Advice for prospective DVC buyers

[bsiu]

When I was considering whether to buy a timeshare, I created this tool to help me figure out if it was worth it :


mysite.verizon.net/brian_siu/temp/calculations.html



...I am not an accountant by trade and this is the first version, so if there are any errors or suggestions, please feel free to let me know. Thanks.

 

[3DisneyKids]

Just subscribing to this bump-a-licious thread

 

[4todisandadog]

I have toured DVC twice and if I knew I would live in the States forever (Military) I wouldn't hesitate. The tour is absolutely pressure free, because I think they realize even if you don't buy it you will probably still take trips to Disney. Why would they do anything to leave a bad taste in your mouth. I assume there will still be new places going up and the closer I get to retirement, I will certainly buy in. If you plan on staying on site there is definitely no better offer out there.

The only pressure you will feel during the tour is if you put it on yourself. I have had two different people and they were totally laid back and helpful.

Disney sells itself.

 

[Maria395712]

 

[T.E. Yeary]

WARNING SIGNS IN THE DISNEY VACATION CLUB RESALE MARKETPLACE!

Handling the Disney Vacation Club Resales requires a great deal of knowledge and expertise as they are unlike any other on the market. It is imperative that you use a broker who specializes in this area to achieve the outcome you desire and avoid some of the unpleasant pitfalls by inexperienced brokers.

Warning signs for BUYERS:

1. A small amount of listings in their inventory (Indicates NO track record)

2. Talking with agent leaves you unsure they know the product. Ask questions about banking, borrowing, points in holding, etc.

3. Unreturned or late response to your inquiry (Where will they be when you need help with the ROFR, Closing Process & getting into the DVC system? A knowledge of the right people to contact in case of a situation is imperative.)

4. Mistakes on postings on their website. Example: OKW, 2 bedroom Wk 6 (DVCs are in points, not weeks and certain size units.)

5. The company tells you that you can purchase BWV for $65 a point and clearing the ROFR will be no problem. (They will get their commission when Disney exercises their “Right Of First Refusal” so they really don't care if you are a new owner or not. In fact, they prefer it, because it's less work for them and they don't have any worries about the closing process or anything else.)

6. Do they have an office? (Many don't, ask for directions, or look up their address, if it's a residential area or a P.O. Box????)

Franchises:
The latest trend in the Resale business is for brokers to align themselves with a national franchise in order to legitimize their operation, thereby creating a false sense of security to the general public. Examples: ERA, Century 21, GMAC, RE/MAX, etc. Some Resale brokers go from one franchise to another after the number of complaints build up, they simply purchase a new franchise and it's business as usual. Most legitimate and ethical businesses should be able to use and operate under the same name for many, many years. In fact, if their reputation was one they could take pride in, they would insist upon it!

The above statements are certainly not meant to be construed to include "every" agency that is backed by a franchise. There are definitely some reputable Resale offices with ties to franchises. My warning is, it's NOT always the case. Protect yourself, look for the same warning signs with these companies as you would with any other Resale company!

 

[HappyDisDad]

I've been reading and studying this thread every night for last four days. Thank you for all the advice and info. I am contemplating buying a DVC and own a piece of magic for my DS who is 2 now. I would like to start small about 50 to 75 points as my financial situation allows me and would like to add more later. Also would prefer SSR, newer resort with longer years. Also would like to buy it from disney because most of the resale at this resort is stripped and points are much higher than I can afford. Soooo, my question is this, can I buy 150 points from disney with another person, either my friend or father-in-law and split 75-75 or 100-50?

 

[JimMIA]

I've been reading and studying this thread every night for last four days. Thank you for all the advice and info. I am contemplating buying a DVC and own a piece of magic for my DS who is 2 now. I would like to start small about 50 to 75 points as my financial situation allows me and would like to add more later. Also would prefer SSR, newer resort with longer years. Also would like to buy it from disney because most of the resale at this resort is stripped and points are much higher than I can afford. Soooo, my question is this, can I buy 150 points from disney with another person, either my friend or father-in-law and split 75-75 or 100-50?

You can buy any size contract of 150 or more points direct from Disney, and you can have the ownership of that DVC membership whoever you want. What you do internally with the points is up to you.

However, you should know that contracts cannot be split up. So if you bought 150 points, and five years from now your FIL wanted to sell his 75 points...he would NOT be able to do that. Once a contract is created, it will always retain the initial number of points, unless it is sold via resale and ROFR'd by Disney. Once that happens, Disney can throw the points in one big pot and put together whatever contracts they want.

You should also know that all owners have complete control over the account. That means they can use all the points if they want, and it also means you need their approval to do anything with the contract. That obviously creates difficulties when relationships between joint owners go south.

Small contracts are not easy to find on resale, but they do pop up. The best way to go after a small contract (probably the ONLY way) is to contact a resale broker like the sponsor of this board and tell them what you are looking for. If they get one that might meet your needs, they will call you before the contract ever gets advertised and you'll get an early shot at it. Obviously, the larger the volume of resales a company handles, the more likely they are to come across a small contract.

