Breaking up direct contract

[PharmDis]

I’m planning to buy direct at the Villas at Disneyland Hotel. Leaning towards 200 points. Would it be wise to break the 200 points into two contracts? For example: two 100 pt contracts or a one 150 pt and one 50 pt.

I’ve heard some do this for estate planning. I’m mainly thinking resale, since I’ve also heard smaller contracts are desirable. Im just not sure if paying extra closing costs is worth breaking it up.

What have you done? And what are your thoughts about breaking up a direct contract?

 

[pianomanzano]

Do you have two kids? If so, two 100 pt contracts might be best if you're planning on giving your contracts to them. Only complicated thing about that is the current minimum for membership extras is 150 so neither kid would qualify. If you're not planning with kids in mine, I'd go 150 and 50, that way if you need to offload you can sell the 50 and still have enough direct points to meet the minimum for membership extras.

 

[AstroBlasters]

I broke mine into 2x100 point contracts. Reasoning = Estate planning and Resale

 

[Simba's Mom]

Although I’ve never done it, I certainly wish we had. That’s because we have a contract of 210 points, and I’d love to sell some because we don’t need that many points at that resort now. But 21 years ago, we didn’t consider this eventuality.

 

[RoseGold]

I would absolutely do this, for flexibility. You can't split a 200 point contract. You can sell 100 points if you want to go less.

 

[Nursemanit]

If it is your first - they may insist on one 150 then how you like

 

[intamin]

Do you have two kids? If so, two 100 pt contracts might be best if you're planning on giving your contracts to them. Only complicated thing about that is the current minimum for membership extras is 150 so neither kid would qualify. If you're not planning with kids in mine, I'd go 150 and 50, that way if you need to offload you can sell the 50 and still have enough direct points to meet the minimum for membership extras.

Only solution here must be to buy 2 150s . But in all seriousness you could do 2 100s and then add 100 (2 50s) at another resort down the line

 

[Sandisw]

If it is your first - they may insist on one 150 then how you like

They reduced the minimum in March to 100 points so a new buyer can go that small for first contract..but they still need to have 150 total for extras.

 

[Nursemanit]

They reduced the minimum in March to 100 points so a new buyer can go that small for first contract..but they still need to have 150 total for extras.

Forgot they reduced it - I am glad to have one 150 at RIV as that is my never sell contact

 

[NVDISFamily]

It's 100% worth breaking up into 2 contracts. The one thing to consider is you said you are doing this for estate planning. You may want to consider buying two 150 point contracts (yes 300 points) as this will allow your kids (I'm assuming there are two) to remain "DVC Y" at the point they take over the contracts years from now if they split them into their own memberships. I was told that the "blue card" benefits are based on when the points were purchased and as long as the family getting the points (gratuitous transfer) receives the points that were required at the time of purchase (right now it's 150) they will keep the direct benefits.

And of course, because you will never be sad having more points (other than when paying the dues).....

Sorry were enablers here.

 

[robinb]

I broke up my 100 points direct purchase of AKV into 2 50 point contracts for possible resale purposes.

 

[PharmDis]

Thank you for all your replies. New to this community, appreciate all of you already! Enabling included!

We have only one child, so we’re planning to give the one kid all the contracts. Our main reason for splitting the 200 pt contract would be to resale if needed (due to life changes).

I like the idea of two 100s best. But to get the blue card benefits and still be able to off load some pts, perhaps the better route is a 150 and 50. It’s reassuring that many of you think splitting it up is a good idea!

If you split up a contract, were your closing costs double?

 

[AstroBlasters]

Thank you for all your replies. New to this community, appreciate all of you already! Enabling included!

We have only one child, so we’re planning to give the one kid all the contracts. Our main reason for splitting the 200 pt contract would be to resale if needed (due to life changes).

I like the idea of two 100s best. But to get the blue card benefits and still be able to off load some pts, perhaps the better route is a 150 and 50. It’s reassuring that many of you think splitting it up is a good idea!

