Sorta changed my mind re: extension

[DVC Grammy]

After having posted that I wouldn't be interested in extending one of our contracts (BWV) if offered, I'm thinking that for resale purposes, those longer contracts will be more appealing, and therefore hold a higher value. Is my thinking way off?

I'm okay with eating crow; after all, how different can it taste than chicken?

 

[Chuck S]

The resale value would be the only reason for me to consider the extension, as in 2057 I'll be 99 years old, and not likely traveling, or breathing.

At the moment, I just don't think the extension wold be a wise thing for me to do. Now, if I had kids or other heirs that could use it, and appreciate Disney...then I would consider the extension.

 

[Anthony1971]

Although to some extent I agree with the resale price theory but if they exetnded all contracts to 2057 I do not think the prices will go up 25 a point. I agree in 2042 it will be worth more than without the extension but how much will it be worth is the better question?
Being this seems to be a you can if you want deal will an extented contract be worth 25 a point more? I doubt this will be the case as well as SSR is not 25 more a point then OKW now which would be most comparable.
I think it is more or less if you can use it it is a good deal.. But this would 100% depend on the number of people who take advantage of this which is the third side.. If 99% upgraded than the 1% might be worth a lot less but on the other hand if you were 50 with no children and buying a contract it would not matter and if the shorter contract was 10 a point less or 1,500 I would choose the shorter and spend the 1,500 elsewhere.
I do not think this will be worth it for resale I think it will be worth it for you..

 

[salmoneous]

Initially, the extension is going to increase the resale value by less than $15/point. By 2042, the extension is probably going to be worth a lot more than $15 bucks.

If you are buying the extension to increase resale value, you are betting on real estate. Maybe it will pay off, maybe it won't. Personally, if I'm going to engage in real estate speculation and exotic investments, I don't think DVC is the place I'm going to do it.

 

[jarestel]

It's only relevant if you're pretty sure you'll be selling your contract at some point and you have convinced yourself you will recoup the money spent now in some future sale. Buying the extra years just in case you might decide to sell someday would, IMO, not make a lot of sense.

 

[Inkmahm]

The resale value would be the only reason for me to consider the extension, as in 2057 I'll be 99 years old, and not likely traveling, or breathing.

At the moment, I just don't think the extension wold be a wise thing for me to do. Now, if I had kids or other heirs that could use it, and appreciate Disney...then I would consider the extension.

I'm in the same boat- 99 years old in 2057. I have no children, but DO have nieces and nephews that are spoiled to death by me. I talked to the oldest yesterday just to see what she'd think about someday owning DVC. Of course, she is just 16 now and still loves WDW, who knows if she will still love it in 2057? I might extend just to be able to pass on more years of use to the heirs. I certainly don't need them myself.

 

[tjkraz]

Initially, the extension is going to increase the resale value by less than $15/point. By 2042, the extension is probably going to be worth a lot more than $15 bucks.

By 2042, $15 invested now at 6% will be worth over $115.

So the real question is whether 15 years be worth THAT much more on the resale market?

 

[LauraLea]

At the end of the extension, it will be a 65 year old resort. Do you really want to pay maintenance fees on that old of a building? At my age (i'll be 88 in 2042) it will not benefit me and my grandchildren will have granchildren by 2057. By that time who knows where they will want to vacation and spend family time. I do want to believe WDW will hold it's magic for generations to come, but I do not want to burden my future family with my dream.

Just my 2 cents worth........Laura

 

[jekjones1558]

Who knows what other vacation options may be available by 2042? Perhaps something that isn't available anywhere now. Perhaps WDW will be outmoded in comparison to the latest and greatest new vacation idea of 2042. 35 years ago who would have predicted DVC to be the growing entity it is?

 

[DVC Grammy]

You've all brought up very interesting points.

We do consider the possibility of selling at least one of our contracts someday, and since BWV is the "oldest" that would be the first we'd sell. Also, I'm considering the extension offer only if the same $15 "early discount price" is available. At $25, it's not attractive enough as a possible recoup.

Two of our three kids aren't "Disney" folks (mea culpa, mea culpa ), so there's a chance that only our DD will want to continue with DVC. Given our point distribution, BWV would be the logical home to sell. One third of our points are in the AKV, so that could be hers.

DH and I are just tossing around the possibility of selling in 10-15 years and we were wondering if buying those "extra" years as an extension would be the smart thing to do.

Well, so far, we haven't been offered the option, so it may just be a moot point after all.

 

[Kickapoo Joie Juice]

I've been thinking about it, and my feeling at this point is no, because look how much DVC has changed in the 15 years (I've got the pin!) since it started.

And not so much in a good way, either, for the most part.

I'm just not sure I like what I see on the horizon...

 

[drusba]

I own at BWV and I am struggling with the issue too if it is offered there. In fact, the thought process has turned morbid as I have started using terms such as my "estimated time of departure" and I am not talking about traveling to somewhere on this earth except six-feet straight down. It goes like this. I will not be using the extra 15 years absent some miracle in science. However, "wuf" (short-hand for "what if"; I sometimes call my most inquisitive daughter the "wuf" kid) I were to depart in about 20 years. My plan has been to keep my childrens' options open. If I die still owning, I would like them to be able to choose to either sell or keep it (there are three and I can easily divide the ownership interests I have in three without actually dividing any one contract). So I am looking at what the situation will likely be about 20 years from now. With the extension, they will have the option to keep with still 30 years to go or the option to sell with 30 years left, and thus likely a higher resale value than if there were only 15 years to go at that time. But I am having a real hard time trying to figure out what price for the extension would be reasonable for keeping that death-wish open. Thus, I have tried to do various evaluations based on my estimated time of departure which, from the standpoint of the kids, I refer to as their "options" date since alternatives I am also comparing it to include investement in the stock market. At this point, it looks like it might be a go if the price is $15 a point, but at $25 the plan may be reconsidered. But it is all guesswork and prognostication and as I progress in the financial analysis my estimated time of departure inexplicably keeps moving further into the future and I have been mentioning to the One we hope that listens that I would like a right of first refusal on that estimated time of departure.

 

[JimC]

I ran some projections factoring time value of money, likely changes in dues, hotel rates and the like. At $15 it passed, at $25 it did not. But I still come back to trying to figure out what it does to interim resale value as that is the driving variable that I am trying to figure out.

 

[tksbaskets]

I'm new to DVC but if I am going to invest approx 5K in DVC would I rather extend my contract for 35 years from now or enjoy an extra 50 points for the next 35 years? Hmmmmm

 

[OneMoreTry]

I've got some land for sale in the Everglades. Email me at suckerdotcom once you've paid off your 2057 extension.