Considering BLT. A few questions.

[lark]

"BLT" is funny. It makes me think of a bacon, lettuce and tomato sandwich. Anyway, thanks in advance for a few questions.

We're probably every other year travellers. Our likely next trip will be July 2010. I'm thinking about purchasing a 160 point contract at BLT now, and borrowing the next year's points to make one reservation for 2010. I have a few questions.

First, if I were to purchase a 160 point contract today, what would my use year be? Can I delay it, or is there any advantage to doing so given my plans? The bottom line is that in August 2009, I need 320 points for a reservation for 11 months later. Assuming I'm ready to purchase right now, what would be the most advantageous way for me to plan it out?

Second, given my situation (no plans to go until July 2010), what would the best current incentive for me be? Assume an owner referral. The best incentive that I've seen is $14 off, so $98 per point. Is there something better that would work for me? The only theoretical use I would have for points before July 2010 would be possibly using them at Disneyland or trading them throug an exchange company, so that seems not worth it.

Third, I assume this has been answered over and over, but my searching skills apparently stink. I can't find an answer. Exactly how is the 11 months calculated? Suppose I want to make a reservation for July 10, 2010. How would I calculate the first day in August I could call?

Four -- assuming $98 per point, how do I calculate my total out the door cost if I buy tomorrow? Closing costs? When do I pay MFs?

Finally, I think I know the answer to this one, but let me just confirm. Suppose I buy 160 points and borrow 2010 points, for a total of 320. The reservation I want is 326 points. I know I can buy 6 points from an owner. Must those 6 points be BLT home points for me to make an 11 month reservation? In other words, is a very small number of points like that enough to force you into the 7 month window?

I'm sure lots of this has been asked and answered, but thanks in advance.

 

[chalee94]

i can't answer some of your purchase questions, but here's a start...

First, if I were to purchase a 160 point contract today, what would my use year be? Can I delay it, or is there any advantage to doing so given my plans? The bottom line is that in August 2009, I need 320 points for a reservation for 11 months later. Assuming I'm ready to purchase right now, what would be the most advantageous way for me to plan it out?

In August 2009, you can call to make a reservation at BLT for July 2010 as long as you own there. UY month has nothing at all to do with when you can book a reservation.

If you tend to travel in the summer then you probably should request a spring or early summer UY month.

Please read at least the first post in this thread to learn what UY month means to you and what it does not mean.

Third, I assume this has been answered over and over, but my searching skills apparently stink. I can't find an answer. Exactly how is the 11 months calculated? Suppose I want to make a reservation for July 10, 2010. How would I calculate the first day in August I could call?

August 10th. It’s that easy.

Finally, I think I know the answer to this one, but let me just confirm. Suppose I buy 160 points and borrow 2010 points, for a total of 320. The reservation I want is 326 points. I know I can buy 6 points from an owner. Must those 6 points be BLT home points for me to make an 11 month reservation? In other words, is a very small number of points like that enough to force you into the 7 month window?

Yes, they must be BLT pts or you’d have to wait till 7 months. (Also, owners are only allowed one single transfer a year, so transfers – especially for a small amount of pts – may not be easy to come by.)

 

[Crystal_27]

I can help with some of your questions. First off, congratulations on taking the plunge to at least consider taking the plunge. We bought 220 points at BLT in March and I'm so, so excited.

If you are every other year travelers, then I think that you are really doing well by looking at exactly what you will need in order to be able to travel on your dates. It sounds as if you are right where you need to be (but, keep in mind, that there is no set number of points that you are required to buy. Once you hit the minimum buy-in, you can buy 164 which would, perhaps, allow you not to have to worry about borrowing/buying the 7 or 8 points that you woudl be deficient).

As to what current incentives work best for you, I would definitely recommend at least having a current DVC member's information handy so that you have as many options as possible. Right now, with the discounted price points for BLT, you can really get a good discount if you use an existing member as a referral. That's probably your best bet financially, but definitely consider the other incentives as well (cruise, developer points, etc.). Just remember that you'll need the full 10% down payment as the incentives can no longer be applied toward your down payment.

