Dean
DIS Veteran<br><a href="http://www.wdwinfo.com/dis
- Joined
- Aug 19, 1999
- Messages
- 39,228
As I also noted, it was a no win. My interpretation suggests if they extended the current DVC resorts, they automatically extended all current owners. The only ways around this that I can see is to wait until it ends then sell it again, to have a voluntary opt in and hope for the best or to do what they did or do it for fee. However, as I noted, I don't see they have the legal authority for the SA so they were truly stuck. Likely their best option would have been to actually have a vote of the membership altering the rules specifically for the extension that changed it where it was not an automatic extension if the ground lease was extended. This would have required that 60% of the membership approved it. Actually it may be more complicated than that as it likely is 60% of each unit and 60% of the units but I'd have to review the POS language to be sure. Overall the best scenario was to just extend it for free and give an opt out. That way they have everyone on board as a paying customer, avoid the predictable legal actions and challenges, satisfy the POS and the actual dollar loss is relatively small. They likely could have done so without even creating new deeds if they had chosen to.The other approach would have been to market the extension as a separate contract. If they had gone that route, DVC would have been prohibited from offering the extension to current owners living in many states, provinces and countries due to local timeshare sales laws.
I wholeheartedly agree the price was waaaaaaay too high and that DVC should have been much better organized when it came to the extension. But on the topic of how they approached it, I have a sense DVC was in a no-win situation.
Actually as a lump sum or even financed over 10 years it is a large amount of money ($60K in 30 years at 10%) for a benefit over 30 years out. In addition you are assuming the risks of fees and ownerships for a resort that will be over 50 years old at the time.0 points X $15 = $3450. That isn't that big a sum of money, really. We also don't have to get the full 15 years out of the extension to get good value of out this $3450 extension.
But that's part of the rub. That's not necessarily true and when you factor in fees, it's very likely not even close to being true. There's a very good chance that it'll be more expensive to own than to rent for cash for the same or similar accommodations in 30 years. It's a gamble, plain and simple. In addition, if things work out to not be so rosy that some people walk away, the remaining members have to pay the extra in maint.Certainly extending is going to look better than paying Rack Rates. The discount off of RR is why we all chose to buy DVC in the first place.