Purchased Riviera

[dvcsince93]

Nope, Disney buybacks were not included in resale numbers- buybacks total about 16K since 1992. There have also been about 10K foreclosures and about 20K gratuitous transfers..

While the number of resales has increased over the years, it is still a relatively small number, I have no idea why DVD is doing what they are doing.

 

[TexasChick123]

Thanks for all the data. I love stuff like this.

 

[Hjs33]

I’m still trying to figure out how any of our contracts appreciate year after year when they have less years on them. Yes, I understand supply and demand, ROFR, and other economic principles. It still defies logic and doesn’t follow common sense. I think the resale value will be fine. We bought Riv because we want an EP and HS resort that doesn’t expire when we’re in our 50s. I know many other current owners who have done the same.

Yes supply and demand do play a role, but you also have to think that early on, the inflation value of the remaining points more than offset the points rolling off.

For example with 50 years left, one year rolls off and you lose 2% of your points. But if room rates go up 5%, then the remaining 98% of points just got 5% more valuable and that more than offsets lossing 2% of your points.

 

[IceQueen182]

Hi everyone! New DVC owner here. We pulled the trigger and bought 250 points at Rivera, after lots of thought and running numbers. Thanks to everyone for the extremely helpful information on these DVC threads, which gave me lots to think about!

In case it's helpful to others---I had originally wanted BWV, and might buy a smaller resale contract there next year, but with the $4500 in incentives (making it $170/point), 2019 points, and contract length, Riviera made sense for us as a family with young kids that loves the Epcot area. The extra sleeping surface in the 1BR at Rivera (versus BWV) sealed the deal. We were aware of the resale restrictions, which gave me pause, but I don't currently foresee a need to sell and, by the time I do, hopefully I'll have gotten some value out of my Riviera contract (we did not finance).

Excited for our first stay at Riveria in February! Hopefully it's as great as it looks!

 

[kboo]

In case it's helpful to others---I had originally wanted BWV, and might buy a smaller resale contract there next year, but with the $4500 in incentives (making it $170/point), 2019 points, and contract length, Riviera made sense for us as a family with young kids that loves the Epcot area. The extra sleeping surface in the 1BR at Rivera (versus BWV) sealed the deal. We were aware of the resale restrictions, which gave me pause, but I don't currently foresee a need to sell and, by the time I do, hopefully I'll have gotten some value out of my Riviera contract (we did not finance).

This was pretty much our thinking too. Between Disney's use of ROFR and resale restrictions on post 1/19 L14 resales, the comparison between RIV direct v BLT resale (what we were considering) was not a major difference. I do think that if we'd owned either BCV or BWV before all this went down, we wouldn't have considered RIV.

 

[aoconnor]

Seems like the new incentives are down quite a bit for both new purchases and add-ons. Sales must be doing well enough.

 

[mustinjourney]

If you were going to buy 150 points -- would you suggest splitting 50/50/50 or 100/50 or 75/75? Trying to figure out if 50 point contracts go for a premium over 75 point contracts.

 

[CarolMN]

Anyway, since not so many contracts are resold, why Disney bothers at all with the restrictions?

IMO, it's just to address perception and more related to complaints/excuses from sales guides & a select group of Members who blame resale buyers for the difficulty they have getting reservations at the near park resorts.

 

[CarolynFH]

Nope, Disney buybacks were not included in resale numbers- buybacks total about 16K since 1992. There have also been about 10K foreclosures and about 20K gratuitous transfers..

While the number of resales has increased over the years, it is still a relatively small number, I have no idea why DVD is doing what they are doing.

Don’t you think the ROFR buybacks should be included in the resale numbers, since those are contracts that the owner sold? The owner had a contract with a third-party buyer, but Disney stepped in and took the place of that buyer - so it was still a sale. I can see not counting foreclosures, but even gratuitous transfers are the result of owners divesting themselves of their ownership, right?

If you include contracts taken in ROFR and gratuitous transfers, what does that do to the overall % of resales?

 

[dez1978]

We ended up buying qty 3 - 90 pt contracts (270 total). We have three older children - so keeping it an easy 3 way split just made sense for us.

The $170 per pt is a very close estimate. At 300, it would have dropped to something closer to 165.

Do you have the same use year? I’m trying to figure out how this would work as far as the booking window

 

[CarolynFH]

Do you have the same use year? I’m trying to figure out how this would work as far as the booking window

The booking window is always 11 months for home resort and 7 months for other resorts. UY has nothing to do with booking windows.

UY only determines which points can be used for a given reservation (can use points from the UY the stay falls into as well as points banked from the previous UY and points borrowed from the following UY). Also, it’s the points that have a home resort, not the owner, which is why you can’t use points from two different resorts to book one resort at 11 months.

Also, different UY = different membership numbers, meaning points would have to be transferred around in order to use them all for the same reservation. So I think it’s probably safe to assume that vint43 bought the same UY for all 3 contracts - that way they essentially function as one contract/one membership until they’re split among the three children.

