Buying OKW with the *shorter* contract (not new extended)

[ResilientRabbit]

I have a dumb question. I want to purchase 200 points and I'm not particularly picky about where I stay.

The older contract at OKW (the ones that expire in 2042) seem like a bargain. I should add: I am already 55 and don't expect that I'll still be going in 2042!

Is there any downside to purchasing a contract that expires in 2042 if you are older? I want to be sure I'm not missing anything because it seems like quite a bargain!

 

[BillPA]

Do you have any kids that you would leave the DVC contract to? Do you want to sell and make back all or most of what you paid? If so, you may want a longer term contact. A plus side of the contract expiring in 2042 you or your kids won't be stuck paying dues for another 40+ years.

 

[Bing Showei]

It's generally believed that a majority of owners sell their timeshare within the first 10 year of ownership. While you may find yourself among the throngs of owners on this particular board that manage to still go strong after 26 years, there is a good chance you don't find DVC to be your bag at 65. If that's the case, having a longer contract may prove to be a better value position to get out. Still having 26 years on your contract when you sell your SSR in 10 years may be a better value proposition vs. 14 years left at OKW, from a strictly numbers point of view.

You may not have any intention to sell now, but life changes. As Disneynutz and others will tell you, after a few years, the shine and newness of DVC wears off and you may find you no longer care to pay a lot of money to have paid strangers welcoming you home when you're on vacation.

If you don't care where you stay, SSR is the most cost-effective resort at 7 months given it's low'ish' entry price, additional RTU years and lower ADs (this last factor being the greatest cost over the life of ownership).

 

[Dean]

I have a dumb question. I want to purchase 200 points and I'm not particularly picky about where I stay.

The older contract at OKW (the ones that expire in 2042) seem like a bargain. I should add: I am already 55 and don't expect that I'll still be going in 2042!

Is there any downside to purchasing a contract that expires in 2042 if you are older? I want to be sure I'm not missing anything because it seems like quite a bargain!

You'll have to look at the specifics and make some judgements. IMO SSR and BLT are better values currently even with higher prices and a 2057 OKW tends to be a better value than 2042. But you'll just have to run the numbers and make a few assumptions. Comparing to BLT & SSR it's the lower buy in compared to the higher dues that are increased by your inflation assumption. Even if you sold after 15-20 years, you'd still be better off owning something else in all likelihood. OKW is a fine resort and if you want 3 BR there, it's not a bad plan.

The other issue is that the 7 month window is more challenging than it used to be. We've seen the "off season" for Disney become the most difficult for DVC and since they continue to tweak events to raise demand all year long, even the times that are more favorable for the 7 month window now might not be so in a few years. IMO the 7 month window is still workable for many but it helps if it's off season DVC, they are flexible on unit size (1 BR instead of studio for example) and they are flexible on when they want to travel. At least owning something at WDW you can reserve and get something even if nothing else is available. I just looked at December yesterday for a friend and there is no 7 day reservation open for a studio anywhere on property. Of course this is 4 months out but until a couple of years ago that would not have been an issue.

 

[lovin'fl]

We're 45 and have 580 points that expire in 2042 (including 200 OKW) and just added 70 CCV. We figure we can just buy new points when we near 2042, if we have the desire to still go but we'll be 69 and kids will be 45 and 43 so they should be the ones buying to treat us to trips to WDW.

 

[Judique]

I have a dumb question. I want to purchase 200 points and I'm not particularly picky about where I stay.

The older contract at OKW (the ones that expire in 2042) seem like a bargain. I should add: I am already 55 and don't expect that I'll still be going in 2042!

Is there any downside to purchasing a contract that expires in 2042 if you are older? I want to be sure I'm not missing anything because it seems like quite a bargain!

Might be a great idea for you! I am quite happy that all my contracts expire in 2042. In fact that was a selling point for me.

My oldest daughter's children - my only grandchildren - will be mid twenties by then and my daughter and I have discussed this. I've said to her that she has plenty of time to plan if she wants a foreseeably longer contract with Disney. So far no move on her part - she will be mid sixties when it ends.