As to use year, when we bought BLT last month, we were assigned a February use year. As to when you need to book, you will have your points when you close on your contract (although with BLT you can't use your points until August when it opens and thus your maintenance fees for this year will be only from August-December). So, calculate 11 months from your July, 2010 travel date, and call MS to book. It's that easy!!

If you purchased 160 points today, you would pay $17,920 less your 10% down payment of $1,792 (to be paid when you sign your paperwork), less the discounted point price of $2,240, plus $300 closing costs is $14,188 (assuming my math isn't fuzzy - LOL). Your Maintenance Fees will be due either on a prorated monthly basis or as a lump-sum payment in January of the following year.

I hope that I've answered most of your questions. I'm still fairly new to ownership, but that should at least help with some of it. Happy DVC shopping!!

 

[Ed T]

Just as Crystal 27 mentioned the incentives that you get to choose from are very good incentives and are available with a current member referral.

Now you can find a whole list of members willing to be your friend and referral so check it out.

trybski@aol.com

member since 1994

Good luck

 

[lark]

Thanks everyone. This is really helpful.

It sounds as if you are right where you need to be (but, keep in mind, that there is no set number of points that you are required to buy. Once you hit the minimum buy-in, you can buy 164 which would, perhaps, allow you not to have to worry about borrowing/buying the 7 or 8 points that you woudl be deficient).

I didn't know you could do that. I thought it was set increments. Awesome, thanks!

 

[Sandisw]

Welcome!

If you are a summer traveler (like me), then getting a June UY would be most ideal. Your new points would come every June 1st but would have until January 31st of each year to bank them if you did not plan to use them. I just added on with points with this UY so I know they are still available.

If you purchased today, your first set off points would be for the June 09 UY. To save them for your July, 2010 vacation, you would just bank them. Come June 1st, 2010, you would get your next allotment of points.

So, say you buy 165 points (which would be $98.00 per point with member referral---if you want to pay only $96.00 per point, you must buy at least 200 points). When your trip happens in July, 2010, you would not have to borrow any points, but would have 330 to use (2009 banked points and 2010 points).

The benefits to buying now would give you points from both 2009 and 2010 to use for your trip next year. And, MF's for 2009 are prorated since BLT is not open. You would only pay 5 months of fees this year.

When you book a trip 11 months in advance, you don't need to have the points in your account on that day, only available for the time of travel. Since you are planning a July 2010 trip, and want to take advantage of being able to book at the 11 month mark, you just want to be sure you are an owner by that time. You can start the process now or wait a few months. When you buy through Disney direct, you can usually make a reservation with a few days.

The only piece we do not know at this point is how long the current incentives will last (and they are pretty good right now) and whether future incentives will be better or worse. If you think the current incentives work for you and you are in the position to buy right now, I would say go for it!!!

Good luck and happy planning!!!

 

[lark]

Thanks everyone. The use year point was tricky, and even though I'd read it, I hadn't truly comprehended it. I've had some experience with points-based timeshares, and so I had a wrong preconception about how it worked. Now I think I get it -- not needing the actual points in the account when you make the reservation is the wrinkle I wasn't understanding.

Knowing for a fact that we're going in July 2010, and would likely try to rent at BLT if we didn't own, I'm having a hard time seeing how this isn't the soundest way to do it. Renting 330 points in order to get a July '10 reservation would likely cost me about $4,000, assuming the going rate of $12/point holds steady (and assuming I could find someone willing to rent me 330 points and call in August). At $98/point with current incentives, no MFs until the end of the year, and low MFs in the short term for a 2060 right to use unit at a monorail resort, I can't see justifying the $4,000 expenditure at this time. It seems far more sound to put it toward the purchase of a DVC contract that will give me every-other-year usage.

I mean, even if I were to put my points up for sale the day after I return from my trip, and even if the going price on the resale market at that point was like $85 (which is probably pretty conservative), I would still come out way ahead -- I would have had a $4,000 rental value unit for about $2800, if I'm calculating the 17 months of MFs correctly, etc. I don't have any plans to sell, but that would seem like the worst case scenario. Yes, the hassle of selling and stuff would be a problem, but I guess I'm just not seeing the downside here otherwise. Even if I find I'm not using the points year after year and MFs escalate, then it's a problem, but the rental market seems pretty vibrant, at least enough to cover MFs and then some every year. Just doesn't seem very high risk on a 160 point contract, in a great monorail resort. Hmmmm . . . .

