Resale question

[jebiford29]

New to the board, so thanks in advance for any help you guys can offer.

Ok, so I've pretty much made my mind up to take the plunge. Due to a few reasons, I've decided on taking the resale route. Here's my question:

Would it be better to purchase all my points at one DVC property (225 at BWV) or spread out my points on multiple properties (random example- 50 SSR, 75 VWL, 50 OKW, 50 BWV)? The reason I'm considering this is because I'm thinking (correct me if I'm wrong) that if I own at all 4, I'll be able to use my 11 month window at any of the 4 and book all 225 points worth at a time if I so choose.

Thanks in advance for answering my question. You folks on this board are uber heplful.

 

[disneynutz]

Nice try.

At 11 months you can only use the points for that resort, not all the resorts that you own.

 

[chalee94]

(random example- 50 SSR, 75 VWL, 50 OKW, 50 BWV)

as already stated, your SSR pts (whether banked, current or borrowed) will only be good for booking SSR at 11 months out, VWL pts (whether banked, current or borrowed) are only good for booking VWL at 11 months and so on...

what people do is bank pts and then use 2 or 3 years (including borrowed pts from the next year) worth of BWV pts to book a stay at BWV at 11 months. then the next year they will use banked/current/borrowed VWL pts to book VWL at 11 months...and wind up rotating resorts in different years.

if there is availability at 7 months, you would be able to combine or pool pts from different resorts at that point, but never before that 7 month window opens.

 

[margitmouse]

I had thought of something similar until someone explained to me about the 11 month rules, they also had mentioned to me that it might be easier to keep track of things if you have your points in the same uy, something harder to do when spreading out into multiple resorts...but there seem to be plenty of multi-resort owners. My real question though is, with purchasing the several smaller packages what is that going to do to your closing costs???
Are they based on a flat percentage rate or a base cost with percentage on top.... that could make a real difference in the price of resale.... which is why I'm back to thinking more points at 1 resort....1 closing cost, 1 UY, and still 9 resorts to chose from

 

[Dean]

New to the board, so thanks in advance for any help you guys can offer.

Ok, so I've pretty much made my mind up to take the plunge. Due to a few reasons, I've decided on taking the resale route. Here's my question:

Would it be better to purchase all my points at one DVC property (225 at BWV) or spread out my points on multiple properties (random example- 50 SSR, 75 VWL, 50 OKW, 50 BWV)? The reason I'm considering this is because I'm thinking (correct me if I'm wrong) that if I own at all 4, I'll be able to use my 11 month window at any of the 4 and book all 225 points worth at a time if I so choose.

Thanks in advance for answering my question. You folks on this board are uber heplful.

As noted, the points from different resorts don't bypass the home resort priority. For around 225 pts, you'll almost certainly be best served looking for one contract due to the extra cost of closing found with resale. Just look for the best (cheapest, UY, points availabiity) at the resort you feel is the best option for you. Don't get hung up on the exact number of points. I feel Use Year is important for most people so look at that as well. BWV is a good choice due to factors including the standard view and BW view option. It tends to be cheaper than BCV. However, it does expire in 2042 so for many SSR is the better value resale since it is cheaper still and expires 2054.

 

[DisneyWalker44]

Would it be better to purchase all my points at one DVC property (225 at BWV) or spread out my points on multiple properties (random example- 50 SSR, 75 VWL, 50 OKW, 50 BWV)?

Personally, I go in between. I'd start with a smaller (100-150 point) contract at one resort. Go on a few trips. Learn what you like, and don't like. Find out what works best for your family. Then think about adding on more points (if you want). You may want points at your existing resort, a different resort, or one that doesn't even exist yet.

 

[Sandisw]

Purchasing at multiple resorts would also give you the opportunity to enjoy split stays during your vacation if it is something that you would enjoy.

This allows you to book 11 months at each of those resorts, using the points you own at that particular resort. For example, if you owned 125 SSR points, and 100 BWV points, you could book some nights at each right at the 11 month mark.

