Since DVC purchase is not forever, won't prices have to go down?

[Granny]

Dean I agree completely with you about the ROFR...............that is always looked at as the biggest reason that prices have stayed up but with each passing yr since 1991 the power of the ROFR has lost steam..................

I'd be interested to hear why you think this. It's hard for me to think that Disney could go from pricing points in the $50's to over $100 without this tool to keep the resales from undermining new sales. Again, I'm not very savvy in the timeshare valuations, so I probably am off base.

 

[CarolMN]

I'd be interested to hear why you think this. It's hard for me to think that Disney could go from pricing points in the $50's to over $100 without this tool to keep the resales from undermining new sales. Again, I'm not very savvy in the timeshare valuations, so I probably am off base.

I'm interested, too - especially wondering about the "but with each passing yr since 1991 the power of the ROFR has lost steam" comment.

 

[Dean]

I'd be interested to hear why you think this. It's hard for me to think that Disney could go from pricing points in the $50's to over $100 without this tool to keep the resales from undermining new sales. Again, I'm not very savvy in the timeshare valuations, so I probably am off base.

IMO, DVC has been more aggressive with ROFR the last couple of years and it has thus had more impact on the numbers. Prior, there were rarely times when the resale price wasn't at or above ROFR without a lot of buy backs.

Other timeshare have gone up in value including RTU but as I noted, it's not the usual. DVC is not unique but certainly leads the pack in that area.

 

[dvc at last !]

Disney is a class act. Let's keep the prices up !

 

[Granny]

IMO, DVC has been more aggressive with ROFR the last couple of years and it has thus had more impact on the numbers. Prior, there were rarely times when the resale price wasn't at or above ROFR without a lot of buy backs.

Thanks for the feedback. Your comments would seem to contradict bongo59's in that it would appear that ROFR is used much more now than it was in the early years of DVC.

Any thoughts on why Disney would be stepping up ROFR's? When I purchased via resale in 2002, my purchase price was about $16 per point below the Disney direct price at the time. Maybe because then they were selling the highly popular BCV and resale market wasn't as much of a competitor?

Again, thanks to all for the timeshare lessons. It is certainly an interesting business model!

 

[Dean]

Thanks for the feedback. Your comments would seem to contradict bongo59's in that it would appear that ROFR is used much more now than it was in the early years of DVC.

Any thoughts on why Disney would be stepping up ROFR's? When I purchased via resale in 2002, my purchase price was about $16 per point below the Disney direct price at the time. Maybe because then they were selling the highly popular BCV and resale market wasn't as much of a competitor?

Again, thanks to all for the timeshare lessons. It is certainly an interesting business model!

Saratoga Spring Resort and the need to push it more than the previous two resorts.

 

[hollyberry16]

Don't you buy a certain number of years? (50 yrs?)
Like, it doesn't make sense to me, that a couple who bought DVC in 1999 say would expire the same year that I buy my membership today in 2006. If that's the case, that seems really stupid.

 

[Dean]

Don't you buy a certain number of years? (50 yrs?)
Like, it doesn't make sense to me, that a couple who bought DVC in 1999 say would expire the same year that I buy my membership today in 2006. If that's the case, that seems really stupid.

OTOH, it would be stupid for one DVC to sell a resort with multiple expirations. They need it to revert back in a neat package. It's no different than buying a stock. I might pay more or less than you but even at the higher price it MIGHT be a good deal.

 

[hollyberry16]

I've never heard of stocks having an expiration date (but also I haven't been in the stock market before) I know bonds expire, but I thought that they were amortized to what you bought them at - like 8 out of ten years etc.

I don't get how it would be stupid for DVC to sell a resort with multiple expirations?

 

[Dean]

I've never heard of stocks having an expiration date (but also I haven't been in the stock market before) I know bonds expire, but I thought that they were amortized to what you bought them at - like 8 out of ten years etc.

I don't get how it would be stupid for DVC to sell a resort with multiple expirations?

The stock reference was to different prices up front, not related to expiration. It would be a great hassle, not to mention likely illegal, for DVC to sell the same resort components with different end dates. For Disney it's a nice package with all ending at the same time. And since DVC is able to sell as is, why would they care otherwise. They have no real reason to worry about it and by the time a given resort starts to decline in value, DVC won't care anyway. DVC's goal is to make money now and get the resort back in total at a future specific date.

Lets assume DVC did sell multiple expiration dates, just for the sake of discussion. As long as one member still owns, they can't dispose of the resort in question. They have to have infrastructure in place. And can you imagine the fees if there were only a few owners left as those few owners would have to cover ALL the expenses associated such as front desk, housekeeping, transportation, etc. Now it's possible if the resort were used for other money making ventures that those would also contribute to the resort costs but not guaranteed.

 

[Towncrier]

I know exactly when the price will start to erode. The day after I put my OKW points up for sale. I just hope that day never comes.