View Full Version : Want to buy in---a few questions.

02-08-2004, 03:48 PM
Hi all,
We're looking into buying in and I have just a few questions I cant find the answers to.

1. Do the points per resort increase over time? For example to reserve a studio in Oct for 1 week comes to 106 points. If I own 110 points I am covered. Now, the next year, or the years after, can the points increase, so eventually I would have to buy more points to get the same reservation?
Thats a deal breaker for us.

2. If we decide not to use the points and rent them out would April conceivably be a good month to start our use year? The way I figured it in order to unload them within the 5 months we would have to bank 100% of them we need good 11 month marks and April gives you March, April, May, June, & July (spring break and summer months) Am I over analyzing this--does the month really make a difference? Am I even correct in my calculation?

We're just starting this process so I will probably be asking a ton more questions but I dont want to overload you nice people all at once. TIA for the help!!!

02-08-2004, 04:12 PM
I believe the total points allocated for a resort "year" will not increase. The way it works is if DVC increases points for a certain part of the year, they will have to decrease points for another part of the year. It's possible that October points may increase at some point due to the popularity of the F&W festival, but DVC would then have to decrease points at another period during the year to balance this out. As to the use year question, I don't think use years are important in the long run unless you are absolutely certain you will only vacation during the same month for the next 38 - 50 years.

02-08-2004, 04:23 PM
1) The points needed for a stay could change. The total points cannot be changed, so if some nights are raised- others must be lowered. In practice, this has occurred only once- at OKW back in 1996. Some nights were increased a few points, some nights were decreased a few points and most were not changed at all. At the time, it did impact our plans, so we purchased more points.

2) The banking deadline is actually 6 months. An April Use Year allows all points to be banked until September 30 . It appears you are asking if summer months are easier to rent and I don't think it matters at all. I wouldn't suggest buying DVC points with the anticipation that you will always be able to rent them, but- at the present time- it does seem to be a viable option for those with some extra points available. That could always change as time goes on.

If you have any other questions, please feel free to ask.


02-08-2004, 04:36 PM
A couple points to add, just to confuse things further: If you are planning on buying from Disney, the minimum points to purchase is 150. If you are planning on buying resale, it pays to be flexible as to points and use year. I think it would be difficult to find a 110 point contract with the exact use year that you wanted.

02-08-2004, 04:53 PM
Thanks so much! Any more tips or advise would be much appreciated as I've read all I can read but Im sure there are some tricks out there you guys could let me in on so we dont make any mistakes.
Our plan is to buy approx. 300-400 pts, resale (to use between 2 families) with cash-no loans. Im looking at either the BWVs or BCV (leaning towards BCV). Where can I find out more info on the new one--Sarasota springs? Im assuming there are no resales on that one yet-just curious. Thanks again!

02-08-2004, 05:05 PM
Saratog Springs is not yet open, so no resales yet! This is the only one currently available from Disney as a new sale. The other resorts are available as add ons only from Disney, but would have to be purchased on resale. If you have not stayed at a DVC resort, I would suggest you visit each one and view their 1,2and 3 bedroom units, so you have a better feel for which resort you prefer. Don't base it on previous experience without looking at all. For 400 pts, I would buy two different contracts. Maybe 200 at each of 2 different resorts.

02-08-2004, 05:13 PM
Interesting. If we bought 2 wouldnt we have to pay for closing costs and other fees twice though? I really dont know how this works. Is the process just like buying real estate? Whats the protocol when buying with cash?
Another unrelated question I thought of: When do the contracts expire for each resort? I read some expire sooner than others.

02-08-2004, 06:03 PM
All expire 2042 except for SSR, which has an additional 12 years. Yes resales would be a seperate closing fee for each contract, but if you purchased a SSR contract, you would qualify for an add-on somewhere else through Disney. Or you could do SSR through Disney and also a resale elsewhere.

02-08-2004, 07:12 PM
Im intreged by this buying 2 contracts idea! How much do closing costs run for these transactions? If they are not that significant then this is a very viable options for us (being that we have 2 families buying in together) The reason why we are doing it together is that, the money we are using, is money made from a shared bisiness transaction between my DH and DBIL.
Also how much are the points for SSR? And what does "qualify for an addon" mean? Would we get a reduced price or something?
One last question for tonight: what are the advantages of buying through Disney vs resales. The resales adv. seem obvious--lower price and options for resorts that disney sold out of, any others?

