Smaller Contracts vs Larger Ones?

[xmas16]

Why do some people purchase multiple contracts that are smaller instead of just one larger one? I've seen posts where some say that if they did it all over again they would have bought smaller contracts. What is the advantage?

 

[Sandisw]

If you ever want to sell some points, you can do that if you own multiple contracts. And, those tend to sell for more and easier than larger ones. If you own 200 points in one contract, you must sell or keep it all--it can't be broken up later.

I own 180 points but one is a 130 point contract, and the other is 50. If I ever got to a point where I really didn't need all 180 points, I could sell either and still remain a DVC member.

I plan on adding on a few more points in the near future and will only do 25 - 30 point ones from now on.

 

[RobDoc]

The advantage with smaller contracts is that they are usually easier to sell. If you plan to keep your points thru the expiration date, there is no advantage in a smaller contract.

Since members are not able to break up a contract after purchase for sale purposes, if you should purchase more points than you really need you would not be able to sell a portion at a later date. By purchasing smaller contracts, selling a portion of your total is possible should that be needed.

 

[crisi]

The other thing that happens is people decide they want to own at more than one resort. So they buy a few BWV points to get themselves a standard view room over Food and Wine. Or a few VWL so they can take a December trip every three years. Or some AKL to make sure they get conceriege every few years. Or enough points to get a treehouse villa or a OKW grand villa every few years. (Or all the above).

Even if you own more than one resort, you can only use that resorts points to book more than seven months out. So if you buy 160 SSR points for your main contract and 40 BCV points to use SAB, you can only use the 40 BCV points (or combine three years of points for 120 points) at BCV at the eleven month window.

 

[SamSam]

Another advantage to smaller contracts is if you plan on leaving children your contracts, it's much better to leave.....say, two 100 point contracts to different children, then a 200 point contract to both of them.

 

[DisneyStarWisher]

We want smaller contracts so that if something happens to us, our kids can divide them.

SamSam, I think we were posting at the same time!

 

[xmas16]

What are the advantages of buying multiple contracts at different resorts? Can you use the points from all of your different contracts and combine them for a stay?

 

[chalee94]

What are the advantages of buying multiple contracts at different resorts?

you get the 11 month booking advantage (for that resort). with banking and borrowing, a 50 pt BLT contract gets you 150 BLT pts (for booking BLT at 11 months) every third year.

Can you use the points from all of your different contracts and combine them for a stay?

at 7 months, yes - if there is availability. can't combine them at 11 months.

 

[wdrl]

What are the advantages of buying multiple contracts at different resorts? Can you use the points from all of your different contracts and combine them for a stay?

Yes, you can combine your points, but with some restrictions. At the 7-month window, you can combine your points to book at any resort. However, before then, your points can only be used at each home resort. For example, I can use by BLT points to book a reservation at BLT at the 11-month window, but I can't use any of my AKV points at BLT until the 7-month window.

There are also some restrictions if you own multiple contracts under separate master contract numbers. This can happen when a member has contracts with different UYs or if the contracts are titled differently. You can't combine points from different master contracts to book a single night. You would have to transfer points from one contract to the other in order to book the room under one contract. Lets assume you have two SSR contracts: a 150-point contract with a June UY and a 50-point with a December UY. If you book a 4-night reservation at SSR beginning 6/20/10, it costs 40 points/night or 160 points total. Since you don't have enough points in either contract to book the entire stay, you would have to either book 3 nights (120 points) with one contract and 1 night (40 points) with the second contract; or transfer 10 points from the smaller contract and then book all 160 points with one contract. I've made this sound a lot more confusing than what it is, so don't be scared by my poor writing skills.

 

[js]

Is this correct:

I currently own 300 points.

I will add on approximatley another 100 points resale in the next couple of months, BUT with same U/Y.

Once I close and my points are deposited, although I can make my ressies and bank/borrow seamlessly through Disney since same U/Y, they are still 2 seperate contacts?

Is this correct?

Thank you.

 

[chalee94]

they also need to be titled exactly the same.

but yes, if they are for the same resort, you will be able to combine pts seamlessly as if they were one contract, but later you will still be able to resell the contracts or will them as a 300 pt contract and a 100 pt contract.

 

[Dean]

As noted it gives you choices and options going forward though there are some things to be mindful of such as the title being the same, UY, even home resort, etc. It is a major advantage but NOT one worth paying a lot more for. Thus buying multiple smaller packages resale for the sake of having this advantage is almost never (possibly never) worth paying the extra per point and closing costs either retail or resale. And it's not worth it to buy retail simply for that purpose rather than buying resale giving up that option. Buying a single resort resale you'll get the best deal in almost every circumstance by buying the largest contract size possible assuming you control for the other variables of points availability and dues costs. It works best for those adding on to existing contracts, those buying newly opened resorts that are not available resale more cheaply (like BLT) and those buying smaller contracts where buying retail isn't that much difference in cost over resale.

 

[SamSam]

We want smaller contracts so that if something happens to us, our kids can divide them.

SamSam, I think we were posting at the same time!

Great minds think alike.

 

[raykit98]

I think I will follow this plan buy many small contracts

 

[Dean]

I think I will follow this plan buy many small contracts

Inherently smaller is better but it MAY be more expensive depending on how you get there. It is not worth going retail or paying significantly more in both costs and closing to get there. IMO, smaller contracts make the most sense for one getting their feet wet in the system, just needing a smaller amount of points and those adding on slowly as they can afford or need to. Possibly also to get multiple resort priorities along the way as well. Resale you could easily pay $20 a point (same resort) or more over larger contracts depending on specifics. While I agree it's the best position, carefully weigh the costs and aggravation of getting there.