If you know that you want to be a specific resort during certain times of the year, then that may be a reason to own at a specific resort. For example, staying at VWL in December is difficult if you don't own there.

I agree with many of the others--buy smaller contracts instead of one large one but I would not necessarily buy at all the resorts to start until you have had a chance to use your initial points and see how things are working.

In addition, smaller contracts are easier to sell if you ever had to do that (it took me only 1 day to get an offer on my VWL 50 point contract).

Good luck!!!

 

[Dean]

The issue with breaking the purchase up into smaller segments is you increase the cost. If all is resale and assuming you divide it between 2 resorts, you increase your costs on 225 points by as much as $1500 PLUS or minus any differential for what each resort is selling for. The reason is a higher per point cost for smaller contracts plus two closing costs. Depending on specifics, a resale purchase followed by a retail add on might add even more costs but it would depend on the specifics of the add on.

 

[DisneyWalker44]

The reason is a higher per point cost for smaller contracts

True, but they would probably get that money back if they sell. And if they don't ever sell, the extra cost over 30-50 years is pretty small.

 

[Dean]

True, but they would probably get that money back if they sell. And if they don't ever sell, the extra cost over 30-50 years is pretty small.

It depends. Unlikely to get your money back selling for most situations and most resorts going forward. I'm not sure that I'd view $1500 to 2000 as pretty small. $1500 would be over $25000 in 30 years not accounting for differences in maint fees which could add to the equation, esp if one looked at HH or VB. The question is what are YOU getting extra for your money for the extra cost, it may indeed be worth it for many. In this situation the OP is already looking for a higher demand resort (BWV). Their plan of 4 small contracts would actually add thousands to the cost, I used only two contracts as an illustration. If they want certain high demand resorts consistently, I'd agree that the extra cost to buy there is worth it for many and that two home resorts can also be worth it. I also agree that certain options will also have a higher inherent resale value than others, BLT for example, though unlikely at a profit. Anyone buying should compare their preferences (high demand, smaller contracts) to their options including SSR as likely the best value resale. In the past the difference was not high enough for many situations to drive the equation, I think that situation has changed in favor of SSR. I also believe that long term SSR will be the best value from a dues standpoint.

The bottom line is every situations is different. Certain options (multiple contracts, smaller contracts, retail purchases, higher demand resorts, higher maint fees) will increase the cost of ownership on a per point basis compared to others. Everyone has to decide for themselves what they can afford and whether those extra costs add value, they don't for many.

 

[Sandisw]

The issue with breaking the purchase up into smaller segments is you increase the cost. If all is resale and assuming you divide it between 2 resorts, you increase your costs on 225 points by as much as $1500 PLUS or minus any differential for what each resort is selling for. The reason is a higher per point cost for smaller contracts plus two closing costs. Depending on specifics, a resale purchase followed by a retail add on might add even more costs but it would depend on the specifics of the add on.

I just looked at some of the closing costs associated with properties for sale through TSS. A 220 point contract carries $525 in closing costs. A 110 point contract carries $475.00, putting closing costs for buying the two small ones at $950.

That puts the costs of buying two contracts at $950 and one at $525--a difference of only $425.00. To me, not something that would deter me from purchasing this way.

Of course, the more contracts you buy, the bigger the difference will become. But I still believe owning two small contracts vs. one large is much more beneficial in the long run, even if they are at the same resort. It allows a member to have flexibility in the future. You can sell off points if you don't need them and still stay a member.

And, smaller contracts definitely have a better chance of selling than larger ones.

 

[Dean]

I just looked at some of the closing costs associated with properties for sale through TSS. A 220 point contract carries $525 in closing costs. A 110 point contract carries $475.00, putting closing costs for buying the two small ones at $950.

That puts the costs of buying two contracts at $950 and one at $525--a difference of only $425.00. To me, not something that would deter me from purchasing this way.

Of course, the more contracts you buy, the bigger the difference will become. But I still believe owning two small contracts vs. one large is much more beneficial in the long run, even if they are at the same resort. It allows a member to have flexibility in the future. You can sell off points if you don't need them and still stay a member.

