Effective for resale purchases submitted on or after January 19, 2019: Disney Vacation Club resale contracts purchased for the original 14 DVC resorts will only be able to exchange into those 14 existing resorts in the DVC network. These contracts will not be able to exchange into Disney’s Riviera Resort, Reflections – A Disney Lakeside Lodge and possibly additional future properties in the DVC system. All Members will still be able to exchange with RCI.
Once sales of Disney’s Riviera Resort begin, Members who purchase a resale of Disney’s Riviera will only be able to stay at Disney’s Riviera Resort in the DVC network. Those Members will still have access to RCI.
Any contracts submitted to Disney for right of first refusal (ROFR) prior to January 19, 2019, will be “grandfathered” in. So, by purchasing prior to January 19, 2019, that contract can be used at all original 14 resorts as well as Riviera, Reflections and future resorts.
What are the Best options after January 19th, 2019?
The Disney Vacation Club program is based on flexibility and the idea of staying at different locations within the network. Will members still have the ability to do this? Absolutely! The 14 existing DVC resorts are most likely the best Disney may ever have to offer, and will likely remain the most popular for years to come. The Disney theme parks are surrounded by multiple DVC resorts, and the locations are ideal. The popularity of Bay Lake Tower with a 5 minute walk to the Magic Kingdom can’t be duplicated. If you want your home resort on the monorail, the Polynesian or Grand Floridian –as well as Bay Lake Tower- are available to all members.
Who will Receive the Greatest Restriction?
Without a doubt, we feel that the biggest impact to this new restriction will likely be felt by members who purchase a Rivera contract directly from the Disney Vacation Club. If -but most likely when- those members decide to sell their contracts, the restriction that has been put in place will greatly reduce the value of their contract on the resale market. If the member buys the contract from Disney and holds it for 50 years or until the contract expires, they will not feel the impact of the restriction. If, however, they choose to sell their contract at some point, this asset has far less value on the resale market. Buyers rarely plan to sell when they are in the process of buying a membership, but the reality is that many members find themselves selling after 10-15 year. Life changes and they find themselves needing or wanting to sell.
Having been trained by Disney, we were taught to never refer to a membership in the Vacation Club as an investment- it is simply an investment in future vacations. More than likely, we will see Rivera contracts appear on the resale market within 6-8 months of Disney selling them. This is when we will clearly be able to assess the resale value of a Rivera contract. Is it possible for a buyer to spend $30,000-$50,000 and have a resale value worth a fraction of that amount within a year? Time will tell. We certainly think this is something direct buyers need to strongly consider.