What happens when the membership expires?

[JaimeA]

We personally are trying to purchase at BWV(in ROFR) because of the 2042 date. We thought about it for a long time and did not want to have a timeshare in 2060 to worry about. We will be 68 in 2042 and hopefully retiring by then. Our lives will change and if we choose to continue going to disney then we will continue to go, nothing will stop that. But we like the idea that when we retire we will be free, with the economy the way it has been we have saved money for retirement and that is very important to us, we like the idea that when the income ends so will the MFs. If we change our minds before then, we can always buy a different contract with a longer expiration date. Honestly if we do own BWV(hopefully soon) and they did offer an extension we would not purchase it right now.

I do believe Disney will offer some sort of extension. DVC is a business and they can not let half of their customers go at one time.

 

[ELMC]

...In general though the fact that DVC has a RTU expiration is considered a negative in the rest of the timeshare world.

I agree with this statement and it is the reason why we chose to purchase Marriott Vacation Club over DVC 12 years ago. I like the idea of my initial purchase price being amortized over my lifetime and my daughter's lifetime as well...in theory. But now that we have made the decision that we want to stay on site, DVC is the only option and so the game has changed so to speak. Although the RTU expiration can be a negative, I also think it contributes to defining the parameters of the values of contracts. What you lack in longevity you make up for in certainty. And really, can any of us truly predict where we will be vacationing 30 years from now?

 

[Sammie]

After looking at the dues projection chart, I just hope I can afford till 2042,

 

[ELMC]

After looking at the dues projection chart, I just hope I can afford till 2042,

It's easy. Simply tell your employer that you will need at least a 3.2% raise each year, sometimes more depending on which resorts you own, and you'll be all set.

 

[Dean]

I agree with this statement and it is the reason why we chose to purchase Marriott Vacation Club over DVC 12 years ago. I like the idea of my initial purchase price being amortized over my lifetime and my daughter's lifetime as well...in theory. But now that we have made the decision that we want to stay on site, DVC is the only option and so the game has changed so to speak. Although the RTU expiration can be a negative, I also think it contributes to defining the parameters of the values of contracts. What you lack in longevity you make up for in certainty. And really, can any of us truly predict where we will be vacationing 30 years from now?

It does remove some uncertainty, assuming you're in to the bitter end. The certainty is that of no value and nothing owned at the end and in reality, no real resale value the last few years.

 

[kamik86]

Honestly I like that they expire because who knows if my kids will like disney (espeically as these are hypothetical future kids at this point) and want to have the DVC membership?

I have AKV so if I remember right they are 2054. So still 42 years from now. Who knows what we will want in 42 years (although I hope to still be healthy enough to travel at that point... I'll only be 67 after all). Worst case scenario I have to go back to hotels for those last few years of trips.

 

[Mick West]

I am always amused when people say they don't care (not worried) about the end, it's kind of like saying you aren't worried if you lose a few points here and there. I wonder how many of those would say the same about their home or any other investment. The reality is that there will be some inherent value (or lack of) based on the situations involved in such a discussion. that value is likely to be somewhere in the $5-15 a point range depending on specifics (extensions, how they handle the last 2-3 years, etc) but it could be even more.

I understand your statement but I'm truly not worried about the end. I have all the comfortable toys - to include lots of DVC points - and could care less what any of these toys, to include a bigger house than I need, are worth on my final day. Yes, I have two children and three grandchildren. They will be and are being provided for, but not in a manner that they are set for life. They way I see it is that if I die with a dollar in my pocket - I didn't plan properly!

 

[dianeschlicht]

Honestly I like that they expire because who knows if my kids will like disney (espeically as these are hypothetical future kids at this point) and want to have the DVC membership?

I have AKV so if I remember right they are 2054. So still 42 years from now. Who knows what we will want in 42 years (although I hope to still be healthy enough to travel at that point... I'll only be 67 after all). Worst case scenario I have to go back to hotels for those last few years of trips.

Actually, that is our answer to the "problem" as well. We have most of our points expiring in 2042 when we are in our mid 90's. Our adult children may or may not be able to or want the membership at that point either, since they will be in their 70's at that time. So...We do have a small AKV contract that goes beyond 2042 in case they are still interested.

 

[Deb & Bill]

It's easy. Simply tell your employer that you will need at least a 3.2% raise each year, sometimes more depending on which resorts you own, and you'll be all set.

Shoot, when you work for the Federal government, our pay is frozen for three years. We might get a 0.8% increase next year, but we'll have to pay 3% more towards our retirement and pay more for our healthcare.

I guess we'll have to sell.

 

[chalee94]

It does remove some uncertainty, assuming you're in to the bitter end. The certainty is that of no value and nothing owned at the end and in reality, no real resale value the last few years.

this goes back to whether timeshares are more accurately described as assets or liabilities.

if you think of timeshares as primarily an asset (which seems less common after the "great recession" but i'm sure TUGers are still more in this group), then you don't want it to expire.

if you think of timeshares as representing an ongoing liability (which seems to me to be gaining momentum, especially among the non-professionals and non-hobbyists), then you like the idea of a stopping point (ideally before annual dues project to hit $20 per pt... )

 

[Dean]

this goes back to whether timeshares are more accurately described as assets or liabilities.

if you think of timeshares as primarily an asset (which seems less common after the "great recession" but i'm sure TUGers are still more in this group), then you don't want it to expire.

if you think of timeshares as representing an ongoing liability (which seems to me to be gaining momentum, especially among the non-professionals and non-hobbyists), then you like the idea of a stopping point (ideally before annual dues project to hit $20 per pt... )

I think it varies with the timeshare. For DVC, I think it's clearly an asset at this time including for financial aid calculations.

 

[Goofy DVC]

this goes back to whether timeshares are more accurately described as assets or liabilities.

if you think of timeshares as primarily an asset (which seems less common after the "great recession" but i'm sure TUGers are still more in this group), then you don't want it to expire.

if you think of timeshares as representing an ongoing liability (which seems to me to be gaining momentum, especially among the non-professionals and non-hobbyists), then you like the idea of a stopping point (ideally before annual dues project to hit $20 per pt... )

Very well said. Assets put $$ in your pocket. Liabilites take $$ out of your pocket. If you rent your points out each year then it is an asset. If you use it each year it is a liability. Of course that is just a financial assessment. The "family Investment" value is a whole other point of view.

 

[Dean]

Very well said. Assets put $$ in your pocket. Liabilites take $$ out of your pocket. If you rent your points out each year then it is an asset. If you use it each year it is a liability. Of course that is just a financial assessment. The "family Investment" value is a whole other point of view.

My take is that the issue is whether you could sell and and would you get any money or more money than owed. Thus at any given time you'd have to look at specifics to make the determination. One who bought and financed may indeed be upside down but many would not be. Ignoring financing, there is not a singled DVC contract currently that would not have some marketability and value on the open market thus DVC is clearly an asset or potential asset.