Anyway, thanks very much for all the help. It's really making things easier.

 

[POS]

Iark,

Apologies if this has been already mentioned. But if you buy points in 2009, you won't have to borrow anything for your 2010 trip. I just bought 130 points (March UY but irrelevant as far as your situation goes) with the intent of getting a 6 night 2 bedroom October 2010 stay at BLT (254 points required)

I received 130 2009 points and banked them so that I will have 260 points available in 2010.

So in your case, you would not need to borrow 2011 points for your 2010 trip if you close your contract in the calendar year 2009.

 

[Sandisw]

Thanks everyone. The use year point was tricky, and even though I'd read it, I hadn't truly comprehended it. I've had some experience with points-based timeshares, and so I had a wrong preconception about how it worked. Now I think I get it -- not needing the actual points in the account when you make the reservation is the wrinkle I wasn't understanding.

Knowing for a fact that we're going in July 2010, and would likely try to rent at BLT if we didn't own, I'm having a hard time seeing how this isn't the soundest way to do it. Renting 330 points in order to get a July '10 reservation would likely cost me about $4,000, assuming the going rate of $12/point holds steady (and assuming I could find someone willing to rent me 330 points and call in August). At $98/point with current incentives, no MFs until the end of the year, and low MFs in the short term for a 2060 right to use unit at a monorail resort, I can't see justifying the $4,000 expenditure at this time. It seems far more sound to put it toward the purchase of a DVC contract that will give me every-other-year usage.

I mean, even if I were to put my points up for sale the day after I return from my trip, and even if the going price on the resale market at that point was like $85 (which is probably pretty conservative), I would still come out way ahead -- I would have had a $4,000 rental value unit for about $2800, if I'm calculating the 17 months of MFs correctly, etc. I don't have any plans to sell, but that would seem like the worst case scenario. Yes, the hassle of selling and stuff would be a problem, but I guess I'm just not seeing the downside here otherwise. Even if I find I'm not using the points year after year and MFs escalate, then it's a problem, but the rental market seems pretty vibrant, at least enough to cover MFs and then some every year. Just doesn't seem very high risk on a 160 point contract, in a great monorail resort. Hmmmm . . . .

Anyway, thanks very much for all the help. It's really making things easier.

This was the same reason I just added on my points at BLT instead of waiting to buy them when I went on my August trip. I had a room booked at the Contemporary for almost $2000.00. Once I started running the numbers, I realized that it made a lot more sense for me to use that money to offset the purchase of BLT.

I do believe that BLT will hold its value and that selling a contract in the future will recoup some of your costs. When you sell, if you go through a broker, you will have to pay a commission. Most charge around 10% so you need to take that into consideration but even given that, the the ROFR process, I think you would have a good chance of selling the contract in a few years.

 

[drusba]

I am guessing that if you bought now you could probably get a use year that starts March or April, 2009, meaning you would get points now that began before you purchased, and for a July 2010 trip it would work like this:

1. Assume April use year when you buy. That means you will have 160 points effective 4/1/09. Assume you want a July 2010 trip.

2. The points you get now would be good for a trip taken 4/1/09 to 3/31/10 unless you bank them into the next use year and then they would be good for a trip at anytime from 4/1/10 to 3/31/11. So for a July 2010 trip you would have to bank them.

3. You will have another year's points coming 4/1/10. Thus, by banking the 09 points you will have 320 points total to use for a July 2010 trip.

4. You call to reserve in August 09 for that July trip. You can call 11 months in advance of date of ARRIVAL and reserve for up to 7 nights. Thus, for example, for a trip from July 10 -17, 2010, you could call 8/10/09 and reserve those 7 nights. You would use your banked 09 points and your points coming 4/1/10, which would actually be your "current" use year points for that trip, to book that trip -- in determining which year's points you need to bank, which are "current" and which may be borrowed for any trip you always ignore entirely the day yuu call to reserve; you look only at the days you will be at WDW and that gives you the answer.