We too divided our long-ago purchase of 300 points into two 150-point contracts to make it easy to divide between our two kids when the time came. And until we started booking online and had to designate which contract to take points from when making a reservation, we forgot we had two contracts because they functioned as one.

 

[Hjs33]

If you were going to buy 150 points -- would you suggest splitting 50/50/50 or 100/50 or 75/75? Trying to figure out if 50 point contracts go for a premium over 75 point contracts.

Don’t you have to pay multiple closing costs when you buy multiple contracts direct from Disney?

 

[TexasChick123]

Don’t you have to pay multiple closing costs when you buy multiple contracts direct from Disney?

Yes. The only “extra” closing costs you pay is for the document fee which is a flat fee for each contract. All other fees are prorated based on the number of points. That’s what I was told anyway.

 

[mustinjourney]

Don’t you have to pay multiple closing costs when you buy multiple contracts direct from Disney?

yes -- but it is only $200 more per contract. That does add to the overall costs per point -- but the flexibility it provides (I can sell 50 points instead of the full 150 if we want to downsize), and increased resale value if we were to sell, more than make up for it.

We ended up doing 100/50 -- so it basically added an extra $1.33 to the purchase price. Considering 50 point contracts typically go for a premium of at least $10 per point as compared to 150 point contracts, I'd say breaking it up was worth it.

 

[kboo]

yes -- but it is only $200 more per contract. That does add to the overall costs per point -- but the flexibility it provides (I can sell 50 points instead of the full 150 if we want to downsize), and increased resale value if we were to sell, more than make up for it.

We ended up doing 100/50 -- so it basically added an extra $1.33 to the purchase price. Considering 50 point contracts typically go for a premium of at least $10 per point as compared to 150 point contracts, I'd say breaking it up was worth it.

Hey, congratulations! We split ours evenly (50-50) but that's also because we have 2 kids - if it came to that, they could each have one.

 

[Momtomouselover]

I'm looking at buying Riviera and considering 150 points or right now I guess they give you 5 points so 155. I mainly think we will use studios though. My thought is that having more than just what is needed (most of the times I travel it is around 110-130 points for 6-7 days) will protect me from either not being able to get a standard view or from in shifting in point allocations. If we do end up using 110 points then I have the additional 45 for a weekend or short visit or every other year I could do an additional trip (two 110 weeks) and maybe buy a few one time points if short. Think this is reasonable? Any reason to buy it as two contracts (I only have one kid) other than potentially easier to sell 75 point contracts? I don't plan on selling for a long time and really after 10-14 years you kinda break even. Maybe??

 

[vikequeen]

With your facts I wouldn’t feel a need to split. We bought 350 points so split it into two at 175 each.

 

[TexasChick123]

I'm looking at buying Riviera and considering 150 points or right now I guess they give you 5 points so 155. I mainly think we will use studios though. My thought is that having more than just what is needed (most of the times I travel it is around 110-130 points for 6-7 days) will protect me from either not being able to get a standard view or from in shifting in point allocations. If we do end up using 110 points then I have the additional 45 for a weekend or short visit or every other year I could do an additional trip (two 110 weeks) and maybe buy a few one time points if short. Think this is reasonable? Any reason to buy it as two contracts (I only have one kid) other than potentially easier to sell 75 point contracts? I don't plan on selling for a long time and really after 10-14 years you kinda break even. Maybe??

That's a tough one. We have 2 kids and split it into 3 contracts in case we need to or want to sell some off down the road. That way, we can downsize without liquidating it all, and hopefully, we can do it at a premium for the smaller contract size. It doesn't split well between the kids, but that's what we did.

 

[mustinjourney]

I'm looking at buying Riviera and considering 150 points or right now I guess they give you 5 points so 155. I mainly think we will use studios though. My thought is that having more than just what is needed (most of the times I travel it is around 110-130 points for 6-7 days) will protect me from either not being able to get a standard view or from in shifting in point allocations. If we do end up using 110 points then I have the additional 45 for a weekend or short visit or every other year I could do an additional trip (two 110 weeks) and maybe buy a few one time points if short. Think this is reasonable? Any reason to buy it as two contracts (I only have one kid) other than potentially easier to sell 75 point contracts? I don't plan on selling for a long time and really after 10-14 years you kinda break even. Maybe??

For $200 more -- I would split it 80/75 or 100/55. That allows you to downsize in the future and still maintain direct benefits -- and if you do sell, your contract will sell faster and for more per point. More flexibility for you in the future is worth the $200 extra.

 

[Momtomouselover]

For $200 more -- I would split it 80/75 or 100/55. That allows you to downsize in the future and still maintain direct benefits -- and if you do sell, your contract will sell faster and for more per point. More flexibility for you in the future is worth the $200 extra.

If they hadn't made it so you cant use resale points at the Riviera I would probably buy 75-100 direct with Riviera and then look for resale. Alas, this is exactly why they did that I presume. My big issue is if buying all Riviera and I do have to or decide to sell, then the further use restrictions may scare other buyers (that is unless Riviera is the "place to be"). Not that I plan on selling but who knows. Man, wish I had bought before that last change on using points at the Riviera. The booking advantage may turn out to be a good thing though.