DVC...am I ridiculous for thinking that this is do-able for us?

[elizflynn]

I am interested in buying DVC (myself and my boyfriend- both 23 yrs old). I wanted to get your views on this. What are the monthly interest rates for financing? I was told we could finance 90% of it for up to 10 years, which seems very do-able for us. What do they require upfront though? As far as credit goes, what exactly do they look at? For example, I have very good credit, my boyfriend on the other hand defaulted on a student loan and has finally paid it off but his credit won’t “appear” to be good for a few years. Will that affect us? Do you think I’m ridiculous at 23 yrs old trying to buy into DVC?

 

[maryloubsw]

I am interested in buying DVC (myself and my boyfriend- both 23 yrs old). I wanted to get your views on this. What are the monthly interest rates for financing? I was told we could finance 90% of it for up to 10 years, which seems very do-able for us. What do they require upfront though? As far as credit goes, what exactly do they look at? For example, I have very good credit, my boyfriend on the other hand defaulted on a student loan and has finally paid it off but his credit won’t “appear” to be good for a few years. Will that affect us? Do you think I’m ridiculous at 23 yrs old trying to buy into DVC?

We financed through Disney, guide told us that they look for outstanding bankruptcies and tax liens only so I think you will be fine. As long as you have secure income and can afford it (ours is $313 a month at BLT and that includes maintenance fees, we put 15% down), we will definitley pay ours off early since interest rate is pretty high, within the next two years hopefully. Not to be negative but you would also have to consider if you were to break up, how to divide it up etc and whose name it would be in.

 

[crisi]

I think you probably have a lot of other things at 23 that should be higher priorities than DVC. Had I bought DVC at 23....

I wouldn't have been able to afford my house.
I wouldn't have been able to afford my wedding
I wouldn't have been able to afford infertility treatments, a subsequent adoption.
I wouldn't have been able to afford daycare when my kids were little.

It isn't just the DVC - its the trips that you take in order to use the points. Disney is an expensive vacation to make a committment to.

 

[dzorn]

Though you could finance it for 10 years would you want to pay that much interest? Plus the cost of the tickets, transportation and MF. It may be doable for you but should vacations be a priority in your spending.

If you decide to still go ahead you may want to look at the resale route and each buy your own smaller contract. In the mean time SAVE, SAVE, SAVE to see if you can buy it outright without financing.

Denise in MI

 

[LovinmyDisneylife]

DH and I bought into DVC last February. I'm 23 and he's 26. We had been researching DVC for over a year and we had been planning and budgeting on making the leap. With that said...it's definitely a luxury and not a necessity. Luckily we are able to afford the costs of annual trips and annual dues. I have absolutely no regrets and I'm glad that we did purchase while we are young and don't have children. You'll definitely need to do a lot of thinking as to whether you'll be able to handle it financially. You just don't want to regret your purchase and wish that you would have waited. Good luck

 

[bgraham34]

I think you probably have a lot of other things at 23 that should be higher priorities than DVC. Had I bought DVC at 23....

I wouldn't have been able to afford my house.
I wouldn't have been able to afford my wedding
I wouldn't have been able to afford infertility treatments, a subsequent adoption.
I wouldn't have been able to afford daycare when my kids were little.

It isn't just the DVC - its the trips that you take in order to use the points. Disney is an expensive vacation to make a committment to.

While I agree with what you are saying to a point but If I had the money at the time I would have bought into DVC. Maybe she has no plans to get married, have kids or buy a house. This is her decision and she is asking for basic information not a life lesson. Her situation in life can be very different from yours. As Dzorn said the resale route is not a bad option. I did that too. I purchase 50 points to get my feet in the door.

 

[crisi]

While I agree with what you are saying to a point but If I had the money at the time I would have bought into DVC. Maybe she has no plans to get married, have kids or buy a house. This is her decision and she is asking for basic information not a life lesson. Her situation in life can be very different from yours. As Dzorn said the resale route is not a bad option. I did that too. I purchase 50 points to get my feet in the door.

