What are the benefits of splitting a contract?

[gtrain219]

I have been reading about people splitting their contracts up. I was unaware I could do this. Can someone explain this to me? What are the benefits of doing this? What are the drawbacks?

I am going to buy at VGC and if this makes sense I would do it.

 

[Tozzie]

I have been reading about people splitting their contracts up. I was unaware I could do this. Can someone explain this to me? What are the benefits of doing this? What are the drawbacks?

I am going to buy at VGC and if this makes sense I would do it.

If down the road you decide to sell some of your points smaller contracts are easier to sell. Also if you start will say 300 points because you have a few kids and then when they are grown and gone you realize you don't need all the points you can't sell part of a contract so if you wanted to downgrade to say 150 points you would not be able to unless they were separate contracfts

 

[IknowDoYou?]

If down the road you decide to sell some of your points smaller contracts are easier to sell. Also if you start will say 300 points because you have a few kids and then when they are grown and gone you realize you don't need all the points you can't sell part of a contract so if you wanted to downgrade to say 150 points you would not be able to unless they were separate contracfts

Another added benefit is that smaller contracts tend to sell for a higher dollar amount per point. For instance, you may be able to sell your four 50 point contracts each for $94 a points, whereas if you were trying to sell it as one 200 point contract, you might have to sell it for $90 or $91 per point. You'll also need to find someone who is looking for a 200 point contract, where there may be more people in the market for smaller contracts to add to their portfolio.

 

[DebbieB]

I wish I would have split my 250 BWV. I would like to buy GCV but I really don't need more total points. If I would have split it as 150 + 100, I could sell one and buy GCV.

 

[gtrain219]

Ok, thanks. So it has nothing to do with how you can use your points as long as you have the same UY. I would still be able to use my full allotment instead of the amounts I broke them into. If I understand this correctly.

This sounds like a better way to use your points.

 

[gtrain219]

I wish I would have split my 250 BWV. I would like to buy GCV but I really don't need more total points. If I would have split it as 150 + 100, I could sell one and buy GCV.

I wish I had known about this earlier or would have done that with my BLT. I am going to get less points at VGC because of it. Oh well. Live and learn.

 

[hellerjw]

Ok, thanks. So it has nothing to do with how you can use your points as long as you have the same UY. I would still be able to use my full allotment instead of the amounts I broke them into. If I understand this correctly.

This sounds like a better way to use your points.

Yes, you would still be able to use all of them as if they were a single contract. On the member website it will show the master contract for that resort (#xxxxxxx.0) and the splits/add-ons (xxxxxxx.1, xxxxxxx.2, etc) and their associated points, dues, etc. It will show the combined point total under each UY.

So for example if you wanted 300 points and had them break them into three 100 point contracts it would show up as 3 separate contracts so you can track the dues, points per contract, etc as well as showing the total available from pooling them each UY.