will extensions be offered for other DVCs

[SnowWhite12]

Hi, we are considering buying DVC via resale. I was just wondering if anyone knows if Boardwalk or Beachclub will ever be able to be extended? Anyone know how much it cost members to extend their OKW contract? I'd love to buy one at BW or BC but can't convince DH it's worth it since the contract ends so much earlier.

 

[drusba]

Disney has not mentioned doing another extension and you should not buy based on the assumption there will be one. Most probably suspect there will be extension offers at the other 2042 expiration resorts but when it will be offered and how much is complete speculation. For example, Disney could well wait for 20 years before doing so. I cannot really recall OKW's price for the extra years (it may have been $15 a point after a discount if you did it by a certain date and possibly $25 if you waited)

 

[DisneyWalker44]

The fact that Disney hasn't offered extension after the OKW "experiment" is telling. I don't expect extensions - at least not anything similar to what was offered for OKW.

Maybe there were legal problems with how they structured the deal.

Maybe not enough people took the extension to make the post-2042 years viable.

Or maybe Disney wants those resorts back in 2042, but wasn't interested in OKW.

 

[dianeschlicht]

First of all, as an OKW owner, we did NOT extend our contract. The original extension price was $15/point if it was done before a certain date and $25/point after that date. You had to specifically reject the extension to avoid paying that $25 assessment.

I think it was a HUGE mistake to offer the extension so early in the contract. With 35 years still left on the original contract, it made no sense to me that they should have done it that soon. I assume if they offer extensions at the others, it will be in what I would consider a more normal time period. That might be with 5- 10 years left on the contract. I think doing it so far ahead with OKW has only devalued the resort resales for those for whom it makes no sense to extend beyond the original 2042 date. Since we will be in our mid 90's by then, it seemed to make no sense for us to extend. We have no real knowledge of if our adult children will be interested in paying the maintenance at that point either.

I assume that DVC realized their error, and that is why they are waiting on the other '42 resorts.

 

[jcanary]

I think they will be. We met with a different guide, last minute possible add-onitis. She stated that they will be offereing the extensions based on when the resort opened. I know Boardwalk and either Vero or Hilton will be next and then Beach club. She did not say when, just said they most likely will be offering it in the order of when they opened.

 

[chalee94]

i still agree with the comments in this thread:

http://www.disboards.com/showthread.php?t=2273549

 

[DeeCee735]

First of all, as an OKW owner, we did NOT extend our contract. The original extension price was $15/point if it was done before a certain date and $2/point after that date. You had to specifically reject the extension to avoid paying that $25 assessment.

I think it was a HUGE mistake to offer the extension so early in the contract. With 35 years still left on the original contract, it made no sense to me that they should have done it that soon. I assume if they offer extensions at the others, it will be in what I would consider a more normal time period. That might be with 5- 10 years left on the contract. I think doing it so far ahead with OKW has only devalued the resort resales for those for whom it makes no sense to extend beyond the original 2042 date. Since we will be in our mid 90's by then, it seemed to make no sense for us to extend. We have no real knowledge of if our adult children will be interested in paying the maintenance at that point either.

I assume that DVC realized their error, and that is why they are waiting on the other '42 resorts.

I totally agree with this. At this point, our children are just starting their adult lives, and while they love our trips, and are starting to take trips to the World on their own with our points, I don't see them looking to commit to MF's after the expiration, or for that matter, even before then (should we pass on or ownership before it expires - we will be in our 80's).

Therefore, we wouldn't opt to extend our BWV contract if were available right now. However, in 20 - 25 years from now, we'd be able to make a more concrete decision. So I agree, they shouldn't offer it so far in advance. JMHO

 

[Dean]

I think the mistake for OKW was not offering it early but offering at far too high a price. Likely a better option would have been an extension tied to a new retail purchase.

 

[dianeschlicht]

I think the mistake for OKW was not offering it early but offering at far too high a price. Likely a better option would have been an extension tied to a new retail purchase.

Dean, why do you think they did it the way they did with OKW? I assumed it was so they could do a major renovation, but that doesn't seem to be what's happening. Sure they are doing renos, but nothing above what they have always done.

 

[Dean]

Dean, why do you think they did it the way they did with OKW? I assumed it was so they could do a major renovation, but that doesn't seem to be what's happening. Sure they are doing renos, but nothing above what they have always done.

Given that I predicted it would not be successful if too high (and it was IMO), it's hard to know why they took this route. My guess, and it's just a guess, is they thought members were mindless sheep that would do whatever almost no matter the price. The same type of thinking that got them in trouble selling VB & HH. The problem is now they've set the bar, hard to do BWV at $10 a point (the max I think is reasonable) while having a group of OKW owners that paid $15 or more in some cases. I don't think selling with 15-20 years to go will be be at all successful for a comparable price. I'm guessing they did OKW as a trial for several reasons including it was the first and oldest resort. However, it is an easy resort to pare down to match the number f units that are needed to service those that extended plus the rental market. They just close off or bulldoze the number of buildings not needed to match demand. You really can't do that well at any other resort though you can to a degree at HH and SSR.

 

[hakepb]

I do no know if requiring owners to come up with extension funds within 12 months works for all members.
I'm wondering if they could offer some form of "option to purchase" extensions. Options are fairly common in real estate. i.e pay $1/point to purchase the option to extend at a guaranteed extension rate. In the OKW example, you pay $1/point during the offer and within the next 20 years you can pay the additional $14/point to finalize the extension.

Since they completed OKW, the economy went south and many owners probably no longer have the funds or HELOC needed to fund an extension. The other extension success metric we do not have access to. Is DVC is selling more extended points vs resale than before?