Do any DVC members only hold 50 points?

[mom22boys]

We were thinking of buying DVC resale and only buying 50 points? Is this crazy? We would love to own a part of the "magic," but can's see financing it or investing too much in it yet (we have those college funds to worry about ). We are just too conservative! We just thought it might be nice to be members. We know we would have to get creative in order to enjoy our 50 points. We would probably do a lot of banking and borrowing with visits only every other year or every three years. We also figured once we were members we could always use the rent/trade board to purchase extra points through transfer. So... what is the flaw in our plan? That we will love DVC so much that we will end up buying those extra points anyway! For those of you with experience what do you think?

Much thanks!

 

[bicker]

Do keep in mind that Disney is much more likely to exercise its right of first refusal on such small contracts.

We're considering, perhaps, going down to a 50 point contract (selling our 200 point original and keeping our add-on). What puts me off of the idea is the fact that we'd be working on the razor's edge, trying to book the precise reservation that will use exactly the number of points we have, something that we don't have to worry about with a larger contract.

 

[TheBeast]

You already said what the issue will be - you'll wish you had more points and want to buy them. That said, if you really think you want to buy DVC, it is smart not to finance it especially if that makes you uncomfortable. Without knowing your details, 50 points can get you several days a year or a week in a studio every other year. Better than nothing!

Good luck!

 

[TammyAlphabet]

You can get 5 nights at OKW and BWV (Standard view) for most of the year with 50 points in a studio. There is nothing wrong with that!

 

[disneybass]

If you can live with a studio, 50 points is a good start. We only have 50 OKW points, but that will put us in for 5 days in most any season Sun. thru Thurs. I have to say GO FOR IT!!

 

[Micmaniac]

Although we have 70 points...get this...we are spending 4 nights in Jan. at BWV, then plan on 5 at WL in Dec. of 07 and because of our use year, still bank over 20 points. That's nine nights in a studio in one calendar year and we'll go again in '08 August when our points are available. If you can live with a studio, are able to go at off times, do it. Do a mock schedule over a 3 year period and you may be surprised what you can squeeze out of 50 points.

 

[mom22boys]

Do a mock schedule over a 3 year period and you may be surprised what you can squeeze out of 50 points.

Thanks everyone! This is a good idea. Plus it sounds like fun. Who doesn't like to dream and plan about Disney?!?!

 

[Disney Doll]

The 2 issues I see are you may have a hard time getting past ROFR and you'll want more points almost immediately once you have done a DVC vacation. It's just a different type of vacation than staying in a regular room.

We started with 200 points and squeezed a lot of vacations out of that for the first 5 years we owned them...we'd stay in a moderate for the weekend and then move to the DVC for the week. We'd travel at the least expensive points times of the year, I'd be booking the minute I could at the 11 or 7month window.

Then we bought anouther 230 points, and it has made it much easier!

"Addonitis" is a difficult disease to treat!

 

[dianeschlicht]

The 2 issues I see are you may have a hard time getting past ROFR and you'll want more points almost immediately once you have done a DVC vacation. It's just a different type of vacation than staying in a regular room.

We started with 200 points and squeezed a lot of vacations out of that for the first 5 years we owned them...we'd stay in a moderate for the weekend and then move to the DVC for the week. We'd travel at the least expensive points times of the year, I'd be booking the minute I could at the 11 or 7month window.

Then we bought anouther 230 points, and it has made it much easier!

"Addonitis" is a difficult disease to treat!

I totally agree with this. Besides which, you will not see the true flexibility of DVC with such a small contract. It always seems to me that you pay a premium to get those small contracts past ROFR, and often Disney is not letting them go to non-members.

 

[mom22boys]

The 2 issues I see are you may have a hard time getting past ROFR and you'll want more points almost immediately once you have done a DVC vacation.

I totally agree with this. Besides which, you will not see the true flexibility of DVC with such a small contract. It always seems to me that you pay a premium to get those small contracts past ROFR, and often Disney is not letting them go to non-members.

Thank you for your perspectives. Do you have better luck with ROFR with a 100 point or 150 point contract? Is ROFR such a challenge that it is better to just buy 150 points through DVC?

I am sure I am asking questions that have already been asked. I promise once we make it through Halloween I will use the search option on the boards to learn more!!

