Talk me out of this insanity! Should I buy this resale or not?

[pal6860]

OK. Last question (for now...). I found the perfect resale for me, with the perfect # of points at the perfect resort of my choice (which by the way I think is more difficult to get - the beach club villas). The only problem is all the points are used up for this year. That means that if I buy it now, I'm essentially throwing away interest on thousands of dollars until next year when I can finally use the property.

A couple of caveots. First, I realize I won't need to pay any maintenance costs for this year, but who cares. I still lose $ on interest. Second, I don't have any time this year to travel anyways, so I can't borrow points to use this year.

Everything tells me to just wait until a better deal comes along (points that haven't been used this year, so at least I can bank them for next year since I have no vacations this year), or just wait until next year to buy.

BUT...This really is a good deal for me otherwise. I can't seem to find the Beach club villas anywhere on the resale market for the price and # of points I want. And I've got the "bug", my juices are flowing...I want my DVC!!!! Do you think that better BCV resales will be available later this year at the same price?

Please help with the insanity!

 

[gazeborob]

Just buy it! You will feel so much better!

Rob

 

[Richyams]

The real bad part is that Disney doesn't care as much about the missing points. Really, if a full contract is worth $70, this is only worth $60.....$60 will not come anywhere near making it through ROFR.

Structure the deal as bad as possible for the seller, seller pays all dues, all closing costs and anything alse you can think of.

These are tough to get past ROFR because they are worth so much less than a full contract to a buyer and not that much different to Disney.

 

[Happy Birthday Cat]

Originally posted by pal6860
The only problem is all the points are used up for this year. That means that if I buy it now, I'm essentially throwing away interest on thousands of dollars until next year when I can finally use the property.

Or you can think of it this way. All of the points are used up in 2042 not 2004. Just borrow next years points so you will be able to go right away and not feel like you own something that you can't use. Worst case scenario is that you borrow every year and you can't go in 2042. Another case could be that some year you won't be able to go and you will get caught up. Most likely you will get caught up sooner than you think.

HBC

 

[yearlightbuzz]

You might as well go ahead and try (as long as it's financially doable). Disney could use their ROFR and re-sales take longer to complete the transaction. Anyway, GOOD LUCK.

 

[Steamboat Bill]

Well if it is really the perfect resort, the perfect number of points, and the perfect price.....what are you waiting for. Most of the time the price will only go up!

-Bill

 

[rocketriter]

You're in it for the pleasure. Enjoy!

 

[CarolAnnC]

I have purchased twice from Disney and twice on resales. I have never regretted a purchase I have made! After all, you can always sell it if you feel the need. Very hard to part with one, though, once you have made the leap! Good luck!

 

[pal6860]

Thank you all for your replies and support. I just needed you all to remind me how much I want to be a part of DVC!

Question for Richyams or anyone. I don't think I totally understand your point. It would seem to me that if I made the seller pay for closing costs, dues, etc, etc, wouldn't it be a nicer package not only for me, but also for Disney? I would think that it would be HARDER to get past ROFR if I followed your suggestion. Can anyone expound on this?

What else can I do to improve my chances of getting past ROFR and still get some compensation for the fact that there are no points left for this year?

 

[sunan]

Researching our BWV purchase, I read through nearly every ROFR message on this forum trying to figure out what gets through and what doesn't. The most recent deal I saw fall through involved seller paying closing costs, maintenance fees, and a credit for used points. When you consider all those concessions, the price per point goes down into the low $60s -- Disney stepped in.

I was concerned that our $70 per point contract might be on the edge, especially with so many points intact, but we're paying closing and 2004 maintenance. Add that up, and the price per point goes to the mid $70s.

All else being perfect, I wouldn't put a big, red bull's eye on the deal for Disney to step in.

IMHO, you'll just have to weigh the pros against the cons. BCV has many obvious pros, and you clearly have personal reasons for wanting to "home" there. Availablility of BCV resales tends to be limited relative to OKW or even BWV, but they do pop up. A "more" perfect deal may come along... or it may not.

Decide what's most important for you over the long haul: location, use year, when you vacation, etc. Maybe the used points won't be such a deal breaker for you. If you have the interest and the means, make a fair offer. But I wouldn't try to squeeze the seller into a deal that invites Disney to swoop in.

There are plenty of posts on this site that can help you decide what the market will bear, but don't get caught up in wanting to get a better deal just because someone else did. Focus on your own situation. If this one truly feels right for you, go for it. I think if it's meant to happen, it will.

