Resale values at OKW,2042 vs 2057

[tvwalsh]

Two current listings on TTS show that the difference is value of OKW2057 vs OKW2042 for two listed 80 point contracts is now $15 per point.

The two contracts currently listed are at $80/ pt and $95/pt. They are very similar contracts, and in fact, the OKW2057 is said to be sale pending while the OKW2042 is not.

Perhaps all those who thought that buying the extension at $15/pt was such a bad deal can now give it a rest.

 

[Disney_Villain]

Well, we never had any worry about the 15-year extension increasing the resale value of our OKW contract, and here's proof. We were very happy to extend, with me turning 40 this year, I will have the contract until I am 85!

The resale buyers are likely much younger than existing OKW members (as many have had their OKW contracts for 10-15 years already), which makes those extended contracts really attractive! Esp. since you can get a studio in low seasons for 80 pts a week - and the resort is gorgeous!

 

[rbuzzotta]

DH had those thoughts in mind when we extended our 2 OKW contracts!!!

Don't know if we will sell, but it is nice to know you can get more for it!!

 

[Brian Noble]

It may be sale pending, but (a) it is one data point, and (b) you only know the listing price, not the negotiated price.

It will be interesting to see what happens going forward, but I wouldn't read too much into this just yet.

 

[Dean]

I think it's a given that one will not make up the price difference of $15 pp when you adjust for inflation over time. The only reason to extend is for anticipated usage.

 

[BWV Dreamin]

I think it's a given that one will not make up the price difference of $15 pp when you adjust for inflation over time. The only reason to extend is for anticipated usage.

So will Disney aggressively ROFR resales of OKW once all the "bugs" are worked out? I would think they would want to bring the resort to one end year as soon as possible.

 

[LIFERBABE]

I still think it's a bad deal.

I agree, 1 data point does not tell us a whole lot. And I would definitely not extend and then turn around and sell any time soon.

 

[Chuck S]

However, if the resale price is $15 more, and you paid $15, then you still aren't recouping your initial $15 investment. If you paid cash for the extension, you have lost some interest. If you financed it, you've paid interest. And you have to pay broker commission based on the higher resale amount.

That being said, I don;t think the extensn was an awful deal for people that have no interst in selling their membership, but may actually live long enough to use, or have children that would be interested in using it. I'm at the borderline age group, where I may have gotte a few years out of it, but then again I could just as easily be dead ad gone. And with no heirs intersted in Disney at the moment, I think not extending was the right decision for me. Perhaps, if it looks like I'd be able to enjoy WDW until I turn 100, then I may see if we can extend in the future.

 

[Dean]

So will Disney aggressively ROFR resales of OKW once all the "bugs" are worked out? I would think they would want to bring the resort to one end year as soon as possible.

I doubt it. IMO, many people have the decidedly mistaken impression that ROFR is mainly about DVD buying low and selling high. The truth is the price difference isn't enough for them to get excited about, esp when they're actually competing with new sales as well and as they say, time is money. I'd venture DVC needs $10-15 difference between what they paid and what they sell to make money and for resorts where they have a glut of points under ROFR, the spread would need to be more. That's one of the reasons you see VB & HH at lower prices for ROFR. The main reason for ROFR is to direct behavior of those looking to buy.