Thinking about buying DVC....again

[KAT4DISNEY]

I thought about it costing more per point and adding in closing costs, etc, but to finance a contract for a timeshare is expensive...the rates are around 9-10% which would kill any savings I could have by buying a larger one. Plus, a payment of $350 or so a year in dues is easily doable any month of the year for us...whereas owing close to $700-$800 in a month might not be that easy. Our oldest son plays hockey which is a kick in the teeth in September through March with the cost to play, traveling all over the place, equipment....that is easily $2,000.00 a year, etc. I am so risk averse I would rather pay a little more per point, I think, than worry about paying for something down the line. Decisions, decisions.

The consideration of small contracts is something more for those who intend to own a larger amount of points but are feeling the need to break it up in order to have the ability to downsize or for easier sale. ie - someone wanting to buy 200 points who thinks it will be better to buy 4 50 points contracts. IMO, in your instance, it doesn't really apply here. You have the plan for 50 points and while you might add more later you may not. You would be paying a LOT more for more points when you had no wish to own that many points vs a minimal increased cost per point for the number you feel comfortable in buying. Paying a little more per point for what you want/need is what makes sense vs potentially getting into financial issues. And having to finance immediately increases the cost per point to an amount that is almost certainly more than the cost per point of a small contract.

 

[katriscari]

The consideration of small contracts is something more for those who intend to own a larger amount of points but are feeling the need to break it up in order to have the ability to downsize or for easier sale. ie - someone wanting to buy 200 points who thinks it will be better to buy 4 50 points contracts. IMO, in your instance, it doesn't really apply here. You have the plan for 50 points and while you might add more later you may not. You would be paying a LOT more for more points when you had no wish to own that many points vs a minimal increased cost per point for the number you feel comfortable in buying. Paying a little more per point for what you want/need is what makes sense vs potentially getting into financial issues. And having to finance immediately increases the cost per point to an amount that is almost certainly more than the cost per point of a small contract.

Exactly! I would just make work what we had...and if we wanted to go more, I would rent or add on eventually, or book through Disney. If I love it a lot when my school loan is paid off I can save that $400+ a month, and buy a larger contract in no time if it fits for us then

 

[Dean]

We started going to Disney in 2014 when our first son was 5. We stayed at All Star Sports. We went again the following year in May & November--stayed at BC split with AKL and then SSR (all on rented points). We LOVEEEEEEEEEE AKL! We skipped this year because I had a baby at the end of June. He is our second and last child. We have a May trip planned for 2017 for 10 nights and an adults only trip in October 2017 for a 10 year wedding anniversary. We also plan on going in 2018 before my first son is a Disney adult. I know life starts to get in the way, and as kids get older timing starts to become more of an issue, but I feel like a small 50 point contract to bank & borrow to stay a week every other year at AKL might be a good fit for us. We could also just use it for a yearly couples trip as well for 3-4 nights. I saw one yesterday on a resale site for $80/point for 50 points at AKL. I am not sure of the details, but I just thought to myself....for a little over $4k I can own a small amount of points and dip my toe in the DVC water.....I know their annual dues are higher because of the animals, but it is the resort we love the most. I just feel like I either need to take the plunge and make it work, or completely forget about it because every time I look back I feel like I am losing time not doing it sooner. I would pay cash for a contract this size as well. I am pretty risk averse and the type that loves a plan as well. I know I would not allow myself to let points go to waste, etc. I am 34 years old (my husband is 33).My job is secure (his is secure as well), our modest home will be paid off in less than 18 years (we have no plans to move or add debt for a bigger home), My student loan which is a decent chunk of money ($440/month) will be done in less than 4 years). I am not concerned with not being able to afford a contract this size. Thoughts?? Advice??