 

[keliblue]

Thank you for your perspectives. Do you have better luck with ROFR with a 100 point or 150 point contract? Is ROFR such a challenge that it is better to just buy 150 points through DVC?

I am sure I am asking questions that have already been asked. I promise once we make it through Halloween I will use the search option on the boards to learn more!!

You and I are in the same boat ... waiting patiently for the answers

 

[kdzgon]

Thank you for your perspectives. Do you have better luck with ROFR with a 100 point or 150 point contract? Is ROFR such a challenge that it is better to just buy 150 points through DVC?

I am sure I am asking questions that have already been asked. I promise once we make it through Halloween I will use the search option on the boards to learn more!!

There are many more experienced and knowledgeable posters here, but as I have just spent the last month researching, discussing (DIS feedback was priceless!) and purchasing (ultimately through resale), I'll put in my two cents worth. (warning - this opinion is coming from a "numbers" person - it could be longer than what you want to bother reading lol)

It seemed to me that 100 points seemed to be the break point - buy less, and you would need to spend a decent premium (>10%) to pass ROFR. Buy 100 points or more, and the offer price did not require the same premium AND it seemed it would have a better chance of passing ROFR.

Of course, nothing is that simple - I am a firm believer that ROFR results are heavily influenced by demand - if you are bidding on a smaller add-on and Disney has an existing member waiting for a similar contract, your offer is likely doomed, especially if you are a non-member. (Obviously (IMO) if you are a member Disney's incentive to buy out that contract is lessened, as you would be a possible buyer for the ROFR'd contract, anyway.) So, you need to consider potential demand when calculating your offer. HH is more popular in the short summer season - people visit, enjoy the resort and decide to purchase. Having not yet stayed in any DVC resort, I can only guess that those with grand villas are more popular around holiday times, demand for those within walking distance to Epcot increases around F&W festival, etc.

I don't think the challenge of ROFR is what makes a direct purchase "better" than resale - it is more a function of the numbers. First, try to estimate what you think the "best" number of points is (this is the most difficult part, IMO) and use that as your starting point. Be honest with yourself - are you the type of person that if you have "extra" points you'll be inviting the family (usually gratis, of course) or would you be willing to bank and/or rent excess? If you only need 75 points, 150 most likely would not be a "better deal" for you. You can then calculate your basic cost from Disney - if your need is close to or above 150.

Then, "run the numbers" - point cost, closing costs, monthly maintenance fees, etc. (Resales often "expect" to be reimbursed for MF, Disney pro-rates.) Don't forget to include any "extra" or "stripped" points in your calculations. Once you have those numbers, only then can you decide if it is "better" financially to buy direct, especially if it is more points than you need. I have found that some resale contracts were a better buy financially, but many were not. You need to do your homework here. But you are not done....

Once you have the financial comparison done, it is time to add in the intangibles. Buying resale usually takes longer, is more uncertain (can be ROFR'd), no CCs (unless you use those CC checks) & related reward points, and it is longer before you can book reservations. It also can be cheaper, is more likely to have extra points (be sure to ask if Disney is offering any with yur potential deal) and most people have had very good to excellent experiences with resale transactions. So, again be honest: do you have the time and patience to wait a little extra? Are you detail-oriented enough to do the calculations necessary? Are you willing to gamble on ROFR, even if you think you have structured the "perfect deal"? (I believe there will always be another suitable contract, it just means more time.) Is money enough of an issue, or is simplicity a higher priority for you? Resale might be an issue for you as well - smaller contracts will likely hold their resale value and continue to command a premium. At the very least, they are likely to sell faster than bigger contracts. And, let's not forget your desire for a home resort, and its importance (or lack thereof).

I believe that if you are honest with yourself while evaluating your options, you will make the right choice. Do what is best for your personality and/or lifestyle rather than what is the "better deal" and you will not go wrong here.

 

[flechette]

From what I've seen in the ROFR thread, 100 point contracts seem to pass to non members a bit easier than the 50 pointers. Just be patient and realized you may have to make a few attempts before you get your contract.

Disney does not sell less than 150 point starting contracts (addons are different) so buying direct from Disney makes alot of sense if you need or will use 150+ contract AND want SSR or BVC. SSR for price incentives and BVC costs the same or less via Disney as compared to resales these days.

Buying Direct from Disney also gets you in the system much faster and generally should have fewer potential snags than resale.

