Pre-sales

[nuts]

For those of you who have purchased a resort prior to its opening, how did it work? Were you required to purchase all up front, or a down payment until points available? How did it work if you did a loan? With GCV I just may have to jump in on this one. Any insight is appreciated.

 

[ChrisMouse]

I am interested in the responses to this post.

 

[Horace Horsecollar]

I predict that Disney Vacation Development will begin selling Grand Californian Villas points as soon as their models are ready and California real estate law allows them to do so.

I wouldn't look to Florida DVC resorts for a reliable indicator of how pre-sales will be handled.

As far as the rules for when DVD can begin to take down payments, when they can demand full payment, and when closing will occur in relation to first occupancy, it will depend on how California real estate law deals with timeshares that are not yet ready for occupancy.

Speaking of real estate law, it will be interesting to see if the Grand Californian Villas will be 50-year right-to-use deeded lease properties, of if they will be fee simple, owned in perpetuity. For as long as I've been reading this board, there have been posts saying that California real estate law does not allow timeshares that expire. I've assumed this is just an Internet legend invented by someone who was looking for a plausible explanation of why Disney has never expanded DVC into California. Once we learn the details about the Grand Californian Villas, we'll know the real story.

 

[alexandone]

We bought SSR pre-sale the summer of '03. I don't remember the details, but our first payment wasn't due until May '04. I believe we applied the incentive toward the down payment and made a second down payment in May '04. The second down payment made our loan term 5 years instead of a 10 years.

 

[JudyS]

I'm concerned that the GCV will sell out fast! When do you think current DVC owners will be able to reserve a points contract, or get on a list expressing interest in buying?

 

[dwelty]

I'm concerned that the GCV will sell out fast! When do you think current DVC owners will be able to reserve a points contract, or get on a list expressing interest in buying?

I think it would be wise to notify your guide that you are interested in purchasing there. There will be approximately 750,000 points for sale (Based on current point chart averages). Disney knows there is pent up demand on the West Coast for a DVC at Disneyland, and I am sure they have done all of the necessary sales projections. Since they are shelling out quite a bit to remodel the demo units at the Disneyland sales center,I am assuming that they plan on having at least a 6 month supply of points. And rest assured, if these sell out really fast, expect another Disneyland Resort announcement.
Since DVC is a "Cash cow" for the company, I do not think they will pass up another sales opportunity.

 

[nuts]

I contacted my guide. They are now keeping a list of those who want to pre-purchase.

 

[Laurabearz]

Well I just called my guide and left a message for her saying we want to know everything she knows about the GCV

 

[dwelty]

I did some on line reserch on California TImeshare laws and found some information you might be interested in.

I found these two sections related to the Selling of timeshare in the State of California (California Timeshare Law)


"Before sale of timeshare ownership interests can commence, all funds from the sale of time-share interests, as the
commissioner shall determine, must be sufficient to assure construction of
the improvement, or improvements shall be bonded or impounded in a
neutral escrow depository acceptable to the commissioner until the
improvements have been completed and all applicable lien periods have
expired".

And another excerpt:

"An amount sufficient to cover the costs of construction shall
be deposited in a neutral escrow depository acceptable to the
commissioner under a written escrow agreement providing for
disbursements from the escrow as work is completed.

developer shall specify a reasonable date for completion and shall
comply with any one of the following conditions:
(a) Arranges for lien and completion bond or bonds, enforceable by
the association, in an amount and subject to the terms, conditions,
and coverage necessary to assure completion of the improvements
lien-free. The bond shall not exceed 120 percent of the cost for
completion, and the bond shall provide for the reduction of the bond
amount as work is completed".

Now I'm no lawyer, but it seems to me that Disney can start selling whenever they feel it is prudent, as long as they have bonds in place to cover the entire cost of the project, to protect the consumer's interest. No where in the document does it reference any portion of actual property to be completed before sales can commence. I think they could legally start pre- sales whenever they want provided they meet these requirements.

 

[SuzanneSLO]

Since DVC is a "Cash cow" for the company, I do not think they will pass up another sales opportunity.

I too have always thought that DVC was a cash cow for Disney, but clearly the Company valued 200 more hotel rooms at DGC more than it did another say, 100 DVC villas.

I find it interesting as well that there is a sweepstakes right now for DL AP holders to win DVC points in exchange for letting DVC contact you about ownership at the GCV. Maybe those of us who post here are not really in touch with the true market interest in a CA DVC property.

The sweepstakes closes on 10/31/07, so this may have some bearing on when information about GCV will be able to the public. This does seem early to me, however, as would be surprised if there are any sales until 2009.

-- Suzanne

 

[dwelty]

I too have always thought that DVC was a cash cow for Disney, but clearly the Company valued 200 more hotel rooms at DGC more than it did another say, 100 DVC villas.

I find it interesting as well that there is a sweepstakes right now for DL AP holders to win DVC points in exchange for letting DVC contact you about ownership at the GCV. Maybe those of us who post here are not really in touch with the true market interest in a CA DVC property.

The sweepstakes closes on 10/31/07, so this may have some bearing on when information about GCV will be able to the public. This does seem early to me, however, as would be surprised if there are any sales until 2009.

-- Suzanne

You are right about the fact that we may be a little out of touch here. We only represent a small portion of DVC owners, and are probably some of the most "Rabid" Disney Fans on the planet. However, one thing is for certain, DVC has been selling very well at DLR. I think once they offer a property right there at Disneyland, sales will be brisk. As to the 200 regular rooms at the GCH. I think this was a peace offering "so to speak" to Disneyland Resort Hotel Management. The GCH was supposed to have a second phase expansion to start in 2002. However, September 11th and the subsiquent drop in tourisim derailed that plan. It would have caused some big waves if DVC claimed the entire wing for itself. (Remember DVC is a "Walt Disney World thing" in the eyes of many managers at the DLR). However, with a record sell out of the 50 villas, It will be hard for Disneyland management to keep this resistance up. I think the next resort that is built will have a large DVC component.

As to when sales will start, my only thoughts are that it will be hard for the (Fairly large) sales staff at DLR to convince west coast Disneyland regulars to purchase at WDW when DVC units at DLR are under construction. Additionally, Sales at SSR and AKL are ahead of schedule and they are quickly running out of inventory. 750,000 points at the GCH is not alot, but every little bit helps. If California starts selling GCH, this will take a little pressure off of the inventory in Florida. I think they will start pre-selling in 2008.

 

[Robo-Daddy 3000]

Well I just called my guide and left a message for her saying we want to know everything she knows about the GCV

Better call my guide too!

 

[ChrisMouse]

He put me on the list and said that a lot more information, including point charts, will be available October 9th. Yippeee!

 

[nuts]

He put me on the list and said that a lot more information, including point charts, will be available October 9th. Yippeee!

If point charts will be available 10/9, then I suspect pre-sales will start in early 2008 with special incentives. Hey, they want our cash

 

[wdw4life]

If point charts will be available 10/9, then I suspect pre-sales will start in early 2008 with special incentives. Hey, they want our cash

If sales actually do start early next year then I need to get to work on unloading one of my contracts!