Major DVC Change - Resale Market Only original 14 resort access

[jade1]

How can they sell (reportedly) BCV @ $225 and sell Riviera for less? .

BCV is $225 direct now? Wow no wonder resales are so valuable. Lovin that.

 

[TexasChick123]

So if Riviera is say $200, you think Riviera resales with be around $70? Still seems like a good deal even with the restriction to me.

The resort would have to be so amazing that you are ok only staying there to buy it via resale. There are still so many unknowns about it that I can't say whether or not I would be interested in it via resale. If it is AMAZING, the access to the parks is great, and the resale price is right, then I'd possibly buy some resale points there.

 

[MommaBerd]

BCV is $225 direct now? Wow no wonder resales are so valuable. Lovin that.

That is the rumored price increase coming...

 

[intertile]

So if Riviera is say $200, you think Riviera resales with be around $70? Still seems like a good deal even with the restriction to me.

Probably, but Disney is a much different animal than other timeshare companies. They will exercise their ROFR (right of first refusal)option and turn around and resell the points direct again.

For those that don't understand ROFR. When you sell your contract to another party. The accepted offer, lets say $70/point in this case, has to be submitted to Disney for review. During the next 30 days the contract is on pause while Disney decides if they want to purchase the contract at the same price. If they are willing to match the offer, the contract is taken by Disney. The seller gets paid the same terms, but the buyer has to look for another contract.

 

[jade1]

Probably, but Disney is a much different animal than other timeshare companies. They will exercise their ROFR (right of first refusal)option and turn around and resell the points direct again.

For those that don't understand ROFR. When you sell your contract to another party. The accepted offer, lets say $70/point in this case, has to be submitted to Disney for review. During the next 30 days the contract is on pause while Disney decides if they want to purchase the contract at the same price. If they are willing to match the offer, the contract is taken by Disney. The seller gets paid the same terms, but the buyer has to look for another contract.

Yea I've been afraid of that as well. In other words all Rivera owners will be "Direct" most likely. No true resale buyers.

 

[kristenrice]

The resort would have to be so amazing that you are ok only staying there to buy it via resale. There are still so many unknowns about it that I can't say whether or not I would be interested in it via resale. If it is AMAZING, the access to the parks is great, and the resale price is right, then I'd possibly buy some resale points there.

Probably, but Disney is a much different animal than other timeshare companies. They will exercise their ROFR (right of first refusal)option and turn around and resell the points direct again.

For those that don't understand ROFR. When you sell your contract to another party. The accepted offer, lets say $70/point in this case, has to be submitted to Disney for review. During the next 30 days the contract is on pause while Disney decides if they want to purchase the contract at the same price. If they are willing to match the offer, the contract is taken by Disney. The seller gets paid the same terms, but the buyer has to look for another contract.

Yea I've been afraid of that as well. In other words all Rivera owners will be "Direct" most likely. No true resale buyers.

These scenarios put current DVC members in a great position IF they want to own Riviera to stay there. IF the resale value of Riviera truly falls below $100/pt, then you can get a great deal on it. I have to believe that most owners who are even remotely educated are not going to buy a direct add-on at Riviera...I just cannot see the value in buying something that will lose 50% of it's value before the ink is dry. With a vast majority of direct sales coming from NEW memberships, I predict that Riviera sales may not be all that brisk, especially with the "Rehab Resort" coming soon. For that reason, I don't foresee DVD being too aggressive with ROFR. They are going to have enough trouble selling all of their Riviera points ONCE, let alone buying them back and selling them again. I would wager that when Riviera resales hit the market, they will be priced higher than they are worth, mainly because the sellers will be unrealistically trying to recoup a large percentage of their original purchase. Once those contracts sit around with little action, or they accept lower offers in order to get them sold, the resale listing prices may start to drop to realistic prices. Then, those who want to "buy where they want to stay" (Riviera) should be able to get some nice resale contracts at discount prices.