And, smaller contracts definitely have a better chance of selling than larger ones.

I was accounting for that but also the fact that you'll pay more per point for a smaller contract than a larger one. I was using $5 pp as the differential which is likely a good number for two in the 100-125 points range but if you did break it down to 4 contracts total, you're likely pushing $10 a point difference or more. Now if you can find a private sale and both parties are willing to forego a formal closing and do it all privately yourself, that changes the specifics tremendously. And if you found a single owner selling what we're discussing, that could change things as well if you can get the closing company to work with you. It would be foolish to pay significantly extra (even $4-500) for two smaller contracts vs one larger one at the same resort, at least for the sizes we're discussing here, for larger points contracts it would depend on specifics as well as your personal situation. OTOH, if one could afford the smaller amount now then save and add the other later, I think that is an appropriate approach that ends up at the same location.

 

[DisneyWalker44]

Unlikely to get your money back selling for most situations and most resorts going forward.

I'm not saying you will get all your money back. Just that if smaller contracts cost more per point when you buy, they will likely cost more per point when you sell. Not to mention that small contracts tend to sell faster and easier

I also agree that certain options will also have a higher inherent resale value than others, BLT for example, though unlikely at a profit.

I agree

Anyone buying should compare their preferences (high demand, smaller contracts) to their options including SSR as likely the best value resale. In the past the difference was not high enough for many situations to drive the equation, I think that situation has changed in favor of SSR. I also believe that long term SSR will be the best value from a dues standpoint.

I think BLT and VGC are the "value" resorts right now, despite the higher buy in price. Low maintenance and high resale are worth a lot. SSR may be a wee bit cheaper, but their 11-month windows are much more valuable (for those who want and can use them.)

 

[M5ward]

We bought 220 points at SSR to start. We later added 100 points through Disney at SSR. We now are adding 150 points through a reseller. We decided to add the new points at SSR also and to get a contract that had the same use year as we already have. I was basically looking for ease of use - same use year means only one membership card and number. We travel to the World at least once a year in the off season and don't have a problem getting reservations someplace other than our home resort. We are also perfectly happy staying at SSR (wouldn't have bought there otherwise.)

 

[Dean]

I'm not saying you will get all your money back. Just that if smaller contracts cost more per point when you buy, they will likely cost more per point when you sell. Not to mention that small contracts tend to sell faster and easier

Possibly, that has been true in the past but things have changed somewhat. That is less likely to be true at BLT and VGC due to the higher points costs there and the issues we're discussing including the higher closing cost on a per point basis. I do think it's unrealistic to expect to get all your money back on MOST options going forward. The exception would be some of the cheaper resales such as AKV in some cases and SSR. But this is a temporary opportunity (hopefully) due to the economy. IMO, the other issues will never make up from a $$$ standpoint for paying extra. The question is how much is the insurance worth that you can sell part and keep part or if you do different resorts, the benefit of the multiple home resorts.

I think BLT and VGC are the "value" resorts right now, despite the higher buy in price. Low maintenance and high resale are worth a lot. SSR may be a wee bit cheaper, but their 11-month windows are much more valuable (for those who want and can use them.)

It is true that the higher points costs will somewhat artificially decrease the per point fees but the actual fees at that resort will still be more in the long run for a week there than some of the others. As I noted, I think SSR is the best value from both a buy in and long term maint fee standpoint. It's lower level of certain amenities and condo style lend itself to cheaper maintenance.

 

[jebiford29]

Wow! Thanks for all the responses.

I guess the question I was looking to get an answer to was about the 11 mo./7 mo. window and how points usage was allowed. Banking/borrowing never came to mind and I'm not too concerned with the closing costs (although, I'll probably just buy at 2 locations instead of 4 at this point just to get my feet wet). What I think I'm going to do is get 60-75 points each at 2 resorts and bank each resort in alternating years.

Thanks again for all the responses!