Buying at SSR

[mhochman]

Hi everyone. My name is Michael and my wife and I are in the process of buying shares at SSR. We just took our 19 month old son (does DS=Disney Son?) on the Disney Magic during spring break. We had such an amazing time. I went to the DVC presentation on one of the last days and by the end of the day we had signed up for 270 pts at SSR.

We fisrt encountered DVC during our last (1998) trip to WDW. We couldn't afford to do anything at the time, but it's amazing how the point prices have changed since then. I was not going to miss out this time. It was interesting, the point price went up on April 4, but because the ship sailed out on the 3rd, they were honoring the old price to the end of the cruise. That was one of our reasons for rushing to join while on the cruise. So in a sense we got a $6 discount per point. Add that to the $5 discount for our shares not being available until July (though we have an April UY), we think we got something of a bargain. Our guide (Brandon) made me feel a little better about missing out on the 1998 pts price by showing all the additional savings my family will enjoy by our deed lasting until 2054. LOL, my 19 month old will be 52 then.

So I've been reading the board here since we returned and I've already learned so much from all of you. All of your insights, ideas, suggestions, are so helpful.

I'm a little anxious now because Brandon said that the paperwork would be FedExed right out and we should have it Tuesday, though it hasn't arrived yet. I would have thought he would rush to get us signed before we have too much time to secondguess our intentions.

Does anyone know if it would be possible to make a reservation for the end of July using our points, even though we don't have the points until then. In other words, would the agents at DVC even take our call if we don't have access to our points now, but we will when we want to go? I'm sure it would be nearly impossible to call a week before we can go and still get a reservation.

Finally, I've been reading a little bit about resales, and the only thing that I can think of as a benefit to buying directly through Disney is the extended deed length (that plus being able to finance). There are 270 pts available for BWV for $5000 less than we're paying Disney. I'm tempted to look into that, knowing that my paperwork is arriving from Brandon hopefully today.

Anyway, sorry for the long winded post, but that's the problem with being an English Teacher. I'm just very excited about our upcoming purchase and it appears to me that you are all as crazy about Disney and the mouse as I am.

By the way, if anyone would like to see pictures of our trip on the Magic, here is a link:

Hochman Cruise

Thanks everyone.

Michael

 

[B'rer Karen]

Hi Michael, and welcome home! (a little premature, but you'll be official soon enough!). I can answer your question about making reservations. As long as you will have the points at the time of the reservation, you can call anytime after the 11month/ 7month window to make the reservation. I couldn't use my points until after the resort opens in May, but I made my October reservation in December.

As for the BWV resale you were looking at, you need to take into consideration that it will end in 2042. That may not make a difference to you, but it is something to think about. You also should compare the maintenance fees at the two resorts. You want to make sure you're comparing apples with apples.

 

[CRSNDSNY]

First of all, CONGRATULATIONS & WELCOME HOME NEIGHBOR!

I absolutely loved your cruise pictures...your son is such a cutie!!!

Does anyone know if it would be possible to make a reservation for the end of July using our points, even though we don't have the points until then. In other words, would the agents at DVC even take our call if we don't have access to our points now, but we will when we want to go? I'm sure it would be nearly impossible to call a week before we can go and still get a reservation.

I think that this will depend on when the building you purchase into is available (if you purchase SSR). If it is available for use by the time you want to take a trip, then you will be able to make your reservation.

 

[The Prophet]

I dealt with Brandon on my purchase of SSR as well.
I can vouch that he is on top of things.
If you are buying into building 3 (not sure if it sold out yet) you would be able to make a reservation anytime -- but your arrival date has to be after July 5.
Feel free to give Brandon a call and he will answer all of your questions.

The Prophet

 

[5infam]

Michael,

When looking into resales, you need to compare more than just price. You want to look at the contracts use year and determine how many points you get now, or how many points may have been borrowed. Some contracts are cheaper than others because they do not have as many points available now, meaning that the current owner may have used some of the current use years points, or may have even borrowed points from the next use year. In other words, compare the points and see how they stack up to your SSR contract. Also, although it is negotiable, you will probably have to pay closing costs, which I don't have an exact figure, but lets say around $500. Then there is the issue of ROFR (Right of first refusal). Disney can exercise their ROFR over any contract that is being sold, which means they can buy the contract out from under you. In the long run ROFR is a good thing as it helps keep the value up on our contracts, but can be a hinderance when you are trying to buy. I would check with the selling agent (who also becomes the buying agent) for advice on what price point to shoot for where you may have a better chance at getting past ROFR. It is a hit and miss thing and right now, it seems as though Disney is not agressively exercising their ROFR right now (judged by stories here on the DIS only).

Also keep in mind that the resale process can take up to 2 to 3 months to complete (worst case) as Disney has 30 days to exercise ROFR, plus recording and escrow time, plus the paperwork exchange, plus recording time, etc.. Which means that you will have to wait to make any reservations until DVC has you in the computer system. This is different than buying direct from DVC. I just added on points a few weeks ago on a Saturday, and by Monday morning, they had me in the computer with my points available. So if you HAVE TO make reservation for something soon, then you may need to stick with SSR. Also along these lines, when looking at a resale contract, use year and the time you purchase can be critical. What I mean here is that if your contracts use year is coming due while you are purchasing it, or if a banking deadline may pass by while you are waiting for it to close, you may miss out on some point useage when you finally get the contract.