That is why I said probably. There are probably a few 23 year olds for whom DVC is a good decision, but they are probably the minority.

And she asked.

 

[princessfionasmom]

I wish I had bought in when I was 23 (I'm 36 now). At that time we were not saving for a home yet or a wedding. Looking back we could have bought in and paid it off in a few years before we bought a house, got married and had kids. I say if you can do it, do it now and try to pay it off as quick as you can. When I was 23 (DH is older) we had some money to blow and we did, which I had put it to better use like DVC, because we go every year and really LOVE the nicer accomodations. Good luck with your decision!!!

 

[Jason@dvcstore]

I think DVC might be great for you, however, if you do decide to purchase I would recommend simply putting the contract in your name only. If you two get married then you can go through the process of adding him to the deed.

Feel free to check out The Timeshare Store, Inc.® as well in regards to purchasing. We specialize in DVC and receive new listings on a regular basis. Simply email us at sales@dvcstore.com with your first and last name and we we can add you to our distribution list. When new listings become available you will be notified via email.

Thanks,
Jason

 

[arthur06]

I would say look for a small contract... If you can get a 100 AKL contract it might be worth it...

typically a purchase requires 10% (or more) down payment...

if you have a smaller contract and something comes up that you want to sell, its alot easier to sell a small contract...

(Not trying to be the negative one here either) But, since the two of you are just dating, you may want to look at purchasing it in one persons name. I know people get married and divorced all the time, but it is so much easier to walk away from a gf/bf then a husband/wife... just sayin'

 

[dumbo_buddy]

i agree with jason that if you decide to buy that you put it in your name only. not only because of the credit issue but also because (god forbid) if you guys break up it would be a big hassle.

try resale! we just found out that we can buy resale (disney waived ROFR) and we are going to wind up saving a ton!

as far as buying when you're 23? well, only you can decide! but just think, by the time the rest of the people your age are getting around to buying dvc, you will have yours paid off and your family can continue on enjoying your "free" vacations!

 

[DVCGeek]

I think DVC might be great for you, however, if you do decide to purchase I would recommend simply putting the contract in your name only. If you two get married then you can go through the process of adding him to the deed.

I was thinking the same thing; two legally unrelated people as co-owners can sometimes be ugly. And a small resale might be a great way to start, BUT I bought all my contracts directly from Disney using their financing on the first and then paying cash for my 3 add-ons.

IF you can afford the payments and IF you are going to go to Disney anyway and spend at least as much on your room (ONLY) as what DVC will end up costing you, I'd say go ahead and buy it!

However, if you are perfectly happy staying in value resorts, want to go to Disney less than every 2 years, or are really stretching things to be able to make loan payments, then I would wait.

The other questions are weather you are a good fit for DVC in general and what level would be right for you: How many points to buy, what home resort, and if you are a good timeshare candidate in general (can you book 7 to 11 months in advance most of the time?), etc. etc.

 

[sweetdana]

1) Agree with other posters 1 name contract n financing, pick one name and go with it.

2) Look into your 5 year plan, do you have other expenses you will want more. IE are you willing to give up a big wedding, for the annual vacation? Are you okay with keeping a car for an exrta 2-3 years to assist with monthly payments. Or buying used, because of it? Do you have an idea of when you will need a newer car? Do you plan on buying a home in the next 3-6 years? If you think I need a new car, I might be buying a home, I want to have a big wedding. .. then maybe not yet.

3) Start small, do not buy a 250 point contract, buy a 100 point and add on when you pay it off. No rush on it. I even reccomend putting more down, like 40%. Keep the payment low, not high. ... OR better buy a 50 point contract resale cash!!!!! Then save and add on.

