WoW Disney just ROFR

[Her Dotness]

With any luck, since VGF is now in active sales, the $144 per point contract I just submitted to ROFR will pass and I will be made in the shade!

Good !

 

[Redheadprincess]

This has been my suspicion due to rumors for some time that Disney's intent on seriously damaging if not destroying the resale market.

Goes along with making money no matter what that seems to be the guiding principle to recoup shutdown losses.

But without a resale market, Disney would have a difficult time increasing the value of their product. There would be thousands of people trying to just get rid of them not to pay dues. This happens with many other timeshares
My mom got caught up in the 1990s and bought several. Now she is in her 70s and poor health keeps her from traveling. She is paying thousands of dollars to get out of her contracts because she cannot give them away.

 

[RoseGold]

I've seen several disgruntled posters here on DISbds say they've had 3-4 ROFRs and are discouraged enough to consider saving up to buy somewhere direct. (Yeah, they might not have been astute buyers for all I know.)

Not clearcut evidence supporting my suspicions by any means as hogwild as ROFR typically has been but makes me wonder, yanno? I mean when it's even OKW extendeds at a reasonable ppp? 2042s anybody savvy would understand getting ROFRed.

It's OKW non-extended that they want, because they magically convert it and voila! That ROFR is why OKW is not as good of a deal in buying resale as SSR, IMO. Recently, they've been buying back both quite a bit.

 

[hhisc16]

It's OKW non-extended that they want, because they magically convert it and voila! That ROFR is why OKW is not as good of a deal in buying resale as SSR, IMO. Recently, they've been buying back both quite a bit.

I am surprised that DVC does not buy all OKW 2042 resale contracts in ROFR because of the extension issue.

 

[Her Dotness]

It's OKW non-extended that they want, because they magically convert it and voila!

The complaints I've seen very recently involved OKW 2057s getting ROFRed. Only a couple. Don't recall the ppp except being surprised both were ROFRed as the price didn't seem likely to be ROFR chow.

Mind you, I'm not suggesting this is a major indicator of anything. Maybe Disney just decided to flex muscle on those contracts. We've all gone,"They ROFRed that one? Whodathunkit?"

 

[RoseGold]

I am surprised that DVC does not buy all OKW 2042 resale contracts in ROFR because of the extension issue.

Because the price was getting too high! It's a balance between OKW and SSR.

 

[Sandisw]

I'm not sure how more ROFR activity would either damage or destroy the resale market.

Maybe from a resale buyer's perspective it makes it less appealing. But Disney can't ROFR anything unless someone is attempting to buy a resale contract. So they kind of need the resale market to be active. And driving up resale prices through ROFR seems like it would do the exact opposite of "damaging" the resale market.

There will always be a resale market for DVC. That won't change because its associated with Disney and as long as parks exist, there will be those who want DVC. All DVD needs to do is create the illusion that a direct purchase is worth the extra money it will cost you. If that difference has shrunk, then buyers may choose direct.

It doesn't take a lot of ROFRing at certain prices to guide buyers that way.

 

[Sandisw]

I am surprised that DVC does not buy all OKW 2042 resale contracts in ROFR because of the extension issue.

They don't need to because the owner of a 2042 resort, if they are the original owner, signs the quit claim deed before they sell. If the 2042 contract is owned by someone who was not the original owner, then they don't have rights beyond 2042 anyway as the original owner already signed the quit claim. So, all of those contracts are DVD's for free come 2042.

The only 2042 contracts that will be an issue for DVD are the contracts owned by original owners who have not signed the quit claim deed or pay for the extension. No one knows what will happen with those because the ground lease of OKW was extended to 2057 and those original owners are officially extended now and IMO, they will end up getting those years for free.

If I understand the lawsuit that has been settled already, those owners may not even owe dues either...but someone with more knowledge can correct me if I am wrong on that part..

 

[smmora]

They don't need to because the owner of a 2042 resort, if they are the original owner, signs the quit claim deed before they sell. If the 2042 contract is owned by someone who was not the original owner, then they don't have rights beyond 2042 anyway as the original owner already signed the quit claim. So, all of those contracts are DVD's for free come 2042.

The only 2042 contracts that will be an issue for DVD are the contracts owned by original owners who have not signed the quit claim deed or pay for the extension. No one knows what will happen with those because the ground lease of OKW was extended to 2057 and those original owners are officially extended now and IMO, they will end up getting those years for free.

If I understand the lawsuit that has been settled already, those owners may not even owe dues either...but someone with more knowledge can correct me if I am wrong on that part..

If that's the case, i can't imagine why an original owner would ever sell. Even if they didn't want to go they could rent the points for cash for 15 years

 

[CarolMN]

If that's the case, i can't imagine why an original owner would ever sell. Even if they didn't want to go they could rent the points for cash for 15 years

OKW opened in 1991. A lot (if not most) of the original owners will have long moved on before 2042 arrives.

 

[Sandisw]

If that's the case, i can't imagine why an original owner would ever sell. Even if they didn't want to go they could rent the points for cash for 15 years

Renting takes work and not everyone wants to be doing that.