02-08-2004, 08:23 PM
I think closing on resales is around $400 and are the same no matter how many points are in the contract. The reason I thought 2 different contracts would be a good fit for your situation, is that you would have home resort advantage at 2 different resorts! That way, you could have one contract in the Epcot area, and another elsewhere. you could choose VWL to be near MK, or OKW or SSR to be more secluded and near Downtown. FYI, if you are planning trips together, OKW has the largest units, which might be important with two different families traveling. If you covet the pool slides and activity of being near Epcot, you could also have one of those resorts for 11 month booking advantage.

Happy Birthday Cat
02-08-2004, 08:42 PM
I don't think its been mentioned but with SSR, there are no closing costs. You only pay closing costs if you buy resale and that is negotiable. Also be aware that if you buy resale, Disney gets to look that contract over and decide if they want to buy it instead. It's called their Right of First Refusal (ROFR).


02-08-2004, 08:57 PM
Originally posted by SYDNCLAIRESMOM
... we need good 11 month marks and April gives you March, April, May, June, & July

Maybe I'm reading this wrong, but it sounds like you are under the impression that your use year determines your booking window. Use year has NOTHING to do with the 11 month window. ALL members can book 11 months out from their check-out date at their home resort REGARDLESS of use year. The use year is only used when determining banking windows. A use year just before your preferred travel date is best, as if something were to happen and you needed to cancel, you would have several months to still bank your full points for the year. So if you want to stay from January 1-7, 2005, you can book that trip on February 7, 2004 no matter what your use year.

Another thing to know about owning contracts at multiple resorts is that you only get the 11-month window for the points at that resort. For example, if you own 200 at BCV and 200 at SSR, you can book 11 months out at BCV but can only using your BCV points. To combine contracts at different home resorts for a single reservation, you have to wait for the 7 month window. Another trick is to bank/borrow out of one account for the ability to use more points at the 11 month window, then just alternate which resort you stay at each time.

02-08-2004, 09:22 PM
Another thing to know about owning contracts at multiple resorts is that you only get the 11-month window for the points at that resort. For example, if you own 200 at BCV and 200 at SSR, you can book 11 months out at BCV but can only using your BCV points. To combine contracts at different home resorts for a single reservation, you have to wait for the 7 month window. Another trick is to bank/borrow out of one account for the ability to use more points at the 11 month window, then just alternate which resort you stay at each time.
True, and that is why I thought 200 per resort might be a good fit for them. If they did every other year at each resort, they would have about 400 points per visit.

02-08-2004, 09:28 PM

Since you are open to the idea of two contracts, I'm going to go out on a limb and suggest that it might be in your best interest to buy the two contracts and have each of the two families involved have sole ownership of one contract.

I'm a real "plan for the worst and hope for the best" type of guy. Even though you're dealing with VERY close family members in whom you obviously have a great deal of trust, you really never know what might happen over the next 4-5 decades. With (presumedly) four people's names listed as owners on the contracts, any one of you could make reservations and use points without the approval of the others.

You would need to come to some agreement on the payment of the dues over the next 40-50 years. What would happen if one party or the other couldn't come up with their share?

If you or your husband (or both) should happen to pass away, do you have children to whom you would like to leave your contract? If so, you may be handcuffed by the additional owners on the contract.

I'm not trying to make any assumptions about the relationships involved, other than the fact that 50 years is a LONG time. If you do go with separate contracts, you can always transfer points between them (at no cost) in order to take long vacations utilizing the points from both contracts.

I just think there are an awful lot of good reasons to separate the ownership, and few reasons to keep it consolidated.

Just some food for thought...

Deb & Bill
02-08-2004, 09:42 PM
Your plan on renting your points out frequently could also be a problem. Right now Disney does not prohibit renting your points, but they do discourage it. They could go the way of discouraging it more in the future. You never know.

The contract cannot be broken up and sold in a smaller unit. So if you get a 400 point contract, it must stay a 400 point contract. If you and the other family go your ways, you are stuck sharing a contract with them. If you choose to leave your ownership to your children, they will have to deal with the other owners.

Disney is the only one who can break an existing contract into smaller units.

Also, any income from renting out your points is taxable.

02-08-2004, 09:44 PM
When buying points it is important to consider how you will use them and when.

