ROFR Thread Jan to March 2023 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[HIRyeDVC]

That is EXACTLY my thinking!

That $20/pt might be worth it, TBH. The "return" on that $20 is about 11%, which is not bad. It's even better when you think of it as an after-tax return.

Of course, you still have to find one, and that might be the hard part.

I too struggled with the price premium for subsidized. But the math is clear. For me when I bought, I would have saved $3900 by buying a non-subsidized contract, which would have took me 6.6 years to make up for in the difference in annual dues. But if I were to keep it through the life of the contract, I would save $23,616, based on current annual dues rate, obviously because you can't predict future annual dues. But historically, the subsidized dues has been roughly $2pp less than non subsidized. On average, there are anywhere between 75-100 Aulani listings in the resale market and less than 1% are subsidized. Chances are, no matter the market conditions, the subsidized contracts will fly off the shelf. It's also by far the cheapest SAP in all of DVC.

 

[AnnaKristoff2013]

Thanks, that’s not great then if it doesn’t get through.

Disney is on an incredible cold streak right now of letting things pass through ROFR right now. Not guaranteed to last of course, but right now, it seems like basically everything is passing.

 

[hglenn]

Thanks, that’s not great then if it doesn’t get through.

You'll get a full refund if it gets ROFR'd. You won't be out anything other than tying up your funds for the duration of ROFR. Plus, if you're like us, you'll already have another contract your eyeing if yours gets taken so you can just take that money and apply it to the next one!

 

[Jimmy Geppetto]

There's now a Fidelity 130 point SSR contract listed at $92.31 per point. That's the cheapest I've seen (the one I snagged a week ago was $93 a point). Prices continue to fall...

Yes but it’s stripped. The one listed for $105 with double points is a much better deal. Assuming you can get $15pp if you rent… that’s in theory priced at $75pp.

 

[Jobelly]

You'll get a full refund if it gets ROFR'd. You won't be out anything other than tying up your funds for the duration of ROFR. Plus, if you're like us, you'll already have another contract your eyeing if yours gets taken so you can just take that money and apply it to the next one!

Yeah I can keep it for another but if I wanted it refunded as I’m in the uk the exchange rate means I won’t get back the same, and it never seems to work out so I’m better off

 

[hglenn]

Yeah I can keep it for another but if I wanted it refunded as I’m in the uk the exchange rate means I won’t get back the same, and it never seems to work out so I’m better off

Ah, interesting.... yea, that seems like it might get messy... I can understand your concern there.

 

[Maryrachel713]

I too struggled with the price premium for subsidized. But the math is clear. For me when I bought, I would have saved $3900 by buying a non-subsidized contract, which would have took me 6.6 years to make up for in the difference in annual dues. But if I were to keep it through the life of the contract, I would save $23,616, based on current annual dues rate, obviously because you can't predict future annual dues. But historically, the subsidized dues has been roughly $2pp less than non subsidized. On average, there are anywhere between 75-100 Aulani listings in the resale market and less than 1% are subsidized. Chances are, no matter the market conditions, the subsidized contracts will fly off the shelf. It's also by far the cheapest SAP in all of DVC.

I went back and forth about it and decided I'm not sure I'd keep the contract long enough for that tipping point. I'm not really seeing sub below 125 (maybe just a little) and I'm offering sub-100 on the regular contracts.

Watch me prove myself wrong, get the contract and hold it for 25 years.

 

[HIRyeDVC]

I went back and forth about it and decided I'm not sure I'd keep the contract long enough for that tipping point. I'm not really seeing sub below 125 (maybe just a little) and I'm offering sub-100 on the regular contracts.

Watch me prove myself wrong, get the contract and hold it for 25 years.

it's a tough one, and really no right or wrong answer. Some can justify not getting a subsidized contract because they might be cash poor but monthly/annual income rich. Others might be opposite. Either way, if you're buying Aulani to stay at Aulani, it's a winning proposition when compared to the crazy rack rate. Personally for me, I bought a 260 point subsidized and rent half of it every year to pay for the dues and earn a little profit. I use the other half to book strictly at Aulani for hard-to-get rooms and seasons at 11 months. I always buy resale contracts thinking I will use them until they expire but an exit strategy is always on my mind, if I were to keep it for 1 year or 25 years. Aulani expires in 2062 and a subsidized contract sells immediately, except for the super large contracts that can take a little more time. But even those eventually sell. Kinda hard to say the same for non-subsidized Aulani contracts, especially these days.

 

[Maryrachel713]

it's a tough one, and really no right or wrong answer. Some can justify not getting a subsidized contract because they might be cash poor but monthly/annual income rich. Others might be opposite. Either way, if you're buying Aulani to stay at Aulani, it's a winning proposition when compared to the crazy rack rate. Personally for me, I bought a 260 point subsidized and rent half of it every year to pay for the dues and earn a little profit. I use the other half to book strictly at Aulani for hard-to-get rooms and seasons at 11 months. I always buy resale contracts thinking I will use them until they expire but an exit strategy is always on my mind, if I were to keep it for 1 year or 25 years. Aulani expires in 2062 and a subsidized contract sells immediately, except for the super large contracts that can take a little more time. But even those eventually sell. Kinda hard to say the same for non-subsidized Aulani contracts, especially these days.

thats a really good point about them selling quickly. If I don't get this one, I'll definitely keep trying to find a subsidized contract. My husband really wants a fixed week Aulani contract but those are all crazy high points. We're buying because we need more points, so I don't want the stripped subsidized I've seen :/

 

[Cfabar1]

