15 Year Extension at OKW for $25 per point

[tvwalsh]

Free? From Disney? You must have a fever!

 

[rsinj]

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[LIFERBABE]

Another way to evaluate the "value" of the extension is to ask yourself if when you originally purchased you'd been given the option of 2042 or 2057 and there was a $15 per point price difference - which would you have chosen?

Our initial purchase was in 1993 at $56 per point. If we had also been offered the option of a 2057 date at $71 per point we would have still purchased at the lower price for the same reasons that we are declining the extension now. Of course, if the offer had been priced at 1993 prices, the additional years would likely have been more like $6 per point - and we probably would have still declined the addtional years. I don't really know what price would have worked for us then or now but "free" jumps into my mind as an acceptable option - and that pricing is not currently on the table.

This I do agree with. I also believe that this logic will still apply today, when people are looking to purchase. There are plenty of cash buyers that want to buy DVC and the lower price will be exactly what they are looking for,
When given the choice, there will still be those looking to get their foot in the door at the lowest price, and that will be the OKW 2042 contracts for onsite DVCs. Im not the least bit worried about shoring up my resale value by sinking another $15 per point into my contract.

 

[jemiaule]

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[puffkin]

I wonder why they need money all of a sudden?

I guess we found out the money will be going to Hawaii

 

[yitbos96bb]

I hope they offer something even better than a 3 year extension for SSR. Maybe 2060?

Nah, they will wait 10 years when they have DVCs with end dates 10-15 years after SSR, and THEN offr the extension.

 

[Me&3]

How much do points cost? Are all different? I'm so confused just got info on DVC. Thank You,Michele

 

[Debbie H]

I guess we found out the money will be going to Hawaii

Yea, $144 million!

 

[dianeschlicht]

Another way to evaluate the "value" of the extension is to ask yourself if when you originally purchased you'd been given the option of 2042 or 2057 and there was a $15 per point price difference - which would you have chosen?

Our initial purchase was in 1993 at $56 per point. If we had also been offered the option of a 2057 date at $71 per point we would have still purchased at the lower price for the same reasons that we are declining the extension now. Of course, if the offer had been priced at 1993 prices, the additional years would likely have been more like $6 per point - and we probably would have still declined the addtional years. I don't really know what price would have worked for us then or now but "free" jumps into my mind as an acceptable option - and that pricing is not currently on the table.

Glad to hear we aren't the only ones thinking along the same lines as you! Dick said, "No way unless it's extended free".

 

[Frederic Civish]

So, here we are, 11 years from the last post on this thread, and 12 years from when Disney started to offer Extensions on Old Key West?

Disney has never done that again. I doubt that they ever will. Multiple properties are now within 24 years of “The End” (Old Key West was 35 years from expiring when they did that?) and Disney seems very content to let the contracts expire without extension.

Many people talk about Disney offering extensions, like it is inevitable. I don’t think so. I think they want their property back, in 24 more years.

 

[Dean]

So, here we are, 11 years from the last post on this thread, and 12 years from when Disney started to offer Extensions on Old Key West?

Disney has never done that again. I doubt that they ever will. Multiple properties are now within 24 years of “The End” (Old Key West was 35 years from expiring when they did that?) and Disney seems very content to let the contracts expire without extension.

Many people talk about Disney offering extensions, like it is inevitable. I don’t think so. I think they want their property back, in 24 more years.

I'm sure they'd love to offer an extension but they tied their hands to a degree with OKW. If they do, it'll likely be late or tied to something like an additional retail purchase.

 

[abner1776]

As long as DVD is building new DVC resorts, there is no incentive to extend the existing resorts...they have the cash flow coming in already. Once there are no new resorts, then IMHO you will see DVD reaching out to us "cash cows" with extensions.

 

[intertile]

As long as DVD is building new DVC resorts, there is no incentive to extend the existing resorts...they have the cash flow coming in already. Once there are no new resorts, then IMHO you will see DVD reaching out to us "cash cows" with extensions.

I think the old expiring resorts will become "new" resorts. DVD will take BWV and BCV, renovate extensively(we hope) and then sell new 50 year contracts at increased point charts and for $200+ per point. I don't think they will ever offer another extension.

 

[kniquy]

I think the old expiring resorts will become "new" resorts. DVD will take BWV and BCV, renovate extensively(we hope) and then sell new 50 year contracts at increased point charts and for $200+ per point. I don't think they will ever offer another extension.

Wouldn't you think that they would plan for significant renovations while still under the DVD original contracts? It would only make sense to have the owners foot the bill to renovate/refurbishment vs letting contracts expire and sell new again, maybe with some incentives for original owners. It will be interesting to see but i am glad i am not in the experimental 2042 group and won't have to worry about our contract expiring until we are in our 70's.

 

[robinb]

Do the extended contracts go for a lot more on the resale market?

 

[Frederic Civish]

Do the extended contracts go for a lot more on the resale market?

On many contracts it doesn’t seem to make a lot of difference. Someone did an analysis and the extended old Key West contracts go for only about $7 to $9 more per point than the non-extended contracts, and sometimes less than that. In other words from a financial point of view with regard to resales, extension was not beneficial. However this says nothing about the benefit the owners got from the increased use over a longer period of time.

 

[CarolMN]

Do the extended contracts go for a lot more on the resale market?

Someone did an analysis and the extended old Key West contracts go for only about $7 to $9 more per point than the non-extended contracts. In other words from a financial point of view with regard to resales, extension was not beneficial. However this says nothing about the benefit the owners got from the increased use over a longer period of time.

Iterestingly enough, the market has never valued the extension at anywhere near what Disney charged for it.

 

[robinb]

Iterestingly enough, the market has never valued the extension at anywhere near what Disney charged for it.

That is interesting. If I were buying OKW on the resale market I would want a longer contract.

 

[Dean]

That is interesting. If I were buying OKW on the resale market I would want a longer contract.

It's all about the numbers, one would have to look at the situation and determine a value for each one. Usually an extended contract is a better deal because the years at the back are worth less so the valuation is favorable as a rule. The one issue owning a 2057 contract there is there is going to be a transition and that presents risk and aggravation as the 2042 owners drop out and Disney takes over. How it turns out will depend on what they decide to do with the resort they will then own which will be roughly half the resort at that time.

 

[Frederic Civish]

. . . one issue owning a 2057 contract there is there is going to be a transition and that presents risk and aggravation as the 2042 owners drop out and Disney takes over. How it turns out will depend on what they decide to do with the resort they will then own which will be roughly half the resort at that time.

I was just about to comment on that. There will come a point in 24 years when the 2042 contracts will expire. But other people will still have contracts until 2057. Fifteen more years.

What is Disney going to do at that point. Refurbish the whole thing and start selling new contracts with a 40 or 50 year expiration date? If they do that with the initial group of people who did not extend their contract then what will they do 15 years later when the contracts expire for the extended people? Are they going to sell those with a different expiration date or somehow try to roll them in altogether? Disney will need to do a stopgap measure and hold off on “new resales” or major refurbishment for 15 years, or figure out how to incorporate extended ones at a later date.

If this was a different resort with a central hotel they might not do anything for 15 years, and just keep them as hotel rooms. However old Key West does not make extremely desirable hotel rooms for most people.

It is an interesting, pivotal point. I am guessing that somewhere along the way Disney will refurbish the units significantly and resell all of the 2042 units as “new” DVC units. And then 15 years later when there or more units that expire Disney will probably sell those at a discounted price with an expiration date that coincides with the expiration date on the others. Unless they take the option that they did with wilderness Lodge where you have Boulder Ridge and Copper Creek as separate DVC units.