Buying Initial Contract at a Resort with an Early Expiration Date

[Jordan Berger]

Hi there!

My fiancé and I are looking at buying into DVC, and we decided to buy direct, and got a decent price from the rep that fits our budget for 50 points over at our FAVORITE resort, The Boardwalk!! (I know that may seem like a small amount, but we normally travel during the off seasons anyway where we COULD get 5 nights for 50 points) However I am a bit worried about the contract’s expiration in 2042. I’m 25, he’s 24, so we’ll only be into our mid 40’s when our contract expires. While I’m sure he and I will get use out of this contract, I’m wondering if it’s worth the investment, when we will only get 20 years out of it (or 10 if we visit every other year) than if we had bought into Riviera, for example. The upside to buying 50 points at Boardwalk is, in addition to being our favorite, we’re able to pay the initial purchase price up front and book 11 months out.

I know you can add on contracts at other resorts. However, the newer resorts are not only more expensive to buy into, but require more points to stay there than the older resorts. So buying into those later, when prices are even higher than they are now, is worrisome.

(Full disclosure, we are a gay couple and my fiancé is about to start medical school next year. So, after med school and residency are over, if we are fortunate enough to adopt a child or have one via surrogate, it would probably be a few years before that time when our contract expires. So our kid wouldn’t have use of it, which I assume is when families want to have these contracts the most... so they can take their kids and pass the membership down. I realize this may kind of be irrelevant, but when I’m thinking about something that extends into this far into the future... it’s just something that’s crossed my mind.)

Sorry for the long post and I appreciate any advice you can give me!

 

[CarolynFH]

As a BWV owner, I have to say I'm glad it's your favorite DVC resort! It's been great for our family. However, I do have some thoughts in response to your concerns.

If you buy only 50 points direct, you won't be eligible for any "blue card" benefits like AP discounts or Moonlight Magic events. So if you really want to buy DVC now, I'd look strongly at resale. You could get a lot more points for the same total cost, which would expand your options. You say you travel in the "off seasons" when you could get 5 nights for 50 points - that sounds like a standard view studio during the fall. You need to be aware that the end of September through Marathon weekend in January is actually DVC's busiest time, and those studios are in limited supply, very sought after and often book up right at the opening of the 11 month window. So if you want BWV (and I'm a firm believer in "buy where you want to stay"), I'd recommend buying enough points to book a Pool/Garden view studio if you couldn't get the standard view. If you're successful booking the lower cost room, you can bank the extra points to the next year.

The issue of the expiration date relative to your ages and hoped-for family is one you'll have to decide yourself. However, it occurs to me that if you buy BWV now, you'll be able to vacation at your favorite DVC resort while your fiance is in med school and residency, then by the time kids come along you'll be in a better financial position to buy another resort with a later expiration date. And really, 20 years is a very long time - we've been owners just over 20 years, and the changes our family and DVC have gone through are tremendous. There's no way to predict what your lives, WDW or DVC will be like in 2042.

One last thought - being able to pay cash, no financing, for the initial contract is important and IMHO should be the only way you'd buy DVC. Just be aware that there are MFs as well that increase 3-5% a year (sometimes more), and over time those MFs will cost more than the initial buy-in. Make sure your budget can handle them too! I've been through med school and residency, and there's no way I'd have been able to handle DVC financially during those years.

 

[Sandisw]

DVC busy times and a Disney busy times are not the same. It sounds like you are counting on getting BWV SV studios. Those are very difficult to book,

From mid a September until mid January, even going on right at 8 am, it will be tough to secure one As thst is the busiest time.

I would not buy assuming you will get those, but plan for pool/garden view.

 

[Deeleebaker]

Wait, you can buy less than 75 initially direct? My rep told me I could do 75, but never 50. I’m pretty sure I want the resale savings, but if I could have done 50 I would have already bought a contract.

 

[MICKIMINI]

Our son is in medical and thankfully, we can afford to gift family trips for him and his wife and also long weekend stays for them so they don't have to own right now. They love to travel so can save their money for international trips with her family to see family members so it's a win win for both families. Even though they are professionals with high incomes, they just bought a home, have student loans, are thinking about kids...same issues but a few years ahead of you.

You have the right to back out now. With 50 points I don't see any advantage for buying direct. Buy a resale and get more points. As for the 2042 expiration - so what? You will be able to afford to buy a nice, direct contract down the road. This is for now and that is for then and there will be a period where you will have both. Make sure you get the UY that works for you and try to get a contract that has banked points so you have a good start. You will both need Disney time to get through med school - it is a long haul and those visits will help get you both through! Good luck!

 

[CarolynFH]

Wait, you can buy less than 75 initially direct? My rep told me I could do 75, but never 50. I’m pretty sure I want the resale savings, but if I could have done 50 I would have already bought a contract.

Depends on resort. I think Riviera and CCV are probably 75 minimum for new buyers while the older resorts have a lower minimum purchase i.e. 50 points.

 

[crvetter]

Depends on resort. I think Riviera and CCV are probably 75 minimum for new buyers while the older resorts have a lower minimum purchase i.e. 50 points.

