Very Interesting DVC Rumors

[tvwalsh]

Using the method called the sum of the year's digits, commonly used to report depreciation, the numbers are arranged in descending order and totalled. 50+49+48 etc. The last fifteen years would represent a portion of the total value equal to 15+14+13....+2+1 =120/1250 ( the total of all the years). This is slightly more than 10%.

Therefore I would think the addition of 15 years to the OKW contracts will be offered at approximately $10.00 per point.

That is what I might be willing to pay.

 

[jdg345]

I wonder if you'll be able to addon at OKW for the full term then? Hmm.

 

[jade1]

Using the method called the sum of the year's digits, commonly used to report depreciation, the numbers are arranged in descending order and totalled. 50+49+48 etc. The last fifteen years would represent a portion of the total value equal to 15+14+13....+2+1 =120/1250 ( the total of all the years). This is slightly more than 10%.

Therefore I would think the addition of 15 years to the OKW contracts will be offered at approximately $10.00 per point.

That is what I might be willing to pay.

I agree. Something in that range would be much more logical than about 1/2 ($35) of a current SSR resale you could use or rent the whole time. I would extend BCV for $10, but thats about it-much more and it would go towards CRV or a BCV add on.

 

[Muushka]

I don't know how Disney does it, but they will manage to make the cost about 10% above what I will be willing to pay.
I play the game at the Disney stores all the time. i will pick up an item and play a guessing game, "What is the maximum I am willing to pay for this?" And it is usually that number plus 10%.

I won't say what I am willing to pay. I don't want to give them any clues!

 

[salmoneous]

The problem is...we'd still be paying for it. With our MF. You'd not see a "room charge" for it, but we'd pay for it, all the same.

I don't mind, with DVC, them charging "extra" for internet...i

Keep in mind the reason roadside $29.99/night motels can offer free wireless internet: it's dirt cheap. Somebody priced it out and it was something like four cents / point for the installation, and less than a penny a point for ongoing service.

 

[BWV Dreamin]

Using the method called the sum of the year's digits, commonly used to report depreciation, the numbers are arranged in descending order and totalled. 50+49+48 etc. The last fifteen years would represent a portion of the total value equal to 15+14+13....+2+1 =120/1250 ( the total of all the years). This is slightly more than 10%.

Therefore I would think the addition of 15 years to the OKW contracts will be offered at approximately $10.00 per point.

That is what I might be willing to pay.

This is excellent information. However, it still does not reflect what the actual contract values would be on the resale market. Obviously at 2042, the value would be zero. But what would the "non-extended" 2042's estimated value vs. the "extended to 2057" contracts value be say in 10 yrs.?

 

[IndianaMouseLover]

This is interesting. I hope they do offer it. I also hope they will offer it to SSR owners. I would be up to shelling out the cash to extend my years no matter my age I will be in 2057, I will be 80 at that point. I am sure I will pass it on to our children.

On the other hand, I imagine as long as I take care of myself, 80 in 2057 will be different than being 80 in 2007.

 

[pilferk]

Well I guess I'm even more confused then. Doesn't handing over more money to extend at OKW gain you absolutely nothing for the next 35 years? Putting that money into another resort would give you instantly more points to use immediatley AND the last 15 years in question as well.

sure it would....at somewhere between $92 and $104 dollars per point. Because you'd be paying for all 50 years, not just 15 "extra".

 

[OneMoreTry]

I won't be needing DVC in 35 years. I have one contract and 5 kids so when my wife and I die it will be sold as part of the estate and money distributed. They can buy their own contracts at the new DVC Beijing in 2027. So for me the additional money would be only an investment.

If I pay $10 pp now and can sell my contract for $10 more in 20 years, I've wasted my money, because it would do better in a bank. If i can sell it for $25 dollars more in 20 years, that would be equivalent to what I could get in a bank, give or take. But I can do better in a balanced mutual fund. And the money is not available to me AT ALL unless I wait long enough to sell that the extra time would make a significant difference in price, which I believe will take decades not years.

So, DVC won't get money from me unless it's REAL CHEAP CHEAP CHEAP. Seems to me I'd be buying lots of air and a bit of "pixie dust."