 

[chips]

I got very lucky with a bcv april 200 in October 2003. With 2003 and 2004 points intact at 72 and I pay maintenance.

Disney does not have to provide lodging for stripped contracts. They are the wholesaler. A stripped contract may be worth 2 or 3 dollars less to disney. Richyams is suggesting a way to lower your total cost.

Interest return on one year money is very low.

It takes two months to close. If you need a 11 month window you need a accepted bid 13 months before your ressie.

We booked vwl at 5 months for March. In fact we don't plan on going to bcv for 2 years. With a five year old we want mk.

I think you have time. This comcast bid muddies the water for the immediate future. Some people might panic sell. Also, what makes bcv prices so high is lack of supply. All it would take is for o.k contracts to sit around for a little while. BCV will lose its premium cache.

With current uncertainty and you don't need the points immediately puts time on your side. I disagree points can only go up. The price for stripped contracts is artificially high because of rofr. If comcast changes the rofre policy the stripped contracts will get hammered.

I follow the resale market. I know the contract you are looking at. Immediately after I bought two full contracts came online. They were bought instantly. Three full contraccts were availlable in a 2 week period. This was october of 2003.

We needed 350 points for a March 2004 ressie. I really wish I had the luxury of time that you have.

 

[pumpkinboy]

It seemd like this is the contract for you in any case. To alleviate some of the burden of the "stripped" contract, I think richyams is right on the money: ask the seller to take over the closing costs and maintenence fees. If it passes ROFR, great, you're in.

And if that does in fact paint a big bullseye on the contract and DVC does excercise ROFR on you, what the hey, it was a stripped contract anyway, you aren't out any money (just emotional invetment) and you can just wait for the "perfect" one to come along later (which you seem to indicate you are willing to do anyway).

 

[pal6860]

Thanks for all the great advice.

I gave in.

I bought!

300 points at BCV for $70/point. I pay closing costs, but the seller pays whatever maintenance fees are left, as it is a stripped contract. Overall, including closing costs, I pay a net of $72/point. I felt this was the best way to get past rofr. If I had the seller pay cc, then it would have been $70/point, which I didn't feel would make it past rofr. And anyways, I'm willing to pay the closing costs for the peace of mind, and less hassle of having to do this again.

Now comes the waiting...

I don't want to torture myself anymore, but I have to ask. The fact that this is a stripped contract essentially means I'm out 300 points or $3000 if I were to rent out the points. If I added that to my total (minus maintenance fees for this year), then the overall cost that I paid is $78/point, and not $72. Over the life of the contract this is negligible. But did I do the right thing? Is my "$78/point line of reasoning" valid? I just need some more reassurance! Is $72/point a fair deal for BCV? How about $78? Yes, I'm getting neurotic.

Actually, I'm VERY happy with this deal and I hope it passes rofr!!!! Hope to be one of you all very soon!!!

 

[bobbiwoz]

I am happy for you, and I hope Disney passes on the contract. Be kind to yourself, you did what you feel you had to to get the contract of your dreams!!!! 300 points WOW!

Bobbi

 

[CarnotaurDad]

We're having the same dilemma right now.....I would rather overpay by a little and get exactly what we wanted then underpay, have Disney exercise ROFR and start all over again.....

JMHO

 

[lisareniff]

Congratuations on making the plunge!! I think it sounded like the right thing for you to do.

If you want to compare it to buying with Disney...
Your stripped contract is similar in concept to Magical Beginnings Offer with Disney. We bought last spring at BCV using MB so we did not have any points available for 6 months but did have to pay the maintenance fee for that time. We paid $74/point, no points for 6 months, pay maintenance from purchase forward, and no closing costs. So if you were comparing to MB offer last year, you got a better deal by roughly $4/pt. (I added $2/pt for half year of maintenance w/MB) .....AND you got the hard to get resort you wanted!!!

Congrats again and I hope it goes through Disney OK!!

 

[sunan]

You can second guess yourself and play numbers games until the cows come home. You'll find people who've gotten better deals than you, others who've paid more or had to compromise in a big way. The important part is that you've found what's right for YOU. And (IMHO) as far as ROFR goes, I think you've got a decent shot.

At any rate, you've made the tough decision to buy, and buy you will. If it doesn't work out this time around, it will next time. Let yourself be a little excited!

Congratulations and best of luck with ROFR. Let us know how it turns out.

 

[pal6860]

Thanks all. Just needed that little pat on the back (and some time to find a way to finance this thing!). I'll keep you all posted as to what happens. Thanks again!