Buying Resale tho can save you money. I think the average price for 100 pt OKW is running $85/pt and Disney's price is either $91 or $95 per pt. Even with closing costs, resale can be a good thing. A smaller contract also means less maintence fees.

And TTS sponsers this board and Tom simply rocks! why not do business with them

 

[kdzgon]

From what I've seen in the ROFR thread, 100 point contracts seem to pass to non members a bit easier than the 50 pointers. Just be patient and realized you may have to make a few attempts before you get your contract.

Disney does not sell less than 150 point starting contracts (addons are different) so buying direct from Disney makes alot of sense if you need or will use 150+ contract AND want SSR or BVC. SSR for price incentives and BVC costs the same or less via Disney as compared to resales these days.

Buying Direct from Disney also gets you in the system much faster and generally should have fewer potential snags than resale.

Buying Resale tho can save you money. I think the average price for 100 pt OKW is running $85/pt and Disney's price is either $91 or $95 per pt. Even with closing costs, resale can be a good thing. A smaller contract also means less maintence fees.

And TTS sponsers this board and Tom simply rocks! why not do business with them

See, I told you mine would be too long. I could have just quoted and typed "yup, just what (s)he said".

 

[flechette]

See, I told you mine would be too long. I could have just quoted and typed "yup, just what (s)he said".

I liked your post! It's well thought out and articulate and cover much more ground than I did



And, yes, I am female

 

[mom22boys]

See, I told you mine would be too long. I could have just quoted and typed "yup, just what (s)he said".

Your post was not too long at all. I am a detail person myself. I think I will cut and paste it into a Word document so I can break down the different parts and really think about them. I wish I was kidding you, but I am not. I love having "projects" and doing research!

 

[keliblue]

Thanks so much for the info...

 

[chalee94]

i'm in the process of buying a 40 pt OKW contract now. (i just passed ROFR in less than a week and was a non-member.)

you do pay more per point but if you don't need a big contract, it can still be a very good deal...and the up-front premium will quickly be offset by paying less in MF...

OTOH, i have no actual "experience" with DVC yet, so it's possible that i'll want more points down the road...but 5 nts a year in a studio makes it worthwhile for me - as a single guy, i don't need a lot of room and have some flexibility in scheduling at this point...YMMV.

(definitely smart not to finance it, though! )

 

[kdzgon]

...(definitely smart not to finance it, though! )

OK. I keep seeing this statement, and I have to disagree (somewhat). It simply is not always true. For someone that does not stay in value resorts, plans to visit Disney on a regular basis for a number of years (the # depends on the particulars, but we're not talking 3-5 yrs here), purchasing a properly-sized contract may well result in measurable savings, even after figuring in financing costs. Run some numbers using some historical data posted on these boards - how many people say they wished they had bought even just several years ago? These people paid OOP for accommodations each year, while the cost of points has risen as much as 20% for some resorts. (seems to me OKW has risen 8-10% in the last few months!). Assuming these potential buyers had the funds to purchase a few years ago, they would have earned a rate of return on their money (the net diff of a DVC investment then minus $$ spent for rooms during that same time period) of what - 1-2% on avg?

The key - once again - is to be honest with yourselves. If you know you are going to WDW every yr (for some, more than once a yr) and you know you are not booking in a value resort, the truth is you will be spending $$. If DVC vacationing fits your family style, there is a chance a purchase now makes more financial sense than waiting several years and paying OOP in the meanwhile.

Please understand I am NOT advocating people take on a longer term commitment for more $$ than they can afford - I am saying there are times when that $$ might go further if applied differently. I know we recently returned from a trip where we stayed at CR (garden view) for 9 days. That $3,000 or so alone would have paid for maintenance fees and loan payment interest for several years! If we finance through our home equity (4.98%) or a credit card offer (3.99% until paid in full) the interest would be even less. Now, we paid rack rate because of free dining, but back that out and we still would have spent less in int and maintenance for an SSR contract. We stayed in value season, besides - now, use a similar example for someone that must travel outside of school schedules, and the cost difference widens.

Please note that I am not comparing buying vs renting, but rather explaining that "as long as you don't finance" is not always a true statement.

 

[brianm27]

We are happy holders of 50 points. We might add another 25 at some point - and it is nice knowing we can. For our purposes 50 works just fine.