"Stripped" SSR contracts for sale?

[JodyTG]

Has anyone else seen the "stripped" SSR contracts for sale at TTS? There's at least 5 of them with no points (or hardly any) until 2007!!! Why would people do that? Or I guess a better questions would be, why would people buy one of these contracts.

 

[simpilotswife]

Because it's still 12 yrs longer than any of the other DVC resorts.

 

[trampslady]

....and most of the listed contracts are less than the 150 points required by Disney. So, if someone is interested in DVC, but doesn't want to (can't) invest the $$ required through Disney, those contracts may be an option.

 

[Caskbill]

I'll bet the original owner just bought them to get the 100 bonus points for doing an SSR add on. They're all under 150 points which means they had to be add-on purchases and not original contracts.

Then they used all the SSR points, and now are hoping to sell them.

Just looking at them it seems most of them are from a single or maybe just a couple of sellers.

 

[cruise-o-matic]

I'll bet the original owner just bought them to get the 100 bonus points for doing an SSR add on. They're all under 150 points which means they had to be add-on purchases and not original contracts.

Then they used all the SSR points, and now are hoping to sell them.

Just looking at them it seems most of them are from a single or maybe just a couple of sellers.

I agree and wouldn't be surprised if the points were rented for cash. Then the seller is trying to sell the contract for a quick profit.

 

[JodyTG]

But, once the contract sells, don't all open reservations get cancelled?

 

[vascubaguy]

But, once the contract sells, don't all open reservations get cancelled?

The reservations have likely already been used. When I first saw those listings I was almost certain that they did exactly what cruise-o-matic said. They got all the bonus points, rented all the points out (or transferred them to other members) then figured they'd sell the contracts back near the going rate and pull a quick profit. However, I just don't see anyone dropping that kind of money on those contracts and get nothing (not even the ability to borrow from future points) for year.

 

[JodyTG]

That's my feelings, too. I'm looking for an add-on (just don't tell my husband yet ) and though I MIGHT buy a "stripped" contract for BCV, BWV, or VWL; there's no reason that I can find to do that for SSR. You wouldn't be saving that much money even though it would allow a new member to buy in with fewer points.

I was looking at the list with a friend who wants to buy in, but doesn't want to buy 150 points. BUT, she wants to go to WDW within a year after buying, which is what I would think most people would want to do.

 

[Tamar]

IMO, stripped contracts are rarely a good buy. I guess one attraction might be the lack of maintenance fees until 2007 with the ability to borrow points into 2006, but I'd still never consider one.

 

[drusba]

"I guess one attraction might be the lack of maintenance fees until 2007 with the ability to borrow points into 2006."

Actually, stripped contracts don't even have that attraction; you still have to pay annual dues regardless of whether the contract has any points left for any given year. Thus, unless you get the seller to agree to cover dues through 2006, the buyer will pay them.

 

[Jason@dvcstore]

"I guess one attraction might be the lack of maintenance fees until 2007 with the ability to borrow points into 2006."

Actually, stripped contracts don't even have that attraction; you still have to pay annual dues regardless of whether the contract has any points left for any given year. Thus, unless you get the seller to agree to cover dues through 2006, the buyer will pay them.

Majority of times the seller is going to be responsible for the annual dues on the points that they have borrowed and used from the 2006 allocation. The agreement would state "Seller responsible for the annual dues on the x of points they have borrowed and used from the 2006 allocation. Buyer to begin paying dues in January of 2006."

Buyers purchase those contracts because they feel they can get them at a good price and they don't have to pay dues until 2007. They feel if they waited until 2007 to purchase the same contract might be $5 to $10 per point higher.