When I purchased 18 years ago, I gave this a lot of thought and I'm happy that it will end probably close to my own expiration date.

 

[kniquy]

Is there any downside to purchasing a contract that expires in 2042 if you are older?

If you are older then there could be a benefit and downside to the 2042 expiration. Most should not presume that you will pass down your contract to family -- it is a substantial commitment and you can not assume that your heirs will want or be able to afford DVC- so buy with what your wants are.

I think the major difference in a 2042 contract vs the longer ones would be the value of the contract should you want to sell. So if in 15 years you want to sell - a 2042 contract will have less value than a longer contract. If you intend on keeping until the end then you will know what will happen in 2042 -- you will be left with no contract, which can be a benefit to get your use out of your DVC and know that it won't be a looming issue when you are older or an issue for your heirs to deal with if you are not around.

My husband never thought much about OKW, but we watched some youtube videos of the renovated rooms and he was very impressed with the resort and the room sizes, so that is likely on our list of resorts we have to try out.

 

[dboules]

I have two timeshares DVC and Wyndham. I am happy that my DVC is expiring in 2042 as it will not stick my kids with a long period of dues if we don't make it till then. My Wyndham is deeded and never expires. That sounded great when we bought it --- but now years later we are thinking of now we will be passing that liability on to our kids.
So the shorter term expiration date sounds great to us -- but I will say we have owned for 18 years and do own some points with the extended expiration date from AKV.

Lots of great advice above - but see if your kids love it as much as you and they will likely enjoy having it or renting it out -- and as others have said; selling will be worth more with the longer contract date.

 

[tb1972]

We bought in at age 40 nearly six years ago. We preferred the 2042 dated contracts and own two OKW contracts as well as a BWV contract.

 

[BEASLYBOO]

As long as you get your use out of it, the expiration date shouldn't matter. I'll be 80, hopefully still going, but at this rate of borrowing I'll be done before 2042! My son ( a DVC lover of 19 years), should I not make it till 80 will have to figure it out on his own, keep it, sell it, and/or buy something else in 2042. Best thing I ever did, we continue to enjoy it more and more, and how we use it has evolved as we've grown and aged. Just back from 5 fabulous days at BLT, yearly break before heading back to college, next 4 trips are Food and Wine week-ends, with a birthday trip in between! Good luck with your decision.

 

[momtwoboys]

we also bought OKW with the shorter expiration date. We are 47/48 and bought in last fall. Great price for a great resort, and even though our boys love WDW we didnt want the longer contract. They can make their own vacation plans with their families as they grow.

 

[Disneypapa]

I own at OKW with a 2042 expiration. I purchased resale in 2004 and have gotten a lot of use out of the contract. I did not exercise the option of extending my contract when offered a few years ago. did not think it was worth the added cost and sure like the prospect of no dues beyond 2042 My son is 48 now and the grandchildren, while they still love all things Disney, probably could not afford the dues or expense of frequent trips on their own.

 

[CarolMN]

Assuming you have already decided that DVC is right for you, that OKW is the resort you are going to purchase and that you don't don't believe you will be using the contract yourself for more than 20-25 years, the only decision is between expiration dates.

FWIW, I would go ahead and buy the 2042 contract. Here's why:

The value of DVC is based on the "savings" when compared to Disney cash rates, and that, in turn, is based on the overall demand to visit the theme parks and stay in on-site resorts. You will note that the 2054 contracts cost more than the 2042 contracts. I attribute the cost difference only to the length of the contract. Isn't it reasonable to assume that the difference (spread between them) will stay about the same as the years pass? I think so. (It's been about the same since the 2054 contracts appeared on the resale market). So the "which to buy now" question becomes: Do I want to pay more now to get more back when I'm ready to sell? Do I think the increase (if any) in the "spread" will beat inflation (or what I could do with the the money instead)? For me, the answer to both questions is "no".

