Purchase OKW Jan 09?

[kid-at-heart]

I am a tortoise. I move slowly in making major decisions. After months of research we have decided to become DVC members – but not until Jan 2009. We know we want to buy OKW and we want the extended years. My concern is - will that be possible? Will I be able to buy OKW points with the 2057 membership directly from Disney or is resale the only option? At this point I do not have a preference of direct or resale purchase. I assume that anyone planning to sale OKW soon will not have added the extension. If that is the case will we be able to add the extension after buying? Also I am curious regarding what will happen to the point price of OKW once the extensions have occurred. I assume there will be a difference in point resale value depending on whether or not the contract has been extended. Even though you do not have crystal balls to tell the future, you folks are the experts regarding DVC (in my opinion). Do you have any thoughts or suggestions regarding any of my questions or our buying OKW in Jan 09?

 

[CarolMN]

My guess/opinion is that OKW will be available for purchase directly from Disney in January, 2009. The contract expiration will be 2057.

By January 2009, I also think there will be OKW resale contracts on the market with 2057 expiration dates.

IIRC, Disney has said that members may extend their OKW contracts (form 2042 to 2057) after the current deadline, but that the price will be $25 per point to do so (instead of $15 per point if they do it now).

 

[TisBit]

I think you will be able to get 2057 contracts pretty easily from Disney direct...they will not longer sell 2042 and will probably even be a little more aggressive on excercising ROFR on OKW 2042 contracts for prospective buyers like yourself.

I personnaly do not think you will see many 2057 contracts for a couple of years. The exception will be for people that end up in sudden financial hardship that extended their contract previously. I don't think anyone would extend at $15 a point, because I do not believe that the resale difference between 2042/2057 will be this high initially (down the road when you are drawing closer to the 2042, maybe even more of a difference).

 

[RobDoc]

Disney is already selling OKW contracts with the 2057 date. The price per point at this time is $96.

There may a few extended contracts that trickle into the resale market within the next year, but I don't expect to see any large number become available during that timeframe.

If purchasing from Disney directly, ONLY the extended contracts are available and that will continue as Disney recaptures more contracts thru ROFR and foreclosure. I don't think they will accelerate ROFR , but may raise the floor a little because of the 15 additional years.

 

[rsinj]

.

 

[goalie5hole]

Well, you are wrong as it is known there are quite a few people purchasing the extensions.

It has very little to do with resale difference. There won't be any/many 2057 OKW contracts available through resale for quite some time anyhow...unless there is a hardship situation as you've also indicated. So, how can you put a price on the resale difference if there aren't any available, and the only other way you will be able to get a 2057 OKW contract is by paying an additional $25/point to DVC?

Anyone know if there has been any talk to extend contracts at Boardwalk??

 

[TisBit]

Well, you are wrong as it is known there are quite a few people purchasing the extensions.

It has very little to do with resale difference. There won't be any/many 2057 OKW contracts available through resale for quite some time anyhow...unless there is a hardship situation as you've also indicated. So, how can you put a price on the resale difference if there aren't any available, and the only other way you will be able to get a 2057 OKW contract is by paying an additional $25/point to DVC?

Sorry, I left out a few words ".....no one would extend with intention of selling at $15 a point....."

everything else I think we are in agreement on!

 

[rsinj]

.

 

[Buckeye Fan]

For what it's worth, I just left another thread that stated that about 35% of OKW owners have expressed a desire to extend their contracts. If it truly ends up being that high, I can't help but think the extension offers on the other 2042 resorts aren't far behind!!!

 

[SanDeeKath]

I spoke to one of the resale rest at TSS and they told me practically NO ONE is extending their contracts. Too much $$ I guess.

I am curious to see what happens if most people don't extend their contracts! It'll be a Disney challenge...

K

 

[kid-at-heart]

Thanks all. Great information and along the lines I was thinking. I am aware that current OKW owners have until a particular date to extend their contract until 2057 for (I think) $15 per point now and then $25 per point after the "particular" date. How long will OKW owners have the option of extending (even at $25 per point). Is there a deadline for exercising that option? If I buy resale in 2009 (in order to buy less than 160 points) will I then be able to add the extra years through Disney?

 

[RobDoc]

Thanks all. Great information and along the lines I was thinking. I am aware that current OKW owners have until a particular date to extend their contract until 2057 for (I think) $15 per point now and then $25 per point after the "particular" date. How long will OKW owners have the option of extending (even at $25 per point). Is there a deadline for exercising that option? If I buy resale in 2009 (in order to buy less than 160 points) will I then be able to add the extra years through Disney?

No timetable has been announced at this time - however, current OKW owners do have to commit to either accepting or declining the offer. If they accept, the price is $15 per point thru February 29, 2008. If they later decide to accept, it would be $25 per point - HOWEVER - if OKW owners decline, they will need to sign over the extra 15 years to DVC. If you purchase a resale in 2009 which has not accepted the extension, you would likely still be able to add the extra years at $25 per point (or whatever they will be selling for at that time).

If you are certain you want the extended contract be sure to compare the resale cost plus the additional $25 to what the same purchase would cost thru DVC directly. Currently DVC is selling the extended contracts at $96 per point.