Need input please on small contracts

[Kebby]

we own at poly and are about to add on.

We are debating between one 50 point contract vs doing one 50 and one 25.

Question- I know the 50 pointers fly off the resale market. Is a 25 point add on as attractive? Would it sell quickly also if need be?

Would you buy a 25 point resale? ( I think this is more for current owners)

 

[pdude81]

Small contracts are always going to be appealing to resale buyers who are trying to get to a certain mark with points without going over. But each transaction has it's own closing costs, so it might only appeal to someone looking for a small bump in points.

What I'm wondering is how many points you think you need. A 75 point contract is very attractive in itself but you are saying you will either pay more to close a 50 and 25 or stop at 50. I was assuming you're talking about a direct add on, because a 50 and 25 resale being available at the same time in the same UY seems less likely.

 

[Kebby]

Yes direct. And so we want a 50 and 25 because we are gifting 50 point contracts to our kids as wedding gifts some day. Wanted to give each an equal amount but one of our kids is disabled and will live with us indefinitely so he won't need a 50 point contract. So the 25 would just be for us.


I wasn't sure if a 25 point contract was too small to be attractive to a resale buyer should we need to sell ( always looking at worst case scenario)

 

[pdude81]

Ok, gotcha. Yes in that case if you ever needed to sell it, you could definitely move a 25 point contract.

I would suggest if you are planning to keep the one contract long term that you get an idea of how many points you'd need to stay with banking in the usual seasons you travel. You may well have that all hashed out already but it would be a shame if you give your contracts up and wish you had a 32 point contract rather than a 25.

 

[CarolMN]

IMO, there won't be much (if any) difference in speed of a sale between 50 & 75 point contracts. Both are relatively small and will be attractive to those want to "try it out" or start small.

I think the 25 point contracts will be quite a bit less attractive than they have been in the past. Since resale contracts do not get the buyer any perks, new buyers might as well get enough points to stay more than a night or so each year. 25 points really doesn't get you much, especially at the newer resorts like the Poly. At the Poly, a standard view studio (for a weeknight) costs between 16 and 31 points per night, depending on the season. I know you can bank and borrow to get 2 or 3, but still!!

OP - I'd look for one contract to minimize closing and not worry about the speed of a potential sale in the future. I really do not think there will be enough of a difference to matter.

 

[BillPA]

The closing cost on a 25 points resale will be high, figured as dollars per point. Often it is not much different to a buyer than buying direct.

 

[disneynutz]

Yes direct. And so we want a 50 and 25 because we are gifting 50 point contracts to our kids as wedding gifts some day. Wanted to give each an equal amount but one of our kids is disabled and will live with us indefinitely so he won't need a 50 point contract. So the 25 would just be for us.

I wasn't sure if a 25 point contract was too small to be attractive to a resale buyer should we need to sell ( always looking at worst case scenario)

While the thought is nice, often others will not feel the same way about Disney that you do. Our adult daughter likes to go to WDW once every few years and she owns 100 BLT, non-Disney cruising seems to be her thing, and our adult son likes six flags and doesn't have any interest in Disney.

Bill

 

[Kebby]

While the thought is nice, often others will not feel the same way about Disney that you do. Our adult daughter likes to go to WDW once every few years and she owns 100 BLT, non-Disney cruising seems to be her thing, and our adult son likes six flags and doesn't have any interest in Disney.

Bill

Lol, well if they don't like it, c'est la vie! That's what they are getting they can always sell

 

[Dean]

Small contracts are always going to be appealing to resale buyers who are trying to get to a certain mark with points without going over. But each transaction has it's own closing costs, so it might only appeal to someone looking for a small bump in points.

What I'm wondering is how many points you think you need. A 75 point contract is very attractive in itself but you are saying you will either pay more to close a 50 and 25 or stop at 50. I was assuming you're talking about a direct add on, because a 50 and 25 resale being available at the same time in the same UY seems less likely.

I don't agree this is a given, there are changes that could make smaller contracts less desirable.

Yes direct. And so we want a 50 and 25 because we are gifting 50 point contracts to our kids as wedding gifts some day. Wanted to give each an equal amount but one of our kids is disabled and will live with us indefinitely so he won't need a 50 point contract. So the 25 would just be for us.


I wasn't sure if a 25 point contract was too small to be attractive to a resale buyer should we need to sell ( always looking at worst case scenario)

This may not a good idea. The cost to go retail and the extra costs of the smaller contracts will almost double the actual per point costs. I wouldn't buy now to possibly gift the points to them years down the road. If you have an immediate plan to do so soon, just buy with their name on the deeds now. 25 or 50 points won't really do much for Disney trips.