Riviera

TheJLiz

Earning My Ears
Joined
Nov 8, 2018
With the new restrictions, how can someone purchase a direct contract @Riviera knowing that if they need to sell, whoever purchases would only be able to stay at that resort. Disney trying to kill resale!
 

DougEMG

DIS Veteran
Joined
Aug 14, 2008
Because the impulse buyer at WDW on vacation won't know or be told by Disney about the resale restriction. It will just be buried in the fine print of the contract they sign.

I do think they are going to lose a lot of purchases from current owners. I bet the Rivierat will have the lowest level of add-ons by existing members of any new resort.
 

zavandor

DIS Veteran
Joined
Jul 22, 2011
There are countless timeshares that are sold for tens of thousands dollars and on the resale market are worth nothing or nearly nothing. And this includes also big names: the Marriott near Disneyland Paris sells a 2BR week for the like of 12K, I was offered a week for 1K from a resale broker.
Riviera will be sold to people intossicated by pixie dust while on vacation. Wondering if they'll also start using a higher pressure pitch like other timeshares and they'll be more aggressive on trying to bring people in the sales center.
I agree 100% with DougEMG that Riviera won't do very well in the presale period for existing members.
 
  • jimim

    DIS Veteran
    Joined
    Jan 4, 2011
    It will still sell. Heck I didn’t even know about resale till I came here. I knew nothing what dvc really really was till reading here. This is the school where I got my education regarding dvc not from Disney’s dvc guides. So I’m sure a lot of other people were similar to me. It will sell.
     

    KSkywalker17

    Earning My Ears
    Joined
    Nov 12, 2015
    Because the impulse buyer at WDW on vacation won't know or be told by Disney about the resale restriction. It will just be buried in the fine print of the contract they sign.

    I do think they are going to lose a lot of purchases from current owners. I bet the Rivierat will have the lowest level of add-ons by existing members of any new resort.

    Or some people, albeit a small percentage of purchasers, will really love Riviera and will only want to stay there. They won’t be concerned with the depreciation of the contract. If they enjoy it for 10-15 years, they’ll likely recoup their investment. They likely won’t be able to offset the initial buy-in by selling down the line but maybe they won’t care.
     

    kniquy

    DIS Veteran
    Joined
    Dec 15, 2014
    I do think they are going to lose a lot of purchases from current owners. I bet the Rivierat will have the lowest level of add-ons by existing members of any new resort.
    This definitely has put a bad taste in the mouth of any current owners. I know we are only a small fraction of the DVC member population, but hopefully word will spread and people will educate themselves on the new changes.

    I wonder what DVC will do with the Rivera resale market -- will they let it go and take back only small amounts in ROFR -- or are they going to take back almost everything, thus driving up the resale price making direct seem to make more sense. This is all very interesting to watch it unfold. I could be tempted to buy an insanely cheap Rivera if the resort is beyond amazing, but i have a feeling that DVC will have their hand in keeping resale prices high.
     

    jade1

    I spend half my money on WDW, and waste the rest.
    Joined
    Dec 30, 2001
    they going to take back almost everything, thus driving up the resale price making direct seem to make more sense.

    That's my guess. Then sell those points twice.
     

    jade1

    I spend half my money on WDW, and waste the rest.
    Joined
    Dec 30, 2001
    will they let it go and take back only small amounts in ROFR
    And that's what I hope they do so we can scoop up a great deal to stay there occasionally.
     

    kristenrice

    NOT just an ambulance driver
    Joined
    Apr 25, 2006
    Here's an observation that just occurred to me...

    The consensus is that the resale value of the Riviera will be tanked because the points can only be used at the Riviera. There are also many current owners who are interested in staying at the Riviera and already own grandfathered points so buying restricted Riviera points to stay there exclusively shouldn't be an issue. If (or really, when) the resale prices bottom out, which probably won't be for 2-3 years, those owners should be able to get a nice deal on a resale. With the "Rehab Facility" on the market and Riviera, presumably both of them with these new restrictions (and who knows what else DVC has up their sleeves:rolleyes:), I don't think these properties are going to be selling themselves. I would not think that Disney is going to be rushing to buy back a bunch of Riviera contracts via ROFR when they are sitting on two, new resorts that they are trying to sell, even if the price is low.

    I don't know what the percentage of sales of a new resort is to current members vs new members but I imagine it is pretty small. I think that current owners who want to eventually own at Riviera in order to stay there will probably be able to take advantage of these restrictions by getting a nice, affordable contract at the Riviera without losing any of their current benefits. You just need patience:coffee:.

    Honestly, I think this was either a bad decision, or just bad timing considering it was combined with the 2020 points chart adjustment. I think that it created a lot of "bad blood" within the current membership and they failed to take into account that current members account for a percentage of sales of their new resorts. I wonder how many current members had planned to add on DIRECT to the Riviera but have now changed their minds? It would be an interesting data point for DVD to look into. I'm sure it is such a small percentage that they wouldn't even worry about it.
     

