Stripped contract

[~MandR~]

We just sold our OKW contract and are awaiting closing. We are downsizing and purchasing a smaller contract at a different resort. Due to having a special needs girl (epileptic australian shepherd) we have not traveled and are not planning anything in the near future. Unlike most that are looking for loaded contract we are looking for a stripped one as we don't want to pay mf and won't need the points for a while. Okay bargain-hunting, DVC purchasing extraordinaires which resort out of our favorites do you think we have the best likelihood of getting a bargain from a stripped contract...AKV, VWL or BWV?

 

[Kimly]

AKL, for sure. There is always a ton of them for resale. But who knows you might get lucky and find a BWV or VWL, there was a BWV I saw this morning but also a low point amount, that I wishfully thinking I could pick up. Good luck!

 

[pangyal]

Personally, I would look at AKL in your situation because if you are already giving up two years or so, perhaps a longer expiration would be better in order to balance it out?

Best wishes for the health of your furbaby ! I've been there and am sure many others can relate as well

 

[tasha99]

I would just look and see what's available, and of course, put a time limit on any offers you make. Since you're not in a hurry, you can get a bargain. I did the same thing for our VGC contract. I was fine with a stripped contract--it was cheaper per point and no MFs--perfect since we have other plans for this and likely next year anyway.

 

[supersnoop]

Don't focus on a stripped contract. The savings of buying stripped doesn't reflect the actual value of the points. You can rent points out for about $13/point, but stripped contracts are typically only discouted about $4-$5 per missing point, even when maintenance fees are taken into account. You'd be better off to buy whatever resort and use year is available and rent out any extra points.

 

[Dean]

We just sold our OKW contract and are awaiting closing. We are downsizing and purchasing a smaller contract at a different resort. Due to having a special needs girl (epileptic australian shepherd) we have not traveled and are not planning anything in the near future. Unlike most that are looking for loaded contract we are looking for a stripped one as we don't want to pay mf and won't need the points for a while. Okay bargain-hunting, DVC purchasing extraordinaires which resort out of our favorites do you think we have the best likelihood of getting a bargain from a stripped contract...AKV, VWL or BWV?

Stripped contracts are more expensive overall because the price reduction does not match the lost value of the contract. IMO, you'd be better off waiting and buying later at say SSR or AKV than buying a stripped contract now. The advantages are that later you could buy a smaller loaded contract and in the interim you wouldn't have any costs. Then when you know you can proceed, you'll be ready to do so. SSR is likely to give you the best options for savings short and long term, far more so than AKV because there will be more contracts available and the dues will cont to be significantly less.

 

[tasha99]

Stripped contracts are more expensive overall because the price reduction does not match the lost value of the contract. IMO, you'd be better off waiting and buying later at say SSR or AKV than buying a stripped contract now. The advantages are that later you could buy a smaller loaded contract and in the interim you wouldn't have any costs. Then when you know you can proceed, you'll be ready to do so. SSR is likely to give you the best options for savings short and long term, far more so than AKV because there will be more contracts available and the dues will cont to be significantly less.

I have read that, and while it seems true, that's only on the average. Just comparing my VGC stripped contract purchased a few months ago to contracts that are currently out there of similar small size, it was $12-$22pp less than what I'm seeing now. The irony is that the current ones are stripped as well! I think some people are just in a hurry to sell.

One advantage of getting it purchased now is that you never know if it will pass ROFR. It's much easier to take a hit on that a year or two before a planned vacation. I wouldn't focus solely on stripped contracts--banking points or renting them out are ways to deal with an excess. Just go for the best deal, either way.

 

[~MandR~]

Our reasoning is assuming prices will rise. If we purchase in and don't have any mf then it's not costing us anything and we've got the price locked in. Now if prices do not rise and/or fall then this theory will be blown out. Funny, SSR is absolutely our least favorite resort and would only stay if absolutely had to. Just not our cup of tea so never even considered it. $ wise probably not smart but....