If you split up a contract, were your closing costs double?

Yes, the closing costs for each contract are the same regardless of the number of points

 

[intamin]

Thank you for all your replies. New to this community, appreciate all of you already! Enabling included!

We have only one child, so we’re planning to give the one kid all the contracts. Our main reason for splitting the 200 pt contract would be to resale if needed (due to life changes).

I like the idea of two 100s best. But to get the blue card benefits and still be able to off load some pts, perhaps the better route is a 150 and 50. It’s reassuring that many of you think splitting it up is a good idea!

If you split up a contract, were your closing costs double?

If just the 1 kid then I would do the 150 and the 50 so you don't lose benefits should you sell the 50. But yes the closing costs will be double

 

[PharmDis]

Yes, the closing costs for each contract are the same regardless of the number of points

Thank you!

 

[PharmDis]

If just the 1 kid then I would do the 150 and the 50 so you don't lose benefits should you sell the 50. But yes the closing costs will be double

Thank you!

 

[Sunnyore]

I bought 150 for Villa Disneyland Hotel and went with 100/50. I figured it was worth paying the extra closing cost for resale purposes down the line. Ideally I had wanted 75/75 but I also have a 50 BLT that I’ll probably never sell and so this will give me some options to keep my benefits longer.

 

[emchen]

I’m planning to buy direct at the Villas at Disneyland Hotel. Leaning towards 200 points. Would it be wise to break the 200 points into two contracts? For example: two 100 pt contracts or a one 150 pt and one 50 pt.

I’ve heard some do this for estate planning. I’m mainly thinking resale, since I’ve also heard smaller contracts are desirable. Im just not sure if paying extra closing costs is worth breaking it up.

What have you done? And what are your thoughts about breaking up a direct contract?

We split our two 150-point purchases at VDH into three 50-point contracts. That came out to be about a $600 difference ($900 vs $300). The logic is that closing costs are fixed and one time for us. But, the premium on 50-point contracts on the resale market if/when we sell it will more than make up for it. Imagine The premium commanded by 3x 50-point contracts >> 1x 150-point contract.

For example, take DRR (Riviera). I went to dvcrofr.com and used the pricing calculator and found a very conservative spread of $9pp between a 150-pointer and a 50-pointer contract. A difference of $1350... more than twice the closing cost difference. In the real world, it is not unusual to see a difference, depending on the resort, of $20/30/even $50 dollar pp difference.

Based on this logic, it would be a good idea to consider splitting it into four 50-point contracts for maximum flexibility.

 

[PharmDis]

We split our two 150-point purchases at VDH into three 50-point contracts. That came out to be about a $600 difference ($900 vs $300). The logic is that closing costs are fixed and one time for us. But, the premium on 50-point contracts on the resale market if/when we sell it will more than make up for it. Imagine The premium commanded by 3x 50-point contracts >> 1x 150-point contract.

For example, take DRR (Riviera). I went to dvcrofr.com and used the pricing calculator and found a very conservative spread of $9pp between a 150-pointer and a 50-pointer contract. A difference of $1350 more than twice the closing cost difference. In the real world, it is not unusual to see a difference, depending on the resort, of $20/30/even $50 dollar pp difference.

Based on this logic, it would be a good idea to consider splitting it into four 50-point contracts for maximum flexibility.

Thank you for your advice. Since posting this we've decided to add another 50 points (250 total). Re-reading your reply, and others above, was helpful in determining if we should go 150+100 or 150+50+50. We're going to split that extra 50 as it's own contract. 150 on 1, and 50 x2.

Cant wait for the dues to start.... :/

 

[emchen]

Thank you for your advice. Since posting this we've decided to add another 50 points (250 total). Re-reading your reply, and others above, was helpful in determining if we should go 150+100 or 150+50+50. We're going to split that extra 50 as it's own contract. 150 on 1, and 50 x2.

Cant wait for the dues to start.... :/

I'm happy to have been able to help with your decision!

Just curious, have you made the purchase (signed the contracts)?