Buying DVC

[frogprincesskc]

Anyone out there that does not own their home, but does own DVC. Am I nuts? We have been living near our jobs for several years and were going to buy the house we are living in, but now my boyfriend lost his job, so we are not comfortable buying the house until we know where he will end up. (He is going back to school) But we had planned on buying into DVC within the next year. I still want to. We may not know where we are going to be ending up, but we do know we want to still go to WDW. Any thoughts?

 

[DVC~OKW~96]

Well, with one of you out of work, that would probably be the first priority; both of you being gainfully employed.

 

[KristaTX]

Do you have 1) enough cash in the bank or coming in through your job on which to live indefinitely until he is working again, and 2) the cash saved to pay for his schooling, and 3) the cash saved to pay for the DVC points? If you have plenty of cash for all three things, then buying DVC might still be a good option. If you don't have that much cash saved up or coming in, then buying DVC sounds like a poor decision. It should be pretty easy to figure out.

 

[DisneyBamaFan]

You are not married but considering buying property together? Wouldn't do it for that reason alone.

As for buying DVC vs buying a home - IMO, this is a great time to be a renter. If I were not in my current home, I would stay on the sidelines until the housing market started a solid recovery...

 

[jlewisinsyr]

We don't own a home, but we're too mobile to ever want one (travel for work), plus with all the stuff I do it would be hard for me to want to spend the time to maintain the landscaping, shovel, etc. That said, we do own DVC because we can take it with us and we love to go to Disney on vacation.

Remember, there are millions who are upside down in their mortgages right now, because they didn't think their home was like any other investment, they believed it could only go up, but in reality, like all investments, they can also go down. Renting is not a bad option for many people, in the US though it is heavily frowned upon by many, although in the rest of the world, it's not that uncommon.

Don't get me wrong there are definately good reasons to own a home and in some markets, it makes sense because you can see marked increases in equity, but in many parts of the country that is not always the case.

In your situation, I don't know if we know enough about your financial circumstances to say whether or not DVC is good decision right now. If you're living comfortably on one person's income, then maybe it's not a bad idea, but if there is a risk of financial hardship if your boyfriend doesn't get a job in a year, then I might hold off on any major purchase (that doesn't mean bunker down and hide away because that is not good either).

 

[frogprincesskc]

Thanks for the replies. I was just wondering due to the fact that I almost feel like it is a crazy idea to own what some refer to as a "second home" when I dont "own" a first home. I was planning on buying a resale for about 50-75 points next January with part of my tax money. So its not really a money issue right now.

 

[Muushka]

Before you buy into DVC (which, for me, would be after I bought a house) be sure you understand the use of points. This year they have changed the point charges to reflect lowering points on weekends (F,S) and raising points during the week (S,M,T,W,Th). We are now 60 points short for our normal vacations. I mention this because if you did all of your research a year ago, this would not be a factor.

 

[simba20]

Thanks for the replies. I was just wondering due to the fact that I almost feel like it is a crazy idea to own what some refer to as a "second home" when I dont "own" a first home. I was planning on buying a resale for about 50-75 points next January with part of my tax money. So its not really a money issue right now.

Hubster and I rent and we own DVC.

 

[MrsPete]

Anyone out there that does not own their home, but does own DVC. Am I nuts? We have been living near our jobs for several years and were going to buy the house we are living in, but now my boyfriend lost his job, so we are not comfortable buying the house until we know where he will end up. (He is going back to school) But we had planned on buying into DVC within the next year. I still want to. We may not know where we are going to be ending up, but we do know we want to still go to WDW. Any thoughts?

No way. This is a bad idea.

If he's not working, this is a time to hold onto cash reserves.
If you were looking at financing DVC, that's really bad; it would not only deplete cash reserves, but it would take away future money too.
Whether you buy a house now or years from now, the 51 weeks you'll spend in that house every year is more important than the 1 week you'll spend at Disney. Hold onto the money for the house.
Also, you need to think long and hard before buying any "real estate" (which isn't really what DVC is, but anyway . . . ) with a boyfriend, especially at a time when you two are going through a life-changing event like job loss and return to school. Wait 'til you're married and have a legal commitment before you merge finances in such a permanant way. No one thinks things will ever go badly . . .

DVC isn't going anywhere, and it isn't the cheapest way to go to Disney; it's a way to go luxury without spending full-price. Right now, at this point in your life, you need to do budget Disney.

You'll have years and years ahead of you in which you can do luxury Disney -- once he's working again -- if you still want to. I say that because we go to Disney for the parks, nothing else. We have absolutely no desire to stay in a condo or a fancy hotel at Disney -- we want that when we spend a week at the beach and plan to sleep late, have long, relaxing meals together, etc. And if in a few years (when your relationship is permanant and your finances are rock-solid) you still see luxury Disney as your vacation preference, you can buy it then!

 

[frogprincesskc]

Alright...so maybe we should start over...
I was planning on buying the house I am living in currently. However I may have to move in the next few years due to problems with the job market where I live. So it is probably not in my best interest to buy at this time. However I had planned on buying DVC next year with my tax return since I still intend to go to WDW every year or every other year with my family and if I intend to do this, the cheaper way to do this is to buy rather than rent points every year which is what I am doing for this next trip. Is there anyone else out there that rents rather than owns their home and still bought into DVC?

 

[Muushka]

Is there anyone else out there that rents rather than owns their home and still bought into DVC?

Nope. Not me.

 

[Lisa loves Pooh]

There is nothing wrong with renting where you live.

