Disney or a resale?

[Skybaby]

Thinking of joing DVC. I am weighing the advantages and disadvantages of buying directly from Disney or a resale. I know one of the advantages from Disney is no closing costs. How much are closing costs for a resale? And what are the other advantages/disadvantages?

Thanks for all your help!!

 

[CarolMN]

The first thing you should do is decide which resort you plan to purchase. The most oft repeated advice here is "BUY WHERE YOU WANT TO STAY THE MOST".

If you want BCV, you will have to go through Disney as there are very few resales for that property available.

OKW, BWV, VWL are all sold out. If you want those, you must purchase a resale.

HHI and VB are available both through Disney and through resale. These are both wonderful resorts, but don't buy there if you really want to stay mostly at WDW.

Closing costs are in the neighborhood of $400 - $500.

The price of a resale contract is usually negotiable. Contracts with banked points are more valuable than those with borrowed points. Annual maintenance fees for the current year are also a consideration and are also negotiable.

On a resale, you cannot make reservations until after the sale has closed and Disney has added you to the membership database. You can make reservations as soon as you sign the paperwork and submit your deposit if you buy directly from Disney.

Once you have purchased your membership via resale, you are treated exactly the same as someone who purchased directly from Disney. No differences, advantages or disadvantages.

 

[Shontell_Crawford]

Carol covered almost everything about buying resale vs. Disney, but some folks like to compare maintenance fees and taxes when making their decision on where to buy....and I've included a couple of other points to ponder.

Annual dues for 2002
at each resort are as follows:

Old Key West - $3.22
Hilton Head - $3.49
Beach Club Villas - $3.77
Wilderness Lodge - $3.80
Boardwalk Villas - $3.92
Vero Beach - $4.17

CLOSING COSTS start from $375-$575 depending on the price. Costs should include a complete title search, title insurance (unless it is HH) and submission to DisneyÕs first right of refusal. Your broker should gladly give you a specific cost on any particular package.

FINANCING is available through http://www.tammac.com at 11.5% with a 10% minimum deposit for five years. Feel free to call if you need payment estimates on any package. Many buyers will get a home-equity loan if you can get a better rate.

ADD-ON PACKAGES are usually bought by existing DVC owners, BUT can be acquired through resale by a first time buyer.

EXPIRATION on all DVC leases are January 31, 2042 Ð regardless of when they were purchased.

Let us know if we can help further.

Kind regards,
Shontell

 

[WDWalways]

IMO if you can either get your own financing or pay cash do a RESALE!! Much cheaper -- I could only afford to do cash for 1/2 of the points I wanted so I did a resale for cash (credit not too hot so hard to get financing) and did an addon with Disney directly for the remaining 1/2 of points I wanted and it worked out good for me -- I figured the part I paid cash for saved me over $4500.00 in interest if I would have bought the whole set of points thru Disney directly and financed for 10 years. Instead the 1/2 I did buy thru Disney I put down the 20% deposit and financed for 3 years saving alot!!

 

[SINK]

FINANCING is available through http://www.tammac.com at 11.5% with a 10% minimum deposit for five years. Feel free to call if you need payment estimates on any package. Many buyers will get a home-equity loan if you can get a better rate.
[/B]

Interest expense from Financing through tammac is not deductible as "vacation home/second home" interest expense on your individual income tax return while financing through Disney is. The loan from tammac is an unsecured loan (where the underlying real estate is not at risk), where as Disney's financing is.

 

[Doctor P]

Buying through Disney is generally much less hassle and less uncertain, but you generally pay a little more. Right now, the major deciding factor really is what resort you want as your home resort.