Trust points?

[homey12]

I have been reading a lot about DVD going to a trust, or trust Points? What does all of this mean or what is the theory behind it?

 

[Sandisw]

The short version is that they create a land trust that is used to hold resort property.

The trust becomes the owner of the property and what is sold to buyers is ownership in a resort use plan vs it being a property where one buys an actual ownership interest in it.

So, instead of each being their own, properties are put into one association instead of everyone being their own.

Right now, it’s just the cabins. We don’t know how it will apply to future resorts, including the Poly tower.

 

[Tiggerette]

It will be interesting to see how resale restrictions would be applied to properties held in the trust.

 

[kilik64]

It will be interesting to see how resale restrictions would be applied to properties held in the trust.

Based on the docs filed, same as now with newer resorts ala RIV. You buy cfw resale that is the only place you can stay.

 

[Tiggerette]

Based on the docs filed, same as now with newer resorts ala RIV. You buy cfw resale that is the only place you can stay.

But I am buying into the trust, right? At the moment, the trust might be only represented by the cabins, but what happens when the trust includes use of the hotel as outlined in the master document? (The is a statement about envisioned restaurant, hotel and other assets as a multi-use planned project. The statement is highlighted in the other thread on the Ft. Wilderness cabins.)
https://www.disboards.com/threads/ft-wilderness-cabins-becoming-dvc.3916819/page-89#post-65244131

Some folks have discussed a two-tier system between the "Legacy 14" and the newer buildings that carry resale restrictions. Some are speculating that a use of a Trust could introduce a third tier, whereby the Trust encompasses more than a single property/resort.

 

[Sandisw]

But I am buying into the trust, right? At the moment, the trust might be only represented by the cabins, but what happens when the trust includes use of the hotel as outlined in the master document? (The is a statement about envisioned restaurant, hotel and other assets as a multi-use planned project. The statement is highlighted in the other thread on the Ft. Wilderness cabins.)
https://www.disboards.com/threads/ft-wilderness-cabins-becoming-dvc.3916819/page-89#post-65244131

Some folks have discussed a two-tier system between the "Legacy 14" and the newer buildings that carry resale restrictions. Some are speculating that a use of a Trust could introduce a third tier, whereby the Trust encompasses more than a single property/resort.

What you are buying is not into the cabins. You are buying into a trust use plan. It gives you access to any rooms activated under that plan.

What they can do is put several different trust use plans in place for diffeeent properties so when you sell, it’s why you can indeed be restricted to just the property activated under your plan.

The documents do allow for more than one property to go under the same plan but they can still set up rules for purchasing on resale any way they want.

 

[Flash_Sloth]

I'm very curious about this, too. I know that until it is officially announced, there are a lot of rumors and speculations of exactly how it will work. But from how I think it will work, I don't like it.

The trust will own some percentage of the points at each property vs. our traditional deeded DVC ownership. Making up random numbers, maybe 100% CFW, 25% RIV, 50% VDH, 30% AUL, etc. That will be the pool of points that trust owners will have access to.

I'm guessing that for the more popular resorts, especially at the more popular times, there will be a lot more demand than available inventory because direct trust owners will have the 11 month window into multiple properties.

And for resale trust owners that are restricted to a single resort, if you own at a popular resort, there will be that much more competition in the 11 month window. It may be difficult to get a reservation that works for your schedule, or to get any reservation.

But the marketing will be all glamorous and glitzy. Look at how many resorts you can book at the 11 month window with a single ownership! Then reality strikes when you actually try to make a reservation.

 

[bakerr6]

I'm curious how direct benefits will work for trust purchases. Since you are no longer purchasing into DVD direct, is there an exception for purchasing into the trust use plan?

 

[eticketplease]

I'm curious how direct benefits will work for trust purchases. Since you are no longer purchasing into DVD direct, is there an exception for purchasing into the trust use plan?

I assume they will continue to operate in the same way where you will have a minimum number of points to qualify.

 

[DVCSunDevil]

I am referring to the Trust as the “DVC Bargain Bin”. It seems like they are taking the resorts that aren’t selling well and packaging them together. Any chance DVC sells these at a discount to entice buyers, or do you think they sell it as a premium because multiple resorts are included?

