Debating DVC

[Frosty&PixieRN3903]

DW and I were thinking about buying into the DVC in a couple of years and were just wanting some advice. How much up front are you looking at, are there any annual fees to pay and will the Contemporary Villas be open by then? Any advice would be great! Thanks!!!

 

[luvindisneyworld]

Well depends on if you are financing if you are then DVC asks for at least 10% down depending on your credit. Then you will have maintanence fees that you would either pay monthly or yearly I think right now they range from about 4.40pp a SSR to over 6.00PP at VB, but they change every year though.
You can finance for up to 10 years.

Contemporary has not even been formally announced yet so noone knows whats going to happen or when on it.

 

[mgrabenstein]

No regrets!

My advice would be to break up the titles if your are purchasing over 160 points. On resale smaller go faster. Plus if your needs change you can sell off, or add on easily.

If there is an add on incentive and you want more than 160, purchase the 160 (or going minimum) first and then call back and add on ASAP. There is no guarantee you will be able to get the first title in time, but also no hurt in trying.

Welcome home.

 

[Granny]

Any advice would be great!

The good news is that you aren't rushing into this and have plenty of time to research the prospective purchase.

A couple pieces of advice:

Read internet boards such as this one and ask a ton of questions until you really understand the ins and outs of DVC ownership. It is a fairly complex timeshare points system, and most of the complexity is driven by the program's flexibility.

Make an effort to understand the core of what you may be purchasing...a prepaid reservation point allocation with annual dues that provides a reservation advantage at your home DVC resort. The rest of the perks may come or go, but at its heart DVC is a vacation accommodation program. If it isn't worth it to you based just on that, you may be disappointed as member perks disappear or change.

For many people, DVC just isn't a good fit financially or with how they vacation. For many others it is a great way to ensure many years of upgraded on-site accommodations for WDW visits.

Good luck with the research and decision!

 

[PIERCEDRN]

First thing I would have you do is look at what your Disney routine is... do you have to go on weekends and holidays? if you do it may reduce the value of your points in half or worse. If you have a flexible schedule re: vacation it maybe a better fit. Do you have school age kids that must go at peak times?

secondly, the prospect of trading to 600 places and cruises sounds great but is not a thrifty way of using points either. We get 13-18 days a year from 150 points in a studio the times we go...trade with II for a 1br for 7 days and its 160 points...Concierge collection can easily cost 30 points a night or 5 DAYS a year! Great variety but horrible waste IMHO. If you are buying DVC to trade you could get better value buying almost any another timeshare company.
Thirdly, perks are perks and don't count on them...when I bought people even reminded me that booking other DVC resorts was a perk that could be taken away if Disney suddenly turned into an Evil Queen. Exceptionally unlikely but possible.
Lastly, use the advantage of your time before your purchase to watch the market, consider resales and take advantage of the deals when the recession gets worse. Bargains come and go and we missed (by 1 month) buying SSR from Disney for the same price we paid in resale. 1 year later and I saw one better value than that since. The most recent deal for $500 Gift card stinks IMHO. Be patient and remember even a 25 point contract will let you buy the KT at the contemporary with no closing costs.

DVC was one of the best decisions we ever made, we will have gone to WDW 3 times this year, and we look forward to doing it till 2054...when I'll be 82.

I look forward to saying "welcome home"
BOB

 

[MouseFan71]

I've also been looking into DVC and I think I understand the points cost and annual maint fees but what about taxes? Are you responsible for any real estate taxes on the property? Does your ownership effect your federal and state income taxes at all? Thanks.

 

[rsinj]

.

 

[SamSam]

If you want to buy a minimum size contract (say 160 points) to take advantage of incentives being offered, your guide can break that into two contracts for you. That way you still meet the incentive requirement but have two smaller contracts for ease of any selling, leaving to heirs, etc. that you may want to do down the road.

 

[luvindisneyworld]

Thats not how it is anymore if you buy from Disney you have to buy a contract of 160 and it cannot be broke up but if you add on like I did then you can do it.
But your initial contract through them has to have all of the 160 and not broke into 2 contracts.

If you want to buy a minimum size contract (say 160 points) to take advantage of incentives being offered, your guide can break that into two contracts for you. That way you still meet the incentive requirement but have two smaller contracts for ease of any selling, leaving to heirs, etc. that you may want to do down the road.