RESALE POLICY CHANGE!

[DisDadDVC]

For those discussing resale value, anyone else think the newer, expensive resorts (VGF & Poly) will have a decline in resale value? If I was looking to buy resale, I'd probably be more inclined to pay $20 more a point to get these perks. But if I was already looking at SSR for example, $80 a point is way too steep.

I do think the "premium" resorts will get hurt more than SSR, etc. The gap was fairly small to begin with. I know for me if I was buying PVB, I would buy direct over resale now. If I was buying SSR, I wouldn't even consider direct.

 

[LISRAREF]

I am currently in the process of going through buying a resale. I sent an inquiry to my broker who contacted DVC. They advised that :

"The business has determined that all resale contracts received for review by
Disney Vacation Development, Inc. prior to April 4, 2016 will not be
impacted by this policy change;"


So as long as your contract was received and in hand for ROFR by the 4th you will be grandfathered into the only policy.

 

[Madame]

I could care less what you think, I have been viewing this forum for last 3 years and decided to join after a friend had a bad experience buying resale, I work for Google and currently on vacation in Orlando at BLT, so if it makes your day to try to guess my intentions then so be it, Have a wonderful day.

You've benefitted from these posters' expertise for over 3 years & this is your response... Ok. I'm going to take a page out of a well-known poster's book. Have a great trip

 

[davper]

Thank you! That's my first "welcome home."

I wonder if this should be changed to either 'Welcome Home' or 'You're not welcome here' depending on when you bought your contract.

 

[DisDadDVC]

I could care less what you think, I have been viewing this forum for last 3 years and decided to join after a friend had a bad experience buying resale, I work for Google and currently on vacation in Orlando at BLT, so if it makes your day to try to guess my intentions then so be it, Have a wonderful day.

So you DO care what he thinks...

 

[LenInMaine]

I wonder if this should be changed to either 'Welcome Home' or 'You're not welcome here' depending on when you bought your contract.

I can't lie... I've almost gotten that feeling to resale buyers from some of the posters in this thread.

 

[jlovesee]

So big question, if I was to add on to my existing contract (25 original points was resale in 2007 everything else was direct) as resale, would I lose my direct buy in benefits? All of my points except for my 50 I bought at Poly recently were bought for < $100 a point, and paying the $140 a point I paid for Polynesian was hard to swallow, I just can't imagine paying more then that.

BTW, I see nothing wrong with someone buying in initially for 25/50 points, having started that way myself. If I hadn't I certainly wouldn't own the 213 points I do now. That's the point, not everyone has $20,000 to buy in to 200 points initially, that doesn't mean they shouldn't be DVC members.

Last thing, while I am frustrated due to DVC creating a 2 or 3-level class system of DVC members, if I was looking at becoming a new member I would still buy resale, with direct now almost double (which is another thing I can't believe!) buying direct just seems like throwing money in the trash. Take the money you would save and you could spend it on years of annual passes and VIP tours!

Jennifer

 

[avidadventurer]

I'm sure they would love to stop them as well, but I'm not sure how they can do that either. They are not renting out points. They are just matching renters with owners.

Which is a biz transaction which is not allowed I believe, correct me if I'm wrong.

 

[avidadventurer]

So you DO care what he thinks...

I guess so

 

[kniquy]

You would think that if disney has such a problem with people buying resale that they would put in a clause that if you want to sell that you have to sell back to disney at some sort of prorated rate. Glad we bought last year.

This is my biggest issue, all these people that rent out points to pay for membership or even never use membership then dump it while us members that try to make reservations can't be use of short term rentals

Is there really a difference between a member booking 3 nights and a member renting for 3 nights. I would think that there are many members who only do short trips. Those with annual passes that only like to visit for a few days during the week. So to me rentals are a non issue.

 

[_auroraborealis_]

Technically, the contract states that it's a no-no to except $$ for points reservations.

No, it doesn't. Section 5.1 of the contract explicitly permits rentals: "A Club Member may make a reservation to use a Vacation Home for the Club Member’s own use, make their use available to family or friends or guests, or rent them…. Neither DVD’s, DVCMC’s or the Association’s approval of a rental by a Club Member is required after a reservation has been made in the renter’s own name, and Club Member are permitted to rent their occupancy rights on terms and conditions that they may establish…”

There is also a section that explicitly states that when you are allowing a renter to use the unit, they do not get any member benefits, whereas if it's just letting a friend/sibling/mom use it, they might be.

The only thing the contract prohibits is buying a DVC membership for express purpose of perpetual rental. Basically, the rental of points is to be incidental, and not the purpose of your ownership.