Finally, take into account the importance of your home resort. It is important if you make plans in advance, such as booking in the 11 month to 7 month window. Now I'm sure the DVC rep on the cruise told you that it is no big deal where your home resort is and that you can stay anywhere, but in reality, at certain times of the year, it can be difficult to get the room you want at the resort you want 7 months out. If you are not picky in this regard, then don't let that concern you. Although many people here will tell you to buy where you want to stay!! As you mentioned, there is also the difference in length of contract.

With all that factored in, I ended up going with a resale, and then had to wait a while, but was able to add on through Disney direct. Resales can be great, just weigh it all out and decide what's right for you and your family. Any more questions, just ask

 

[lenshanem]

 

[mhochman]

Just a quick update:

The package was waiting for me when I got home. It's bigger than I expected. Brandon had suggested that we call Quality Assurance and have them walk us through everything, which seems like a good idea. I will look it all over before that, of course.

Thanks for your input on the new vs. resale issue. We will most definitely stick with the direct from Disney purchase. I will let you all know when everything becomes official, unless I have questions before hand.

I'm also very excited that we'll be able to make reservations before we officially have the points. I didn't think I'd be going this year, but I'm definitely happy to know that I probably will be.

Michael

 

[All_Ears]

Hi Everyone!

We just bought also! We were down there 4/2-4/11 and had schedualed a tour back in February, just for something different to do, and see what was new with this resort.

Well, Deb was our guide and helped us put together our package! We were also locked in to the old price and recieved the bonus!

We are waiting for our package and hope it is there when we go home!

We are doing the 10 day cruise for Christmas and plan on using some points for New Years after the cruise.

I am glad I waited, this resort is Beautiful and more like the Yacht Club, which is our favorite!

 

[Susan--Ontario]

Michael,

We were in the exact same situation a month ago. Resale or not. We chose not because of the use year, the cheaper points, the extended contract, a new resort and financing. The Disney financing is expensive but with us it's a cash flow thing. No bank here would finance that over 10 years. Four max. That was too big a monthly bill for us if we need to replace our van in that time. I like the fact that we can pay down our mortgage at any time without penalty. It gives us the flexibility we need right now with two younger children and a house mortgage.

Enjoy your purchase. I just made my first reservations on Monday and it was very exciting to be calling "home". The paperwork is painless and quality assurance are great.

Welcome Home,

 

[tjkraz]

Originally posted by mhochman
Finally, I've been reading a little bit about resales, and the only thing that I can think of as a benefit to buying directly through Disney is the extended deed length (that plus being able to finance). There are 270 pts available for BWV for $5000 less than we're paying Disney. I'm tempted to look into that, knowing that my paperwork is arriving from Brandon hopefully today.

You might want to double-check those figures. BWV resales typically run about $71-72 per point, which doesn't quite jive with the $5000 savings you noted. If you really saw something in the neighborhood of $68 per point, it was probably a "stressed" contract with no points available for 2004, and few or none available for 2005 (due to borrowing by the current owner).

The buyer typically pays closing costs on a resale, and you may even be asked to pay maintenance fees for points that the original owner used.

Also note that annual dues at SSR are about $120 cheaper on that number of points than at BWV for 2004.

The bottom line is that if you value years 39-50 the same as you value the first 38 years, then buying SSR is the best financial alternative--particularly with the pricing you were able to get.

You also mentioned the ease of financing. If you can swing a home equity loan, that is the most economical way to finance--be it the SSR purchase or a resale. You'll get an interest rate about half what DVC is offering, and the interest will be tax deductible. But if that is not an option, stick with the SSR purchase. DVC's rates aren't outrageous in the financial world, and you're correct in that they couldn't make it easier.

 

[Doug Wolfe]

It does NOT make any difference as to which building they assign to your contract as far as making reservations. They assign a building & room number on your contract for legal purposes only and chances are you will never stay in that specific room.

I purchased BCV when it was under construction. I was able to make reservations within a couple of days after making my initial downpayment in March 2002.

If you made your initial deposit, call Member Services on Monday and see if they will allow you to make a reservation. Welcome Home!

 

[AnnaS]

Congratulations and welcome home!

 

[Disney Doll]

I would agree with the other posters who have said that based on the info you have given us, going throught the DVC is probably a better option for you than a resale.

DH and I bought through DVC for our first contract. We took the 10 year financing because it had the cheapest monthly payment. Our thought was that we would pay more toward it each month to get it paid off quicker, but if we had a month where things were a little "tight" financially, then all we'd have to pay would be the low monthly payment. That system worked for us, and we had it paid off in about 3 years. We then bought a second contract through The Timeshare Store, but it was in the days before DVC was exercising ROFR as much as they are now, so it went quickly---about 6 weeks start to finish.

IMHO, SSR is the right purchase for you because of the extra years. You have a young family, and have many years of enjoying DVC ahead of you, and remember, you can leave it in your will.