 

[chalee94]

They don't need to because the owner of a 2042 resort, if they are the original owner, signs the quit claim deed before they sell. If the 2042 contract is owned by someone who was not the original owner, then they don't have rights beyond 2042 anyway as the original owner already signed the quit claim. So, all of those contracts are DVD's for free come 2042.

I'm in the group that says only a handful of OKW owners would have pushed the envelope and refused to sign the quitclaim back in 2007 or so. I expect those few will get the extension for free but would be shocked if they didn't owe dues.

The bigger problem is what DVD will DO with their newfound ownership of half (3 to 4 million points) of OKW in 2042?

They could try to sell the points...but if they are also selling some combination of BCV 2.0, BWV 2.0 and BRV 2.0 with new 50 year contracts, finding buyers for the leftover 15 years of OKW might be a challenge. Fire sale maybe?

They could try to rent the points but again, there would be demand issues unless they cut rental prices significantly.

Dean used to suggest that they might shutter half the resort (though the contracts technically forbid it since they wouldn't own all of the units together representing the shuttered villas) or use it for College Program housing or something. As Tom Petty used to say, "the future is wide open..."

Getting the points in 2042 might be "free" but they would still be responsible for maintaining their half of the resort - and while I currently enjoy owning there, I have to admit there appear to be some thorny revenue issues for DVD in the future after OKW's extension debacle.

 

[Sandisw]

I'm in the group that says only a handful of OKW owners would have pushed the envelope and refused to sign the quitclaim back in 2007 or so. I expect those few will get the extension for free but would be shocked if they didn't owe dues.

The bigger problem is what DVD will DO with their newfound ownership of half (3 to 4 million points) of OKW in 2042?

They could try to sell the points...but if they are also selling some combination of BCV 2.0, BWV 2.0 and BRV 2.0 with new 50 year contracts, finding buyers for the leftover 15 years of OKW might be a challenge. Fire sale maybe?

They could try to rent the points but again, there would be demand issues unless they cut rental prices significantly.

Dean used to suggest that they might shutter half the resort (though the contracts technically forbid it since they wouldn't own all of the units together representing the shuttered villas) or use it for College Program housing or something. As Tom Petty used to say, "the future is wide open..."

Getting the points in 2042 might be "free" but they would still be responsible for maintaining their half of the resort - and while I currently enjoy owning there, I have to admit there appear to be some thorny revenue issues for DVD in the future after OKW's extension debacle.

There was some legal agreement in reference to dues. I just don’t remember details but it was DVD agree to pay something to owners.

It will be interesting to see how it’s handles and how many original contracts are there.

 

[The Jackal]

I'm in the group that says only a handful of OKW owners would have pushed the envelope and refused to sign the quitclaim back in 2007 or so. I expect those few will get the extension for free but would be shocked if they didn't owe dues.

The bigger problem is what DVD will DO with their newfound ownership of half (3 to 4 million points) of OKW in 2042?

They could try to sell the points...but if they are also selling some combination of BCV 2.0, BWV 2.0 and BRV 2.0 with new 50 year contracts, finding buyers for the leftover 15 years of OKW might be a challenge. Fire sale maybe?

They could try to rent the points but again, there would be demand issues unless they cut rental prices significantly.

Dean used to suggest that they might shutter half the resort (though the contracts technically forbid it since they wouldn't own all of the units together representing the shuttered villas) or use it for College Program housing or something. As Tom Petty used to say, "the future is wide open..."

Getting the points in 2042 might be "free" but they would still be responsible for maintaining their half of the resort - and while I currently enjoy owning there, I have to admit there appear to be some thorny revenue issues for DVD in the future after OKW's extension debacle.

It will be nearly impossible to shutter any units. Since odds are all units will have extended points in owners hands. Contracts are seeded rights, they cannot just change it. About 25% of the points are or have been extended, so odds are about 25% of all buildings have extended points. Sure in 2042 there is a very small chance that maybe 1 building will not have extended points, but I doubt it. I foresee DVC in the near future but back a lot of OKW and resell it for a small profit.

 

[The Jackal]

OKW opened in 1991. A lot (if not most) of the original owners will have long moved on before 2042 arrives.

Don’t forget they can gift it to family members.

 

[Sandisw]

It will be nearly impossible to shutter any units. Since odds are all units will have extended points in owners hands. Contracts are seeded rights, they cannot just change it. About 25% of the points are or have been extended, so odds are about 25% of all buildings have extended points. Sure in 2042 there is a very small chance that maybe 1 building will not have extended points, but I doubt it. I foresee DVC in the near future but back a lot of OKW and resell it for a small profit.

Why cant they shutter the buildings for use? They can’t remove them from the association but not sure they must keep them open.

Couldn’t they simply put people in some of the buildings? DVD will own enough points to in essence, book those buildings in full all year round, but not actually use them.

Its like at VGF…101 rooms were declared but DVC owners will be put in any of the 202 rooms, even ones not yet declared.