Price Increases Mid January

[crvetter]

So I have a question. Based on the wording provided by DVC, if you buy resale after January 19th, are you only allowed to stay in the resort you purchased?!

If you buy a “legacy” resort you can trade into any of those resorts. You will be excluded from any new resorts. However if you buy Riviera resale it is assumed you will be locked out of all resorts but riviera.

 

[pkrieger2287]

So I have a question. Based on the wording provided by DVC, if you buy resale after January 19th, are you only allowed to stay in the resort you purchased?!

"Resale contracts purchased for the existing 14 Disney Vacation Club Resorts will only be able to exchange Points into those 14 Resorts."

You would be able to stay at any of the 14 original resorts.

 

[pkrieger2287]

Can anyone find the updated The Buena Vista Trading Company Disclosure Guide they reference in the announcement? Wondering if it hints at anything additional.

 

[SL6827]

This time last year was when I had put in for our gigantic 40-point OKW contract and the new resale restrictions came down in regards to having to buy 75 points instead of 25 for direct access. I was very disappointed that I would not have time to get in on another 25 points with resale, but I accepted that. But boy, I would have really been disappointed if I were trying to buy in now and not being able to meet this deadline. I was thinking about possibly selling this contract at OKW and getting a 50 point contract at SSR but not anymore. Now I am just wondering if I should just get out all together.

For people who have put in an offer like in the past few days, and won't be able to meet the deadline, can they back out of buying it now?

 

[pkrieger2287]

This time last year was when I had put in for our gigantic 40-point OKW contract and the new resale restrictions came down in regards to having to buy 75 points instead of 25 for direct access. I was very disappointed that I would not have time to get in on another 25 points with resale, but I accepted that. But boy, I would have really been disappointed if I were trying to buy in now and not being able to meet this deadline. I was thinking about possibly selling this contract at OKW and getting a 50 point contract at SSR but not anymore. Now I am just wondering if I should just get out all together.

For people who have put in an offer like in the past few days, and won't be able to meet the deadline, can they back out of buying it now?

I believe a contract would just need to enter ROFR prior to the deadline to be grandfathered. There is still plenty of time for that to occur even if you bought later this week or next week as long as the initial paperwork is fast-tracked.

 

[aoconnor]

This could potentially be a defensive move by Disney, not an aggressive one. They are opening up two new resorts in the coming years, and have to justify selling at higher and higher prices. At the same time, the existing contracts are moving closer to their expiration dates, and eventually prices will start dipping. It is possible that they fear people will be comparing $250 a point at the Reflections resort to $75 per point for BRV resale contracts 7 years from now. Considering that most people own DVC for only 10 years or so, buying close to expiring points and then using them at new resorts would actually be a good plan under today's system. By restricting those resale buyers, Disney can make it easier to justify their high buy-in cost to get into the newest resorts.

Eh, I think this is stretching. Their margins are quite fat as it is and they haven't had any problems raising prices and selling the points so far. Even if they left the direct price at $182 or whatever I'm sure Riviera would be wildly profitable.

If the 2042 resorts are only worth $75 in 7 years, I don't think it would impact direct sales that much. Only having 15 years left is not going to work for most people -- it's not long enough for a family to 'grow up'. If anything it'll make direct sales more robust IMO.

 

[adais]

This time last year was when I had put in for our gigantic 40-point OKW contract and the new resale restrictions came down in regards to having to buy 75 points instead of 25 for direct access. I was very disappointed that I would not have time to get in on another 25 points with resale, but I accepted that. But boy, I would have really been disappointed if I were trying to buy in now and not being able to meet this deadline. I was thinking about possibly selling this contract at OKW and getting a 50 point contract at SSR but not anymore. Now I am just wondering if I should just get out all together.

For people who have put in an offer in the past few days, and won't be able to meet the deadline, can they back out of buying it now?

as long as they are sent to ROFR by jan18 they would be grandfathered in i submitted my offer hours before the rumors started and the owner accepted we should be in line for ROFR by the end of the week which means we meet the deadline . we got the dvc resort we wanted (VGF) if it passes ROFR great if not then we might have to sit back and rethink if dvc is still worth it to us. But yeah this was kind of a "do i want to continue the process?" type of thing.

 

[sky2823]

Right now people who were holding their cash for riviera are considering buying a resale in the next 10 days.

I assumed Disney comes out with whatever carrot they have to explain away these new rules soon as it will surely impact early Riviera sales.

 

[SherylLC]

I was thinking about possibly selling this contract at OKW and getting a 50 point contract at SSR but not anymore. Now I am just wondering if I should just get out all together.

I'm so confused! Does the new (1/19/18) restrictions really harm owners of original 14 (aside from no access to Riviera)? Someone please explain to me--and use only small words!

 

[we"reofftoneverland]

I'm not at all trying to defend Disney here, just trying to make sense of their reasoning. Please feel free to poke as many holes in this thought process as possible. I just can't imagine they want to go from being one of the top timeshare companies out there to one that wants a large portion of their customers to either be saddled with debt or enter foreclosure because the resale value of their contracts moves to essentially nothing right after they buy in. That's possible, but it's quite the about face not just for DVC, but for Disney as a corporation.

