Canadian DVC Owners ... what do I need to know?

[disneymath]

DVC may become a reality for us in the not too distant future (late summer or the fall). We have a cash stay booked at BLT this summer - it will be our first DVC resort stay (as well as our first monorail resort stay), and I'm only too aware that it may be the trip that lures us into buying into DVC. I figure it can't hurt to be prepared beforehand - and it seems like there's lots I should take the time to research.

My question to any and all Canadian DVC owners is what special things need to be taken in to consideration because I would be buying foreign real estate? How would it impact on taxes, etc.? Would you recommend Disney direct or a resale? Why? (If we buy in, it will be outright, with no financing.)

Thanks in advance for any insight ... I'm off to read the Canadian DVC members thread to see what good info may be found there.

 

[MikeyNS]

DVC may become a reality for us in the not too distant future (late summer or the fall). We have a cash stay booked at BLT this summer - it will be our first DVC resort stay (as well as our first monorail resort stay), and I'm only too aware that it may be the trip that lures us into buying into DVC. I figure it can't hurt to be prepared beforehand - and it seems like there's lots I should take the time to research.

My question to any and all Canadian DVC owners is what special things need to be taken in to consideration because I would be buying foreign real estate? How would it impact on taxes, etc.? Would you recommend Disney direct or a resale? Why? (If we buy in, it will be outright, with no financing.)

Thanks in advance for any insight ... I'm off to read the Canadian DVC members thread to see what good info may be found there.

No impact on taxes at all, although when you do sell the IRS keeps 10% unless you file a US tax return (from my understanding).

I have purchased through Disney and resale. Disney first because I didn't know a lot and resale as an addon. I would purchase resale due to the savings. It makes no difference once you're in the system where you purchased it from, so why not save some money?
DVC has been a huge benefit for us. We've been able to treat family to a disney trip at least once a year and have visited three times in a calendar year and checked out of the resort with a $0 bill. How nice is that? It definitely changes your vacation habits and I find it much more relaxing when we go down.

 

[LauraLap]

We are DVC owners as well and so far we love it. The only other tip I have is that we have set up an American account through RBC so we can pay our dues monthly instead of one lump sum in January (same time Christmas bills come due!). This has worked well for us.

Enjoy your stay at BLT, I can't wait to stay there one day!

 

[Louiepipbgeeco]

As a newer Canadian DVC owner, I personally found buying direct through Disney was the way to go. Many of the contracts for the resorts through resale were stripped and not to find one with appropriate use year, add on the closing etc. for us it made most sense to go with Disney. The process was SUPER easy with them also. (we also paid cash and did not finance)
We also set up a US acct which was a great recommendation as OP suggested. You can get a US credit card as well through our banks. Good luck. Best decision we ever made.

 

[dvcdisney]

I would suggest you purchase through DVC for your initial purchase. Take the tour, ask all the questions, make sure you feel comfortable with your guide because they can help you with a lot of the questions.

And when you decided to add on more points (and you will! as all of us who have gone through and are still going through "addonitis"), you can decide to do resale if you'd like.

For us, we did exactly that. We took the tour, asked questions, called our guide a few times during the process and purchased through DVC. Then when we decided that we wanted BCV points and found a good price on resale market, we purchased it then. Then we decided to purchase AKV points through DVC since they had a great incentives at the time.

I think you would be more comfortable buying directly from DVC the first time. JMO.

Good Luck.

 

[drag n' fly]

We purchased through Disney because the incentives were so good. With re-sale it takes 6-8 weeks to have your points available in the system but the price is lower. I have found the perks have really dropped in the three years since we have owned it. We were banking and borrowing our points and not using it every year. As a result we decided to get rid of it because we were tired of paying the high maintenance fees on the years we were not using the membership and it was not our cup of tea.

 

[disneymath]

No impact on taxes at all, although when you do sell the IRS keeps 10% unless you file a US tax return (from my understanding).

Just to be 100% sure, we don't have to claim/acknowledge a DVC ownership while filing our annual Canadian income tax returns, and the only time we need to worry about the IRS and/or income taxes in th US is if/when we sell?

We are DVC owners as well and so far we love it. The only other tip I have is that we have set up an American account through RBC so we can pay our dues monthly instead of one lump sum in January (same time Christmas bills come due!). This has worked well for us.

Enjoy your stay at BLT, I can't wait to stay there one day!

We've had a US Dollar account with our bank for years - so I guess that is one thing we're already good to go with!

