Help with February 1st, 2042!

[Wakey]

I am still wondering what will happen to OKW owners who refuse to sign an extension.

 

[Cyberc1978]

I am still wondering what will happen to OKW owners who refuse to sign an extension.

My understanding is that NEW owners of non-extended contracts needs to sign a documents allowing Disney to reclaim their deed by 2042. If they dont sign it, the contract can't be sold/transferred to new owner.

Old owners are the big pickle for Disney, if they haven't sign a similar document then I would assume they get extended free of charge.

 

[Deb & Bill]

As a business, they have potentially hundreds of thousands of new customers when the resorts expire- people who have had the benefits, families of users, who now just see their contract turn to dust- a bit like the characters in Avengers, or maybe a better anology is 'This contract will self destruct at 2042' as per Man From Uncle.
There is no way on earth they won't maximise revenue. Currently this looks like starting again, significantly increasing points per night and making billions more.
But who knows what the landscape will look like I'm 2042. I'd the economy is very bad and DVC has made its final decent into just another timeshare, current owners may be offered a bit of a discount.

Love the analogy, but I think it was Jim Phelps in Mission Impossible instead of Napoleon Solo of Man From Uncle.

 

[crvetter]

I thought that once the contract ends, there isn't supposed to be any reserves left since that money actually belongs to the owners and not DVC.

I agree they are supposed to try and balance the budget so it goes towards 0. I would also assume at expiration everyone is refunded any remaining reserve based on their ownership of the reserve dictated in the Declaration.

 

[Katie L]

I agree they are supposed to try and balance the budget so it goes towards 0. I would also assume at expiration everyone is refunded any remaining reserve based on their ownership of the reserve dictated in the Declaration.

Do you really think there will be any reserve to refund left? Disney is savvier than that.

 

[crvetter]

Do you really think there will be any reserve to refund left? Disney is savvier than that.

They aren’t allowed to “redo” the resort with the reserves. I would expect them to be decreasing the amount of reserves collected on the dues to deplete the fund at the end, which is the appropriate thing to be done (and likely what they will do). I do not expect them to do something that is blatantly illegal and redo the resort with the reserves if the owners right at expiration (not expect them to pocket the reserves).

 

[skier_pete]

The honest truth is I am sure Disney hasn't even developed a plan for 2042. Here is my prediction.

They will offer all OKW owners extensions again. Those that don't take it, they will reclaim and sell 15 year contracts at reduced prices.

The other on property resorts WLV, BCV, BWV will be reclaimed by Disney with no offer of extension. They will create a new point structure for these resorts at a higher point per night rate more on par with BLT and DRR. Expect BCV to have a point per night similar to VGF. They will potentially give some sort of discount to existing owners to re-up for another 50 years. The discount amount will be relatively small though. The resorts will be closed for a short period of time as they are upgraded to current levels of luxury. Then they will print money. (The exception here is they MAY extend WLV to match the end of CCV so that when CCV expires they can convert it all into a single DVC.)

HHI and VB they will likely sell off as DVC has twice proven unsuccessful with the core business outside of WDW and DLR. (The second time is Aulani, which is still not sold after nearly 10 years.) I suppose it is possible they will just re-sell these with limited upgrades, but I seriously doubt that.

 

[crvetter]

(The exception here is they MAY extend WLV to match the end of CCV so that when CCV expires they can convert it all into a single DVC.)

If we thought the booking was bad at CCV now this would make the rooms in the main lodge even harder to get (because owners of CCV likely will have bought to stay at CCV by the time that extension happens and BRV owners might want to hop into the main lodge), which as an owner of CCV I wouldn't be too happy; not that I don't appreciate BRV, in fact I really enjoy it, but I purposefully bought CCV for the 11 month advantage of being in the main lodge. I would assume anything like this would be similar to Jambo and Kidani for booking purposes so you'd still be able to book knowing exactly which building you'd be in

I'm still betting for no more extension at all. They only have 3 resorts that are of an issue in 2042 (selling off HHI and VB probably). Simply BCV can probably be supported on Cash for a bit (depending on the economy) while they rehab BWV and BRV (appealing to two different crowds, MK and Epcot/HS)

 

[ScubaCat]

My understanding is that NEW owners of non-extended contracts needs to sign a documents allowing Disney to reclaim their deed by 2042. If they dont sign it, the contract can't be sold/transferred to new owner.

Old owners are the big pickle for Disney, if they haven't sign a similar document then I would assume they get extended free of charge.

The seller (current owner) signs the quit claim deed for the last 15 years (2042-2057) prior to the transfer. Eventually DVD probably can restrict bookings, but they likely don't see much reason to do so for now. My guess is they figure that a good percentage of the 2042 deeds that refused to sign will be sold by then anyway, so less to chase down or get into any sort of "issue" with.