 

[bakerr6]

I'm not too sure they will sell it as a bargain bin. There's a possibility that they would still have a home resort with 11 months access and then tier the rest of the points out (ie 11 for home resort, 9 for the rest in the trust, 7 for all of dvc). This could be an attractive selling point for those that would like advanced priority on multiple resorts, but still provide a tiered selling strategy for disney.

 

[DVCSunDevil]

I'm not too sure they will sell it as a bargain bin. There's a possibility that they would still have a home resort with 11 months access and then tier the rest of the points out (ie 11 for home resort, 9 for the rest in the trust, 7 for all of dvc). This could be an attractive selling point for those that would like advanced priority on multiple resorts, but still provide a tiered selling strategy for disney.

Yeah, I figure they won’t sell it at a reduced price. It just has a “bargain bin” feel to it. Multiple resorts that are not selling well get packaged together. I get the premise and the appeal for DVC management to do this. It makes sense. It just feels like walking down the candy aisle after Halloween and seeing the 4 least selling candies bundled together to entice people to buy them. For me personally, I don’t like those candies so I won’t buy them even when they’re bundled together. Same thing with this trust. It’s not about quantity, it’s about quality. I stay where I want to stay. But I understand that not everyone will feel the same way and this trust will definitely generate revenue for DVC.

 

[bakerr6]

Yeah, I figure they won’t sell it at a reduced price. It just has a “bargain bin” feel to it. Multiple resorts that are not selling well get packaged together. I get the premise and the appeal for DVC management to do this. It makes sense. It just feels like walking down the candy aisle after Halloween and seeing the 4 least selling candies bundled together to entice people to buy them. For me personally, I don’t like those candies so I won’t buy them even when they’re bundled together. Same thing with this trust. It’s not about quantity, it’s about quality. I stay where I want to stay. But I understand that not everyone will feel the same way and this trust will definitely generate revenue for DVC.

I think many people view the trust that way. If there is an 11, 9 and 7 month split, I would be interested in the trust setup. This could also be advantageous if the resale points continue with the same privilege of 11 and 9 months priority.

 

[wilkydelts]

This could also be advantageous if the resale points continue with the same privilege of 11 and 9 months priority.

Ah yeah, that will never happen.

 

[eticketplease]

Ah yeah, that will never happen.

I could see it happening as your selling your stake in the trust and not just 1 property.

 

[bakerr6]

Ah yeah, that will never happen.

This would be a selling point to entice more purchases in the trust. There's no downside for Disney to keep this setup, as it allows them to direct sell into the trust at a premium without losing the direct benefits outside of the trust.

I think most people will opt out of the trust if the benefits are not there. I cannot see Disney allowing full access at 11 months to every resort in the trust, as they will still want an opportunity to sell new property that maintains restrictions.

 

[wilkydelts]

Resale does not help Disney. They are not going to do anything that help resale look better or helps out the resale consumer.

 

[bakerr6]

Resale does not help Disney. They are not going to do anything that help resale look better or helps out the resale consumer.

Resale doesn't help disney, but you have to differentiate the trust product in order to get people to buy into the trust. There has to be an incentive to buy that outweighs the negative aspects of the trust.

 

[eticketplease]

Resale does not help Disney. They are not going to do anything that help resale look better or helps out the resale consumer.

We realize resale does not help Disney.

@bakerr6 brought up a good point about booking at different windows in the trust.

Look at resale Riviera, Are they limited to booking at the Riviera, yes. Are they removed from the Home Resort Booking Window of 11 months, no.

People are speculating an 11, 9, 7 month window for direct trust purchases.

On the resale market I can see the 11 and 9 month windows sticking and obviously the 7 months wouldn't matter as they are limited to what is in the trust only do to restrictions.

 

[wilkydelts]

On the resale market I can see the 11 and 9 month windows sticking and obviously the 7 months wouldn't matter as they are limited to what is in the trust only do to restrictions.

There is no way Disney is going to give trust resale owners an advantage over direct owners who can not book until 7 months. That would is nonsense.