Old Key West Resale Pricing

[Seansperry]

I see some OKW resale contracts that are priced significantly less than other properties that are on Disney Property. I assume this is because of the 2040 expiration?

Has anyone done any analysis on this pricing vis-a-vis someone who would likely only want to use a contract for the next 10 years? It's only 2024, so you would still have 16 years left in a 2040 contract.

What's better financially? Buy a OKW contract that will likely be worthless when you are finished, but cost less initially? Or pay more for a contract that will expire later, but may have some resale value because it has years left before it expires?

 

[AstroBlasters]

I see some OKW resale contracts that are priced significantly less than other properties that are on Disney Property. I assume this is because of the 2040 expiration?

Has anyone done any analysis on this pricing vis-a-vis someone who would likely only want to use a contract for the next 10 years? It's only 2024, so you would still have 16 years left in a 2040 contract.

What's better financially? Buy a OKW contract that will likely be worthless when you are finished, but cost less initially? Or pay more for a contract that will expire later, but may have some resale value because it has years left before it expires?

Take the difference in upfront cost between the two and run a Time Value of Money Calculator online based on how much you think the money could earn over your given time period.

Include any annual difference in estimated dues.

 

[NY Pirate Princess]

If I knew I only wanted a dvc contract for 10 years wouldn't buy a 2042 contract. There is no way to know with certainty but I wouldn't predict a valuable return upon selling in 2034.

 

[Sandisw]

The farther out the expiration date, the better chance you have of getting some of your initial buy in cost in 10 years.

So, buying a 2042 resort, like OKW, will get you less back in 10 years, then a contract like say, AKV, that expires in 2057.

However, with the changes DVD has made to the program, no one knows what will happen with resale values down the line, so I’d buy a resort you enjoy, and not worry about what, if anything, it could be worth when you sell.

 

[CVG]

If you are buying with the expectation of some return then you are making a BIG mistake. I'm planing 4 or 5 big trips from the UK with large family contingents. I've now covered all the (OKW) accommodation costs (allowing for future dues), regardless of future inflation, at a far cheaper cost than if I had paid cash or rented. At the end of the trips, anything I get back is purely bonus.

 

[TigerLily8]

If you are buying with the expectation of some return then you are making a BIG mistake. I'm planing 4 or 5 big trips from the UK with large family contingents. I've now covered all the (OKW) accommodation costs (allowing for future dues), regardless of future inflation, at a far cheaper cost than if I had paid cash or rented. At the end of the trips, anything I get back is purely bonus.

Exactly the same for us! We bought with the intention of running the contract down and having as many trips as possible in the 18-year time frame. No expectation whatsoever of making a return on the contract (although we may occasionally rent our points). We feel the 2042 expiration date actually works well for us because our daughter will be turning 20 that year, so it is possible that our vacation needs may change around that time. If not, and we have been happy with our experience as owners, we will explore options for buying another contract later down the line. Who knows what the DVC landscape will look like in 2042? All I know is that a 2042 contract is not necessarily a pitfall, and the current prices of OKW resale have made it possible for us to buy even more points that we had initially expected to buy. We are happy

 

[Cfabar1]

Who knows where prices will be in 10 years. If you're thinking only for 10 years I wonder if renting points might even be the more prudent way to go. You think 10 years and then end up only taking 7 years worth of trips for example and the next thing you know you would have ended up ahead just doing that.

Are you thinking of using OKW points as SAP points or to stay at OKW? If it is to stay at OKW I would especially consider the renting option.

 

[Genie+]

I see some OKW resale contracts that are priced significantly less than other properties that are on Disney Property. I assume this is because of the 2040 expiration?

Has anyone done any analysis on this pricing vis-a-vis someone who would likely only want to use a contract for the next 10 years? It's only 2024, so you would still have 16 years left in a 2040 contract.

What's better financially? Buy a OKW contract that will likely be worthless when you are finished, but cost less initially? Or pay more for a contract that will expire later, but may have some resale value because it has years left before it expires?

The other part of this is where do you want to stay? OKW is not the most cost effective resort but can be worth it if you want to book hospitality of grand villas an a regular basis without rolling dice at 7 months.

SSR does not cost that much more per point, has much better dues and much longer contract. BLT is also very low per point cost usage and comes with the benefit of being able to book the relatively lower cost standard studio for park adjacent resort.

 

[MsChristy12]

This is just my pure guessing and speculation...maybe because there are so many resale contracts out there and it's just a bigger competition? Also, I feel like the newer Disney goers (especially younger families), or people who have just learned about DVC would be more interested in newer resorts. To some people, maybe OKW doesn't have specific benefits (locations, theming) that's worth staying there?

 

[Genie+]

This is just my pure guessing and speculation...maybe because there are so many resale contracts out there and it's just a bigger competition? Also, I feel like the newer Disney goers (especially younger families), or people who have just learned about DVC would be more interested in newer resorts. To some people, maybe OKW doesn't have specific benefits (locations, theming) that's worth staying there?

The dues seem to have made average resale price go down. The mantra is buy where you want to stay or buy cost effective SAP points, and neither of those really apply to OKW. It’s a low cost buy in but those dues hurt when trading out.

 

[MsChristy12]

The dues seem to have made average resale price go down. The mantra is buy where you want to stay or buy cost effective SAP points, and neither of those really apply to OKW. It’s a low cost buy in but those dues hurt when trading out.

Possibly true about the dues...by 2025 it will be over $10 per pt. If you have a bigger contract, that's quite hefty!

 

[Genie+]

Possibly true about the dues...by 2025 it will be over $10 per pt. If you have a bigger contract, that's quite hefty!

Yeah and the dues aren’t that bad staying at OKW with a lower point chart. When trading out to Poly, VGF or RIV - ouch~!