How many years before V1 DVC resale is worthless?

GCorbett

Earning My Ears
Joined
Dec 31, 2019
I suspect they may offer some shorter extensions on at least a couple of the properties if only to stagger them. Having 5 go offline is probably a little much. Even offering a 5 year extension on a couple of them will allow DVC to do minor refurbs on one or two resorts at a time before reselling them as a "new" resort.
 

MBTigger

Earning My Ears
Joined
Aug 19, 2019
I was wondering the same thing that Doc is - about how Byzantine banking and borrowing is going the get the last 2-3 years.

Will there be a fire sale on points for rent in that last year when points cannot be banked?

MB
 
  • Sandisw

    Moderator
    Moderator
    Joined
    Nov 15, 2008
    I was wondering the same thing that Doc is - about how Byzantine banking and borrowing is going the get the last 2-3 years.

    Will there be a fire sale on points for rent in that last year when points cannot be banked?

    MB
    I am going with the notion those will be suspended with about 3 years left and plan to borrow so one Of those years is already empty!
     

    carlbarry

    DIS Veteran
    Joined
    Oct 28, 2007
    I bought OKW resale in 2008 and 2009 for about $65 per point. I am shocked to see what the price is now--around a 50% increase.
     

    Bearval

    Mouseketeer
    Joined
    Dec 31, 2017
    I suspect they may offer some shorter extensions on at least a couple of the properties if only to stagger them. Having 5 go offline is probably a little much. Even offering a 5 year extension on a couple of them will allow DVC to do minor refurbs on one or two resorts at a time before reselling them as a "new" resort.
    My best guess would be that Hilton Head and Vero Beach would be sold off especially since years ago they sold the land next to Vero beach when Vero beach didnt sell as well as they thought it would. Boulder would have a hard refurbishment and would be sold as DVC with higher points needed but with an expiration date same as CCV so these would be like 24 year contracts. That would leave just 2 properties which they could rent one out as hotel rooms while they are doing a major overhaul to the other to rebrand and resell for higher point totals. When that was done the can overhaul the one they were renting out as rooms and then resell them as DVC.
     

    bababear_50

    DIS Veteran
    Joined
    Feb 5, 2007
    I'm one of those weird OKW owners,,,mine are good till 2057.
    So another 37 years,,,I'm good with that.

    Mel
     

    DVC BLT

    Mouseketeer
    Joined
    Aug 13, 2011
    Ive been thinking a little about 2042 and I cant see demolition of all those resorts and the time it would take to rebuild and sell them would be too long with too much capacity lost and then brought online at the same time. As the years come closer to 2042 and the price begins to drop, I would think it would be business practical to start ROFR aggressively on disney part and take some rooms out of service and begin to refurb (complete gut) and start selling points with extended dates? I'm not a timeshare lawyer so there could be details someone could share that might make this impossible, but from a financial perspective, I would not want all those points expiring at the same time where I have to do mass construction / refurb all simultaneously. Doing that much work at once will drive the cost up as finding workers / materials / managers / designers to manage it all would be a recipe for cost over-runs and delays.
     

    CarolynFH

    DIS Veteran
    Joined
    Jan 5, 2000
    Ive been thinking a little about 2042 and I cant see demolition of all those resorts and the time it would take to rebuild and sell them would be too long with too much capacity lost and then brought online at the same time. As the years come closer to 2042 and the price begins to drop, I would think it would be business practical to start ROFR aggressively on disney part and take some rooms out of service and begin to refurb (complete gut) and start selling points with extended dates? I'm not a timeshare lawyer so there could be details someone could share that might make this impossible, but from a financial perspective, I would not want all those points expiring at the same time where I have to do mass construction / refurb all simultaneously. Doing that much work at once will drive the cost up as finding workers / materials / managers / designers to manage it all would be a recipe for cost over-runs and delays.
    I’m not expecting demolition - I think they’ll do extensive refurb to bring them up to whatever standard is “deluxe” at that time. They could work on one floor and/or one wing at a time and rent the rest for cash.
     

    Hopfather28

    Earning My Ears
    Joined
    Sep 15, 2017
    I think this is a very valid question that has potential resale buyers interested. I've been trying to convince DW into buying resale but since it's a long term buy we would look into BCV and BWV as they are closer to the parks that we would spend more time at as our kids (currently 4 and 8) age. Purchasing a contract that will expire when I'm 61 means that it expires right around the time we would be able to use it whenever we wanted because pesky jobs wouldn't get in the way. Considering that those contracts (especially BCV) still resale so high it is a hard sell to DW when you consider we won't get retirement years there.
     