Cfabar1---$167-$11033-60-VGF-Dec-0/21, 0/22, 40/23, 60/24- sent 1/30

 

[HIRyeDVC]

thats a really good point about them selling quickly. If I don't get this one, I'll definitely keep trying to find a subsidized contract. My husband really wants a fixed week Aulani contract but those are all crazy high points. We're buying because we need more points, so I don't want the stripped subsidized I've seen :/

It's simply supply and demand. DVC may never sell out Aulani direct so they'll probably never ROFR, no matter the price. If they do eventually sell out, Disney would probably never ROFR a subsidized contract for legal reasons. And Disney can never sell more subsidized contracts. In the grand scheme of things, there are so few out there that sellers can pretty much dictate the terms. If you really want one, you really can't be picky. You just gotta jump on it. Ironically about a month ago, I think I saw about 5 subsidized contracts for sale at the same time on the board's sponsor site. I've never seen that before. Usually, they would be gone in minutes. I think those actually stayed in the market for a couple of weeks, which is highly unusual. But now they're all gone. I think I saw one at the dvc store currently listed at $133pp with my March UY. It's been on the market since 1/16 but it's also a 400 pointer. But I think it will still sell faster than most of the non-sub contracts out there. I look at all these non-sub contracts just sitting there and think, these are never going to sell for higher than $90pp.

 

[Cfabar1]

It's simply supply and demand. DVC may never sell out Aulani direct so they'll probably never ROFR, no matter the price. If they do eventually sell out, Disney would probably never ROFR a subsidized contract for legal reasons.

Why would they not do so for legal reasons? Would someone sue them saying they didn’t allow them to buy it because of the subsidized status? Or is there something more to the equation?

 

[HIRyeDVC]

Why would they not do so for legal reasons? Would someone sue them saying they didn’t allow them to buy it because of the subsidized status? Or is there something more to the equation?

I can't provide legal evidence of this. I just read it from another thread. I'm not a lawyer, and I'm not sure if it's true. But it's believable that there are factors that would make Disney shy away from ROFRing them, similar to how they shy away from ROFRing international contracts.

 

[Smudge1100]

Can I ask if you have to pay your deposit once your offer is accepted or once it passes ROFR? Just don’t fancy putting a deposit down and then not getting it through as it could prove costly with exchange fees on the refund.

We’re from the UK also, get yourself a Monzo account set up. They don’t charge any international fee’s, including when your actually in the US. We’ll have to wire money when the full balance is due but again, you can do that with Wise and pay very minimal charges, and also at that point, it hopefully won’t have a chance of being returned to you

 

[Jobelly]

We’re from the UK also, get yourself a Monzo account set up. They don’t charge any international fee’s, including when your actually in the US. We’ll have to wire money when the full balance is due but again, you can do that with Wise and pay very minimal charges, and also at that point, it hopefully won’t have a chance of being returned to you

Thank you, we have a chase account which we used this summer with no fees in the States, it currently also gets 1% cash back but not sure it would for this.
I haven’t looked at wise but will do, thank you.

 

[DisneyTakeAllMyMoney]

Why would they not do so for legal reasons? Would someone sue them saying they didn’t allow them to buy it because of the subsidized status? Or is there something more to the equation?

Not a lawyer... but would guess all of the subsidized contracts/dues are supposed to forever stay subsidized... so if Disney were to buy one, they would have to give their buyer the subsidized dues which would create a ton of new ick for them- how do you give one "new" buyer (since that's all they sell at Aulani) subsidized dues and not others, etc. Imagine the headache, PR issues, and exposure that might bring. Something about that situation probably prevents them from just snatching up all the old subsidized contracts as they become available, then selling them with "normal" dues, thereby getting them out of subsidizing anything. Would be a nice way to fix it for themselves if they could, so the fact that they don't buy them leads me to believe there's some reason why they can't/don't want to. Or maybe they just have to wait until Aulani sells out and then they are able to sell as sold out.. but there's likely some sort of reason like that why

 

[AKVDisneyFan]

Why would they not do so for legal reasons? Would someone sue them saying they didn’t allow them to buy it because of the subsidized status? Or is there something more to the equation?

I don’t know about Aulani, but we have family friends that had a subsidized Vero contract. They sold their contract back to Disney directly. That was many years ago and I don’t know what the difference is between an Aulani and Vero subsidized contract, so I guess just take that for what it’s worth.

 

[Jimmy Geppetto]

I don’t know about Aulani, but we have family friends that had a subsidized Vero contract. They sold their contract back to Disney directly. That was many years ago and I don’t know what the difference is between an Aulani and Vero subsidized contract, so I guess just take that for what it’s worth.

I never say never… but today I would never sell a contract back to Disney!

Interesting that they bought back a sub Vero. Maybe they can resell it without the subsidy?

 

[AKVDisneyFan]

I never say never… but today I would never sell a contract back to Disney!

Interesting that they bought back a sub Vero. Maybe they can resell it without the subsidy?

I wouldn’t sell a contract back to them either. I wonder if they just didn’t know about the resale market at the time?

 

[DisneyTakeAllMyMoney]

I don’t know about Aulani, but we have family friends that had a subsidized Vero contract. They sold their contract back to Disney directly. That was many years ago and I don’t know what the difference is between an Aulani and Vero subsidized contract, so I guess just take that for what it’s worth.

My guess is that they are still selling Aulani as new, not resale.. while Vero sold out and they are basically able to sell it as "sold out" which makes it different than new, more like resale. And maybe there was some sort of provision that they would have to continue to honor the portion of points that are subsidized until it's sold out.. then they can grab them and get themselves out of the subsidy but maybe not before