As a newer Canadian DVC owner, I personally found buying direct through Disney was the way to go. Many of the contracts for the resorts through resale were stripped and not to find one with appropriate use year, add on the closing etc. for us it made most sense to go with Disney. The process was SUPER easy with them also. (we also paid cash and did not finance)
We also set up a US acct which was a great recommendation as OP suggested. You can get a US credit card as well through our banks. Good luck. Best decision we ever made.

The more I think about it, the more comfortable I feel about the idea of buying direct from Disney. Not sure why exactly. Glad to know it is an easy process. We have a US Visa - just for Disney stuff - and it has come in handy.

I would suggest you purchase through DVC for your initial purchase. Take the tour, ask all the questions, make sure you feel comfortable with your guide because they can help you with a lot of the questions.

And when you decided to add on more points (and you will! as all of us who have gone through and are still going through "addonitis"), you can decide to do resale if you'd like.

<snip>

I think you would be more comfortable buying directly from DVC the first time. JMO.

Good Luck.

Thank you for the advice ... this seems to be the direction my instincts are taking me!

We purchased through Disney because the incentives were so good. With re-sale it takes 6-8 weeks to have your points available in the system but the price is lower. I have found the perks have really dropped in the three years since we have owned it. We were banking and borrowing our points and not using it every year. As a result we decided to get rid of it because we were tired of paying the high maintenance fees on the years we were not using the membership and it was not our cup of tea.

Thanks for the honest reply. Hopefully when/if we purchase there will be a good incentive in place. And, if you don't mind my asking, what perks were dropped in the last three years? (I'm assuming you meant perks of being a DVC owner and not just perks of buying direct from DVC.)

Based on when we can typically travel and the accommodations we need, we would require about 500 points for a 7 night stay at BLT. That large of a contract is definitely out of my comfort level at the moment. So we would most likely be looking at either at 250 point contract that we would bank to use every other year or maybe even a 160 point contract that we would deal with in three year cycles (use the current year's points, the banked points from the previous year, and borowed points from the next year). (We could always add on in the future.) Either way, paying maintenance fees the years we didn't have a trip planned is something I will definitely need to decide if I'm okay with.

 

[LauraLap]

We've had a US Dollar account with our bank for years - so I guess that is one thing we're already good to go with!

Just so you know, it's not a US Dollar account you need, but an account based in the US.

 

[TagsMissy]

We are DVC owners as well and so far we love it. The only other tip I have is that we have set up an American account through RBC so we can pay our dues monthly instead of one lump sum in January (same time Christmas bills come due!). This has worked well for us.

Enjoy your stay at BLT, I can't wait to stay there one day!

I didn't know I could do monthly with drawls from my RBC US Dollar account?!? I thought it had to be from a US institution in the US. Can you message me with more info on this?

 

[MikeyNS]

I didn't know I could do monthly with drawls from my RBC US Dollar account?!? I thought it had to be from a US institution in the US. Can you message me with more info on this?

You need to have a US Account with RBC, not a US$ Account.

RBC has a US Bank, I believe it's rbcbankusa.com, and they can link your accounts so you can transfer $$ into it, and for US companies like DVC it's just like withdrawing/linking from any account in the US (since technically it is!). Just talk to your banking rep and they can set something up for you.

Here's the appropriate RBC link for info: http://www.rbcroyalbank.com/usbanking/index.html

 

[LauraLap]

You need to have a US Account with RBC, not a US$ Account.

RBC has a US Bank, I believe it's rbcbankusa.com, and they can link your accounts so you can transfer $$ into it, and for US companies like DVC it's just like withdrawing/linking from any account in the US (since technically it is!). Just talk to your banking rep and they can set something up for you.

Here's the appropriate RBC link for info: http://www.rbcroyalbank.com/usbanking/index.html

Yes, what he said.

It was fairly simple to set up.

 

[disneymath]

Thanks for the clarification about the US Account vs the US $ Account.

 

[Daddio]

You need to have a US Account with RBC, not a US$ Account.

RBC has a US Bank, I believe it's rbcbankusa.com,
Here's the appropriate RBC link for info: http://www.rbcroyalbank.com/usbanking/index.html

They are in the midst of changing their branding but for now it is commonly known and branded in the US as RBC Centura Bank.

We love our RBC Centura and they have a new branch in Hunter's Creek, just 5 miles from Disney, past Celebration. The staff there are so friendly.