 

[Dean]

I have read that, and while it seems true, that's only on the average. Just comparing my VGC stripped contract purchased a few months ago to contracts that are currently out there of similar small size, it was $12-$22pp less than what I'm seeing now. The irony is that the current ones are stripped as well! I think some people are just in a hurry to sell.

One advantage of getting it purchased now is that you never know if it will pass ROFR. It's much easier to take a hit on that a year or two before a planned vacation. I wouldn't focus solely on stripped contracts--banking points or renting them out are ways to deal with an excess. Just go for the best deal, either way.

Certainly if one is looking at a difficult to find option, it might be good to look now but I think that's the only time when buying now for later is a good idea. Prices on the things like SSR are unlikely to go up and likely to go down.

Our reasoning is assuming prices will rise. If we purchase in and don't have any mf then it's not costing us anything and we've got the price locked in. Now if prices do not rise and/or fall then this theory will be blown out. Funny, SSR is absolutely our least favorite resort and would only stay if absolutely had to. Just not our cup of tea so never even considered it. $ wise probably not smart but....

Prices on the things like SSR or the others you mentioned are unlikely to go up and likely to go down. IMO, the worst case scenario is they stay stable. Regardless, a stripped contract now vs a loaded one later is not likely to be the best option but if you're looking at smaller enough to think it'll be difficult to find like 50 points or so, maybe. Certainly you could buy now and rent out but you'll still be better off looking at a loaded contract as the higher cost and extra dues are almost certainly to be less than the points lost in terms of value. IF you're looking at a smaller contract then you might be better off just buying a smaller VGF or Poly one now before you close if you still can. Unless you were looking to stay at a specific resort much of the time the other resorts you mentioned don't add much but maybe if you'll actually use them, esp BWV standard or AKV value those would make more sense. If you just want points to use though, possibly not. Don't let your dislike of SSR color your objectivity on the $$$ value if you don't plan to use the points at the home resort much anyway. You can basically always get AKV with SSR and generally get BWV for Pool/Garden view for most times with a little planning.

 

[~MandR~]

Just wanted to say thanks Dean! After reading your comments it changed my mind set somewhat. After looking again at what's on the resale market and what asking prices are you seem to be spot on. Among my three that it was narrowed down to, we were all but set on AKV and the news comes out today about the new construction at VWL. I hate variables, as I'm so indecisive anyway. Back to my drawing board.

 

[Dean]

Just wanted to say thanks Dean! After reading your comments it changed my mind set somewhat. After looking again at what's on the resale market and what asking prices are you seem to be spot on. Among my three that it was narrowed down to, we were all but set on AKV and the news comes out today about the new construction at VWL. I hate variables, as I'm so indecisive anyway. Back to my drawing board.

Whatever you do and whenever you do it, don't beat yourself up going forward. The more info and experience you have and the further you are from the emotions, the better choices you'll make. Good luck with you next purchase.

 

[Hogzilla]

I would just look and see what's available, and of course, put a time limit on any offers you make. Since you're not in a hurry, you can get a bargain. I did the same thing for our VGC contract. I was fine with a stripped contract--it was cheaper per point and no MFs--perfect since we have other plans for this and likely next year anyway.

Agree with this completely. Loaded can actually be cheaper if you are OK with renting out the points. I bought a fully loaded 200 pt contract for a couple dollars more per point and those extra 400 points (over a fully stripped) are worth over $5K rented.

 

[tasha99]

Agree with this completely. Loaded can actually be cheaper if you are OK with renting out the points. I bought a fully loaded 200 pt contract for a couple dollars more per point and those extra 400 points (over a fully stripped) are worth over $5K rented.

Our SSR contract was fully loaded. A sensible person would have rented half the points, but instead, we're taking an insanely extravagant trip this year (for us). Then it will be back to either smaller rooms, shorter stays, cheaper resorts, or some mix of that.