If you're going to continue to go, I'd likely buy but do so to get the trips in question on the points as well since you have time. You can likely get the May trip if you proceed. I don't think it makes sense to buy 50 points when you're looking at 3 weeks over the next 1.5 to 2 years. I'd either wait or buy now but not buy 50. SSR may not be the best choice for you but it will be the cheapest. BLT is the next cheapest long term for the same number of points after SSR. AKV is not unreasonable resale. You should plan for a 1 BR IMO. It sounds like a 1 BR for about a week a year is a good level to shoot for.

 

[kapicka]

It sounds like people weighing in saying 50 points may not be enough. I also understand what you are saying that 150 may be too expensive (and I don't think it is a good idea to finance). What about finding a loaded 80-100 point contract? That would be around 160-200 points every other year and you would have options for sure.

 

[kniquy]

It sounds like with the resorts that you typically select and the number of trips that you take you should buy in. If you need to convince your husband then just tally up the cost of the last few trips . Yes their are MF, but when you factor in your initial buy in and the MF -- it will still be less than what a hotel room would be.

If you can purchase more than 50 points that would be advised. Like others have said - 50 is almost too little to work with. I own at AKV and we bought a 120 point contract this allows us to travel every other year and have 240 points to work with or stay in a studio for a few less nights on our 120 points every year. Just so you know there is the option to buy 24 one time use points per UY (i believe) so even if you were a little short some points then you could buy them to help complete at reservation at the 7 month mark. There is also the option to get a transfer of points from another member if you needed to. You can check out the rent/transfer board under DVC. This allows you to probably pay a similar cost as the rental companies, but you have control of the reservation. The points do retain their UY and home resort.

I am not sure I could convince my husband to purchase if it was not at AKL. Saratoga was OK.

I might be on the same page as him -- we stayed at SSR and although the resort is nice I didn't feel that it was anything special or unique. I bought AKV actually never staying there, but it is a truly unique resort so i figured it was a safe bet. Yes the MF are a little more at AKV than the other resorts, but it really isn't a huge difference if you are looking at a smaller <150 point contract. The price per point is in line with SSR and is lower than many of the other resorts -- so you might be paying a little more on MF, but you will safe in your initial buy in say compared to BLT or POLY and the difference in MF would probably be a wash.

I would have to finance..wouldn't this end up costing just as much?

When you buy resale now you do not get any DVC perks (maybe only access to TOWL) but considering you go so often you might want to purchase AP -- DVC gets you a discount on your AP. So one option would be to buy a smaller 80 point contract and once you are a member you can add on a small 25 direct contract (same resort and UY as you initially buy) to get the benefits. You really need to play with the numbers. DVC is definitly worth the price. We bought our AKV contract for ~$9100 -- we are taking a trip in a 2 BR sav view at AKV and the hotel cost of that trip would be somewhere around $7000, so within about 4-5 years we will have broken even on our initial purchase price -- and remember even though there are Yearly MF increase -- there is also increases in hotel rates.

Good luck and keep us posted!!

 

[skier_pete]

It sounds like people weighing in saying 50 points may not be enough. I also understand what you are saying that 150 may be too expensive (and I don't think it is a good idea to finance). What about finding a loaded 80-100 point contract? That would be around 160-200 points every other year and you would have options for sure.

I think the reason many of us are saying that - and at least why I'm saying that - is from the personal experience of buying a contract and quickly realizing that there aren't enough points for what you want to do. In my case it's a 160 point contract, but now we really wish we had 200 points available per year. I am very tempted to buy a small add-on contract, but so far have resisted because financially we really can't do it right now - plus if I'm going to add on, I would like to add on at least 100 points.

The point is - that if you buy a 50 point contract, you may rapidly regret having so few points - so I would suggest buying a little bit more if you can afford it.

 

[katriscari]

I think the reason many of us are saying that - and at least why I'm saying that - is from the personal experience of buying a contract and quickly realizing that there aren't enough points for what you want to do. In my case it's a 160 point contract, but now we really wish we had 200 points available per year. I am very tempted to buy a small add-on contract, but so far have resisted because financially we really can't do it right now - plus if I'm going to add on, I would like to add on at least 100 points.

