Buying direct from DVC Question

[katrina1122]

We are intrigued by the discount for SSR right now. We are fine staying there, but if we can switch to others at 7 months great.

My question is, can we get a personal loan from the bank for this? How does it work for taxes, etc. I know that sounded stupid, of course you can get an outside loan, what I mean is, does it make sense? Is there an advantage to using the DVC loan? We wouldn't finance the whole purchase just part and then pay off early, in about 2 years. Does DVC penalize for early pay off?

We are only buying 100 pts since it's just the 2 of us and we travel in low point seasons and SSR is offering the 100 point buy in right now. So financing wouldn't cost that much more if paid off early. A studio is fine with us, we aren't in our room much ever.

Is this tax deductible, etc? Just gathering all the info I can. Thanks.

 

[erionm]

DVC financing is secured by the property and is considered a mortgage. Depending on your tax situation you may be able to deduct the mortgage interest paid on a DVC loan. There is no penalty for early payoff with a DVC loan.

 

[Mtnman44]

At current prices, I wouldn't even consider buying SSR direct. Resale is somewhere around $50 per point lower than the direct price. If you go resale, use a Credit Card check, bank loan, anything. Especially for a two year loan period, I don't think there is anything you can do with a direct purchase that will be anywhere as beneficial as saving $50 per point.

 

[calypso*a*go-go]

I'd still go the resale route as well. I saw your other thread where you were concerned about the changes that just went into effect on resale contracts, but honestly the benefits that were taken away weren't necessarily a good use of points anyway (when compared to using them at a DVC resort).

If you still decide you want to buy direct, look for whatever loan is the lowest interest rate (ie: home equity, etc.). Your goal should be to make the purchase for the least amount of money, including interest fees.

 

[BWV Dreamin]

DVC financing is secured by the property and is considered a mortgage. Depending on your tax situation you may be able to deduct the mortgage interest paid on a DVC loan. There is no penalty for early payoff with a DVC loan.

Yes, Yes, and Yes.

 

[katrina1122]

Thanks guys. i agree for the portion financed a smaller apr is better, I just didn't know if dvc provided something for using their loan package.

As to resales, it's alot to consider, cheaper yes, full use no.

And as I said I know the exchange isn't good, but to us it's more of a gauranteed vacation, than a good exchange to go on a cruise.

 

[rock_doctor]

use a Credit Card check

Don't do this...most CC companies consider this to be a cash advance so please check with you CC before going this route. I will also second resale. As long as you don't plan to use your points to cruise or trade out then resale is the best option. good luck

 

[dbs1228]

Thanks guys. i agree for the portion financed a smaller apr is better, I just didn't know if dvc provided something for using their loan package.

As to resales, it's alot to consider, cheaper yes, full use no.

And as I said I know the exchange isn't good, but to us it's more of a gauranteed vacation, than a good exchange to go on a cruise.

If you are only buying a 100 points to start with I really would not worry too much about exchanging out for cruises and such. I believe it is about 160 points for exchange out for RCI 1 week somewhere along with a 95.00 fee. Then you play the waiting game if they can find a match for you. Cruising is more.

My advise to everyone is do the MATH! If you can get 100 points at SSR for 50.00pp (possibly less) and DVD is asking 99.00pp that is a difference of 4900.00 plus interest for 2 years on the loan so call it an even 5000.00! You can certainly pay for accommodations and even a couple cruises over the next couple years with that 5000.00!!!!!

 

[Mtnman44]

Have you checked on how many points you were need for a cruise for you and another person? What about if you bring kids? It is a lot of points, more than most poeple own, think 800+ for a family to go.

Now, consider that on a 100 pt contract, you are paying an additional $5,000 or so above resale price for the ability to use points for a cruise.

Thanks guys. i agree for the portion financed a smaller apr is better, I just didn't know if dvc provided something for using their loan package.

As to resales, it's alot to consider, cheaper yes, full use no.

And as I said I know the exchange isn't good, but to us it's more of a gauranteed vacation, than a good exchange to go on a cruise.

 

[katrina1122]

It's just the hubby and I, we aren't going to have kids due to health issues. but we are quite fine with that. We run a hobby and game store so we have our 'kids' in all the time playing games etc there and then get to send them home, lol. We've been open 16 months and they grow up so fast, Some even have their bday parties at the store. Anyway....

If we want more people to vaca with us it'd be family and we'd bank to do a grand villa, ie my sister, her kids and my mom...we wouldn't do an exchange for that.

We'd bank to build up points for the cruise or RCI for just us, but it's certainly not a necessity, as has been explained we could just outright purchase it. We love RCCL which is cheaper anyway, we just weighing our options. My concern is, yes we are HUGE WDW fans, but we love to travel elsewhere too from time to time, so the draw was nice to be able to exchange out even at a bad rate. But I love to plan vacations regardless so we could always rent pts one year and fly to Europe or something.

If we bought resale we'd do more like 120 points probably.

So my next question is where do I get SSR for $50pts? I see $74 at the cheapest on the 5 or so sites I checked out. I don't even see Vero or HHI for that cheap. If it's $50 we're resaling it for sure.

Also, say we have 100 pts but need 150 one year to stay in a 1 bedroom, is it better to buy the difference for that week in cash or rent from another DVC owner? Or say we buy the 50 at resale to add on to our previous 100 and it's another resort which UY is active now. Can we book at the 50 UY at 11 months out with the 100 added on? Or since the 100 is a bigger 'lot' of pts do we have to follow the 100 pts UY?