 

[christianweecare]

Another newbie question here! DH & I just sent in all of our paperwork to DVC this week for our prospective purchase at SSR. We already have a ressie for the end of Nov./first of Dec. at our home resort. One thing that we are unclear about is the process of making new reservations going forward. Are we correct in understanding that we can make a new reservation for our home resort in Jan. if our check out date at SSR is in Dec.? What if we want to use points for a summer trip to Vero Beach and another pre-Christmas trip to WDW in 2006? Can you have only one reservation at at a time? As you can tell we are still all new to all of this! Can anyone help us first timers here?

 

[jaeksong]

Thank you for your advice Jim. I guess going after small points are the way to go. Joint ownership can potentially be a source of unnecessary stress down the road. Just wondering, can I sell 75 points to my FIL if I bought 150 points from disney?

 

[jaysue]

Thank you for your advice Jim. I guess going after small points are the way to go. Joint ownership can potentially be a source of unnecessary stress down the road. Just wondering, can I sell 75 points to my FIL if I bought 150 points from disney?

Contracts cannot be split up (as mentioned above) once purchased - if you buy 150 from Disney in one contract it cannot be split up

The above is the reason why we have multiple contracts at certain resorts - for example at VB, we have a 130 and a 50 and at BCV a 270 and a 50 - this makes it easier for us to pare down our investment if we desire to sell later

Cheers
jaysue

 

[jaeksong]

Wow very quick response. Thank you very much jaysue.

 

[JimMIA]

Just bumping for the new folks

 

[Kenswing]

Great Thread!

This should be a prerequisite before asking any questions. I wish I would have seen it sooner

Ken

 

[JimMIA]

Great Thread!

This should be a prerequisite before asking any questions. I wish I would have seen it sooner

Ken

HA! That's a good one...thanks!

 

[Sandy22]

Great thread!

 

[cigar95]

OK, this looks like the thread to start with - is there an online source open to the public that might explain the fine details regarding borrowing and banking?

The basics are simple - I can borrow next year's points to use this year, or I can bank this year's points to use next year. But I know there are also finer points that I haven't been able to find anywhere.

For instance, once I've borrowed next year's points, I believe they now *must* be used this year - I can't cancel a reservation and "unborrow" them, right?

If I make a reservation using banked points, are there any restrictions that differ from using current year points? Obviously they can't be "re-banked", but are there any other restrictions other than the 30-day limit?

Let's see - I'm familiar with the banking limits based on how far into the use year we are. And I'm a little fuzzy on the thing with the "holding account".

Like I said - if there's an online source that gives all these sorts of details, just point me there. (I searched all the usual places I know about - honest!)

thanks for feedback here.

 

[LisaS]

Take a look at this website, created by our own VAScubaGuy: http://members.cox.net/disneyvacationclub/

For banking and borrowing info, click on "DVC Membership Info" on the left side of the page. Then click on "Understanding Vacation Points" along the top of the page.

Lots of good DVC info on this site!

 

[JimMIA]

For instance, once I've borrowed next year's points, I believe they now *must* be used this year - I can't cancel a reservation and "unborrow" them, right?

That's half-right -- be careful with your semantics. You CAN cancel the reservation, but you can't "unborrow." The points from the cancelled ressie would remain current year points and would expire at the end of the use year they were borrowed into.

If I make a reservation using banked points, are there any restrictions that differ from using current year points? Obviously they can't be "re-banked"

Other than that, no.

but are there any other restrictions other than the 30-day limit?

Not sure what you are talking about, but I assume you mean the cancellation issues that come up if you cancel less than 31 days prior to arrival. There's no difference in the treatment of banked vs. current points. With a cancellation <31 days out, the points would go into "holding account."

And I'm a little fuzzy on the thing with the "holding account".

"Holding account" is pretty simple, really. It just means that the points from a ressie cancelled inside 31 days can only be used for a ressie 60 days or less in the future. That's many DVCer's version of Hell...but it's not complicated. When it gets hairy, of course, is when that happens and you are up against the end of your use year with little flexibility in the use of points which are about to expire.

The other confusing things -- which you didn't ask about -- are "reservation points." "Reservation points" occur when you make ressies OUTSIDE DVC using your DVC points, and then cancel that reservation.

What happens if you make a ressie at the Grand Floridian for example, is DVC gives Disney CRO the points for that ressie. Those points are gone -- you no longer have them.

If you cancel, you will effectively have a "points credit" with Disney CRO that you could use for another ressie at GF or Poly or whatever -- but NOT at a DVC resort. Those are "reservation points," and they can be ugly depending on what you want to do with them.

 

[cigar95]

Thanks Lisa, for the reference, and Jim, for the specifics.

Another vague question -

When a member refers to point for their "September 2005 use year", does this normally mean points that are designed for use between 9/1/05 and 8/31/06? In other words, are points usually described by the *beginning* of their window?

Obviously they can be either banked or borrowed for use in a different year, so I'm just wondering about the terminology. And just as obviously, there's no promise that everyone will use the terms in the same way. However, the terms *seem* to be in fairly common use.

thanks again.

 

[JimMIA]

When a member refers to point for their "September 2005 use year", does this normally mean points that are designed for use between 9/1/05 and 8/31/06? In other words, are points usually described by the *beginning* of their window?

Yes, that's correct.