The point is - that if you buy a 50 point contract, you may rapidly regret having so few points - so I would suggest buying a little bit more if you can afford it.

I just really did not want to finance. I guess maye I will just wait unless the 50 point contract is a great value. If it was I would try to jump on it & pay cash. I feel like I need to save around $10k to get the amount of points I need for a resale contract. We will see.

 

[Dean]

I just really did not want to finance. I guess maye I will just wait unless the 50 point contract is a great value. If it was I would try to jump on it & pay cash. I feel like I need to save around $10k to get the amount of points I need for a resale contract. We will see.

I'd wait until you can buy with cash for enough points to at least be functional in this situation. If it's important enough to you, you should be able to save up fairly quickly to do so.

 

[katriscari]

I'd wait until you can buy with cash for enough points to at least be functional in this situation. If it's important enough to you, you should be able to save up fairly quickly to do so.

Yep, I have a new tax deduction this year lol. I am hoping he helps.

 

[kniquy]

If you really want to pay cash and save 10K then maybe forgo the next couple of trips and put that money towards your purchase. 10K would definitly get you a decent size contract. Keep in mind that the smaller contracts (50 points) generally go for a higher price per point. So for AKV typically $90pp when you could get a larger contract (over 100 it can bring the price per point down to high 70's to low 80's.

 

[katriscari]

If you really want to pay cash and save 10K then maybe forgo the next couple of trips and put that money towards your purchase. 10K would definitly get you a decent size contract. Keep in mind that the smaller contracts (50 points) generally go for a higher price per point. So for AKV typically $90pp when you could get a larger contract (over 100 it can bring the price per point down to high 70's to low 80's.

Well that isn't going to happen! I have a baby! It is really the place we love going to spend time as a family and forget all about our hectic normal lives where we are always tired, work opposite shifts, are constantly running the older one to sports, etc. We need the yearly (or twice a year) break now! My issue with financing is the cost to do so. I mean some of my credit cards aren't 10%! My credit score is very high. I wouldn't mind taking on the debt if it was for a reasonable cost. Does anyone know if you can pay by credit card?

 

[Mmw37]

You generally can't pay with a credit card through the resale companies, or they charge you a significant % fee if they allow it at all. You can with a direct purchase. You can however apply for a home equity loan or line of credit at a much lower rate and use that if you must finance short term. I too was shocked at the high rates for financing, and that they aren't impacted by good credit.

We did decide to start with a small loaded (50 pt) contract that we could pay cash for now. It will cover 3-4 shorter trips before we're maxed out on borrow mode and allow us to try a few DVC properties and get used to how the system works while we save up more money. We bought at BWV too, where 50 pts will get you around a week every other year in non-premier seasons in a standard studio. Whether we add on there or elsewhere remains to be seen - we just passed ROFR.

 

[Marionnette]

Well that isn't going to happen! I have a baby! It is really the place we love going to spend time as a family and forget all about our hectic normal lives where we are always tired, work opposite shifts, are constantly running the older one to sports, etc. We need the yearly (or twice a year) break now! My issue with financing is the cost to do so. I mean some of my credit cards aren't 10%! My credit score is very high. I wouldn't mind taking on the debt if it was for a reasonable cost. Does anyone know if you can pay by credit card?

Yep! I remember those days! One of the reasons that we didn't purchase DVC earlier was because kids are expensive! It wasn't until the last one was part-way through college that we finally had some breathing room.

You cannot purchase resale with a CC, but you can often put up to $2K of a deposit on one. If you have a good 0% balance transfer offer, you could make a check out to yourself (or have a money transfer done to your bank account) for the remainder. Then you can take then next 12-24 months (or whatever the terms of the balance transfer is). Just don't borrow more than you think that you can pay off before the promotional rate expires.

 

[katriscari]

You generally can't pay with a credit card through the resale companies, or they charge you a significant % fee if they allow it at all. You can with a direct purchase. You can however apply for a home equity loan or line of credit at a much lower rate and use that if you must finance short term. I too was shocked at the high rates for financing, and that they aren't impacted by good credit.

