DVC pricing, am I missing something?

[Malibelle]

We decided that DVC would be good for us but we are not ready to buy with our Disney wedding comming up in March. My DF said we can't do it right now but after the wedding once we get some monetary gifts we can look into it. I have tried to explain we can get the F&F rate @ $86 if we do it by 1/20 and the price will go up close to $3000 once we are ready to buy. If we can just finance now and get the rate I feel it is the better deal then waiting. It saves about $3000 or so.

So can someone give me insight as I want to present this to my DF.

If we buy 150 points @ $86 = $12900
10% down=1290 (Do we have to put down money or can we finance everything?)

Closing costs about $200
Dues not sure but I heard you can break it up in your payments throughout the year. (read its about $5.00 on average per point)= $750

Paying the 10%, closing cost we would need about $1460 to pay Disney and finance about $12360 hopefully at 10.75% so the payment would be about $168.51 for 10 years. Obviosly we would pay a chunk of it after the wedding and finance it for 10 years.

I am missing any other significant fees or costs here in my estimated calculations? Am I right to think now is the best time to buy then to wait until after March?

 

[dianeschlicht]

Well, if you are going to finance it, then you need to look at the intrest rates over the length of time you will be paying on the loan. Personally, I'm from the old school and not sure you should be financing a "luxury" item like DVC. If you have a mortgage, maybe get a home equity loan and make that interest deductible on your taxes at least. If you don't own your own home, I'd be thinking about that before I'd be thinking about DVC.

 

[rahrah]

Heaping on another mandatory payment each month just after you get married, does not sound like a good idea to me. I would wait a year or two to see how you manage your money as a couple. If you have any money left after fully funding your retirement accounts, then consider it. (I am such a nudge...)

 

[TenThousandVolts]

I would wait if I were you. We keep hearing about the price going up to $104 but what we don't know is what/when the next promo would be. You will be able to get in on a great promo down the road.

If you have 50% in cash - you can get a 12 month 4.95% rate- on a 150 point contract. Considering that you can earn 5% on that $ as it stays in your bank account until you need to make the monthly payment- that financing option will cost you very little- that would be the only way I would finance.

Heaping on another mandatory payment each month just after you get married, does not sound like a good idea to me. I would wait a year or two to see how you manage your money as a couple

I agree with this especially because they are not in agreement that this is a good idea. I do not, however believe you have to have a fully funded retirement account before you purchase- but you do have to have a plan- and be on track with your retirement savings.

 

[Malibelle]

Thanks for the advice. We would only be lookiing to finance in the beginning just to be able to get the F&F rate and pay it off or refinance after the wedding. We are 33 and 35 and already own a house with a mortage. We decided instead of spending $5000+ on a honeymoon to Hawaii we would buy into DVC. Its either one or the other withing this next year because we do not want to miss out on a honeymoon. I think DVC would be the better investment than a vacation that is once and gone forever. I just that I am trying to convince him that it would save money to go for it now then to wait.

 

[RumpleMom]

As newlyweds, you will have many things to purchase. Does one of you already have a house or apartment full of furniture? How many car payments do you have? Have you started retirement accounts? Remember compounding interest is fantastic the sooner you get started.

If one of you is older and financially secure, then go ahead and buy.
If you both are young and just starting jobs, then wait. See how secure your jobs are. Ten years is way too long to finance.

 

[senecabeach]

I would like to share my experience of buying DVC.....

My DH and I have visited WDW each year, sometimes twice, since the MK opened in 71 and always stayed on property...mostly the Poly, which was $42. per night back then!
Yea WOW!!

We just loved the "Magic" and had no problem going to WDW as young adults. We weren't blessed with children but were fortunate to be able to stay @ both deluxe and moderate resorts.

With both of us busy with life, family and working, time absolutely flew by and we never had any time to look into owning @ OKW, which was "cheap" back then and also gave "free" park hopper tickets every time you went...nor did we look at others....

All of a sudden...prices soared ...$200+ for a hotel room @ the POLY?? The GF...which we did a few times...outrageous $$$ !! POR nice...still $150.+ Value resorts...noisey, not as romantic.

Prices keep rising for these hotels!!! What will they be in 3-5-10 years??

Then came the light...Hummmmm ...DVC ...VS...a "hotel room"?
Well...DH passed away suddenly shortly before we closed ...but ...I still bought DVC and still Love the "Magic" which holds many beautiful memories for me when Im there, either solo or with extended family.

Life is too short ....IF you can afford it ..DO IT !!

 

[LIFERBABE]

I would recommend buying DVC and using it to honeymoon instead of paying for a hotel room for the honeymoon.

Yes, buying now will save you money over any future promotion that will be offered. I have yet to see the purchase price decrease for DVC, promotion or not. You can kiss the current price-point goodbye come Jan 20, 2007. Even with a promo, it will cost you more.

