Should we split up the contract?

[kstinw19]

We just bought into our first DVC contract at BLT, 320 pts.

I have heard that we should split this up for resale later. Can someone pls explain why we should do this?

If we do, how long do we have to split it up?

Thanks!

 

[Sandisw]

The benefit of splitting your contract is it allows you to sell some of your points down the road and still be a DVC member if you find that 320 is not what you need any longer. Plus, smaller contracts sell faster, and usually for more, as well.

In addition, if you have children, it makes it easier to pass them along. If I were you, I would split them in to 3 contracts, 100, 100 and 120.

If you have just bought, contact your guide and tell him that you prefer to get them as smaller contracts (whatever you choose). It is just a matter of re-doing the paperwork and won't affect your membership in any way.

 

[rock_doctor]

Yea let your guide know. It is so common to do this that Disney is use to it and he will not care. We did ours in two contracts mostly to make it easier to sell if we need to in the future.

 

[bams50]

It should be noted that you can not split up completed contracts! You can do this at time of original purchase only.

If you have not yet closed, definitely do split it. If you have closed it is too late.

 

[icydog]

If you can do it-- then do it by all means. If you missed the boat don't worry. One of the things I am finding difficult is when selling my DVC contracts, and they are mostly 100 points, I have to have many closings to get to a decent number.

For example I have a 150 VB points left that I haven't sold. I have one 100 point contract and one 50 point contract. I had a buyer who wanted the whole 150 points but did not want to pay for two closings. That is the one drawback to having many small contracts. When you sell them you have to find someone who is interested in making a small entry into DVC.

 

[LIFERBABE]

If you can do it-- then do it by all means. If you missed the boat don't worry. One of the things I am finding difficult is when selling my DVC contracts, and they are mostly 100 points, I have to have many closings to get to a decent number.

For example I have a 150 VB points left that I haven't sold. I have one 100 point contract and one 50 point contract. I had a buyer who wanted the whole 150 points but did not want to pay for two closings. That is the one drawback to having many small contracts. When you sell them you have to find someone who is interested in making a small entry into DVC.

Yes, there is a point when your contracts can be too small and make it cost prohibitive. Especially with the 2011 reallocations, I think the micro contracts will lose some of their appeal.

 

[icydog]

Yes, there is a point when your contracts can be too small and make it cost prohibitive. Especially with the 2011 reallocations, I think the micro contracts will lose some of their appeal.

Are there more reallocations planned for 2011. Didn't we have enough in 2010??

 

[Deb & Bill]

Are there more reallocations planned for 2011. Didn't we have enough in 2010??

They can do it every year if they like. Read your documents.

 

[thelionqueen]

As many others have already posted, definitely split the contract if you can. If you are a first time purchaser, I believe you must start with one contract of at least 160 pts then can split the other contracts as you wish. I would suggest 160 and 2 80 point contracts. Higher resale value and deeding to children/family is much better with smaller contracts. If you have already closed, it is too late, but if you haven't closed yet, just call your guide and have them redo the contracts. Best of luck with whatever you decide!