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What’s different now?

Image: DisneyUnder the new rules, anyone who buys a resale contract from this point forward has certain limitations. From now on, when you purchase an ownership interest in one of the original 14 properties, you may only exchange DVC points for a stay at one of these hotels.

Conversely, should you buy a resales contract at the Riviera, you may only exchange DVC points for a stay there! The belief is that when Disney introduces Reflections – A Disney Lakeside Lodge in 2022, it will have the same constraints. I should stress that the change only applies to resales contracts, though.

In other words, prior to 2019, your ownership interest at Old Key West came with the option to exchange your DVC points anywhere. That’s no longer true. Your OKW points are still good at any of the original 14 resorts. You cannot use them at the Riviera Resort, though. 

Image: DisneyThe change seems subtle, but it’s insidious. Disney has created a divide between original owners and direct DVC members vs. future resales buyers. Anyone who bought a resales contract prior to January 19, 2019, gets grandfathered in. The people who buy via resales after that are cut off in a strange way.

Should members want a contract at the Riviera or Reflections, their purchase comes with a strange operating cost. These future buyers won’t have the option to stay at one of the original 14 resorts. Realistically, those are the properties with the best locations.

If you believe the maxim that real estate is location, location, location, Disney’s already added their strongest properties to the DVC program. Future members won’t get to stay at these resorts.

Image: DisneyConversely, anyone who buys via resales for one of the original 14 DVC properties is cut off from staying at the new ones. Due to this rules change, guests must choose. That wasn’t true during the first 18 years of DVC membership.

At the moment, the choice isn’t difficult. Riviera will be the only DVC resort with this constraint until 2022. By buying an ownership interest here, you’re choosing between staying at one DVC property or the other 14. Who would pick the one?

This philosophy underscores the oddity of Disney’s decision. In the short term, they’ve added a huge negative to a potential points purchase at the Riviera. Even members who buy direct will worry, as the resales market for the Riviera is automatically damaged by the new DVC rule.

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Comments

I think there is a solid work-around for this... just buy direct from Disney. I mean if you can’t afford it, then you can’t afford it and I hope you enjoy Art of Animation. If you are going into DVC with the ideas of selling, then you’ve got it all wrong. The amount of money saved buying resale over buying direct is not that big of a difference. Because, over the lifetime of your contract, the vast majority of money spend will come from the dues. Dues are the same whether you buy direct or resale or if it’s willed to you. Run the numbers.

If you buy Riviera directly from Disney you still get to stay there or any other DVC resort, assuming rooms are available. This only effects those who purchase after market

Disney isn't "devaluing" long term customers initially. Actually, they are benefiting. If you have a contract prior to 1/19/19, you can (for the time) access every DVC resort with your points. You bought Hilton Head at $50/point? guess what, you actually are better than the new guy at Riveria who bouht at $192 a point. You can both access the same properties, but they are paying 4x the cost for it.

They ARE hurting the people who want to use DVC as a monetary investment, compared to a vacation one. How long do people hold onto their contracts? usually long enough for their kids to enjoy the vacations. But once they get "out of the Disney age" you could always flip the DVC and break even, maybe even make money, depending on the market. So really, this makes it so potential buyers have a strong vested interest in staying on property. And this is what I think Disney wants.

They want the family that will be back year after year. Sure the hotel is "free", but with that, you need food. You are at the parks, so you are buying tickets/APs. You are going to be a "superfan" So you'll be taking part in the hard ticket events. Doing backstage tours. Maybe even paying for a VIP Guided park tour. And then the souvenirs.
All that does add up. They are looking for the long term investment.

From that, Disney wants resales done, or at least done through them. You can buy a resale contract through Disney, but as you said, it's more than on any of the other resale sites. Is it worth it to buy Riveria on resale at $100/ point and only ever be able to stay there, or buy on Resale from Disney at $175, but stay at ANY DVC Property. Disney wants that money.

So really, the 2n'd class owner will be "New Resort Resale Owners" New onwers get all the perks. Legacy onwers still get the perks of "New" ownership. Resale "legacy" owners still have a better value than any of the DVC2.0 resale owners.

It'll be interesting to see how this plays out for Disney. They may either have to change the rules, or offer new DVC at a lower cost/point to get people to bite. But then if the new price is say $150/point, and people were paying $175-192 for Poly, Wilderness Lodge..etc. that could stractch the legacy owners.

No idea why the shock for resales. They have been minimizing resales for years through limiting benefits. If you buy directly from Disney you don't have a problem. If you don't, you got it at a discount and with proper research you know what you are getting into. They didn't ruin it for all DVC members, they changed it for resale DVC members.

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