Do people ever buy with a family member?

[CalDisneyMomof2]

I mean someone that isn't your spouse obviously. Is this possible? I'm seeing that some of the resales are less expensive the more you buy.

 

[crisi]

Sure...there can be some downsides. You have to trust your family member. You'll need to negotiate points usage and how to pay for dues. If one of you wants to sell, you need to figure that out - does the other buy them out? Do you sell? The biggest however is that its an asset for both of you. If you buy with your sister and she declares bankruptcy or gets divorced - its an asset for her. Some members have lost DVC due to their friends or relatives issues - not because of their own.

 

[Dean]

I mean someone that isn't your spouse obviously. Is this possible? I'm seeing that some of the resales are less expensive the more you buy.

I've seen it done but I agree with crisi, it's a risk. Frankly, it's a risk I don't think reasonable. In general I recommend against family/friend partnerships. It's not worth changing lifelong relationships for and that's a risk anytime you borrow/lend money, cosign or buy an asset with someone you're not tied to legally anyway. Having said that there are potential ways to limit the risk and IF one does decide to proceed, I'd certainly want all contingencies in writing including what happens if someone dies, divorce, has financial issues, doesn't pay or just wants out later.

 

[CalDisneyMomof2]

I completely agree with both of you that it is in fact incredibly risky. The person who I brought up the idea to is my cousin who is more like a sister to me. Neither of us would feel insulted should the other ask to write out a contract - in fact I'm sure we've both just assumed that's what we'll do.

It's still very early in the talks of it.

Another question - if we do decide to go in together-can two people be owners or does one just do all the reservations? How does it work if we want to use the discounts for AP's and such?

I'm new to all of this so any information is appreciated.

 

[CarolMN]

......(snip).......Another question - if we do decide to go in together-can two people be owners or does one just do all the reservations?

You can set up your ownership with both of you as owners in several ways. It depends on how you title the deed. Most married couples title the deed as joint tenants, with rights of survivorship. But there are several other ways to own together besdies that, and one of those may work better for you and your cousin. You might want to consult an attorney to determine which is best for the two of you.

.. How does it work if we want to use the discounts for AP's and such?

I'm new to all of this so any information is appreciated.

All owners will have the ability to make reservations, bank, borrow & otherwise manage the account. They will ask you for one person to be designated as the one to decide if there is a conflict. It's usually best for one person to take care of the account, but each owner can have his/her own log in ID and password to access the account online.

Both owners will be entitled to the discounts, perks, etc. If the owners live at different addresses & have different email addresses, each address will be sent all the mailings. For APs, anyone in either owner's immediate family residing at the same resort as the owner may purchase the DVC AP or DVC PAP. Immediate family is defined and I believe there is a limit of 8 APs/PAPs per membership.

 

[Dean]

I completely agree with both of you that it is in fact incredibly risky. The person who I brought up the idea to is my cousin who is more like a sister to me. Neither of us would feel insulted should the other ask to write out a contract - in fact I'm sure we've both just assumed that's what we'll do.

It's still very early in the talks of it.

Another question - if we do decide to go in together-can two people be owners or does one just do all the reservations? How does it work if we want to use the discounts for AP's and such?

I'm new to all of this so any information is appreciated.

If you decide to proceed, do some research to find out all the points that need to be covered in a partnership agreement just like it's a business. I mentioned some but there are others. Also consider spouses and how they play into this as they are often the problem in the end for such matters. Keep in mind you'd be doing this for a probable savings of a max of $10 a point, $2000 on 200 points, likely less per point on a larger contract. If you're both looking smaller and this gets you to a full sized contract of say 2*100 vs 200 I could see it. If we're talking 2*200 vs 400, it's less of a benefit and has some other risks if you need to sell later. If you're doing this to simply be able to afford it (my definition no consumer debt, pay cash) then some of the risks we mentioned would be greater still.

There are other approaches you could take. You could buy a slightly larger contract and rent out the points ever few years. You could also buy with the cousin with an agreement but have one be the owner and the other an associate in case there's an issue, there would be a clean and easy split.

I do think you need an attorney if you do this and that will eat part of the savings.

 

[com_op_2000]

My wife and I bought in back in '93. We bought another contract resale with both our adult daughters in '11.

 

[Disneyhabs]

My sister and her hubby just bought with my dad and my other sister and her hubby bought 2 years ago with his parents.

 

[bobbiwoz]

My sister and we bought a vacation home together in 1998. We did go to a lawyer for a contract that covered things like what happens when one of us wants to sell, and the obligations we have. It has worked like a charm.

 

[CalDisneyMomof2]

Thank you for all of your responses! We are talking of doing this possibly in another year. BUT I am positive if we go through with it we will write out a contract like you've all said.

 

[crisi]

Thank you for all of your responses! We are talking of doing this possibly in another year. BUT I am positive if we go through with it we will write out a contract like you've all said.

Spend part of the year here reading - its one of the best ways to learn the system - as you learn it, you'll be able to figure out what sorts of agreements you want to put in place in terms of point use....for instance, is borrowing for a reservation OK? Who banks and when? Do you sit down and sketch out the next three years of usage each year?

I suspect that the biggest problem would be DVC newbie excitement - where one of you gets excited and uses a bunch of points, leaving none for the other for two years....that could cause a lot of hurt feelings right out of the gate. Cooperative planning will be big.

 

[Lorilais_mommie]

My sister and I were thinking of doing this..
However I think a question may have been missed...

How many points are you planning on buying in with?

Let's say 200.. Why don't you each buy 100? In or own name? Thus avoiding the risk and heartaches later..
MF Are calculated per point... Your only saving the closing cost.. $300-$400 maybe?
Should you guys all travel together one person can transfer their points to the other person..

This worked better for my sister and I..
If there is another reason I've missed, please feel free to add..

 

[Dean]

My sister and I were thinking of doing this..
However I think a question may have been missed...

How many points are you planning on buying in with?

Let's say 200.. Why don't you each buy 100? In or own name? Thus avoiding the risk and heartaches later..
MF Are calculated per point... Your only saving the closing cost.. $300-$400 maybe?
Should you guys all travel together one person can transfer their points to the other person..

This worked better for my sister and I..
If there is another reason I've missed, please feel free to add..

Due to the price per point difference on smaller contracts the dollar difference in your scenario is a little larger though I agree with the principles. The price difference would be more in the $2000-2500 total for 2*100 compared to 200 for established properties unless one could find a contract that were from a single owner at around 2*100 or similar.

 

[bakerworld]

Just remember that while larger point contract are less $$ per point, they're going to be harder to sell later on. You can't break them apart to only sell the 2nd persons half.