So again, my choice would be to get the 2042 contract. To me, a dollar now is worth more than a dollar in the future - especially if there is no guarantee that I'll actually get the future dollar (or the benefit from it).

Good luck with your decision.

 

[Frederic Civish]

I don’t understand the people who are willing to take a shorter term ownership contract when a longer-term contract is probably available for about the same price. To me it is like saying “Hey, do you want a hundred thousand dollars? Here it is.” And you saying “No no, $50,000 is enough for me. More of it would just be a bother.”

I am 64 years old. I own 8 contracts. The shortest ones expire in 39 years. I think it is doubtful that I will be around when they expire. No problem. They will by then have either passed to my children or grandchildren or great-grandchildren, or we will have sold them and gotten a very large chunk of our money back. Free money. Why would you pass it up?

 

[Bing Showei]

I don’t understand the people who are willing to take a shorter term ownership contract when a longer-term contract is probably available for about the same price. To me it is like saying “Hey, do you want a hundred thousand dollars? Here it is.” And you saying “No no, $50,000 is enough for me. More of it would just be a bother.”

Maybe because you (or a loved) will have to pay for those additional years. It's not like there is zero cost associated with those extra years, right? Plus, it's not apples to apples. It's not like people are turning down CCV for 50 years and paying for only 24 years of CCV for the same price.

I know I love Disney today. But in 24 years, who knows where I'll be. And in all likelihood (these boards will be skewed), most owners will be out of DVC over their first 10 years of ownership. Why buy for years when you can stay where you can be happy? I would rather spend 24 years at a resort I love than 50 years at one that's just 'meh' to me.

 

[Dean]

I don’t understand the people who are willing to take a shorter term ownership contract when a longer-term contract is probably available for about the same price. To me it is like saying “Hey, do you want a hundred thousand dollars? Here it is.” And you saying “No no, $50,000 is enough for me. More of it would just be a bother.”

I am 64 years old. I own 8 contracts. The shortest ones expire in 39 years. I think it is doubtful that I will be around when they expire. No problem. They will by then have either passed to my children or grandchildren or great-grandchildren, or we will have sold them and gotten a very large chunk of our money back. Free money. Why would you pass it up?

It's simply part of the equation. For most, it shouldn't be an automatic avoidance but it is part of the valuation. If you want an EPCOT resort you have to either get BWV/BCV 2042 or wait for Riviera. They may or may not extend them and even if they do, there's a good chance it won't be financially feasible to extend. Someone who's much younger might put more emphasis on the later expiration but I can't see it ever being an absolute deal breaker for the majority even those who would prefer a later expiration. However, the best values tend to have later expirations with SSR at the top financially and BLT second which adds the MK area option but it is more up front. AKV is workable if one wants to pay more for it though it's unlikely one would be able to use the value enough to pay the difference $$$ wise.

 

[4luv2cdisney]

I don’t understand the people who are willing to take a shorter term ownership contract when a longer-term contract is probably available for about the same price. To me it is like saying “Hey, do you want a hundred thousand dollars? Here it is.” And you saying “No no, $50,000 is enough for me. More of it would just be a bother.”

I am 64 years old. I own 8 contracts. The shortest ones expire in 39 years. I think it is doubtful that I will be around when they expire. No problem. They will by then have either passed to my children or grandchildren or great-grandchildren, or we will have sold them and gotten a very large chunk of our money back. Free money. Why would you pass it up?

"Buy where you want to stay"
Until Riviera opens, there are only 2 Epcot / HS options. I have 2 family members who I'm 99% certain would never set foot in a gondola. So, Riviera will not quite fill my desire for an Epcot / HS resort anyway. I want a studio(s) -never a 1 bedroom - preferably standard view, and I don't want to be stressed about getting what I want.

Sometimes people overthink this way too much. This is a luxury purchase. Many people on here wouldn't even wince at someone blowing 20K+ on a trip to Europe or something, but will freak out about someone "overspending" on their DVC purchase. Regardless of the possible better value of a resort with a later expiration, I'm still saving over cash stays, so....