Technically speaking the "rule" is 50 minimum at OKW and SSR, 75 minimum at VB and HHI, and 100 minimum everywhere else. I only really heard them reducing the 100 minimums to 75 not really ever dropping them to 50 for a new owner (assuming owning 0 resale or direct points). The add on minimums are obviously different 25 everywhere but Riviera and CCV (which are 50 and apparently they been pretty strict on this). I have heard some talk that Riviera is now down to 25 for add ons but I haven't seen any confirmation of that yet (last I knew they were telling people minimum contract size was 50).

 

[CarolynFH]

Technically speaking the "rule" is 50 minimum at OKW and SSR, 75 minimum at VB and HHI, and 100 minimum everywhere else. I only really heard them reducing the 100 minimums to 75 not really ever dropping them to 50 for a new owner (assuming owning 0 resale or direct points). The add on minimums are obviously different 25 everywhere but Riviera and CCV (which are 50 and apparently they been pretty strict on this). I have heard some talk that Riviera is now down to 25 for add ons but I haven't seen any confirmation of that yet (last I knew they were telling people minimum contract size was 50).

I thought there was a difference between minimum purchase just to own and minimum purchase for blue card. OP mentioned they were offered 50 points direct at BWV.

 

[crvetter]

I thought there was a difference between minimum purchase just to own and minimum purchase for blue card. OP mentioned they were offered 50 points direct at BWV.

The minimums I quoted are the “rules” for a new buyer and has nothing to do with the blue card which is a hard working 100 points. I say “rules” because they are very loose if sales aren’t hitting marks. Though CCV they have been fairly strict on.

 

[CarolynFH]

The minimums I quoted are the “rules” for a new buyer and has nothing to do with the blue card which is a hard working 100 points. I say “rules” because they are very loose if sales aren’t hitting marks. Though CCV they have been fairly strict on.

Ah. So the DVC guide is probably thinking selling 50 points at BWV is better than none....

 

[sethschroeder]

Buy resale if you are going to buy at BWV. Way more for the money.

 

[jill444]

Agree with above. The real advantage to buying direct is to get the blue card (which requires at least 100 pts) or to buy RIV and option to stay there and future properties. If you really love BWV, you will save over $50per point buying resale and can afford more points. Once your financial and family situation changes, you can always buy another resale or direct contract.

 

[zavandor]

I would agree in principle that buying resale would be better, but it won't be easy to find a 50 points contract resale at BWV and savings wouldn't be so significant either, since small contracts command a premium.

 

[Boomatt]

Hi there!

My fiancé and I are looking at buying into DVC, and we decided to buy direct, and got a decent price from the rep that fits our budget for 50 points over at our FAVORITE resort, The Boardwalk!! (I know that may seem like a small amount, but we normally travel during the off seasons anyway where we COULD get 5 nights for 50 points) However I am a bit worried about the contract’s expiration in 2042. I’m 25, he’s 24, so we’ll only be into our mid 40’s when our contract expires. While I’m sure he and I will get use out of this contract, I’m wondering if it’s worth the investment, when we will only get 20 years out of it (or 10 if we visit every other year) than if we had bought into Riviera, for example. The upside to buying 50 points at Boardwalk is, in addition to being our favorite, we’re able to pay the initial purchase price up front and book 11 months out.

I know you can add on contracts at other resorts. However, the newer resorts are not only more expensive to buy into, but require more points to stay there than the older resorts. So buying into those later, when prices are even higher than they are now, is worrisome.

(Full disclosure, we are a gay couple and my fiancé is about to start medical school next year. So, after med school and residency are over, if we are fortunate enough to adopt a child or have one via surrogate, it would probably be a few years before that time when our contract expires. So our kid wouldn’t have use of it, which I assume is when families want to have these contracts the most... so they can take their kids and pass the membership down. I realize this may kind of be irrelevant, but when I’m thinking about something that extends into this far into the future... it’s just something that’s crossed my mind.)

Sorry for the long post and I appreciate any advice you can give me!

Can you explain why you would want to buy direct for only 50 points? You won’t get any of the direct member benefits at that point amount. The number of points that you’re choosing I might get you five nights in a standard view studio during the lowest point season… If you are one of the very first people to book at the 11 month window. Very hard to get rooms. I would strongly urge you to look further into resale.

Given your budget of $10k (50 points *$200/point) you could get 80-90 points at today’s resale prices. Same contract exp date, same dues, same lack of perks, similar cost BUT more points!!!

 

[sethschroeder]

I would agree in principle that buying resale would be better, but it won't be easy to find a 50 points contract resale at BWV and savings wouldn't be so significant either, since small contracts command a premium.

I purchased 50 and 30 point contracts this fall as my first before adding a bigger contract at BWV for 150 additional points.

They can be found if you want something that small. You might just have to wait a month or two.

Just looked and there is one pending on Fidelity right now as well as a 80 point contract. I know its pending so you can't get that one but it shows they do pop up.

 

[ELMC]

Sorry for the long post and I appreciate any advice you can give me!

I apologize if this comes across as blunt, but if you are within 10 days of signing the contract I would advise you to rescind this purchase. At the end of the day, this might actually be the perfect contract for you. If that's the case, you lose nothing by taking some time to do your research (it sounds like you've done some, which is great, but your questions also demonstrate that there is still more to do.) However, if you do your research and discover that it's not the right contract for you (spoiler alert: it's not) then you haven't lost anything. Good luck!