With resale restrictions now at Riviera, The Villas at Disneyland Hotel, and The Cabins at Disney’s Fort Wilderness Resort, it’s clear that the restrictions aren’t going anywhere anytime soon. So what does this mean for DVC Members?
Financial Implications
Based on the last three new DVC resorts, any other new resorts are likely to have resale restrictions unless they are part of an existing condo association. This may have an impact on how prospective new Members choose which contracts to buy and how existing Members strategize with add-on contracts.
Yes, buying direct points will allow you the most flexibility when it comes to where you would like to use those points. Nevertheless, anyone buying direct needs to understand that their points will not garner the same value on the resale market as unrestricted points. We already see that divide with Riviera resale contracts even compared to much shorter Beach Club and BoardWalk resale contracts. While most people do not buy their contracts with the intention of flipping them on the resale market for financial gain, it’s still important to be aware of the reduced value of restricted contracts in case they ever do need to sell their contracts unexpectedly.
Impact on 11- and 7- Month Booking Windows
Many believe that in the future competition will be greater at restricted resorts such as Riviera, the Villas at Disneyland Hotel, or Cabins at Disney’s Fort Wilderness since resale members who own at those resorts can only booking their home resort. At the 7-month mark, there will be less movement because any Members with restricted points will not be able to switch to a non-home resort, which leads to less availability at these restricted resorts. This may make it tougher for other DVC Members who want to book at these resorts even if their points are not restricted.
Effects on the Original 14 DVC Resorts
The original 14 DVC resorts include:
- Animal Kingdom Villas
- Aulani
- Bay Lake Tower
- Beach Club
- BoardWalk
- Boulder Ridge
- Grand Californian
- Grand Floridian
- Hilton Head
- Old Key West
- Polynesian
- Saratoga Springs
- Vero Beach
At the 7-month mark, resale points from the original 14 DVC resorts can still be used to book non-home resorts among the original 14 (unless you purchased your contract prior to the restrictions introduced on January 19, 2019, in which case your points would not be restricted from booking at Riviera and any resorts after it). For example, you can use Saratoga Springs resale points at the 7-month mark to book a stay at Bay Lake Tower.
However, as resort deeds expire, there will be fewer options to book. For instance, by 2042, there will be 5 or 6 resorts that are no longer available (depending on how exactly Old Key West will be handled with its odd mix of deeds expiring in 2042 and 2057). By the time it is 2067, Copper Creek will be the last of these less restricted resorts, and owners will presumably only be able to use their points for stays at Copper Creek.
Bottom Line: Much of this is speculative; after all, no one knows exactly how things will play out as the first DVC resort deeds expire. However, whether you are buying direct or resale, buying where you want to stay will likely matter more in the future as there are inevitably more restricted points in the DVC system as contracts change hands.
Buying points at a resort that you love (or don’t mind staying at regularly) is the best way to ensure that you get the most satisfaction out of your DVC contract.
