When our contracts expire, will Disney extend it? How much do you think it will be? If anyone has OKW and got the extension already, did you have to pay?
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What will happen when our contracts expire?
- Thread starter Disneykidder
- Start date
I believe they did which is why I am curious as to whether or not they had to pay an extra fee.
BigTxEars
Well-Known Member
I would guess you (or I ) would have to pay something, it is Disney after all
But I will be like 85 years old when ours expires so not sure I will even know
LivFreeorDisney
Well-Known Member
I'll be dead or unable to travel.
GoofGoof
Premium Member
In 2007 DVC offered a 15 year extension for OKW owners from 2042 to 2057. I believe it was priced at $25 per point but they offered a $10 per point discount if you extended right away getting the total down to $15 per point. There was no change to dues and for the owners who declined, the points would just go back to DVC in 2042. From what I read the sales were not as good as expected. Not as many people elected to extend their contract as hoped. It was a one time offer and hasn't been offered at any other resort since.
When the contracts expire the points go back to DVC and then it will be up to Disney whether they resell the points or convert rooms back to hotels. I think a lot will depend on demand and the market at the time. The first contracts don't expire until 2042 so we are still 28 years away. IMHO they will start offering extensions to existing owners but probably not until closer to 10 years before expiry.
From an economic standpoint $15 per point for 15 extra years is a pretty good deal. That's $1 per point per year. The current direct from Disney price for Old Key west is $130 per point and the contract ends in 2057 so 43 years or just over $3 per point per year to buy. The extension was a huge discount to the current purchase price.
In 2064 I will be 89 years old but plan to gift my contracts to my children so I think $15pp is a pretty good deal...I hope that's what it will be.
Goofnut1980
Well-Known Member
I would think in 48 years they would be turning our resorts into hotels for cash crop and building new DVC's because we pay off the building for them so easily.
slappy magoo
Well-Known Member
My guess is re-selling as DVC properties after extensive...EXTENSIVE refurbs. Between innovations in technology, shifts in consumer tastes and some properties just aging poorly, some resorts will undergo some radical changes.
That's what I think. What I know is that I probably won't be around to gloat if proven right or sulk if proven wrong. Or I'll long be past an age where I'll care. So if I'm right, visit my grave and leave your mouse ears as tribute.
Phonedave
Well-Known Member
I really think the expiration is a benefit over other timeshares.
Let's say the contracts don't expire. It is 2054 and now you own a timeshare in a old, very outdated, worn out resort. Aer you going to be able to sell that contract? Most likely no, but you are still on the hook for the dues. There are lots of other time shares out there like this, where people are giving them away, just to get rid of owing dues.
With a contract expiration date, when DVC knows that everyone will be out of that property, they can plan ahead. As Slappy said, they can plan a refurb, or even just demo the place and start fresh, and then sell points at that NEW resort.
-dave
Let's say the contracts don't expire. It is 2054 and now you own a timeshare in a old, very outdated, worn out resort. Aer you going to be able to sell that contract? Most likely no, but you are still on the hook for the dues. There are lots of other time shares out there like this, where people are giving them away, just to get rid of owing dues.
With a contract expiration date, when DVC knows that everyone will be out of that property, they can plan ahead. As Slappy said, they can plan a refurb, or even just demo the place and start fresh, and then sell points at that NEW resort.
-dave