 

[jade1]

These scenarios put current DVC members in a great position IF they want to own Riviera to stay there. IF the resale value of Riviera truly falls below $100/pt, then you can get a great deal on it. I have to believe that most owners who are even remotely educated are not going to buy a direct add-on at Riviera...I just cannot see the value in buying something that will lose 50% of it's value before the ink is dry. With a vast majority of direct sales coming from NEW memberships, I predict that Riviera sales may not be all that brisk, especially with the "Rehab Resort" coming soon. For that reason, I don't foresee DVD being to aggressive with ROFR. They are going to have enough trouble selling all of their Riviera points ONCE, let alone buying them back and selling them again. I would wager that when Riviera resales hit the market, they will be priced higher than they are worth, mainly because the sellers will be unrealistically trying to recoup a large percentage of their original purchase. Once those contracts sit around with little action, or they accept lower offers in order to get them sold, the resale listing prices may start to drop to realistic prices. Then, those who want to "buy where they want to stay" (Riviera) should be able to get some nice resale contracts at discount prices.

Makes sense to me.

Interesting to watch.

There has to be a number that will trigger ROFR I would think, just wonder what that will be.

Of course it will change as the years go by, gauging popularity of the resort etc.

As for myself, I would simply compare the resale price at BWV and BCV at the time (next few years). I would never pay more for Riviera even with the longer years. And would probably only pay far less. I would also not pay more then POLY/GF/BLT/CCR, esp with those contracts about as long and ability to trade for BCV/BWV etc.

The good news is we will know what is being asked, and what is being ROFR as time goes by. So mystery will be solved.

 

[kristenrice]

Makes sense to me.

Interesting to watch.

There has to be a number that will trigger ROFR I would think, just wonder what that will be.

Of course it will change as the years go by, gauging popularity of the resort etc.

As for myself, I would simply compare the resale price at BWV and BCV at the time (next few years). I would never pay more for Riviera even with the longer years. And would probably only pay far less. I would also not pay more then POLY/GF/BLT/CCR, esp with those contracts about as long and ability to trade for BCV/BWV etc.

The good news is we will know what is being asked, and what is being ROFR as time goes by. So mystery will be solved.

The other thing to remember, which I'm sure a lot of people may overlook, is that while the Riviera may have 50 years left on it, and buying it direct may give you the ability to book ALL of the resorts, you only get that benefit for another 23 years, at most. Once the 2042 resorts start expiring, there is a high probability that your points will no longer be usable at those resorts. If your heart is set on being able to stay at the Riviera and still have the flexibility to stay at the 14 "classic" resorts as well, your best bet is to buy at a classic resort (resale or direct, depending on whether or not the other benefits are of interest to you) and then buy enough points resale at the Riviera to stay there when you want to.

Now, this makes me wonder...what is the point chart going to look like and what is the minimum contract going to be at the Riviera?

 

[jade1]

The other thing to remember, which I'm sure a lot of people may overlook, is that while the Riviera may have 50 years left on it, and buying it direct may give you the ability to book ALL of the resorts, you only get that benefit for another 23 years, at most. Once the 2042 resorts start expiring, there is a high probability that your points will no longer be usable at those resorts. If your heart is set on being able to stay at the Riviera and still have the flexibility to stay at the 14 "classic" resorts as well, your best bet is to buy at a classic resort (resale or direct, depending on whether or not the other benefits are of interest to you) and then buy enough points resale at the Riviera to stay there when you want to.

Now, this makes me wonder...what is the point chart going to look like and what is the minimum contract going to be at the Riviera?

Yep agreed. We have BLT (as well as BWV/BCV/VWL) I think until 2060 or so, but you are correct those points will not work for BCV/BWV/VWL for like 20 years.

So if anybody really wants to be in the EPCOT Resorts area, currently its only Riviera after 2042.

Although our BLT (and anyone who owns GFV/POLY/AKV direct, will be good at Riviera until 2060.

 

[intertile]

Yep agreed. We have BLT (as well as BWV/BCV/VWL) I think until 2060 or so, but you are correct those points will not work for BCV/BWV/VWL for like 20 years.

So if anybody really wants to be in the EPCOT Resorts area, currently its only Riviera after 2042.

Although our BLT (and anyone who owns GFV/POLY/AKV direct, will be good at Riviera until 2060.

Yea, but Disney will take the 2042 resorts back, completly refurbish them, and sell them as new dvc2 resorts. The locations are too good to not capitalize on them.

 

[Turn the Page]

Yea, but Disney will take the 2042 resorts back, completly refurbish them, and sell them as new dvc2 resorts. The locations are too good to not capitalize on them.