We did decide to start with a small loaded (50 pt) contract that we could pay cash for now. It will cover 3-4 shorter trips before we're maxed out on borrow mode and allow us to try a few DVC properties and get used to how the system works while we save up more money. We bought at BWV too, where 50 pts will get you around a week every other year in non-magic seasons in a standard studio. Whether we add on there or elsewhere remains to be seen - we just passed ROFR.

We have no plans on moving,so I might look into the equity loan. That is why I thought paying cash for small was better because although the small point amount costs more, I would be paying A LOT in finanacing for even 2 years to buy $10k worth of points. That is what I would be comfortable with financing. I am so risk averse!!!

 

[lovin'fl]

Buying smaller you can always add on down the line. And then if you need to downsize someday, you can. I wouldn't take out a loan. JMO.

 

[ironz]

We just bought a 65 point contract-- not much, but it's what we can afford, and we were able to get the resort/use year we wanted. Frankly, I didn't want to pay the MF on points we won't be using. We have enough points for an upcoming trip, then for a short trip in a studio every year (we never stay a full week), or a bigger trip every 2-3 years if we bank/borrow. We figure, we can add on points later if we need/want-- but why pay more MF for the short term if that's not part of the plan? We have many other places other than WDW on our bucket list, so going every couple of years will still work out.

 

[katriscari]

Yep! I remember those days! One of the reasons that we didn't purchase DVC earlier was because kids are expensive! It wasn't until the last one was part-way through college that we finally had some breathing room.

You cannot purchase resale with a CC, but you can often put up to $2K of a deposit on one. If you have a good 0% balance transfer offer, you could make a check out to yourself (or have a money transfer done to your bank account) for the remainder. Then you can take then next 12-24 months (or whatever the terms of the balance transfer is). Just don't borrow more than you think that you can pay off before the promotional rate expires.

Yeah...my darn 5 month old is drinking about $300+ worth of expensive formula a month thanks to his milk protein intolerance! I might do a happy dance next July when he turns 1 and he can drink something else! I will just start saving & keep my options open! If something great with a small amount of points I might jump on it. It would have to be my ideal use year, great value, etc. Otherwise, I might just try & save our tax return to use for a larger contract and pay for our yearly vacation in small chunks. That is what I've been doing with our May trip, and it has worked great so far. Flights, one 10 day hopper, deposit on DVC rental already paid for. I have almost saved enough in 2.5 months for another 10 day ticket :0)

 

[katriscari]

We just bought a 65 point contract-- not much, but it's what we can afford, and we were able to get the resort/use year we wanted. Frankly, I didn't want to pay the MF on points we won't be using. We have enough points for an upcoming trip, then for a short trip in a studio every year (we never stay a full week), or a bigger trip every 2-3 years if we bank/borrow. We figure, we can add on points later if we need/want-- but why pay more MF for the short term if that's not part of the plan? We have many other places other than WDW on our bucket list, so going every couple of years will still work out.

This is how I feel as well when it comes to the MFs. I can easily write a check at the end or beginning of the year for them on a small contract, but I would have to consciously set aside money to do it for a larger one. Plus AKL is expensive!

 

[skier_pete]

I wasn't trying to discourage you from buying the small contract - I just wanted to warn you of the pitfalls of the small contract, specially that you may find yourself almost immediately wanting more points. The small contract can still save you money on your vacations versus renting, though - and allow you to save faster for another contract.

 

[skier_pete]

This is how I feel as well when it comes to the MFs. I can easily write a check at the end or beginning of the year for them on a small contract, but I would have to consciously set aside money to do it for a larger one. Plus AKL is expensive!

Disney does let you pay your MF in monthly installments without charging you interest. I pay I think around $85 a month for my 160 point AKV contract, so for a 50 point contract you'd be looking at about $25-30 a month.