If you are planning to put the honeymoon money into DVC, and pay the rest off in a short time, then the current promo will save you money.

It sounds like you are not in your early 20's and starting from square one, so I dont think traditional new marriage concerns apply here.

 

[Malibelle]

As newlyweds, you will have many things to purchase. Does one of you already have a house or apartment full of furniture? How many car payments do you have? Have you started retirement accounts? Remember compounding interest is fantastic the sooner you get started.

If one of you is older and financially secure, then go ahead and buy.
If you both are young and just starting jobs, then wait. See how secure your jobs are. Ten years is way too long to finance.

I understand and I agree, newlyweds just starting out should consider waiting but we already have a fully funished house for the past 5 years, both have good jobs(my DF has been at his for 15 yrs), one car payment and have retirement accounts. The only other extra bills right now are our credit cards, wedding, and his football season tickets.

 

[CarolA]

If it were me and I knew I wanted SSR I would either do the purchase now or plan on a resale. Now if you do want to finance I would go ahead and do the purchase now. The interest rates on resale are not as good and if you stay with Disney you can potentially deduct the interest. (Most of the resale loans are not guranteed with the real estate interest) Contact your tax professional to be sure. So I would probably just stay with Disney and pay it off early. (Which I have done GASP! I financed. I am sure that folks on here will now announce I am going to some very hot place when I die!)


(And why did folks start giving overall long term finanical and marital advice in response to this post?)

 

[LIFERBABE]

So I would probably just stay with Disney and pay it off early. (Which I have done GASP! I financed. I am sure that folks on here will now announce I am going to some very hot place when I die!)
(And why did folks start giving overall long term finanical and marital advice in response to this post?)

Ditto, and I will be right there with ya!

 

[greenban]

[Snip]...
(And why did folks start giving overall long term finanical and marital advice in response to this post?)...[/snip]

One because we can.

Two, it isn't advice until rinkwide posts!

-Tony

P.S. Very good points CarolA

 

[3DisneyKids]

I was all set to say that you should wait...another promo will come around eventually...until I saw the post about spending $5k on a honeymoon or toward DVC. Now I vote for DVC.

If you have $5 k to put toward the honeymoon, then you have $5K to put toward DVC, right? Then you can use your wedding cash for even more of the purchase price, and then you get to a point where you are not financing that much and that makes it more worth it. (I am in the "don't finance it" category for the most part, by the way, so this is an unusual turn for me.)

And then you will own DVC for the rest of your lives...and you will have a lifetime full of honeymoons! Definitely a good trade-off!

Best wishes.

 

[Lady V]

If it were me and I knew I wanted SSR I would either do the purchase now or plan on a resale. Now if you do want to finance I would go ahead and do the purchase now. The interest rates on resale are not as good and if you stay with Disney you can potentially deduct the interest. (Most of the resale loans are not guranteed with the real estate interest) Contact your tax professional to be sure. So I would probably just stay with Disney and pay it off early. (Which I have done GASP! I financed. I am sure that folks on here will now announce I am going to some very hot place when I die!)


(And why did folks start giving overall long term finanical and marital advice in response to this post?)[/QUOTE]

thank you! I was wondering the same thing...she had asked for help And when I read the first post I wondered where she was in life. Like me, for example, I just got engaged at Disney and i am 32 and already own my own home. so, anyways, back to the topic...buy it and have fun!!!!

 

[Dean]

As a rule I recommend not financing to purchase DVC. I won't address any of the other issues except to let you know that it is my understanding that owning DVC generally removes the requirement for room nights on property for the Disney wedding packages. If that is an issue, you may want to check in to it.

 

[disneydenisel]

Congrats on your upcoming wedding !

This current promotion is the best pricing, and unless you buy a resale, Disney prices will just keep going up, ever so slightly ($3/pt, maybe twice a year). Last year's promotion had SSR points at a little less than the current $86 (was it $81.50?).

It sounds like you have good credit and stability. You might consider a 0% balance transfer credit card...charge your purchase to a points card, either airline mileage or Disney VISA. Then transfer the entire balance to a 0% balance transfer card (with no fees) for 12 months. Pay off as much as you can during that first year each month (don't be late, because the rate will go up). Whatever is left at 12 months, transfer it to another 0% balance transfer card. If you can pay $500/month for two years, you won't need to transfer it again.

There are a lot of financing options. Enjoy your wedding and possible "honeymooon" purchase . What a great wedding gift to yourselves! Wish we would have taken the plunge earlier when we were your age!

 

[bpmorley]

I think you have it pretty good. Although I don't remember any closing costs. You should try to get your own loan. Disney rates seem to be higher.

 

[ClarabelleCow]

If, you can get a room and use it for your honeymoon in March, then I would do it. But if you can't there will always be other deals, I would wait, get settled, you may like AKL better, who knows.