So many stripped resales…

[Takeitforgranite]

I’m in the market for a resale, and I built a spreadsheet to help try to capture the total value of a resale, especially when comparing loaded contracts and stripped. What I did was calculate the 3 year total cost per point (2025-2027) and the 12 year total cost per point. I am including dues, since that is large variable at closing. So far, I have only looked at Poly contracts.

• I chose 3 year to look at the short term value of available points because of the wide range of available points and dues required at closing.
• I chose to also look at 12 year because that is what I calculated to be the break even point, when compared to renting privately. I also wanted to see whether or not loaded vs stripped really mattered long-term.

Loaded contracts are coming out to be the best value over the short and "long" term, even if a significant amount of dues are paid through 2026 on the stripped contracts.

If anyone is doing a different calculation, I would like to hear your thoughts. I was mainly just trying to prioritize ranking them against each other, and this is the best way I came up with. UY can make it a little tricky, especially when comparing FEB and DEC UY contracts, for example.

I would be happy to share my file if anyone wants it.

 

[Chili327]

Has anyone else noticed that so many of the resale contracts appearing lately are either partially or completely stripped? And they’re not really priced well enough to reflect that lack of points. Anyone else assuming those are the first bunches of spec rental owners looking to unload some or all of their contracts?

Yes, I do think it is some “commercial” sellers getting out from under the microscope. I hope it keeps up, so the amount of contracts available doesn’t drop.

I would be happy to share my file if anyone wants it.

Yes, please! PM a link or email?

 

[AnnaKristoff2013]

Has anyone else noticed that so many of the resale contracts appearing lately are either partially or completely stripped? And they’re not really priced well enough to reflect that lack of points. Anyone else assuming those are the first bunches of spec rental owners looking to unload some or all of their contracts?

Yeah, I would be anything that a fair number of these are DVC Resale Market unloading contracts that it owns based on the new commercial renting restrictions.

 

[bookbabe626]

The running gag on DVC Show is that everyone borrows their points. It should be no surprise that this includes sellers too.

I guess I must be the only person who never borrows. All borrowing would do is defer my points shortage to next year, and then I’d have to borrow from the year after to accomplish next year’s bookings, and so on. We do cash stays when I run out of the year’s points, or I’ll cancel a points stay in favor of a good cash AP discount so I have extra points for higher cost stays. I sometimes bank, but I never borrow, and I don’t see that changing.

Thus the reason why I’m looking for a small-ish contract to top up one of my resorts where I always run out of points and the cash discounts are usually crappy. I’ve seen a few that match my needs other than the fact they’re stripped, and for a 2042 I have no interest if it’s not at least full points.

 

[Takeitforgranite]

Here is a sample of what I am working on. Hopefully, it is readable.

 

[mommy2twingles]

Yes we are looking to purchase our first contract via resale and almost every contract for the property we are interested is is stripped. The few that are not don't have enough points for us.

 

[Mouseforward]

When I sold my Poly one broker suggested borrowing and renting the points then selling the contract for best value. Seems like a waste of time to me so I priced the contract correctly and sold it at another broker in 7 min.

 

[eticketplease]

I guess I must be the only person who never borrows. All borrowing would do is defer my points shortage to next year, and then I’d have to borrow from the year after to accomplish next year’s bookings, and so on. We do cash stays when I run out of the year’s points, or I’ll cancel a points stay in favor of a good cash AP discount so I have extra points for higher cost stays. I sometimes bank, but I never borrow, and I don’t see that changing.

Thus the reason why I’m looking for a small-ish contract to top up one of my resorts where I always run out of points and the cash discounts are usually crappy. I’ve seen a few that match my needs other than the fact they’re stripped, and for a 2042 I have no interest if it’s not at least full points.

Well I have a later use year so if I continue to borrow until 2040 I will not have to worry about only a few months to use my points in 2041/2042

 

[Mouseforward]

Well I have a later use year so if I continue to borrow until 2040 I will not have to worry about only a few months to use my points in 2041/2042

I am going to walk a night to the last day of boardwalk and get dragged off the property at 11 am.

 

[FrancisK7]

I feel like with aggregate sites being popular now, good deals with loaded contracts are a unicorn.

 

[Cfabar1]

There's an argument to be made for always borrowing your points - you never know if you're going to need/use them in the future...

plus, between rentals, cash bookings, and member to member transfers it isn't like you couldn't find a way to get additional points if you needed them.

To me the disadvantage with borrowing is mostly administrative - I think if you don't play the game carefully you're likely to have a stranded point.

 

[TheDailyMoo]

There's an argument to be made for always borrowing your points - you never know if you're going to need/use them in the future...

plus, between rentals, cash bookings, and member to member transfers it isn't like you couldn't find a way to get additional points if you needed them.

To me the disadvantage with borrowing is mostly administrative - I think if you don't play the game carefully you're likely to have a stranded point.

Yes although that train of thought seems counterintuitive, in practical real world borrowing guarantees you use the points whereas banking, although seemingly like a good idea, can get you stuck with points in the event you can't or just stop using them.

Of course the argument can also be made that this is an argument made by people who always borrow their points and are rationalizing the behavior

 

[Mouseforward]

There's an argument to be made for always borrowing your points - you never know if you're going to need/use them in the future...

I may be wrong , but I think DVC is the only timeshare that lets you use the points without paying the MF upfront.

 

[atthebeachclub]

There's an argument to be made for always borrowing your points - you never know if you're going to need/use them in the future...

plus, between rentals, cash bookings, and member to member transfers it isn't like you couldn't find a way to get additional points if you needed them.

To me the disadvantage with borrowing is mostly administrative - I think if you don't play the game carefully you're likely to have a stranded point.

I went into this thinking I always wanted a surplus but over time have come to realize borrowing from the future is probably the better choice. I may actually have more points than I truly need; if I just borrowed more I’d probably need one less contract most of the time.

 

[dioxide45]

I may be wrong , but I think DVC is the only timeshare that lets you use the points without paying the MF upfront.

Marriott Vacation Club allows you to borrow without paying fees. Not really sure about Hilton Grand Vacations Club but I believe Club Wyndham allows you to borrow without paying fees first.

 

[Mouseforward]

Marriott Vacation Club allows you to borrow without paying fees. Not really sure about Hilton Grand Vacations Club but I believe Club Wyndham allows you to borrow without paying fees first.

I thought Marriott Vacation legacy weeks required payment

 

[jdtopgun71]

Has anyone else noticed that so many of the resale contracts appearing lately are either partially or completely stripped? And they’re not really priced well enough to reflect that lack of points. Anyone else assuming those are the first bunches of spec rental owners looking to unload some or all of their contracts?

Can someone explain to me what is meant by "stripped down" contract? If I understand it it means that the seller has used all the points for this year and possibly future points?

 

[Brian Noble]

I believe Club Wyndham allows you to borrow without paying fees first.

Yes, but only within 90 days of check-in. And, borrowing is not a final transaction, so you can't book a phantom early in the UY, cancel it, and have the points stay in that UY for a later check-in.

It used to be possible about ten years ago to either put future year points into the Points Pool and have immediate use of the Pool Credits, or borrow, cancel, and rebook. But both of those ended around the same time they made VIP cancel-rebook improbable in one of their anti-mega-renter moves.

 

[pzw90]

Can someone explain to me what is meant by "stripped down" contract? If I understand it it means that the seller has used all the points for this year and possibly future points?

Correct. You should be getting a credit for future dues if future points are used, or at least have it reflected in the price.