Too many points on one contract?

[Lincolnshire]

I've seen a number of people say that large contracts (as opposed to two smaller contracts) are a bad idea because they are difficult to resell and cannot be split up. Is there some consensus on how many points on a single contract puts you into this "hard to sell" category? If you were looking for, say, 250 pts, would you look for two smaller contracts or one 250 contract?

(For the record, I do not anticipate selling ours once we buy for a long time, if ever - we have a 2 year old and a baby and plan on at least one more child, so we have a lot of Disney years ahead of us!)

 

[dsnydaddy]

I've seen a number of people say that large contracts (as opposed to two smaller contracts) are a bad idea because they are difficult to resell and cannot be split up. Is there some consensus on how many points on a single contract puts you into this "hard to sell" category? If you were looking for, say, 250 pts, would you look for two smaller contracts or one 250 contract?

(For the record, I do not anticipate selling ours once we buy for a long time, if ever - we have a 2 year old and a baby and plan on at least one more child, so we have a lot of Disney years ahead of us!)

I've been watching prices for quite a while. Under 100 pt contracts sell for generally higher than the market About $10-15. Between 100 and 250 points the price remains fairly static with only a small decrease after that. But contracts over 300 pts are usually hit pretty hard. I've seen some awesome per point deals in the 700 point range. I just can't really afford that many points.

 

[a742246]

If you look at the Timeshare Store website: http://www.dvc-resales.com/
it shows you the date they list a contract. If you go to the "ROFR page" on these disboards, it shows you the sales that took place for the last year or so.
From what I see buying a 250 point contract doesn't cause too much of a problem, it seems the prices are around the same and the inventory dates/sale are also around the same.

 

[pad406]

May or may not be relevant to you (and hopefully not me for a long time ), but I posted many questions re DVC as we are currently researching, probably looking in the region of 500pts. One person mentioned that 2 * 250pt contracts would make it a lot easier to will to our children down the line (we have 2 kids). Kinda makes sense

 

[Dean]

I've seen a number of people say that large contracts (as opposed to two smaller contracts) are a bad idea because they are difficult to resell and cannot be split up. Is there some consensus on how many points on a single contract puts you into this "hard to sell" category? If you were looking for, say, 250 pts, would you look for two smaller contracts or one 250 contract? (For the record, I do not anticipate selling ours once we buy for a long time, if ever - we have a 2 year old and a baby and plan on at least one more child, so we have a lot of Disney years ahead of us!)

I'm not sure about consensus but I've discussed the issue several times lately. Basically you're talking insurance in case you have to sell and assuming that smaller contracts will continue to be at a premium. That insurance will cost you maybe $2500 to $3000 in most situations on 250 points, with likely a minimum of $2K extra unless one can find someone selling multiple contracts that are already linked, it happens but not often. That's $10 pp plus the extras closing. IMO it's never worth it until you get larger or unless you have other reasons such as multiple home resorts or possibly buying in incrementally so you can pay cash though I think it's just better to wait for most situations. IMO the minimum contract size I'd consider just to break it up would be 150 each but realistically I wouldn't recommend it until you get up around 200 each or more and in most of those situations I'd do multiple home resorts.

 

[Lincolnshire]

Yes, that's exactly it - it's like insurance in case we had to sell unexpectedly. At this point I'm still not sure how many points we ought to buy in the first place. It's hard to know what we will need when we don't even know if we will ultimately be a family of five or six! I think a one bedroom will work for several more years but suspect we will ultimately need a 2-bed. Still debating if we should buy enough points for a 2-bed now or add on in the future.

 

[skier_pete]

From what I've seen I think above 250-300 points they become harder to sell. I don't think I would personally get a contract above 200 points, even if I could afford to.

 

[bellablue2]

i just bought a bwv 425 contract...2014 points with mf's paid, seller paid closing, i started mf 2015, $75/point, a nice deal.

i'm happy with with the purchase and feel that there will be buyer for this contract when i'm ready to sell.

i did see some 1200 point okw contracts on the market. i do not see these as an easy sell at any price. even if one negotiates the price way down, just doing all that work for disney to rofr.

 

[KAT4DISNEY]

I personally wouldn't worry about a 200-250 pt contract. 300+ just starts limiting more the number of people that will have an interest. You'll generally pay less per point to get a larger contract and only one closing fee so if it sells for a bit less vs a 50 or 100 pt to get offers it's all a wash.

 

[Dean]

Yes, that's exactly it - it's like insurance in case we had to sell unexpectedly. At this point I'm still not sure how many points we ought to buy in the first place. It's hard to know what we will need when we don't even know if we will ultimately be a family of five or six! I think a one bedroom will work for several more years but suspect we will ultimately need a 2-bed. Still debating if we should buy enough points for a 2-bed now or add on in the future.

It's just expensive insurance. Since you're not sure where you'll be in a few years and might need more than you do now, it's the perfect situation to underbuy in both resort and size, esp if you can take the time to find the right contract which is loaded and a great UY for you. The 1 BR should be fine until you're 6 and the 4th child is 3 y/o. I'm assuming that's a good 3.5-4 yrs from now at the earliest. So assuming a 1 BR for a week yearly you're looking at 200-250 points yearly (ideal around 225) depending on season, add maybe another 100 when you need a 2 BR routinely. Of course you could seriously underbuy (say 150-170 in this example) to get your feet wet and figure out what your real preferences are and while you'd end up basically doing the 2 contracts anyway with the extra cost, you'd pick up the ability to make better choices and possibly to get that perfect home resort for the additional points. With the right loaded contract, you won't be stuck without points for maybe 5-7 yrs anyway. But IMO it makes no sense to pay significant dollars to have future options you don't plan on using and IMO it makes no sense to buy now with a plan to sell later unless one can get a deal which is almost impossible with the ROFR.

I personally wouldn't worry about a 200-250 pt contract. 300+ just starts limiting more the number of people that will have an interest. You'll generally pay less per point to get a larger contract and only one closing fee so if it sells for a bit less vs a 50 or 100 pt to get offers it's all a wash.

That's my point, I agree. Though there may be special circumstances. OTOH, if one knows what they want and how they want to use it, buying the larger packages could be a good choice if one can get a deal. It can make it worth flirting with the ROFR issue, worse case scenario is you put in some time and effort and DVC ends up taking it.