Thx again everyone, your'e the best!

 

[mjc2003]

So my next question is where do I get SSR for $50pts? I see $74 at the cheapest on the 5 or so sites I checked out. I don't even see Vero or HHI for that cheap. If it's $50 we're resaling it for sure.

Also, say we have 100 pts but need 150 one year to stay in a 1 bedroom, is it better to buy the difference for that week in cash or rent from another DVC owner? Or say we buy the 50 at resale to add on to our previous 100 and it's another resort which UY is active now. Can we book at the 50 UY at 11 months out with the 100 added on? Or since the 100 is a bigger 'lot' of pts do we have to follow the 100 pts UY?

As with any real estate transaction, the prices listed are negotiable (for resale contracts). So, if somebody is listed for $74 you can offer whatever. BUT, I just looked quickly at the Fidelity site and saw a few 120 point contracts at SSR listed in the low $60's. So, maybe check them out?

If you have 100 points but need 150, you can borrow from the next year. If this is not an option, you can "rent" up to 24 points at a time from Disney, or rent from another owner.

As for your last question, you can book at 11 months out with the points available for that home resort. Let's say you have 100 at SSR and 50 at AKV and want SSR at 11 months. You can use those 100 SSR points at 11 months and then call back at 7 months to upgrade using the 50 points from AKV. Conversely, if you want to book AKV at 11 months you can do so but only with the 50 points (plus any banked or borrowed), and then use the 100 SSR points to add on to your AKV reservation at 7 months.
Hope I didn't confuse you more!

 

[Sandisw]

Thanks guys. i agree for the portion financed a smaller apr is better, I just didn't know if dvc provided something for using their loan package.

As to resales, it's alot to consider, cheaper yes, full use no.

And as I said I know the exchange isn't good, but to us it's more of a gauranteed vacation, than a good exchange to go on a cruise.

I also put this in your other thread, but using points to cruise, can be taken away from ALL members at anytime. They are not a guaranted part of your contract.

I would hate to see someone spend extra to buy direct, only to have those options eliminated in a year or two.

 

[dbs1228]

As Mjc2003 said all sales are negotiable. There is a 200 point SSR on Fidelity site for 50.00pp. There are also several BWV contracts waiting ROFR and passed contracts in the low 50.00's along with OKW. SSR is going to give you the lower maintance fees (right now anyway) and longer contract. I just paid 59.00 for SSR and the only reason I was willing to pay that much was because it came with 260 points (2009 and 2010) and also we will get 130 Oct 1st. Those 390 points were worth it to me. As soon as I get the points in my account DH and I are going to decide whether we are going to use them or rent them out this year. If we do rent out the 390 at a discounted rate of 8.00pp it will bring my per point cost down to 35.00! Not a bad deal. Although I do not know if I could really pass on a WDW vacation when we have that many points sitting there calling our name! We did not pay MF fees on 2009 or 2010 points and split MF on 2011!

 

[Dean]

Contrary to some of the suggestions here, if you get a personal loan as you posted in the OP, the interest is NOT deductible. It's only deductible if written as a true mortgage, which I understand Disney does. Buying points to cruise was always a bad deal, even worse now that you must go retail to do so. You'd be far better off, both in hassle and in cost, to just buy what you need for DVC only resale and look to other options (cash, etc) for non DVC trips.

 

[BWV Dreamin]

Actually the interest IS DEDUCTIBLE. I took a very small loan out which I paid off in 6 mos. Received a form stating the amount of interest from Disney's loan company for tax purposes.

Contrary to some of the suggestions here, if you get a personal loan as you posted in the OP, the interest is NOT deductible. It's only deductible if written as a true mortgage, which I understand Disney does. Buying points to cruise was always a bad deal, even worse now that you must go retail to do so. You'd be far better off, both in hassle and in cost, to just buy what you need for DVC only resale and look to other options (cash, etc) for non DVC trips.

 

[Dean]

Actually the interest IS DEDUCTIBLE. I took a very small loan out which I paid off in 6 mos. Received a form stating the amount of interest from Disney's loan company for tax purposes.

Disney writes their loans as a mortgage and that is deductible. The question in the OP is if they got a personal loan from the ban is it deductible and the answer is NO.

 

[ali92579]

I went on the fidelity website and I found the inventory charts, but I am confused. What does the information under the caption column mean? It has months and numbers.

 

[BWV Dreamin]

Disney writes their loans as a mortgage and that is deductible. The question in the OP is if they got a personal loan from the ban is it deductible and the answer is NO.

Ok, missed that.......

 

[dbs1228]

I went on the fidelity website and I found the inventory charts, but I am confused. What does the information under the caption column mean? It has months and numbers.

The month is the Use Year in which your points will be deposited into your account every year, the numbers are what is currently in the contract. example

120 $65.00 Feb 11‐65, 12‐120, 13‐120, 14‐120 This was from a SSR listing it is a 120 point contract (120 points deposited every year) Feb is the Use year when points are deposited and Feb 11-65 is as of Feb 1, 2011 there is 65 points left for 2011 UY, 12-120 means in Feb 2012 you will get 120 points.

There are some contracts that may say 2011-240 (which would mean it is banked 2010 points and current 2011)

Hope this helps