4) Have 6 months liquid 1st if you do not already. Have a plan if one or both of you lose your jobs. You would be suprised how few people really have a savings and a plan in a job lose situation. Everyone who doesn't regrets it when they need it.. and think I didnt really new a new flat screen TV, or I could have waited a year for a new car.. Or what ever.

It is your life and your priorities. Is vacationing what you want more than driving a newer car, will your current job support DVC and other things. Would you pick 300$ more a month of a home instead? IE spending 50K more on a home, verses owning DVC. IE starting with a 3 bedroom with a basement, instead of a 2 bedroom without. When you can answer these .. then it is time to buy.

Good luck!

 

[Mike2023]

My wife and I joined the DVC club last year (we are 27 and 25). We financed over 10 years and while that might not have been the smartest option it still turns out to be less then our annual trip to Disney. At least this way at some point the payments will stop.

Good luck

 

[MommyBell08]

I also agree with Jason. I think if you're the one with the good credit, why bother with both of you being on the Title. it may give you a higher interest rate anyways depending on how you decide to finance. I have read so many ppl say the only thing they regret about buying into DVC is that they didnt do it sooner. I am 25 and DH is 24. We just bought resale and couldnt be happier. Got our closing pprs TODAY! Good luck with your decision!

 

[bigred32]

I wish I'd bought in at 23. I'd be paid off and the cost per point would have been significantly less. Lots of good advice on here already... definitely look at a resale, you can save a pile of cash.

 

[5forDiz]

Look at the whole picture; does financing for 10 yrs really make DVC as attractive as you're thinking ? And, if after you research everythng out, you and your DBF are convinced DVC is really right for both of you then jmho each buy your own contract even if it means a rather small resale contract for each person; if you stay together it is easy enough to use points from both contracts for trips and if you don't stay together it will make things a whole lot easier on the two of you.

Good luck on your research

 

[redboxcar]

Just going to throw in my two cents because I'm in a similar situation.

My boyfriend and I are both 23, turning 24 this year. We've known each other since middle school, but only been together for 3 years. We've lived together for the past 2 1/2 years.

We track our finances very carefully, and while we do have credit card debt and the remainder of a car loan (less than a year left!), we're planning on buying into DVC by next year.

By that time, we'll have all of our debt paid off, the car will be paid off, and we'll have saved [hopefully] roughly enough money to buy a 100-point contract resale. Because he has good credit and I do not, it'll be under his name.

We know that in the near future (within 5 years) we'll want to get married, and POSSIBLY start a family, but probably will not be buying a house. Although the wedding/family thing might be something we want to spend money on, we also really to buy into DVC. We are positive it's something we want, and by that time, we'll have been looking into DVC for about 2 years before taking the plunge. Whether it's the smartest move or not, we don't plan on financing it, and we don't want to regret not buying in sooner.

Do what feels right! Good luck!

 

[TisBit]

A lot of good opinions on here. One thing to consider before you "save a pile of cash" on resale, remember interest rates are higher, credit checks more vigorous and purchase process not nearly as smooth.

With that being said, I have found historically (not pertaining to anyone in this thread) there are a lot of long term owners who are retired, etc on the DIS and will always advice not to finance. Its like asking your grandparents about financing, they will always tell you no, don't do it, if you can't afford it with cash you shouldn't buy it.

With that being said, it is a financial commitment and you are the only one that knows if you can afford it. I have seen numbers crunched that show financing can be more cost effective than taking an annual vacation just through DVC cost savings. But there are a lot of variables there. Biggest recommendation is to start with a minimum buy in and you can always add on later.

 

[penlanspice]

I say if you can afford the payments then go for it.

We bought into dvc when me and DH were 24, we had no immediate plans to get married, have kids and we're renting. We bought 150 points and had a loan to pay for it (not dvc financing) and we paid it off in about 5 years.
We then got married and bought a house, we didn't run into any financial difficulties and even thing worked out well for us.

We have now just added on BLT and had financing with Disney.