Stripped contract

[Girlstar30]

Or transferring them out, & into another for later use.

This doesn't handicapp they're ability to sell?

 

[Brian Noble]

Your statement was “a reason to avoid them entirely”…. it’s reasonable to assume that many people would read that as “no one should buy them”.

I guess. I mean, I wouldn't, but I suppose someone else could. I've always relied on the fact that words mean things, and "A reason not to <blah blah blah>" is just not the same as "no one should <blah blah blah>". That's particularly true given the "Depending on age" caveat I included earlier in the conversation. For someone who is 40, 2042 means something very different than it does to someone who is 60. Likewise if someone is "only going for the kids," vs. "I can't wait until I can take adult-only trips."

However, I should know better when it comes to discussions about Disney things. Woe be to anyone who suggests the way someone else vacations at Disney is wrong.

You should have seen what happened back when I suggested someone book a throwaway campsite for access to EMH. I only made that mistake once, because the Fort people are organized.

 

[Brian Noble]

This doesn't handicapp they're ability to sell?

Not as much as it objectively should (or, at least could). And that's part of the point of this thread: in general, the market under-values loaded contracts and over-values stripped ones.

 

[Chili327]

This doesn't handicap they're ability to sell?

Depends on the buyer... I have a trip planned and booked for later this year, so I wont need any points for a year, so if I bought a contract that didn't have points its no problem, you just have to pay according to what you are actually receiving, which is why "DVC Math" is so important. Something like... Price per point that you are actually receiving... total cost divided by points per year x how many years left
Example, 100point x 38 years = 3800points, so total cost divided by 3800 = true cost per point (does not include dues)**

I know there is an easier way, but my pea brain can NEVER remember how to simplify it. lol

 

[Girlstar30]

Not as much as it objectively should (or, at least could). And that's part of the point of this thread: in general, the market under-values loaded contracts and over-values stripped ones.

I'll make sure to strip away if I ever sell

 

[PlutoNotPlanet]

Make sure you strip by using it in advance, or transferring points out. Not booking a future trip that you can't sell

 

[Girlstar30]

Make sure you strip by using it in advance, or transferring points out. Not booking a future trip that you can't sell

Do you mean transferring it to another home resort that I own? Couldn't I sell the points too?

 

[PlutoNotPlanet]

Do you mean transferring it to another home resort that I own? Couldn't I sell the points too?

yes, either will work

 

[DonkeyHoTay]

I'll make sure to strip away if I ever sell

Make sure you strip by using it in advance, or transferring points out. Not booking a future trip that you can't sell

Some sellers must be using/borrowing their points to book trips, but I also think some sellers will rent their points/reservations before selling their contracts as a way to maximize proceeds before giving up title to their contracts - I can see how that strategy makes sense for high demand locations whose value is not significantly diminished by having zero points this UY or even next UY.

For myself, there are some contracts I would buy stripped if I can get a discount on them because I don't/won't need the points for a couple years anyway.

 

[Chili327]

Make sure you strip by using it in advance, or transferring points out. Not booking a future trip that you can't sell

Do you mean transferring it to another home resort that I own? Couldn't I sell the points too?

If you transfer the points out, you can sell the contract before you use the points, otherwise you can't sell it if you have a trip booked using the points on said contract.

 

[Sandisw]

Do you mean transferring it to another home resort that I own? Couldn't I sell the points too?

You can only transfer points between memberships, not contracts.

So, if everyone is the same UY, there is no transfer. If you have more than one, you can move points from one to the other one, but they still keep all their some rules.

 

[Girlstar30]

You can only transfer points between memberships, not contracts.

So, if everyone is the same UY, there is no transfer. If you have more than one, you can move points from one to the other one, but they still keep all their some rules.

Oh so if I own akv and riv the same uy, I cannot transfer my riv points to akv if i want to book a long akv stay one year?

 

[Sandisw]

Oh so if I own akv and riv the same uy, I cannot transfer my riv points to akv if i want to book a long akv stay one year?

Points never change home resort so even if one had different memberships, points at one home resort can only be used at their home resort during the home resort booking period.

It doesn’t matter what else you own, AKV and RIV points can only be combined at 7 months to be used at AKV, assuming your RIV points are direct

And resale AKV points bought since January 2019 can’t be used at RIV at all since resale is restricted from booking it now.

 

[Girlstar30]

Points never change home resort so even if one had different memberships, points at one home resort can only be used at their home resort during the home resort booking period.

It doesn’t matter what else you own, AKV and RIV points can only be combined at 7 months to be used at AKV, assuming your RIV points are direct

And resale AKV points bought since January 2019 can’t be used at RIV at all since resale is restricted from booking it now.

That's right I should know this by now after hanging out here for this long

 

[DebbieB]

In January 2020, I bought a VGC contract with 1 April 2020 point and 150 thereafter. My plans for 2020 were already set and no dues for 2020 seemed good. The price I agreed to was a little high but April contracts are rare so I didn’t want to lose it.

