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View Full Version : Let me get this straight? Newbie.


Luv2trav
02-18-2003, 06:31 PM
I am considering buying a resale 300 DVC points for 19500.00. I am just starting to research the whole timeshare thing. This is what I have gathered.

One of my biggests concerns is, what happens if I choose not to go that year or if I want to go somewhere else?Say I purchase 300 points NOW and if I choose not to travel that year or if I change my mind and want to stay at a different resort I could "rent" my points for that year for around 10.00 a point = $3000.00? In addition these points would be good for 40 years? Why wouldn't people do this? What are the cons?

Another question is, What are the maintenance fees? Plus, Are there monthly taxes involved like a mortgage and if so what are they? Is the interest tax deductable? etc.
I know there are hidden fees I am not aware of....

Lew
02-18-2003, 06:48 PM
If you don't plan to use your points they can also be banked into your next use year. This would give you a total of 600 to use during that year. You are also able to borrow points from the next use year if necessary.

Your best use of points is staying at any of the DVC resorts. Of course, you can stay at other WDW resorts, but IMHO it's not an economical use of points. You can also trade out to Interval International member resorts all over the world.

With respect to maintenance fees, that depends on your home resort. I believe OKW's fees are the lowest.

poj7
02-18-2003, 06:54 PM
Point of Interest...

I doubt very seriously you'll be able to close the deal as stated. $19,500/300pts = $65/point.

Pretty sure Disney will utilize their right of first refusal and buy them back from the seller. I'm hearing that they're buying back most if not all resales up to $68/point.

Paul

Cruelladeville
02-18-2003, 06:55 PM
If you are buying 300 points, there may be extra points banked into the current year--check that out first because they have to be used this year. You can bank this year's points into next year. It's kind of like saving your points, so you will have twice as many for next year. The trick is to buy about as many as you can comforably use, but don't buy too many or too few. You can also rent your points, if you have the time and energy to do so. it can be overwhelming the first time you rent, though.

Your taxes are paid by the year, as part of your maintenance fees, and yes, the taxes and interest is tax deductible, provided you don't already have a second home. Maintenance fees vary by resort. At BWV they are about $4 per point X 300 pts= $1200 per year, which you can pay monthly. At the end of the year, you will get an itemized statement saying how much of the $1200 went to taxes, how much to maintenance, etc.

Those are your only costs, except for the costs associated with buying the points thru resale (closing costs and recording fees of about $500).

I can't give you any cons, except for the monthly payments, perhaps. We have now purchased a total of 700 points, and we love DVC. We can't understand why everyone wouldn't want to set up their vacations for the next 40 years. Our points have increased in value since we purchased, too, so we can sell at a profit, meaning that all our vacations were free except for the maintenance fees. What's not to like?? :p

Chuck S
02-18-2003, 07:23 PM
One more note of caution...don't buy with the idea that you WILL be able to rent out your points at a given price of $10 pp. As with any transaction, it is what the market will bear, and you may not find anyone in the market to rent points when you want to rent them. I'd much rather bank points for one year than rent them, unless I really needed the income to offset my annual dues. That being said, it seems MOST people on the rent trade board have been successful in renting their points, and have had no problems. Be sure to set specific within your rental contract, as to cancellation periods and penalties, due date of payment, etc.

Deb & Bill
02-18-2003, 08:50 PM
You only have 38.9 years of ownership left. January 31, 2042.

Caskbill
02-19-2003, 02:02 AM
One of my biggests concerns is, what happens if I choose not to go that year or if I want to go somewhere else?Say I purchase 300 points NOW and if I choose not to travel that year or if I change my mind and want to stay at a different resort I could "rent" my points for that year for around 10.00 a point = $3000.00? In addition these points would be good for 40 years? Why wouldn't people do this? What are the cons? I hope you're not thinking that if you don't use your points for one year, that those specific points are good for 40 years.

If you don't use points one year, you can bank them into the next year, but that's it. They can't be banked again into the following year.

Every year you receive a new allocation of points. It's the annual allocation that extends through 2041. All individual points do have expiration dates in which you must use them or lose them.

poj7
02-19-2003, 07:12 AM
Once you understand that you can borrow a year and bank a year you may find that you don't need 300 pts. If you look at the points charts (which do not change) you can decide how many points you need. I am assuming that you're not interested in intentionally getting in the business to rent points every year.

Paul

Luv2trav
02-19-2003, 08:56 AM
No I am not looking at points to rent... I just want to imagine what I could do if I HAVE too. I actually want to buy the points for future vacations. We have an 18 month old and I can imagine that we are going to be coming back an awful lot the next 10-15 years at LEAST.

Thank you for all of your information. I LOVE the idea that you can bank you points from year to year. I would imagine that we would visit at least once a year/2 years....

wdeversole
02-19-2003, 01:52 PM
Be aware, too, that there are deadlines on banking your points:

During the first six months of your use year, you may bank all of your current points to the next use year.

In months 7-9 of your use year, you can only bank up to a total of 50% of the current year's points.

In month 10, it drops to a total of 25% of the current year's points.

During the last two months, you cannot bank any of your points.

Dizzy4Dizney
02-19-2003, 05:45 PM
Also, if you don't intend to use points for some reason, you can give them to friends or relatives to use. I gave my brother 2 nights at OKW and my nephew 5 nights there too.

mb168
02-19-2003, 06:03 PM
Originally posted by poj7
Once you understand that you can borrow a year and bank a year you may find that you don't need 300 pts. If you look at the points charts (which do not change) you can decide how many points you need. I am assuming that you're not interested in intentionally getting in the business to rent points every year.

Paul

What???? Everybody needs AT LEAST 300 pts. If not, you'll end up adding them on anyway:D

poj7
02-20-2003, 07:07 AM
If you go four times a year, as you are, choosing to go at peak times, I agree.