If you have the means to buy DVC--GO FOR IT!

Who cares if you do not own a house.

It is not everyone's priority to own real estate and if it is not yours right now due to YOUR CHOICE...that's okay.

HOWEVER--if there is unemployment and uncertainty in the future outside of your living arrangments, buyng a time share is not a good idea. You both should be gainfully employed and otherwise in good shape financially before you should spend money on such an extravagent purchase.

FWIW--it took us 11 years...ELEVEN YEARS before we bought DVC. We considered it ever since I worked for them (and we were renting at the time).
We waited so long until we were really comfortable with the decision. There is no harm in waiting until the time is right for you. To me--owning a home is irrelevant to that decision.

 

[Lisa loves Pooh]

Before you buy into DVC (which, for me, would be after I bought a house) be sure you understand the use of points. This year they have changed the point charges to reflect lowering points on weekends (F,S) and raising points during the week (S,M,T,W,Th). We are now 60 points short for our normal vacations. I mention this because if you did all of your research a year ago, this would not be a factor.

My 2010 point charts show otherwise.

 

[Carl]

IF you decide to buy DVC, do NOT put it in both of your names. Many legal problems with real estate with people just "living together."

 

[jlewisinsyr]

My 2010 point charts show otherwise.

If you were a person who booked Sunday through Friday (5 nights), from 2009 to 2010 you could have seen a dramatic change in the points required to stay because of the flattening of the per night charges on the weekends; it's totally plausible depending on the room size and season.

 

[BuzznBelle'smom]

There's nothing wrong with the concept of renting while owning DVC.

That said, I, personally, wouldn't do it in your circumstances. With one of you unemployed/going to school, the need for cash is much greater than the need for a vacation home. Now, this will work itself out over time. So, I'm not suggesting never purchase DVC, just don't purchase it until you two are in a better place finaincially. If you don't own your primary residence at that time, so what?

Also, I agree with the PP who said you shouldn't have it in both your names unless you're married. That can get messy.

 

[DVCisME]

Hi! We bought DVC before our home. Might sound silly, but we are currently moving from our first home into our second and are almost done paying off our DVC. We, like you, had not found the home that we were ready to settle into. We purchased our DVC and then a few months later found our first home. We bought through Disney, so this is all I can speak of, and financed through them. It NEVER shows up on our credit report. It never had an impact on our mortgage.
Also, like you, my husband is/was the only one who works(-ed). And for all the negative out there. We were only 21 and 24 and had a 6 month old when we bought into it. We survived, and never regretted it. We use it at least twice a year. What ever your decision, I'm sure it will be the right one.
*I also don't think it is crazy because it is an investment (to the best place on Earth)!!!

 

[ead79]

We bought DVC about 8 months before we bought our first home. We realized that we had been spending very close to the same amount as our DVC membership cost us on our yearly trips already, so it just made sense to us. That being said, if I were you I would wait until you both have steady jobs and are married before purchasing. It seems a bit risky given your current situation. And beware of "add-on-itis"--the sudden desire to purchase more DVC points that tends to show up shortly after your first point purchase!

 

[MrsPete]

Alright...so maybe we should start over...
I was planning on buying the house I am living in currently. However I may have to move in the next few years due to problems with the job market where I live. So it is probably not in my best interest to buy at this time. However I had planned on buying DVC next year with my tax return since I still intend to go to WDW every year or every other year with my family and if I intend to do this, the cheaper way to do this is to buy rather than rent points every year which is what I am doing for this next trip. Is there anyone else out there that rents rather than owns their home and still bought into DVC?

What I'm hearing is, "My financial prospects for the immediate future are rather shakey because of this job loss and return to school; however, I have some money saved up. I shouldn't use it for Plan A (buying a house) right now, so should I use it for a luxury item (DVC) that I really want?"

My answer remains solidly NO. You're young, and your finances aren't solid yet. With your boyfriend not working, you're likely going to need those cash reserves. You can do Disney much, much more cheaply than DVC prices. This is the time in your life when you need to stay at the value resorts and do things on a budget. Later, when he's finished with school, is working again, and you're married . . . THEN it'll be time to consider DVC. THEN you can do luxury trips, and you'll be able to do them guilt-free knowing that you can really afford them.

 

[Kathi OD]

There is nothing wrong with renting where you live.

If you have the means to buy DVC--GO FOR IT!

Who cares if you do not own a house.

It is not everyone's priority to own real estate and if it is not yours right now due to YOUR CHOICE...that's okay.

HOWEVER--if there is unemployment and uncertainty in the future outside of your living arrangments, buyng a time share is not a good idea. You both should be gainfully employed and otherwise in good shape financially before you should spend money on such an extravagent purchase.

FWIW--it took us 11 years...ELEVEN YEARS before we bought DVC. We considered it ever since I worked for them (and we were renting at the time).
We waited so long until we were really comfortable with the decision. There is no harm in waiting until the time is right for you. To me--owning a home is irrelevant to that decision.

ITA! Whether your rent or own your primary residence is of no concern in determining a DVC purchase. To each their own. Some people like the idea of maintenance free living and renting makes perfect sense for them.

It's the unemployment situation that would have me most concerned. I wouldn't be spending any money, from taxes or otherwise, until that was resolved. Speaking from experience, finding another job may take much longer than you think (DH has been laid off for 21 months now...we never expected him to be out of work this long). I'd wait on the purchase until you are both working again. You might need that tax refund to pay the rent or electric bill.