    Bearval

    Mouseketeer
    Joined
    Dec 31, 2017
    I’m not expecting demolition - I think they’ll do extensive refurb to bring them up to whatever standard is “deluxe” at that time. They could work on one floor and/or one wing at a time and rent the rest for cash.
    I agree no knocking the structure down but a major overhaul and a possible rethemeing and of course more points needed. I believe they will do a whole resort at a time and like I posted earlier, HH and Vero will get sold off and will not be part of DVC. The boulder resort will either be refurbished and have a contract that ends the same as CCV or will be used as "hotel" rooms . You are never going to see any extensions ever again. If the were going to do that they would still be offering extensions for OKW.
     

    thanxfornoticin

    Earning My Ears
    Joined
    Feb 12, 2020
    I've wondered too. Is it possible that 10-15 years from now DVC offers contract extensions for resorts that expire in 2042? I get the feeling something will change and make the scenario different from how we see it today.
    This doesn't seem likely, mostly because of the reports that came out when they did this very thing by offering extensions at Old Key West. Now granted, that was around the 1/2-way point of the lease for many owners (not 10-15 years from now when the leases are closer to running out) - but it was not very popular and appeared to be a big headache for DVC trying to get responses from all the owners.
     

    Bearval

    Mouseketeer
    Joined
    Dec 31, 2017
    This doesn't seem likely, mostly because of the reports that came out when they did this very thing by offering extensions at Old Key West. Now granted, that was around the 1/2-way point of the lease for many owners (not 10-15 years from now when the leases are closer to running out) - but it was not very popular and appeared to be a big headache for DVC trying to get responses from all the owners.
    Plus much more profitable to let the timeshares expire ,overhaul ,jack up points needed per night and resale as a "new" resort.
     

    bookwormde

    <font color=darkorchid>Heading out now, another ad
    Joined
    Mar 16, 2008
    one of the biggest issues I see is that 3 resorts end at exactly the same time and another has a large part ending. That many points at once would be a marketing issues and selling that many rooms for cash until the points sell appears unlikely
     

    Starport Seven-Five

    Mouseketeer
    Joined
    Aug 16, 2019
    I think it'll be interesting to see what Disney does as it gets closer to the date. With the number of contracts expiring in 2042 I wouldn't be surprised if they decide to offer extensions at some of the lower demand resorts (like OKW).
     
    Joined
    May 25, 2017
    I can see extensions being offered for a limited time and at a high premium maybe 5-10 years prior to expiration, those that don't renew will increase Disney's ability to sell off a massive batch of "new 50 year" contracts. They may also stagger the release of the "new" old 50 year contracts so they can keep milking DVC indefinitely. Maybe they start selling Beach Club in 2042 (because of popularity) but Boulder Ridge gets an extensive refurb to add live animal viewing (just an example) and sells starting in 2046 and so on with the other original resorts. Im sure they will want to make resale restrictions permanent to further incentivize buying direct.
     

    Sandisw

    Moderator
    Moderator
    Joined
    Nov 15, 2008
    Wonder if what they would do is give people the option of buying the new resorts during the last few years, with the 50 year contract starting in 2042 at the current new price, but give them a few years...while resort is under renovation...to still book with old point charts?

    So, you buy say, 150 new BWV resort points before the 2042 end date....these are now valid to use while the resort is being refurbed? But, they would only be good during those years at BWV...no trading into the system until the new resort "officially" opens?
     

    MrsBooch

    Mouseketeer
    Joined
    Mar 13, 2019
    My best guess would be that Hilton Head and Vero Beach would be sold off especially since years ago they sold the land next to Vero beach when Vero beach didnt sell as well as they thought it would. Boulder would have a hard refurbishment and would be sold as DVC with higher points needed but with an expiration date same as CCV so these would be like 24 year contracts. That would leave just 2 properties which they could rent one out as hotel rooms while they are doing a major overhaul to the other to rebrand and resell for higher point totals. When that was done the can overhaul the one they were renting out as rooms and then resell them as DVC.
    Not to be daft but what does "sell off" mean in this context. As in, they would no longer be locations available for people to stay?
     

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