Banking and borrowing strategy

[coldnorth]

Has anyone bought a small number of points through resale, say 75, to have 225 every 3 years? (I have done the financials on a spreadsheet and the break-even time is very dependent on several assumptions such as resort price inflation, investment success, etc. I have easily made the date vary by 15 years.)

My fam thinks we would enjoy using DVC about every three years and it doesn't seem to make sense to trade out with DVC points the other 2 years.

What are the major pros and cons? Any advice is very welcomed!

Thanks,
ColdNorth

 

[ILuvDVC]

Well, I bought into DVC in 1994, figured I would use my first years points, combined with my next years points and book a Grand Villa for the entire family. After that first trip, I was hooked. I came home, and within a couple weeks, I was on the phont getting more points, because I couldn't wait a year and 1/2 for another trip to OKW.

But hey, that was me. I really thought I would be satisfied with 230 points, it was more than enough. I've since tripled that number and then some! Again, it's an addiction....I've got it bad!

 

[TrudyZ]

You may get one of the veterans to confirm this, but I don't believe you can buy in under 150 points. Even buying resale, I think Disney makes sure you have a least 150.

But, let's get a confirming opinion on this...

Trudy

 

[ohioMickey]

If you are purchasing through Disney, 150 is the minimum for your primary contract. Add-on's must be at least 25 points at your home resort and 50 points at a different resort.

Through resale you could potentially buy a smaller contract, but Disney has the right of first refusal for ALL resale offers. Contracts for less than 100 points would probable not have great resale value so i imagine Disney would be able to buy them back rather cheaply and start to piece them together into larger contracts that they could sell in the future...or use the rooms for cash ressies.

 

[coldnorth]

The Timeshare Store currently has resales of 60, 70 and 110. They appear to be priced higher on average than larger contracts. I'm sure most people are buying them as add-ons.

I thought I read somewhere that no minimum exist through resale, but I can't seem to find this info. I plan on calling my contact at TS to verify.

ColdNorth

 

[PamOKW]

Sometimes people are suprised by the "fine print" so I'll just stick a reminder in here....banking and borrowing are not guaranteed but are subject to suspension and discontinuation. It's probably not likely to happen, but it is in the written documents.

I'm not sure what the policy is on selling add-on contracts as memberships. If the Timeshare Store can't tell you I'd call DVC directly.

 

[RobDoc]

Disney can't prevent a resale purchase of less than 150 points, except by exercising their right of refusal and purchase it themselves.

Some have reported Disney doing just that and others have reported buying a small contract as their initial purchase. I suspect there is a $$ point where DVC would have no interest in repurchasing a small contract just to prevent someone from joining DVC.

 

[dtheboys]

I think that you may be wrong? I just did an add on at H.H. I only purchased 26pts. going every three years.
I wanted the 11 month window.
My home resort is OKW, and my guide sent me the add on at H>H. for 26pts.
I think you can't finance anything less than 50pts.
Doug
I already have the papers in hand that shows 26pts. Do you think he made a mistake, and DVC honered the contract?
I just know that I did a 26pt. add-on. I asked the guide and he stated 25pts is min. add on.

 

[KNWVIKING]

Your "break-even" point is based on initial purchase price plus dues paid devided by the cost of the room you chose to stay in. When you've stayed that number of nights,then everything afterwards is gravey. It's a little more complex then that when you factor in interest & inflation but basically your break even point is no different then a person with 300 pts going every year, it's just the length of time it will take you to get there. The $$$ are the same.