 

[DVCsince2002]

Expect BCV to have a point per night similar to VGF. They will potentially give some sort of discount to existing owners to re-up for another 50 years. The discount amount will be relatively small though.

I agree with this. No doubt DVC/Disney will do whatever makes the most sense from a revenue standpoint, but I think incentives of some kind to be in play as a way of “showing” value to being an owner at the end of the contract. Buyers of points direct from Disney from 2042 and onward will look at how the contracts are treated at the termination date and if there is an incentive of some kind offered, that will go into the mix of psychological factors that they will use to justify a purchase. Many folks, myself included, tend to look for things like that to justify purchases, even if they are irrational.

 

[IAmDis]

I'm considering a BWV resale and the 2042 doesn't scare me at all, as long as you buy into it by next Summer. Buying it with less than 20 years may defeat the purpose and ROI won't be as satisfying.

What's funny about expiring years, is a part of me wants to make sure I buy a resort that has the longest lifespan, but then I think, I'll be long dead probably by then, so what's the point? Even if I did, I probably think life extension technology will make us live beyond 150 years, forcing me to pay long years of dues, ha. There is already a ton of smart people working to make 2045 the year where life extension truly takes form. We're actually not that far off from it already in today's world. Much closer than you think. Can you imagine, paying off dues for the next 40-50 years if you bought in the next 10 years or so, even if you're in your 40s and 50's now, your life could still be going, if you can make it to 2045.

I wouldn't be surprised if Disney is behind some of this life extension tech to ensure people keep living long enough to pay dues without having to buy back contracts from dead owners and resell them, haaa.

A 2042 ending seems about right if I don't buy any other contracts, as the 22 years if I buy by 2020 will be enough to vacation for many years with small children and into their pre-teens, teens and then young adulthood.

 

[chalee94]

I probably think life extension technology will make us live beyond 150 years, forcing me to pay long years of dues, ha. There is already a ton of smart people working to make 2045 the year where life extension truly takes form. We're actually not that far off from it already in today's world. Much closer than you think. Can you imagine, paying off dues for the next 40-50 years if you bought in the next 10 years or so, even if you're in your 40s and 50's now, your life could still be going, if you can make it to 2045.

I wouldn't be surprised if Disney is behind some of this life extension tech to ensure people keep living long enough to pay dues without having to buy back contracts from dead owners and resell them, haaa.

These optimistic scientists should hang out with the climate change guys who predict mass famines, civil wars and general societal chaos in the next few decades. Those guys are total downers, man.

 

[Katie L]

These optimistic scientists should hang out with the climate change guys who predict mass famines, civil wars and general societal chaos in the next few decades. Those guys are total downers, man.

Thank you for giving me a laugh-out-loud chuckle.

 

[gscott8075]

The resorts will continue to operate on 2/2/42. DVC is refurbishing all of the time. Disney will continue to spend on keeping the resorts looking great and the funds will be depleted to zero. They will either convert them into standards resorts or resell the points (or sell HHI/Vero). The Comtemporary is 48 years old - and it continues to operate. 2/1/42 is an artificial date which means nothing to the physical plant.

 

[skier_pete]

I also think it's quite possible that Disney will give owners the opportunity to re-up at these resorts several years before the 2042 end date. Their idea at OKW was a good one, it was just too early. In 2007 people still had 35 years on their contracts. How would they know whether they wanted a longer time. Do that same thing with 5-10 years to go and you'll see a LOT more people re-up. (It won't be a 15 year extension.)

 

[motherof5]

Hello All! I think this questions is better placed in Purchasing DVC forum (as opposed to MS). I have tried to understand 2043 since we own at BCV. We are looking to add on more points and the idea of having a longer DVC life span is playing into our decision since we would pass on to our kids.

I understand that in 2042 our points are in the wind.

What happens to these resorts when they expire? Will owners of the other long life resorts continue to be able to trade into these correct? Or is this implied but yet to be actually determined?

Also do people expect that Disney will offer contract extensions as these life spans wind down, similar to OKV?

Thanks for your expertise and forecasting in advance!

Just thought of it with your post OKW was extended but what other resorts are expiring in 2042?

 

[_auroraborealis_]

Just thought of it with your post OKW was extended but what other resorts are expiring in 2042?

Boulder Ridge, Boardwalk Villas, Beach Club Villas, HHI and Vero Beach.

 

[chalee94]

Just thought of it with your post OKW was extended but what other resorts are expiring in 2042?

You might find the DVC Resource thread useful in the stickied threads.

 

[motherof5]

You might find the DVC Resource thread useful in the stickied threads.

Thank you

 

[motherof5]

Boulder Ridge, Boardwalk Villas, Beach Club Villas, HHI and Vero Beach.

Thanks