DVC/DVD Extension of BWV/BCV Contracts

[Carol]

Originally Posted by brp

I don't know the details of the various documents, but wouldn't their points just expire in 2042, and go back into the Disney pool for a short-contract sale (18 years) are a reduced price by Disney? Why would the owners not ponying up slide in on the extension?

Cheers.

That makes sense to me, too. BUT there has been discussion in other places over the methodology used to do the ground lease extension for OKW. Some think Disney blew it big time. They say that the way it was done extends the lease for everyone and does not give Disney automatic & clear rights to the entire resort between 2/1/2042 and 2050, which is what they were selling with the contract extensions. Doesn't look as though Disney wants to press the issue at this time by freezing anyone's account or otherwise following through on the consequences they promised to those who did not accept or refuse. Makes one wonder, doesn't it?

I didn't vote because I do not really care if they extend BWV or not. The market hasn't valued the extra years for OKW very highly. The difference in resale value between OKW extended & non-etended contracts isn't anywhere near the $25 or even the discounted $15 per point most people who extended paid.

Like some of the others, I would not buy something that I can't even begin to use until 30 years in the future. Rather put the money towards a small resale contract with points I could use right now.

[Caren90]

Originally Posted by henrycpa91

And you just made the Business reason to do the same at BWV/BCV......

I agree Henry. They will most likely offer an extension to current owners, or if that is too much of a headache, buy back points on the resale market and begin extending the years for new buyers. Although, they may wait another ten years to do this, since BWV/BCV contracts will continue to lose value as the years go on.
Stephen

[Goofygrl]

I voted yes, but a different process. A lot of that thought is contingent upon DVC still being a viable entity and the parks still being there and viable. I also think they would need to either do it at a much lower cost or else towards the end of the contract. Doing it early provides DVC with a selling point of more resorts in the system rather than having many of them go away with 12-20 or more years remaining at their other resorts. Doing it later gives them more time to decide if they should. This will be interesting though because I think the demographic will have many of us being at ages that won't give a hoot. The end date is something I really like about DVC.

And unless someone in my family were to ask for the contracts I won't be extending. Heck - I'm just going to be waiting to see if WDW is still around.

[Caren90]

Originally Posted by Goofygrl

I voted yes, but a different process. A lot of that thought is contingent upon DVC still being a viable entity and the parks still being there and viable. I also think they would need to either do it at a much lower cost or else towards the end of the contract. Doing it early provides DVC with a selling point of more resorts in the system rather than having many of them go away with 12-20 or more years remaining at their other resorts. Doing it later gives them more time to decide if they should. This will be interesting though because I think the demographic will have many of us being at ages that won't give a hoot. The end date is something I really like about DVC.

And unless someone in my family were to ask for the contracts I won't be extending. Heck - I'm just going to be waiting to see if WDW is still around.

I believe Disney will be around because they are not a one trick pony. They just need to avoid the John Carter type failures.
Stephen

[bigbahamadada]

Originally Posted by DVCERSINCEDAY1

what seems to be a logical thing to do with 50-year old resorts is raze them and start over with the latest and greatest. so i don't get extensions period. none of these resorts are likely to be that exciting in 30 years.

Not sure I agree with this one. Sure, they will be 50 years old, but in year 49 the resort will still need to be nice enough to command premium price on the cash room market. So I'd expect to see constant care, updates and improvements.

That incentive for DVD -- the need to keep the resort nice enough for them to rent on a cash basis -- is another thing that attracted me to DVC. (Also a reason I will never by points at an offsite DVC).

[Goofygrl]

Originally Posted by Caren90

I believe Disney will be around because they are not a one trick pony. They just need to avoid the John Carter type failures.
Stephen

Probably, but that isn't any guarantee of the parks. The older I get the more I see things going away or changing that would not have been thought probable to happen 20, 30 or 40 years ago.

[DVCERSINCEDAY1]

Originally Posted by bigbahamadada

Not sure I agree with this one. Sure, they will be 50 years old, but in year 49 the resort will still need to be nice enough to command premium price on the cash room market. So I'd expect to see constant care, updates and improvements.

That incentive for DVD -- the need to keep the resort nice enough for them to rent on a cash basis -- is another thing that attracted me to DVC. (Also a reason I will never by points at an offsite DVC).

yes, that makes sense. but how premium can they keep a 50 year old resort. how long have poly and contemporary been around...have they had major renovations or only refurbishments.

[FrankPhillips]

You forgot

D) No comment

[Caren90]

Originally Posted by DVCERSINCEDAY1

yes, that makes sense. but how premium can they keep a 50 year old resort. how long have poly and contemporary been around...have they had major renovations or only refurbishments.

I do not believe they have had major renovations. If people keep coming (buying) with only minor upgrades, you better believe they are not razing anything (except money for the bottom line.)

Stephen

[OldGrizzly57]

The only approach that makes any sense to me is a phased extension plan. Offer a five, ten, fifteen and twenty year extension option with each option priced progressively higher. Then I want to see the resale companies go nuts trying to figure out how to price that!

Griz