Disadvantage to having small contracts

[Cxt333]

So is there a disadvantage in buying smaller contracts. I own 168k eoy I get 84k/ year now. I can get two others for 100$ each with the seller paying all the fees. So my upfront cost is well $100 ea. These new contract are above average dues. ( cypress palms). One is 126k eoy and the other is 84k/ year.

So that would give me 231k each year about what I will use.

Thanks

 

[am1]

Cost to get rid of them. If they are converted fixed weeks poor arp, high mfs, most likely have to pay to get rid of them. Your seller can probably give them back to wyndham with no out of pocket expenses. No one knows for sure for how long.

 

[ronparise]

no disadvantage in owning them...only in the buying and selling. If this brings you to the ideal level, Id do it

 

[traveldaddy]

If they are at different locations, the smaller contracts would be less useful for ARP. May not be important to you, but it could be. You can't necessarily book a full week in prime in a larger unit with a small amount of points. If they are at the same location, not an issue.

As others stated, the transactional costs are higher, but if you plan on keeping for a long period, this becomes less of an issue - provided life goes as you planned.

 

[vacationhopeful]

I have some converted fixed week contracts ... but I have been VERY careful in buying them.

I brought/converted deeds which have VERY good cost of MFs to points given ... even if MFs rise.

I know ARP can NOT be a major issue in owning these contracts ... might be USEFUL, but it is DOWN on the list of WHY I own it,

So a week 2 PRIME season with 189K in points costing less the $1050 year is decent. Even better is IF I cancel and rebook inside that window, I save some points to use during the next 50+ weeks (which I can't do with a fixed week).

But I do pay about $105 YEARLY for it being in points via the CWP fee.

So a good PRIME mid-use year week (Jan-Dec) ... July 4 for that family vacation (some years week 26; other week 27) ... if not rented 15 days before or the kids' sports stuff overlaps ... cancel and use the points elsewhere.

Or my example, any snowbird week... I am not going to use and no renter, cancel.

 

[weems637]

This formula has worked for us, with no issues except a little higher MF's.

 

[CruiseGuy]

While there may be higher costs of buying and selling, there are also some potential benefits to smaller contracts. And remember, those higher costs are still minimal compared to purchasing retail. Purchasing smaller contracts let me buy gradually as I had money available to purchase, and as I learned more about the system and what I wanted. It will also allow me to get rid of points gradually if I don't want out all at once or my travel plans change. Even if I want out all at once, I still expect to recoup all my costs selling the contracts myself on ebay (and using low cost closing companies recommended here).

So, did I get the absolute best deals available when buy (or selling)? Probably not. But I did get good deals overall, and it allowed me to do what I wanted without getting in over my head all at once. And it will allow me to get out gradually if that's what I want.

 

[Cxt333]

Well my buying cost I think ? is low. 168k eoy for $255 with another one I'm looking at $100 for a smaller contract. I know if I tried to sell them I would probably pay a lot to dump them. I just want to make sure I'm not going to pay some added fees that I shouldn't because the way I'm doing it.