Choosing to wait.....

[plymouthmom]

Well, since the stock market has continued to be erratic we have chosen to wait until after the election to join DVC. I am very sad but know that we need to protect our current investments instead of dipping into them now! I think we will rent points for our next vacation. Is that a relatively easy process?

 

[OKW Lover]

While I don't quite understand your reasoning for not buying DVC now (instead of spending money by renting), rest assured that renting points is not difficult to do. As you may be aware, there is a fairly active rental board right here on the DIS.

 

[CarolMN]

Check out this thread -

Considering Renting from a DVC Member?

 

[ldo]

you might consider buying a smaller resale contract and borrowing points from the next year for your vacation--then you can add-on at DVC as you want. That is what we are doing-buying 50 points and banking, and borrowing to get 150 points for the following year's trip. Then we are adding on 50 points in another year or two.

Otherwise, I would agree to wait until you feel financially comfortable to buy DVC. When renting, I would make sure that the renter has lots of legitimate DVC posts about other subjects and not just rentals. Plenty have had good experiences, good luck. Elaine

 

[goldilocks_63]

I believe they will lower interest rates 1/2 point, and that will give stock market a bounce.... (around 1/30).

so you may have an opportunity to take some $$ off the table and purchase DVC, if you watch....

And yes, renting points is easy as long as you are trying to book reservations 6 months in advance. Dates within 1-3 months are very hard to get any availability.

Best, Goldi.

 

[Muushka]

There have been many times in my life that I have chosen to wait. Rarely do I regret those times. But there have been many times that I wish I had waited. Best wishes for all of your plans! I hope that made sense!

 

[Mtnman44]

Only you know if it is the right decsion based on your individual situation, but trying to blame not purchasing on either the stock market in general or an election (?) doesn't make much sense.

DOW historical:

Historical GDP

http://eh.net/hmit/gdp/gdp_answer.php?CHKnominalGDP=on&CHKrealGDP=on&CHKGDPdeflator=on&CHKpopulation=on&CHKnominalGDP_percap=on&CHKrealGDP_percap=on&year1=1976&year2=2006

income:

http://en.wikipedia.org/wiki/Image:United_States_Income_Distribution_1967-2003.svg

http://en.wikipedia.org/wiki/Image:United_States_Income_Distribution_1967-2003.svg

Unemployment:
http://en.wikipedia.org/wiki/Image:Us_unemployment_rates_1950_2005.png

Good luck to you.

 

[llmurphy17]

Well, since the stock market has continued to be erratic we have chosen to wait until after the election to join DVC. I am very sad but know that we need to protect our current investments instead of dipping into them now! I think we will rent points for our next vacation. Is that a relatively easy process?

I feel your pain all my options are underwater now. I hope they go up again - I do want to do one more add on.

But I would say to wait because you don't want the added stress in case the market doesn't bounce back that you made the wrong decision by purchasing.

 

[JsMom2]

I agree with the poster who said to consider purchasing a smaller resale contract. That might make more sense in the long run than renting points for your next trip. And then you could easily add on when the timing is right.

I applaud you for being financially responsible in your decision making. You definitely have to follow your gut instincts on purchases like these.

 

[buzz5985]

I am not trying to give advice - but see that big dip in 2003?? I bought DVC in 2002 with money that would have been lost in that dip. That money was the best money I have ever spent. I really lucked out. I bought resale at HH for $62/point (150 points) and BWV from Disney for $82/point (100 points).

I'd like to also point out, that at the time HH and BWV had the cheapest maintenance fees and are now the most expensive. So looking at the past, really does not reflect the future costs.

 

[browniemtb]

I think its great that you are waiting until the comfort level is there for you and the family. But in all actuallity DVC one year from now will be more expensive, how much more is the question. The stock market will always have its ups and downs even a year from now.

Brownie

 

[crisi]

We have no idea what they are invested in. Its possible that the particular stock they were going to sell took a big dip between when she started talking and now. I have a bit of stock, most of it unfortunately tied up in options or ESPPs between the firm I work for and the firm my husband works for. Both were doing very well before Christmas, both took a huge dip a week or so ago. I wouldn't sell it now either. Stock is down 20%, stock is fairly likely to recover most of that over the next year.

Also, when the stock market goes down, my paper worth goes down. Suddenly, I feel a lot tighter.

Timing the market is sort of valueless - but selling at what is almost certain to be a relative low point for DVC is sort of stupid.

 

[BWV Dreamin]

We have no idea what they are invested in. Its possible that the particular stock they were going to sell took a big dip between when she started talking and now. I have a bit of stock, most of it unfortunately tied up in options or ESPPs between the firm I work for and the firm my husband works for. Both were doing very well before Christmas, both took a huge dip a week or so ago. I wouldn't sell it now either. Stock is down 20%, stock is fairly likely to recover most of that over the next year.

Also, when the stock market goes down, my paper worth goes down. Suddenly, I feel a lot tighter.

Timing the market is sort of valueless - but selling at what is almost certain to be a relative low point for DVC is sort of stupid.

Totally agree here with Crisi. Seems that if they need the appreciation of their stock in order to purchase DVC, well financially they are probably not ready yet. The best way to go is to purchase resale small as has already been mentioned. But if even this is out of reach, they should just wait. Maybe a long time.

 

[crisi]

Totally agree here with Crisi. Seems that if they need the appreciation of their stock in order to purchase DVC, well financially they are probably not ready yet. The best way to go is to purchase resale small as has already been mentioned. But if even this is out of reach, they should just wait. Maybe a long time.

Once again, we have no idea. They could have had a quarter million dollars in play in the stock market before Christmas, if they wanted to sell it now, it would only come to $200,000 or something. They could certainly AFFORD the loss, but won't TAKE the loss - not if they some confidence that six months see a recovery.

If its options, they could even have gone under water (we've had that happen, its really annoying when you plan a purchase off a $12 delta between what your strike price is and what the stock is selling at - only to see the delta change to $-2. We still don't have a new deck.)

If they wanted to play the risk and were confident of a recovery, they could do what I did with DVC - knowing we most likely would be getting a bonus, we took out a bridge loan (home equity) for about a month. Bonus came in, bridge loan paid off. I'm less confident however for a quick recovery of stock.

 

[BWV Dreamin]

If its options, they could even have gone under water (we've had that happen, its really annoying when you plan a purchase off a $12 delta between what your strike price is and what the stock is selling at - only to see the delta change to $-2. We still don't have a new deck.)

Crisi, you are too funny today!!