10 years is a long time

[studog]

We really would like to be DVC members but 10 yrs is an awful long time to pay..don't you think? I know I don't want to pay more or at least be obligated to pay more on a monthly basis. Does anyone agree that 10 is long. I am trying to convince myself that I could also rent a majority of the points out if needed and that could go towards the monthly payments. So really a renter could pay my mortgage while I pay the fees yearly.

Will someone please talk sense into me. I want it but I need that extra shove.

Ken

 

[brandip22]

Most people will tell you not to buy with the sole intention of renting points. Who knows that you'll always be able to do that? You could always finance for 10 years, but then pay it off sooner. That way, if you needed to back down on the payments for a while, you could. There is no pre-payment penalty with Disney, so I would do the 10-yr and just pay extra. We are doing ours for 5 years with 30% down and the payments will only be $50 more a month. I think it's worth an extra $50/month to save 5 years. We are also buying VB, which is not for everyone. They are givibg us $15 per point credit and applying it to the downpayment. But, again, I wouldn't suggest buying with the expectation of renting points out. I'm sure more will follow with that opinion. Good luck!

 

[CarolMN]

Have you seriously thought about whether DVC is truly right for you?

Are you already going to WDW at least every other year and staying on site every time in a moderate or deluxe hotel? Do you plan to continue that pattern? If you cannot honestly say yes to those questions, DVC will not be a good choice for you.

Keep in mind that DVC is a prepaid vacation plan (not an investment). Vacations should come out of discretionary income. (I apologize if I have made assumptions. Your post leads me to believe that paying for DVC may be a challenge for you). I hesitate to "talk someone into DVC" if they do not have the kind of discretionary income needed to support regular vacations to WDW. DVC only takes care of lodging - you will still need to plan for tickets, transportation and food. Don't let your wants or anything someone posts on this board entice you into doing something that really isn't right for your family.

Make the decision based on what is best for you and your family.

Best wishes -

 

[tzvdmd]

I personally dont think renting is the answer.
Ask yourself how often you go to WDW. What kind of room do you stay in and for how long. Then think about what that room might cost 5 or 10 years down the road.
We were going once a year and staying in a moderate resort so I was spending the money on vacations anyway. When you figure just the room cost only your investment will pay for itself. Some people dont figure it this way but I do. DVC is like you are pre-paying for vacations.

 

[ClarabelleCow]

I personally don't agree with 10 year financing for this type of purchase, unless you can use a homequity loan for it. We waited until we could pay for most of the purchase, and used our homequity for the balance, then got it paid off in 1 year.

 

[Pa@okw95]

You can finance for 5 years, one year, or just pay for it with cash. I don't understand the problem. I did 5 years. I finance my cars for 2 years and pay for them in one. You could do something like that if you wish, say finance in 5 years but pay it off quicker if you wish. The only time financing is a problem if the thing you are buying will not last until the end of financing period, that would not be the case here with contracts going to 2042 or 2052.

 

[tjkraz]

Originally posted by studog
We really would like to be DVC members but 10 yrs is an awful long time to pay..don't you think?

I guess it depends on what you are spending now for WDW vacations. If you're already spending $1500-2000 annually for deluxe resort accommodations, why not spend a little more for the next decade with the knowledge that your costs will drop dramatically after that.

You can always pay off early if you so desire.

 

[Disney Doll]

When DH and I bought into the DVC, we took a 10 year loan because it had the lowest monthly payment, with the intention that we would pay more on it every month and get it paid off quicker, BUT if there was a month where money was a little "tight", then we would only HAVE to make the lowest loan payment.

That is exactly what we did, and we got it paid off in about 3 1/2 years, and during that same time period we also had quite a few medical bills that we were paying, so it can be done!

That being said, don't buy it with the intention of rentiing it out all the time, because you can't always depend ion the fact that it will be rentable. If you don't think you will go to WDW at least every other year, then rehtink buying into it at all.

 

[dianeschlicht]

If you can take it out as a home equity loan, you can get a better rate and also be able to deduct it on your taxes. That will mean the pay off is earlier too.

 

[Blackunicorn]

You pay for a house for 30 years. You only pay for a car for 5 years. You pay for children for the rest of your life.

Anyway, here's your extra push--the price is going up. Do it now if you're going to do it.

 

[jodifla]

We paid ours off in five years. 10 years does seem like a long time.

We considered it like a car payment -- but on something we'd get to enjoy for 50 years! (OK, now about 38)

 

[OneMoreTry]

Go with your gut feeling on this. If you think it's too long, it's too long. When it's time to buy, you'll feel right about it. DVC will always be available.

 

[crisi]

I think any loan with the exception of a mortgage is "a long time." Pay cash. If you can't pay cash, wait until you can.

There are exceptions to this - We used a short term home equity loan to buy our DVC membership as we closed before bonus money arrived (but we knew it was coming) and we didn't want to cash out stock to pay for it.

 

[jerinknox]

If you wait to pay cash, if your like me, you'll never get the points.

I went 10 years and have loved it. Low payment and I can write the interest off my taxes. I bought 2 years ago and now can afford to pay more so I called and up'd my payment $75. That $75 knocked another 1 1/2 years off the loan.

Go with the 10 and have a great time!!!

 

[anniet]

Originally posted by CarolMN
Have you seriously thought about whether DVC is truly right for you?

Are you already going to WDW at least every other year and staying on site every time in a moderate or deluxe hotel? Do you plan to continue that pattern? If you cannot honestly say yes to those questions, DVC will not be a good choice for you.

Or as was our case, we were going every year, but staying offsite in a moderate resort that was going downhill---Only YOU can say how comfortable you are paying a 10 year loan, but like others have said here, you can finance for 10 and pay it off sooner and as Pa@OKW pointed out, you are still going to have it 40-50 years down the road....You may be thankful in that 30th year that you paid it off 20 years ago!

Good luck.