This could potentially be a defensive move by Disney, not an aggressive one. They are opening up two new resorts in the coming years, and have to justify selling at higher and higher prices. At the same time, the existing contracts are moving closer to their expiration dates, and eventually prices will start dipping. It is possible that they fear people will be comparing $250 a point at the Reflections resort to $75 per point for BRV resale contracts 7 years from now. Considering that most people own DVC for only 10 years or so, buying close to expiring points and then using them at new resorts would actually be a good plan under today's system. By restricting those resale buyers, Disney can make it easier to justify their high buy-in cost to get into the newest resorts.

I think it all boils down to new management wanting to make its mark. All the changes are very messy and do not make a lot of sense. It seems like their new executive leadership has an insecure personality type with something to prove. I suspect there will be more significant change ahead. I wouldn't be surprised if there is a reshuffle within 5 years. For me, anything that lends to instability or the perception of instability is very bad for dvc's long term prospects. The erratic membership dues, lock-off point inflation, and now this... I am not even sure how to characterize it. It would be one thing if they would start a dvc 2 and keep it separate, but this half in half out thing is so messy and convoluted. Good management should strive for clarity. I also think that statement they released today shows their mediocrity. They should have had the marketing team look it over or someone with half a brain, because it should have been put in terms of how it benefits the product and consumers. In not explaining the move at all, there is the element of arrogance. People at the top signed off on that communique. Stunning. I have no doubt that they will come back and try to frame it in those terms after others get more involved, but that initial release shows executive ineptitude at its finest.

 

[pkrieger2287]

I'm so confused! Does the new (1/19/18) restrictions really harm owners of original 14 (aside from no access to Riviera)? Someone please explain to me--and use only small words!

Current owners who plan to stay owners - No.... But it would gradually decrease resale value which would hurt them if and when they are looking to sell their contract. In my case, we have no current plans to sell anytime soon so I don't feel that harmed.

 

[Drewferin]

I'm so confused! Does the new (1/19/18) restrictions really harm owners of original 14 (aside from no access to Riviera)? Someone please explain to me--and use only small words!

DVC resale owners (Pre 1/19/19) are not impacted for booking old or new resorts. But when they sell at some point the new owners can't book into anything minus the original 14 resorts.

DVC resale owners (Post 1/19/19) can't book into any new resort (Riveria, Reflections and whatever else is built) but can still book into the original 14 resorts.

 

[SL6827]

Current owners who plan to stay owners - No.... But it would gradually decrease resale value which would hurt them if and when they are looking to sell their contract. In my case, we have no current plans to sell anytime soon so I don't feel that harmed.

This is correct.

 

[_auroraborealis_]

Pro tip: do not read DVC Neighborhood. It will make you sad.

 

[SL6827]

Pro tip: do not read DVC Neighborhood. It will make you sad.

????

 

[iheartglaciers]

????

I don't know if this was specifically what auroraborealis was talking about, but I've found a lot of people on that FB group are being shortsighted regarding the restriction. Many are saying that they support or don't care about the change because they bought direct and don't plan to sell, so why should resale buyers get the same benefits. But it definitely devalues the product we bought, even if you bought direct. You never know what will happen down the line, you may want or need to sell.

 

[Jerry5788]

I guess the bright side of this is that the original DVC locations have the best locations. Grand Riveria will be nice I am sure but location falls in comparison to BCV and BWV. Point chart could be cheaper than BCV but can't be lower than BWV. This becomes a bigger concern when they start to expire in 2042 as they will likely roll them into the new club (DVC II).

I was considering buying Riveria when they offered pre-sales to DVC members. But now that it will have significant less resale value I will not be rolling the dice because if I hate it - I can only use points at 7 months (SSR will be cheaper) as I can't sell it as a potential buyer can only use it at Riveria.

 

[ELMC]

I don't know if this was specifically what auroraborealis was talking about, but I've found a lot of people on that FB group are being shortsighted regarding the restriction. Many are saying that they support or don't care about the change because they bought direct and don't plan to sell, so why should resale buyers get the same benefits. But it definitely devalues the product we bought, even if you bought direct. You never know what will happen down the line, you may want or need to sell.

It is human nature to protect your current and perceived interests and not necessarily those that are beneath the surface or are only possibilities. Should direct owners be happy that more resale owners are being denied a benefit that they still receive? Sure. But to deny that it impacts their options, the integrity and strength of the Club, and the monetary value of their holding is a mistake in my opinion.

What weakens the system for one weakens it for all, even if they are not directly impacted.

 

[mixmastertoy]

So I have a question. Based on the wording provided by DVC, if you buy resale after January 19th, are you only allowed to stay in the resort you purchased?!

In the new resorts yes... original 14 you have them all!

 

[glamdring269]

I don't know if this was specifically what auroraborealis was talking about, but I've found a lot of people on that FB group are being shortsighted regarding the restriction. Many are saying that they support or don't care about the change because they bought direct and don't plan to sell, so why should resale buyers get the same benefits. But it definitely devalues the product we bought, even if you bought direct. You never know what will happen down the line, you may want or need to sell.

We'll see how they feel when they buy Riviera direct, the economy takes a down turn, they lose a job, they can't make a payment, they want to sell... oops.