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[spiceycat]

Dear CaskBill and other esteemed number crunching Owners.

Youse guys is entirely missing the point....

Diane Schlidt is considering owning at ANOTHER resort, not just visiting, but owning

And even admited to DH saying we can sell an OKW contract

Who cares about logic and finance when the world just turned over, and the magnotosphere reversed polarity?

-Tony

Tony you are so correct!!!

forgot the main point!!!

Diane, congratulations for breaking out and seeing other resorts~~

 

[dumbo71]

There are other factors to be considered here. For one, the age of the member. Like myself and my DW, Diane and her DH are, let's just say, 'older' than the average member. Having a resort that doesn't expire unto 2057 could be meaningless. In my case I'd be 113 years old! (This is especially true if one's offspring aren't Disney fanatics and wouldn't be using the points themselves)

Then, let's say someone sells 150 OKW points and receives $85/point ($12,750). They'd get about $11,475 after commission. If they bought at about $65/point, then they would have a net profit of about $1725 which they would have to pay taxes on. So maybe when all is said and done they'd get about $11,000 total cash.

Then purchase 150 AKV points for $13,950, it means they would have spent almost $3,000 just to swap resorts. And if it is necessary to finance to make the new purchase, the 'swap' could means paying up to $4,000 or so.

That comes out to about $27/point to swap out. As for future resale, I can't even predict when the difference in selling price between OKW points and AKV points would ever amount to $27. That would be your 'break even' point, and could easily be 20 or 25 years or more into the future.

Finally, just guessing that since AKV will be a smaller resort than OKW, then like BWV, BCV and VWL, the maintenance fees will be slightly higher, which over time eats into the pocketbook. A difference of only $0.30/point in maintenance fees over the next 25 years, amounts to paying $1,125 more in maintenance fees for one resort compared to the other.

Finally, if one's travel plans can be very open, it'll be possible to get AKV rooms at 7-months, using OKW points.

Just my .02

Caskbill,

Thanks for posting this. There is a ton of great reasons in this thread now to keep OKW or sell. I can see your point with most of this and lets face it we are guesing about what future resales will be.

Maybe because I'm a little younger (35) that the extra years look good. I won't however hold until the end no matter what. I'll use for 10 -12 and then cash out buying back in if I feel the need or urge. Doing this, I basically travel for the cost of dues over that time so slight increases in dues don't worry me much.

Thanks again for your thoughts.

 

[dvcjim]

why own a resort with a short shelf life (2042), that is in low demand?

It makes little sense, unless you use the OKW GV's, or want to be at OKW at X-mas.

sell, OKW and buy SSR or AKV. You will be able to use those pts to make your OKW reservations, and will have the longer shelf life contract.

I look for OKW prices to plummet once people start to figure this out.

 

[3DisneyKids]

OMG...someone has hijacked the DIS Boards!! Clearly someone has hacked in and is posing as Diane...we all know that Diane would never, ever consider selling her beloved OKW contracts!

Mods?!? Mods!! We need you ASAP...code red....code red....

 

[dianeschlicht]

There are other factors to be considered here. For one, the age of the member. Like myself and my DW, Diane and her DH are, let's just say, 'older' than the average member. Having a resort that doesn't expire unto 2057 could be meaningless. In my case I'd be 113 years old! (This is especially true if one's offspring aren't Disney fanatics and wouldn't be using the points themselves)

Then, let's say someone sells 150 OKW points and receives $85/point ($12,750). They'd get about $11,475 after commission. If they bought at about $65/point, then they would have a net profit of about $1725 which they would have to pay taxes on. So maybe when all is said and done they'd get about $11,000 total cash.

Then purchase 150 AKV points for $13,950, it means they would have spent almost $3,000 just to swap resorts. And if it is necessary to finance to make the new purchase, the 'swap' could means paying up to $4,000 or so.

That comes out to about $27/point to swap out. As for future resale, I can't even predict when the difference in selling price between OKW points and AKV points would ever amount to $27. That would be your 'break even' point, and could easily be 20 or 25 years or more into the future.

Finally, just guessing that since AKV will be a smaller resort than OKW, then like BWV, BCV and VWL, the maintenance fees will be slightly higher, which over time eats into the pocketbook. A difference of only $0.30/point in maintenance fees over the next 25 years, amounts to paying $1,125 more in maintenance fees for one resort compared to the other.

Finally, if one's travel plans can be very open, it'll be possible to get AKV rooms at 7-months, using OKW points.

Just my .02

Bill, your example is EXACTLY the discussion DH and I had about the situation, and is exactly why we decided against selling any OKW conracts and buying a mimimal AKV one for the 11 month window. We figure if we use it for 20 years, and don't care to keep it any more, it will be easier to sell that small contract at a profit than it will be to get much for the OKW contracts.

 

[Caskbill]

Caskbill,

Thanks for posting this. There is a ton of great reasons in this thread now to keep OKW or sell. I can see your point with most of this and lets face it we are guesing about what future resales will be.

Maybe because I'm a little younger (35) that the extra years look good. I won't however hold until the end no matter what. I'll use for 10 -12 and then cash out buying back in if I feel the need or urge. Doing this, I basically travel for the cost of dues over that time so slight increases in dues don't worry me much.

Thanks again for your thoughts.

Absolutely, and I guess the point is one shoe doesn't fit all. It can be different for each member, depending on their personal situation, including age, future plans for using their membership, financial, and of course, personal resort preferences and likes.

In my case, I wouldn't sell any of my OKW points to get AKV because AKV doesn't personally appeal to me that much. But for someone else, AKV/AKL may be a dream come true, and the 11-month window is crucial for their plans.

That's what is so great about DVC. It fits very well for all members. A plethera of choices...

 

[dianeschlicht]

Dear CaskBill and other esteemed number crunching Owners.

Youse guys is entirely missing the point....

Diane Schlicht is considering owning at ANOTHER resort, not just visiting, but owning

And even admited to DH saying we can sell an OKW contract

Who cares about logic and finance when the world just turned over, and the magnotosphere reversed polarity?

-Tony

Hee hee....At least Tony, you got the point of my original post!!