What are your thoughts

[H Velador]

Hello everyone, my family and I are ready to purchase a resale contract, but we are looking at picking between one of two resale contracts and wanted to get your thoughts and see which one you think is best, thanks!

My family plans on going "home" pretty much every October, including this Oct '19, so these dates are stable going into the future (may go in June instead of Oct every blue moon or so). We have young kids so will be holding on to this contract for many years. The dates in October will use up roughly 135 points each year, but who knows when Disney will increase rates.

Option 1:
- 150 points
- UY of April
- 170 points 2019 / 150 points 2020

Option 2: $3 less per point vs Option 1
- 160 points
- UY of April
- 0 points 2019 / 160 points 2020

Which contract would you prefer? I understand that if go with Option 2, I will be borrowing next year's points pretty much every year until the positive difference catches up (160 - 135 = 25 points will not need to be borrowed). Is it a nuisance to keep borrowing points every year at the 11 month mark when making reservations, or is the process of borrowing points streamlined?

I appreciate your help!

Horacio

 

[MB_01]

Borrowing points is really easy. You can do it while you are booking online. Do you mean March UY? I’d go for the one with more points. More point soon is always better and you won’t have to pay MF at closing on the one that is empty.

 

[lovin'fl]

Option 1. There are no May UY. What home resort?

 

[drusba]

Personally. I would not buy in with that contract that has no points for more than a year unless that difference in price was at least $15 a point if it is the same resort. You could buy the first one and then rent the points the first year and get about $15 per point for the rental and end up better off than just trying to save $3 on that overpriced, stripped contract. (Note, I do not know your real use year since there is no May use year, so clarification might change things somewhat.)

Also, you need to focus on more things than just price if you intend to buy to get studios, particularly if you want Oct of this year. Late Sep to marathon weekend in Jan is DVC's high demand season. Starting tomorrow, Oct is 7 months out. If you are looking at a resort other than SSR, the studios could already be gone for part or all of the time you want, and by the time you close and become able to reserve, even SSR could be gone. In other words, October 2019 right now should not even be a consideration if bidding on a resale, particularly if you are buying to get studios. Moreover, even if you are thinking 1BR, the rooms could be gone by the time you try to reserve

You also need to be aware of availability issues throughout the year if you are buying to get studios. Certain studios can book full even at 11 months out for many times of the year, such as AKV value and Club Level studios, BWV standard view and BLT standard view studios, and, if the current trend continues for the new resort, CCV studios will also be in that group. In other words, if you are thinking of buying to get one of those, you may fail at times in getting a studio even at 11 months out even for June, not just Oct and the rest of high demand season. Moreover, during that high demand season, other studios also have the risk of disappearing right when the 11 month window opens: BWV boardwalk view and VGF studios. If preferred time is June, the 11 month window is safer for those two, at least for now.

In other words, do not assume everything is rosy if you buy, particularly if intent is to get studios all the time.

 

[H Velador]

Option 1. There are no May UY. What home resort?

Thanks, meant April!

 

[H Velador]

Personally. I would not buy in with that contract that has no points for more than a year unless that difference in price was at least $15 a point if it is the same resort. You could buy the first one and then rent the points the first year and get about $15 per point for the rental and and end up better off than just trying to save $3 on that overpriced, stripped contract. (Note, I do not know your real use year since there is no May use year, so clarification might change things somewhat.)

Great point on being able to rent out my points out now to lower the overall cost.

I could rent out my 2019 points now or bank my 2019 points into 2020, thereby having 300 points, and then I can rent out my excess points then, ultimately lowering the overall price of the contract.

 

[skier_pete]

I would agree with @drusba - for $3 more I would get the first one. Yes you can borrow, but being an owner now for a year, the problem with always borrowing is that you are stuck with the points in that use year. It is much better to use your points in their original year, and then if you have to cancel, you can still bank them. $3 is nothing in the big scheme, and you an extra year of points which is worth it for $3. The only reason I wouldn't is if you think you really really need those extra 10 points on the contract.

Also as @drusba says - be sure you like your home, and be prepared to book at 11 months if what you are looking for is a studio in October. Popular time of year. That said, unless you are looking at AKV value rooms or BWV standard rooms with your points, you should be able to book any other studio category at your home if you book at 11 months advance.

(@drusba is wise - there's a reason he uses an owl for his avatar!)

 

[meekey7197]

One thing that may or may not mean anything to you... we do NOT like our April UY, our spring break always starts the last Monday of March so sometimes our trip will cross UY. You say you have young kids so in the future Spring Break may be something you have to consider. We got away with taking our son out of school every fall for our yearly trip until this year (6th grade).

 

[kniquy]

My family plans on going "home" pretty much every October, including this Oct '19, so these dates are stable going into the future (may go in June instead of Oct every blue moon or so). We have young kids so will be holding on to this contract for many years. The dates in October will use up roughly 135 points each year, but who knows when Disney will increase rates.

Couple of thoughts -- If you intend on traveling in Oct mostly and occ June then I would look for a June, UY. This would cover you for your travels in June and October. You would have to bank your points by January if you had a June UY. Buying closer to your month of intended travel give you more flexibility IF you need to cancel a trip.

As for being in a borrowing state -- It has its pluses and minuses -- if you are always borrowing ahead and going on your trips then you will never have points going to waste. But if you are always borrowing ahead then once you borrow points they stay in that UY so for example - you book at trip for Oct 2019 using Oct 2020 points which you borrowed- those points are now considered 2019 points. If you need to cancel that trip the those points would need to be used by Sept 30, 2020 or they will expire.

If you never have to borrow and for some reason you have to cancel a trip (at least 31 days out) and it is within your banking window then you can cancel your trip points are still in that UY and then you can bank them for use the following year. This typically is a much better situation to be in. So I would choose Option B (but maybe with a UY closer to your travel dates

 

[CarolMN]

Couple of thoughts -- If you intend on traveling in Oct mostly and occ June then I would look for a June, UY. The would cover you for your travels in June and October. You would have to bank your points by May if you had a June UY. Buying closer to your month of intended travel give you more flexibility IF you need to cancel a trip. ........

The banking deadline for June use years is the following January 31. (The following May 31 would be the banking deadline for October use years).

 

[kniquy]

The banking deadline for June use years is the following January 31. (The following May 31 would be the banking deadline for October use years).

Thanks for the correction. I think i flaked when i was typing it. I did correct my post.

 

[Disneypapa]

I would buy option 1, for the various reasons posted. You did not mention if the two options were the same resort or not. That matters, if you preferred one over the other and having the 11 month window to book your studios going forward.