1. Your use year has nothing to do making reservations, reservations are determined by your check out dates.

2. Remember if you plan to use them outside of of DVC you can't book within the last two months of your use year; unless you book something ahead of time.

We bought at three resorts primarily for flexibility at Christmas and New Year's. We like to invite family members to join us. Buying into DVC is the best thing we ever did. We love Patti Douglas, our DVC guide. She did a great job of explaining the DVC point system to us.

02-08-2004, 10:46 PM
When evaluating the 'value' of a resale contract be sure to look at what points may have been banked or borrowed.

Example: Contract 'A' is a 200 point contract, June use year and has all 200 2003 points banked into 2004 and none of the 2004 points borrowed.

Contract 'B" is a 200 point contract, June use year, has all of the 2003 points already used, and all of the 2004 points borrowed and used.

Contract 'A' has more value to it. It has 400 points available to use beginning June 1, 2004, and then will have 200 points available per year beginning in June 2005.

Contract 'B' has no points available at all until the 200 June 2005 points are allocated. Thus in contract 'A' you have the use of 400 points that you don't have in contract 'B'.

This is why resales must be evaluated individually. Look at banked/borrowed points, closing costs, and finally the price per point to determine true 'value'

02-09-2004, 08:51 AM
You all have been very helpful and I agree with those of you that posted suggesting separate contracts. We curently have 2 family members who decided to go their separate ways (very unexpectedly) so that is a VERY valid point. Although its highly doubtful, who knows, right? I suggested this to my DH and he seems to agree. And I think having access to 2 resorts is a great idea. We plan on yearly trips and this is a great way to alternate resorts. For now!
I did not know that Disney discouraged the practice of renting. I always assumed they encouraged it because it creates new members (like me!). Thats certainly something to consider. We thought we could add on down the road, here and there, and if we dont get around to using them it would be fairly easy to unload. Do they discourage the practice of giving them away-say to a family member?
This use year thing is completely confusing me--Now, if my use year is Feb, I can make a ressie in Jan for when ever I want even before my points are allocated to me?? And can you explain the reason why its best to have a use year the month before we like to go down (Nov, is case you wondered) a little further--Im having a brain cramp:headache:

02-09-2004, 08:55 AM
Don't put so much emphasis on use year. It has NOTHING to do with WHEN you can make a ressie. You can always make a ressie 11 months from check out date at your home resort. They will see to it the points are taken out of the correct use year, but you DO have to track it for your own records, and Caskbill has a great program for that. Think about use year as the date your new points are added and subtracted, and the date that determins when your banking deadlines are. The only other thing use year means is that if you are traveling close to the end of your use year, and have to cancel the ressie, you might not be able to bank those points.

02-09-2004, 09:55 AM
Just to clarify a little more -

You do not have to have the points for a reservation actually in your account when you call to make the reservation. The points just have to be there when you arrive.

Let's say you have a February use year.

That means your 2004 points are good for stays between 2/1/2004 and 1/31/2005.

Your 2005 use year points are good for stays between 2/1/2005 and 1/31/2006.

Your 2006 use year points are good for stays between 2/1/2006 and 1/31/2007.


As already noted, you can call for a reservation 11 months ahead of your check out date (if you want to stay at your home resort).

Use year is simply the month that your points are renewed each year. It also determines banking deadlines. That's it.

On the "best" use year -
If you usually travel in November, a February use year might not be the best for you. It depends on how often (if ever) your plans change once you have made them.

With a February use year, you would have until the end of July to bank up to 100% of your annual allotment of points. You could bank up to 50% if you did it before the end of October and up to 25% if you did it before the end of November. You can't bank at all in the month of December or January if you have a February use year.

Let's say you have 200 points and plan a November trip that uses all of your points. If you cancel that trip in October, you would only be able to bank 100 of your points (the 50% deadline is 10/31 for a Feb use year)). You would have to use the other half before the end of the following January or they would be lost.

If you had an August use year and had to cancel the same trip, you would be able to bank all 200 of your points into the next use year or you would have until the end of the following July to use them. The 100% deadline for an August use year is 1/31. In this case, an August use year would be better.

Keep in mind that many people's vacation habits change over the course of their membership. You may not always want to travel in November.

Also, use year is only important if you have to cancel a trip that was planned for late in your use year. Many people seldom if ever have to do that. It all depends on your own personal situation.