 

[bluslag]

We are going to be 54 next month so I'm not sure we would even want to use DVC any longer than 2042. That is hoping we even make it till then. We really don't want to pay out any more money now then we have to. And say we did are they going to offer it for BWV and BCV's in a few years. We own at all 3 and we feel we have a good number of points. We usually take friends or family down with us and we have a great time. We always knew that the value would go down someday but will it even go faster if we are the ones that don't extend? So many things to think of when we were feeling we were all set.

 

[tfc3rid]

Speaking of the monetary issuesrelated to OKW and the '2042' resorts... Who's to say that the overall Annual Dues will decrease for those in the out years of our contracts...

I know it doesn't seem plausible...

 

[Beca]

Speaking of the monetary issuesrelated to OKW and the '2042' resorts... Who's to say that the overall Annual Dues will decrease for those in the out years of our contracts...

I know it doesn't seem plausible...

I don't understand what you are saying here....are you meaning, "Who's to say the dues will NOT decrease", or that they will decrease?

If so, why do you think they will decrease???

 

[OneMoreTry]

I don't understand what you are saying here....are you meaning, "Who's to say the dues will NOT decrease", or that they will decrease?

If so, why do you think they will decrease???

Why should I put away money for a new roof and new sofa in OKW in 2041?

 

[javamom]

So what is the collective hunch regarding what Disney will do with these resorts come 2042??? Refurb them all and sell them all over again? Plow them down and build new ones? Concert them all over to the cash ressie system???

 

[spiceycat]

still think if the economy is good - VWL, BCV and BWV will become part of the hotel.

a bunch of new suites - without alot of cost to Disney.

OKW and SSR don't know. seems like they are considering continuing OKW contracts.

so maybe DVC will also extend the other DVC resorts.

 

[Beca]

Why should I put away money for a new roof and new sofa in OKW in 2041?

But, you are acting like you have a choice. Although I think it would be a bad move for DVC to "renovate" OKW in 2041, if DVC is going to offer extensions to OKW, they certainly COULD do a renovation if OKW is up for one.

Plus, with the cost of living rising, and the upkeep on a 50yr old resort....I seriously doubt OKW dues would decrease toward the end of the contract. I expect all of our dues will continue to rise every year.

 

[Maistre Gracey]

Why should I put away money for a new roof and new sofa in OKW in 2041?

I look at it like I'm rentiing a car. The car comes with a full tank of gas, and I leave it with a full tank...
The resort comes with a new couch, and I leave it with a new couch.

We've paid for exactly what we've used.

MG

 

[rugrats2001]

I look at it like I'm rentiing a car. The car comes with a full tank of gas, and I leave it with a full tank...
The resort comes with a new couch, and I leave it with a new couch.

We've paid for exactly what we've used.

MG

But those of us contemplating a purchase at OKW now DON'T get that 'new couch' to start off with.

 

[jade1]

But those of us contemplating a purchase at OKW now DON'T get that 'new couch' to start off with.

Then again the new couches at the new resorts are around $92 to $104, OKW is $73.

 

[rugrats2001]

So what is the collective hunch regarding what Disney will do with these resorts come 2042??? Refurb them all and sell them all over again? Plow them down and build new ones? Concert them all over to the cash ressie system???

My hunch is that DVC will offer progressively less at ROFR for points that have not been extended to 2058 (or further), and that resale values will drop 60% in the next 10 to 15 years on these non-extended memberships. At the same time, Disney will purchase 2042 points dirt cheap, and re-sell them as 2058 points at full price, with no extra cost to DVC (after all, the resorts ARE already paid for, and the MF already pays ALL of the expenses).

The extensions of the contracts simply give DVC the ability to CONTINUE collecting MF, and provide the point 'owners' with a little bit more of what nearly every other time-share plan gives - ownership forever of their real-estate purchase.

When they built OKW, they sold ALL of the value of the property, plus a tidy profit - not just the value of the property less the depreciated value like an automobile lease; so the current owners have already paid for use 'in perpetuity', without receiving that particular benefit.