Mmhmm. Not to mention all the new DVC resorts that will be built between now and then.

 

[jade1]

Yea, but Disney will take the 2042 resorts back, completly refurbish them, and sell them as new dvc2 resorts. The locations are too good to not capitalize on them.

Are you suggesting we may be able to use current direct BLT points at BCV2 and BWV2 from 2042 thru 2060?

Never thought of that, hoping so.

 

[jade1]

Mmhmm. Not to mention all the new DVC resorts that will be built between now and then.

Agreed. Just not much room at EPCOT Resorts area, unless BCV2 and BWV2 happen, as well as maybe YC Villas.

 

[hakepb]

Agreed. Just not much room at EPCOT Resorts area, unless BCV2 and BWV2 happen, as well as maybe YC Villas.

There was a old rumor (possibly pre BCV) about a DVC resort across the street from BC/YC.
But that may now be the rumored location of the Epcot entrance resort.

 

[hakepb]

On the DVC boards I occasionally see someone posting an idea for 11 month reservation swaps.
I.e. a BWV owner books F&W 11 months out and swaps with a CCV owner booking December 11 months out.

The idea never takes off because the 7 month window usually works well enough as an opportunity to try other resorts, and there’s a lot of timing issues, etc.

But, we are about to enter an era where RRV resale can’t book others and the 14 resort resale owners can’t book RRV
I’ve got to think 11 month reservation “swaps” will become a viable opportunity for David or other DVC rental places, and ultimately won’t lock RRV owners out of using their points at the other DVC 14.

 

[JETSDAD]

On the DVC boards I occasionally see someone posting an idea for 11 month reservation swaps.
I.e. a BWV owner books F&W 11 months out and swaps with a CCV owner booking December 11 months out.

The idea never takes off because the 7 month window usually works well enough as an opportunity to try other resorts, and there’s a lot of timing issues, etc.

But, we are about to enter an era where RRV resale can’t book others and the 14 resort resale owners can’t book RRV
I’ve got to think 11 month reservation “swaps” will become a viable opportunity for David or other DVC rental places, and ultimately won’t lock RRV owners out of using their points at the other DVC 14.

People already rent out their points to be and rent where they want to at 11 months....trying to find a swap is more difficult because you need to find the person with the resort you want who also happens to want what you have.

 

[hakepb]

People already rent out their points to be and rent where they want to at 11 months....trying to find a swap is more difficult because you need to find the person with the resort you want who also happens to want what you have.

yes, that is a problem that may need a solution.
They might be able to create an advanced matching system (is a RRV, BWV and BRV owner create a 3-way reservation swap)

 

[jade1]

There was a old rumor (possibly pre BCV) about a DVC resort across the street from BC/YC.
But that may now be the rumored location of the Epcot entrance resort.

I like that idea. Although still not quite as nice as the BC/BW locations.

 

[intertile]

Are you suggesting we may be able to use current direct BLT points at BCV2 and BWV2 from 2042 thru 2060?

Never thought of that, hoping so.

Direct yes, resale no

 

[Novakm]

The other thing to remember, which I'm sure a lot of people may overlook, is that while the Riviera may have 50 years left on it, and buying it direct may give you the ability to book ALL of the resorts, you only get that benefit for another 23 years, at most. Once the 2042 resorts start expiring, there is a high probability that your points will no longer be usable at those resorts. If your heart is set on being able to stay at the Riviera and still have the flexibility to stay at the 14 "classic" resorts as well, your best bet is to buy at a classic resort (resale or direct, depending on whether or not the other benefits are of interest to you) and then buy enough points resale at the Riviera to stay there when you want to.

Now, this makes me wonder...what is the point chart going to look like and what is the minimum contract going to be at the Riviera?

Direct buyers will only get 23 years of benefit if Disney decides to keep offering it. It’s not a deeded right any more, it’s a marketing gimmick. They can take it away at any time.

I don’t understand why this change bugs me so much. It will probably never affect me. My points have deeded rights for the 14 “classic” resorts, So my resale value won’t ever go down because of this. ( could go down for other reasons)

I think it bugs me because it’s sleazy, and I don’t expect sleazy from Disney. Or at least I didn’t before now.