    WilsonFlyer

    DIS Veteran
    Joined
    Apr 24, 2008
    This whole "low resale value" thing could bite them in the hindparts too. They may not have any choice but to buy contracts back if the price gets low enough and word gets out about it. Careful what you wish for Disney. You just might get it.

    Let some <$75 Riviera contracts start slipping through ROFR in 2-3 years and watch what I do. My 14 YODD and her future family will be riding gondolas. ;)
     

    jimim

    DIS Veteran
    Joined
    Jan 4, 2011
    Or some people, albeit a small percentage of purchasers, will really love Riviera and will only want to stay there. They won’t be concerned with the depreciation of the contract. If they enjoy it for 10-15 years, they’ll likely recoup their investment. They likely won’t be able to offset the initial buy-in by selling down the line but maybe they won’t care.
    that's how i feel about my AKV contract or any other points I buy. I have said that before I bought to help me out now and save money. we had the money to buy what we did resale and if i have to sell one day and i take a bath so be it. served its purpose so far.
     

    LAX

    DIS Veteran
    Joined
    Mar 13, 2016
    Because the impulse buyer at WDW on vacation won't know or be told by Disney about the resale restriction. It will just be buried in the fine print of the contract they sign.

    I do think they are going to lose a lot of purchases from current owners. I bet the Rivierat will have the lowest level of add-ons by existing members of any new resort.
    I keep hearing/reading this line, but if the resale market doesn't impact direct sale in any meaningful way, why would Disney/DVD even care it exists? I am sure there will be plenty of buyers flushed with pixie-dust & cash buying Riviera or whatever else Disney/DVD throws out there even if there is zero resale value on those contracts, so is Disney/DVD so greedy that it wants the whole pie by essentially killing off resales?

    LAX
     

    kniquy

    DIS Veteran
    Joined
    Dec 15, 2014
    why would Disney/DVD even care it exists?
    I think they realize they lose a ton of business to those buying resale. But there are many people, myself included, who could not afford DVC if my only option was to buy direct. For me it just wouldn't happen. But for some if the direct price is attainable AND you can get all these wonderful perks and access to the brand new resorts -- they will choose direct over resale. This is their sales tactic. They might up their direct sales slightly with their resale restrictions, but despite this i think there will always be a pretty active resale market -- those who know they are buying for the room not the perks.

    DVC shouldn't be so greedy -- They sell the original contract and get their money, even if it is resold on the secondary market - now they still have their source for DVC dues -- I mean this is probably a larger portion of what helps them survive vs the initial buy in.

    If DVC really wanted to kill the secondary market then they could put in an automatic buy back as part of the initial contract. They could buy back at a certain price based on years of ownership (of course there would be significant depreciation) and then they would be free to sell again at direct prices with all the benefits. But i think they know that they would be sitting on a ton of points with no one to pay the dues - so I think they will not fully eliminate the resale market.
     

    BillPA

    DIS Veteran
    Joined
    Sep 7, 1999
    DVC got full list price when those resort were originally sold. The buyer were 'wild' on Disney and spend many $$$$
    As time went by they stopped buying Disney apparel, trinkets and did more in room meal.
    So they sold resale to a new owner that went "wild" about Disney, buying apparel, trinkets, eating at the the over priced restaurants...
    Why would DVC treat these NEW owners, that are spending more than the original owners, so poorly? Makes no since to me????
     

    TexasAggie73

    Earning My Ears
    Joined
    Sep 13, 2007
    Disney maybe looking at a different picture than most of us. We have no idea beyond the 2 announced DVC properties that have been announced how many more properties will be developed in the 10 to 20 year future. We also don’t know if the resale owners will be able to trade into each of those properties plus any future new properties. , but I assume they will.
    We do know that BWV and other old properties, the contracts will be expiring in 2042 and then they could be resold and put into whatever this new association may be expanding the trade in properties for them.
    Disney may just be looking at a much further time line. They can also influence the price of resales just by how the exercise their ROFR.
     

    TheJLiz

    Earning My Ears
    Joined
    Nov 8, 2018
    DVC guides pride themselves in the fact that they don't have to hustle people in the parks to visit the kiosks or purchase DVC. They say that word of mouth and members sell their memberships. I don't think that will be the case going forward!
     

    Chancery8

    Mouseketeer
    Joined
    Nov 21, 2006
    DVC guides pride themselves in the fact that they don't have to hustle people in the parks to visit the kiosks or purchase DVC. They say that word of mouth and members sell their memberships. I don't think that will be the case going forward!
    That worries me. I hate getting bombarded with timeshare sales pitches on vacation. I went to one of those all-inclusive resorts in the Caribbean and was hassled every single day by a salesperson in the lobby to attend a timeshare seminar, to the point where I dreaded having to even go near the lobby and ducked behind bushes when I saw the salesperson walking around the main grounds.
     

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