David

 

[U2FanHfx]

Like most, we wish we had done it sooner, but we have lots of time left

The only things I was made aware of as far as being a Canadian and the differences that it makes are:
- 10% IRS tax if you sell
- Only options to pay are Credit Card if you don't have a US bank account
- Up to 15% commission is charged to sell your contract!

You really need to be committed and crunch the numbers. There are only two of us so our break even was only 8 years. However, the more points you need to buy, the longer your break even potentially based on what you "used" to stay in and were satisfied with. We used moderates as our baseline as deluxe's were a treat. You can say that we should have used a deluxe as comparison, but you need to measure it fairly as to what you would "normally" spend and that will result in a more realistic view.

We have used points for many vacations including our past October Adventures by Disney Backstage Magic.

We purchased through resale originally and then all add-ons through Disney direct. Opposite of most. But when you look at the cost, by the time you take the closing costs and stripped contracts into consideration vs the incentives offered by Disney, it's almost equal as far as purchase price. Be careful to look at all angles. We also have a great guide that my wife likes to keep separated from me as I tend to say "yes" to DVC

Good luck!

Chad J.

 

[HotdogDncrs]

We just purchased at BLT at the end of December. We were travelling to WDW at least twice a year, and always stayed in deluxe resorts.

We went through Disney, as there weren't a lot of BLT resales on the market, and after speaking to a guide, we were told that DVC was exercising their right of first refusal more frequently (and probably would do so on any BLT contracts that were selling for less than DVC direct).

We found it much easier to be able to contact our guide with any questions during the process than having to go through a third party.

We factored the annual maintenance fees in, and figured that in a few years once we break even it will work out to be cheaper than booking at the deluxe resorts. I read on another post that it is all about the memories - I totally agree

Good luck with your decision

 

[DisKimberly]

We are DVC owners as well and so far we love it. The only other tip I have is that we have set up an American account through RBC so we can pay our dues monthly instead of one lump sum in January (same time Christmas bills come due!). This has worked well for us.

Enjoy your stay at BLT, I can't wait to stay there one day!

I didnt know this was possible?

Did you have to be in the US to open the account? can it be done from up here in Canada?

would love to pay my dues monthly!

Oops just saw the answer in another post !

 

[canabrits2]

So, when a Canadian wants to buy into DVC as cash sale (no financing), do you have to put the whole lump on your credit card?

Anyone ever use their Cdn line of credit to pay for DVC? How would you transfer the money, since I"m sure that they won't take a Cdn cheque.

Also, if I have the cash in my Cdn bank account, how do get it to them?

Has anyone done this while at a DVC area on site or remotely through the guide?


These may be no brainer questions but I'm having a brain-stutter this morning....

 

[Hockey Mom KQ]

We love our DVC membership, and we also recently added on. We bought direct from Disney both times. We bought AKL, and added on to the same contract. Too easy! The new incentives are GREAT!! We did not pay it off, but opted to make monthly payments which are charged to our credit card. Our dues are charged directly on the same card in January. So, we just pay off the card and don't have to remember to make another payment. Therefore, no late fees We go every year. We typically stay in a studio for 10 nights in March. With our add on we are hoping to upgrade to a 1 bedroom. But, I would rather stay in a studio every year, then only go every second year. But, that is just me.

 

[tiggerrr]

So, when a Canadian wants to buy into DVC as cash sale (no financing), do you have to put the whole lump on your credit card?

Anyone ever use their Cdn line of credit to pay for DVC? How would you transfer the money, since I"m sure that they won't take a Cdn cheque.

Also, if I have the cash in my Cdn bank account, how do get it to them?

Has anyone done this while at a DVC area on site or remotely through the guide?


These may be no brainer questions but I'm having a brain-stutter this morning....

Both our first purchase and our add on were put on our credit card and then we just paid it off, the first time on a Line of Credit, the second time was cash we saved in our bank account. Our Line of Credit is with BMO, and they actually have a Mastercard card that is associated with the account that works just like a credit card and charges to the LOC (not sure if your bank might have something like that).

You can deal remotely with a DVC guide only if you live in Ontario or Alberta, where DVC is registered for sales and marketing activity. Residents of all other provinces and territories must conclude the entire deal on site with Disney (CA or FL). If you do it remotely, there may be other options for payment, such as a bank draft, but your guide would know.

 

[CanadianPaco]

I can't imagine how many time we've thought and talked about this. I have so badly wanted to do it but we always seem to have other needs with the money.

Question : is RBC the only bank with the US based accounts? Does TD Canada Trust have it? We have a US account and Us Visa with TD but I see now that's not what is needed.