loaded contracts and banking
 

After reading all the info about banking and such I just want to make sure I have it correct. I am looking at buying a resale contract that has Dec Use Year. It is a 200 point contract but has 300 points currently available. I assume they banked 100 points plus 200 points from Dec 2012 UY.

If I buy this contract could I use 100 points now and Bank the 200 Dec 2012 UY points so that in Dec 2013 I would have 400 total to use Dec 2013 - Nov 2014?

If I continue to only use 200 points per year can I keep banking the current UY points so that every Dec my account would be back up to 400?

My thought is that by buying a contract that is already loaded up with banked points I could keep banking from year to year until the time is right to upgrade to a bigger room reservation when I need the extra points.

TIA for the help.

You have it correct.
Loaded contracts are usually a better deal than stripped ones.

Before you make your offer, confirm just how many points are current UY & how many points are banked.

Only knowing that there are 300 points available, it could be any mix of current & banked points. You might have 200 banked points & only 100 current points. Only the current UY points will be bank-able. ANY banked points are in a use by the end of the UY or lose them position.

Sent from my iPad using DISBoards App, please excuse any typos or autocorrects!

You can't necessarily assume it's 200 current and 100 banked. It may be but make sure.

I don't think it matters if the savings is at least proportional but it rarely is. As a rule truly stripped contracts are more accordingly that loaded ones. Assuming every usable point has a cash value, the difference in value between a contract with no points in the current UY (starting at the onset of the UY) and one that has them included is the rental price you could get for the point minus any expenses. You could round that off to $10 a point ignoring maint fees. Assuming you'll pay more fees proportionally on all contracts other than banked/borrowed, it really boils down to around $5 a point difference. The more restricted any points are the less they are potentially worth. Also, you generally don't pay much or ANY maint fees on banked points though you may pay a little more in PP purchase price. Thus stripped contracts are generally more accordingly compared to loaded ones for 2 reasons. The price difference generally doesn't reflect the true difference in value and the banked points generally aren't reflected in the price much or at all. Thus the price difference early in the UY between a stripped and loaded contract should be at least $8-10 a point and as much as $20 a point.

Thanks for the info. This has greatly helped. I hope to become a DVC owner real soon.