Sell or keep?

[disneymotherof3]

My DH and I are debating whether or not to sell or keep our contract. Let me first say that we have no problem paying for it and are not in a bad situation. We're just looking for some different perspectives. So we're asking our DISBoards friends for some help.

We currently have a 110 pt. OKW contract. We're debating on selling it and buying a 160 pt. SSR contract (more points and longer use). Here's where the confusion starts. We still owe some money on our current contract, but if we were to sell it, we would pay it off and still end up making a little money on it that we could apply to a new contract.

We could keep it and buy another, but we really don't want to be strapped down to paying both MF's. We just don't want to overextend ourselves.

What would you do? Thanks for your opinions!

 

[Chuck S]

From your photo, it looks like your family is young enough to enjoy a DVC Membership for the longer term of the SSR contracts. So selling and repurchasing may be good option for you. Don't forget, though, that if you are looking to save a little money in the short short term, you can also extend your current OKW contract for an additional 15 years, and any new add-ons through Disney at OKW are also extended. So it kind of boils down to which resort you like best between OKW and SSR, if those are the only two choices you're looking at and how much of a lump sum you want to put towards this purchase initially.

 

[disneymotherof3]

That's an idea that we didn't think of. See...that's why we wanted to ask you all. The only thing is that if we were to buy a new contract, we would more than likely buy resale. The prices for SSR thru resale are really good right now. So if we were able to find a "loaded" contract, then that might be worth it. This whole thing is sooooo mindboggling!

 

[backyardponder]

Personally, I'd call TSS or any of the other major resale companies and talk it over with them. They could give you some numbers which would include commissions, closing costs, etc. which might help you with your decision.

My only question of you is whether you are willing to pay the sales comission to basically move across the street? Myself, I'd be looking to add on at OKW, maybe with 2057 points.

 

[robertdangelo]

In addition to extending at OKW... you could but a small contract at SSR if you wanted more points. By banking borrowing with a 50 point for example, you could stay there every other year or so and have the 11 month booking.

 

[Crystal_27]

My only question of you is whether you are willing to pay the sales comission to basically move across the street?

As I was reading your post, this exact question came to mind. I could see if you were wanting to sell your OKW contract in order to buy into a resort that was within walking distance to a park, but I don't know that I personally would deal with the hassle of selling a OKW contract, taking the hit on commission, and then buying into the same type property (in terms of location and size) at SSR. I think if I were in your shoes, I would do a 50 point add on to your OKW contract to be where you wanted to be in terms of points, and then maybe look at paying to extend your contract if you still wanted the extra years. Either way, best of luck with your decision.

 

[Dean]

My DH and I are debating whether or not to sell or keep our contract. Let me first say that we have no problem paying for it and are not in a bad situation. We're just looking for some different perspectives. So we're asking our DISBoards friends for some help.

We currently have a 110 pt. OKW contract. We're debating on selling it and buying a 160 pt. SSR contract (more points and longer use). Here's where the confusion starts. We still owe some money on our current contract, but if we were to sell it, we would pay it off and still end up making a little money on it that we could apply to a new contract.

We could keep it and buy another, but we really don't want to be strapped down to paying both MF's. We just don't want to overextend ourselves.

What would you do? Thanks for your opinions!

Unless one just has to have a given home resort, are downgrading from a resort easy to sell higher or are downsizing significantly; it doesn't make sense to sell and buy again in the same time frame. For sake of discussion say you sold OKW at $60 a point and bought SSR at $75 a point. That's $1650 difference, plus $660 commission, plus roughly $400 on closing for the new contract. Lets further assume that the points accounting is relatively neutral. So you've just thrown away $2700 essentially for a home resort you can get into easily for most times and unit types and for an extra 12 years of usage. If you take that $2700 plus the extra you would have spend on the extra 50 points, you'll have around $6500. You can do an add on for 50-60 points direct for that and get a higher demand (than either) home resort. If you take that amount and go resale, you can pick up even more points, closer to 100 at SSR. So for around the same cost you could end up at 200-210 points (OKW plus SSR) instead of 160 SSR points. Your dues will be more by about $250 a year and you'll still lose OKW in 2042 but have the SSR remaing.

 

[lugnut33]

And lets not forget that OKW is going through a major complete refurb. this year, so it will be practically like new.

I think the extension idea is a winner.

 

[disneymotherof3]

Thanks everyone for your input! I think what we've decided to do is to just hold on to what we have. We're in no rush to do anything. We've talked about just maybe doing a small add-on at SSR. I think we're pretty set on going the resale route because it seems that we can get more for our money.

Again, thank you to everyone for your input!