney has decided they have been leaving money on the table by selling timeshares that have a residual value. The timeshare industry has long showed that you can sell timeshares with no resale value. Disney wants to capture the resale value for themselves.

 

[4luv2cdisney]

Do you guys think the Riviera resale will only be usable at Riv or at Riv + any newer resorts to come?

 

[4luv2cdisney]

And any update on price increases?

 

[SL6827]

Does anyone think Disney might try to do something in regards to the rental market here in the future?

 

[ckb_nc]

Evidently, Disney has decided they have been leaving money on the table by selling timeshares that have a residual value. The timeshare industry has long showed that you can sell timeshares with no resale value. Disney wants to capture the resale value for themselves.

Exactly - and drive more direct sales by reducing the value. In the short term, the 14 properties have more value at resale (cant book ar Riveria is an issue) until the properties age out.

Can Disney extend this to the older properties? I think not but would need really study the language -

 

[miTnosnhoJ]

Disney can “launder” Riviera resales. They can buy back the resales at a much reduced price, and then sell them again as direct points with full benefits. Rinse and repeat.

 

[Henwen88]

I'm just fascinated with all this (bad) news coming out a month after the annual meeting, where there was no peep about any of the things that have come out the last few weeks.

Could not agree more!!! The new VP/management team has been very, very busy.

 

[_auroraborealis_]

Do you guys think the Riviera resale will only be usable at Riv or at Riv + any newer resorts to come?

Only at Riviera. If they write the BVT2 association plan correctly, anyway.

 

[CarolMN]

If Riviera resale purchasers can only book Riviera, should they have to pay the same dues (for MS) as other DVC Members?

 

[KAT4DISNEY]

If Riviera resale purchasers can only book Riviera, should they have to pay the same dues (for MS) as other DVC Members?

I feel like I read something in the POS about an amount that is charged related to the exchange system. Man, I'm tired of reading that POS but might have to find that. IF so, then there will have to be different dues calculations for them, at least initially, or maybe their POS will be modified in somehow change that aspect.