 

[avidadventurer]

You would think that if disney has such a problem with people buying resale that they would put in a clause that if you want to sell that you have to sell back to disney at some sort of prorated rate. Glad we bought last year.



Is there really a difference between a member booking 3 nights and a member renting for 3 nights. I would think that there are many members who only do short trips. Those with annual passes that only like to visit for a few days during the week. So to me rentals are a non issue.

There is a big diff, I feel because that's not what is happening. It's rental companies or people with big points packages that are renting out several short trips a year, when we sat down with guide he told me he recommended that we only buy enough to use for our self as we would have to possibly lose points not used or rent them out which he doesn't recommend, very honest and upfront with his members expectations.

 

[southerngirl528]

Well, then DVD is permitting that, because otherwise, they shoulda ROFR those badboys, nein?

Contracts can not be split into smaller portions. IOW, if I have a 230 point contract, a 25 pt one, and a 50 point one, I can not take that 50 point contract and just sell 25 points from it. In resales each contract must be sold as it was purchased, regardless of the size. DVC would have had to simply prohibit selling (or prohibit selling small contracts) to keep members from selling their small add-on contracts and they weren't going to do that.

 

[avidadventurer]

No, it doesn't. Section 5.1 of the contract explicitly permits rentals: "A Club Member may make a reservation to use a Vacation Home for the Club Member’s own use, make their use available to family or friends or guests, or rent them…. Neither DVD’s, DVCMC’s or the Association’s approval of a rental by a Club Member is required after a reservation has been made in the renter’s own name, and Club Member are permitted to rent their occupancy rights on terms and conditions that they may establish…”

There is also a section that explicitly states that when you are allowing a renter to use the unit, they do not get any member benefits, whereas if it's just letting a friend/sibling/mom use it, they might be.

The only thing the contract prohibits is buying a DVC membership for express purpose of perpetual rental. Basically, the rental of points is to be incidental, and not the purpose of your ownership.

Which is what a lot of people do, rent to cover cost of membership.

 

[disneynutz]

The DVC changes continues to make it clear that Disney/DVC is not our friend, we aren't special because we bought a DVC contract, they run a business and we are a number. They will do what is necessary to make us think that we are special while they work to increase direct sales and their profit. These latest changes were a well planned out restriction, they introduced additional benefits then took them away from new resale buyers. I expect that changes will continue as DVD works to increase their worth.

As long as you understand the relationship and you are saving money by owning a DVC contract you are golden.

That's not saying that while on stage they don't provide an enjoyable product, they do. Sadly it's obvious that the Walt days are gone.

Bill

 

[_auroraborealis_]

Contracts can not be split into smaller portions. IOW, if I have a 230 point contract, a 25 pt one, and a 50 point one, I can not take that 50 point contract and just sell 25 points from it. In resales each contract must be sold as it was purchased, regardless of the size. DVC would have had to simply prohibit selling (or prohibit selling small contracts) to keep members from selling their small add-on contracts and they weren't going to do that.

My point is more that when someone buys a 25-point contract on the resale market, and that 25-point contract is their sole ownership interest, DVD could ROFR it. They don't. DVD could easily just set a blanket rule in ROFR to always take back 25-point contracts regardless of price per point sale value.

 

[southerngirl528]

Here's what I don't get...will those people who buy resale as of today be sent a different type of membership card? Because if not, how is a store or restaurant going to know who bought resale and who bought direct?

It is clearly in the new verbiage that members that purchase resale from 4/04/16 and onward will NOT get a physical member card. They will be able to download a digital member card but it will look nothing like the regular member cards. This is how they will know who's who, direct purchase or resale member.

 

[msjprincess]

I'm talking more about the rental companies. Technically, the contract states that it's a no-no to except $$ for points reservations. Short of trying to close those companies I'm not sure how they'd handle it. But it has to be some what of a thorn in DVC's side. They would much rather those people buy DVC, or book via cash.

Where does it say that?

 

[_auroraborealis_]

I'd argue that new resale restrictions may increase the number of people on large contracts who rent them out, by the way.

Bob & Jane own a 400 point contract that they bought when their kids were younger. Their kids are older now, and they are traveling less with the kids. The contract cannot be broken up, and Bob and Jane still love Boardwalk. They book 2 shorter trips a year with their points, staying in studios. Save in rare years they take some of the fan, they have surplus points. They rent them to cover the dues on the contract.

If resale prices deflate in any way, rental is likely to hold value.

 

[_auroraborealis_]

Where does it say that?

It doesn't. Section 5.1 says renting is okay, so long as you aren't holding the contract solely as a business interest.