Little did we know what would happen in 2020, I wouldn’t have gone anyway (DL was closed until mid 2021). Ironic thing is I got the dues credit for the 2020 close on my 2021 dues.

 

[TCRAIG]

Since I make 99% of my reservations at the 11 month mark at one of my home resorts - I prefer resale contracts that do not have this years points. I can negotiate a much better price and don’t have to pay dues.

 

[Yoo]

Depends on the buyer... I have a trip planned and booked for later this year, so I wont need any points for a year, so if I bought a contract that didn't have points its no problem, you just have to pay according to what you are actually receiving, which is why "DVC Math" is so important. Something like... Price per point that you are actually receiving... total cost divided by points per year x how many years left
Example, 100point x 38 years = 3800points, so total cost divided by 3800 = true cost per point (does not include dues)**

I know there is an easier way, but my pea brain can NEVER remember how to simplify it. lol

The DVC Math makes sense assuming you don't get any points you are not paying the maintenance for. If you are the math is different in that you should remove the 'free maintenance' from the cost of purchase. For example, I just bought 250 SSR points for $88 a point plus $1455 closing - total $23,455. But I got 250 2024 points that I didn't have to pay the maintenance for. So backing that out (250*8.14) my cost drops to $21,420. With 30 years left of use, the cost per point per year is $2.856 ($21,420 / 30 / 250).

So what good is this number? It lets me figure out what my actual cost per point is and then my actual room cost. So I just booked 3 nights at Riviera in a 1 bedroom in September for 87 points with 2025 points. Those points carried a maintenance of 8.6729 per point. So all these points are costing me $11.53 a point ($2.856+$8.6729). The 87 points I booked cost me $1003.11 (87*$11.53) or $334.37 per night.

Getting back to the topic of this post, i.e. buying stripped contracts, the cost of buying them is the reduction of usable years. So to keep things simple, lets say you buy at SSR which has 30 usable years remaining and you buy for $100 a point. That cost is $3.33 a point per year. If you get a stripped contract and only have 28 usable years left, your cost is increased to $3.57 a point per year. On the 3 nights at the Riviera that adds $23.28 (($3.57-$3.33)*87) to the cost of those 3 night. Basically you miss out on 2 orders of chicken fingers!

 

[jolynne28]

The DVC Math makes sense assuming you don't get any points you are not paying the maintenance for. If you are the math is different in that you should remove the 'free maintenance' from the cost of purchase. For example, I just bought 250 SSR points for $88 a point plus $1455 closing - total $23,455. But I got 250 2024 points that I didn't have to pay the maintenance for. So backing that out (250*8.14) my cost drops to $21,420. With 30 years left of use, the cost per point per year is $2.856 ($21,420 / 30 / 250).

So what good is this number? It lets me figure out what my actual cost per point is and then my actual room cost. So I just booked 3 nights at Riviera in a 1 bedroom in September for 87 points with 2025 points. Those points carried a maintenance of 8.6729 per point. So all these points are costing me $11.53 a point ($2.856+$8.6729). The 87 points I booked cost me $1003.11 (87*$11.53) or $334.37 per night.

Getting back to the topic of this post, i.e. buying stripped contracts, the cost of buying them is the reduction of usable years. So to keep things simple, lets say you buy at SSR which has 30 usable years remaining and you buy for $100 a point. That cost is $3.33 a point per year. If you get a stripped contract and only have 28 usable years left, your cost is increased to $3.57 a point per year. On the 3 nights at the Riviera that adds $23.28 (($3.57-$3.33)*87) to the cost of those 3 night. Basically you miss out on 2 orders of chicken fingers!

My brain can’t process this, please help me. You can’t use SSR resale pts to book Riviera, so were you just using that as an example of how you would calculate your per night cost?

 

[Yoo]

Yeah - just an example. I did use SSR points but I used the ones I bought direct. Had to get my blue card!

One thing I realized doing this analysis, the actual cost of the points you use, the price you pay to buy the points is smaller than what you pay each year in Maintenance. By buying resale and getting the points for basically $80 a point (or $2.86 per year), that amount is small compared to the maintenance ($8.67)

 

[Girlstar30]

Yeah - just an example. I did use SSR points but I used the ones I bought direct. Had to get my blue card!

One thing I realized doing this analysis, the actual cost of the points you use, the price you pay to buy the points is smaller than what you pay each year in Maintenance. By buying resale and getting the points for basically $80 a point (or $2.86 per year), that amount is small compared to the maintenance ($8.67)

Yes this is what made us really decide to buy direct riv. We are paying $21,488 for our 160 point BLT resale contract because it was a huge difference from the $44,000 Disney wanted. That was a no brainer especially with this resort having one of the lowest maintenance fees, prime location and transportation, and an abundance of restaurants, plus a popular new refurb. Direct riv made sense to me because with all incentives were eligible for I can get it for around $10,000 more than resale and have no restrictions, all benefits, events etc. In the end the maintenance fees are the same whether resale or direct. And the longer contract on top of it all makes up for the 10k extra imo