Selling / Buying Different Resort

[NJ Goofy]

We currently have two contracts, one smaller one at a resort we love to stay at and one larger contract at a resort we'd rather not stay at if possible. It has been becoming increasingly difficult to get a reservation at the 7 month period at the resort we prefer. I was thinking about selling the larger contract and buying a comparable contract at our preferred resort. Other than losing 12 years of contract time (which I understand is a big deal) are there any other cons I'm not thinking of ??

 

[Marionnette]

We currently have two contracts, one smaller one at a resort we love to stay at and one larger contract at a resort we'd rather not stay at if possible. It has been becoming increasingly difficult to get a reservation at the 7 month period at the resort we prefer. I was thinking about selling the larger contract and buying a comparable contract at our preferred resort. Other than losing 12 years of contract time (which I understand is a big deal) are there any other cons I'm not thinking of ??

Aside from shorter contract life there's the difference in dues, capital gains and commission on the sale of your large contract, larger price per point and closing costs on the second contract, lengthy closing time for both the sale and purchase, possible resale restrictions on the new contract that the old contract does not have.

But if you never want to stay at a resort that you own and you're getting frustrated trying to use it elsewhere, then it probably is time to sell. There's no reason to hold onto something that you're not getting enjoyment from.

 

[stwaldman]

I'd also add you should ask yourself how important is "exit strategy" in general. The 2042 contracts are going to eventually see some sort of dip related to contract expiration, so if you're buying fresh contract in 2022 because you need more points, you're intention is probably to hold it at least long enough to be a part of that dip, if not hold it until expiration. Maybe this was your plan with a 2050s contract as well, but presumably the 2050s expiring resorts have a little more shelf life on their resale value.

 

[SG131]

Are you a blue card member? If you are when/how you bought both current sets of points will matter regarding maintaining blue card status if you’re planning to buy your new points resale.

 

[NJ Goofy]

Thank you all for pointing out some issues.

I am a blue card member, I bought the larger contract direct and the smaller one as a resale before there were white cards. Would I keep my Blue card status with the smaller contract ?

 

[stwaldman]

Thank you all for pointing out some issues.

I am a blue card member, I bought the larger contract direct and the smaller one as a resale before there were white cards. Would I keep my Blue card status with the smaller contract ?

if your smaller contract is grandfathered in under the terms in which it was bought, yes you would. You would just need to confirm to the rules in place at the time of purchase (which it sounds like you did).

 

[legler2250]

Have you considered renting out the points at the resort you prefer not to stay and hold the contract? The idea of paying capitol gains and broker fees would be a bit of a deterrent from selling.

 

[NJ Goofy]

I could rent my points out at SSR and then rent points at the resort we'd like to stay out, but the rental market for SSR is hit or miss. Yes, I wouldn't be paying the gains tax or broker fees, but I'd be paying tax on the rental and the cost to rent at the other resort would be substantially higher each year than SSR.

 

[nlenguyen]

I could rent my points out at SSR and then rent points at the resort we'd like to stay out, but the rental market for SSR is hit or miss. Yes, I wouldn't be paying the gains tax or broker fees, but I'd be paying tax on the rental and the cost to rent at the other resort would be substantially higher each year than SSR.

That is what I am wondering, because we have SSR resale, but instead of selling it with a small margin, would it be better to just rent those points out each year and get another contract to get 11 month priority?

 

[NJ Goofy]

Four or five years ago I would have said it didn't matter. You could use those SSR points to book any other resort (within reason) at 7 months. But even before the pandemic, we've had a tougher time getting the resort we'd like at 7 months, as I noted above, quite often we had to rent a 1 bedroom instead of a studio. Of course we don't mind the extra room, etc., but it's also almost double the points.

 

[SG131]

Thank you all for pointing out some issues.

I am a blue card member, I bought the larger contract direct and the smaller one as a resale before there were white cards. Would I keep my Blue card status with the smaller contract ?

If you purchased your resale before April 2016 you will keep your blue card. If you purchased after you lose your blue card if you sold Saratoga.