DVC Dilemma for us

[Cinderpals]

I wouldn't wait to buy if you know that you're going back in Sept. and Feb. You may not get points in time for the Sept. trip if you buy resale, but you'll have February's trip in points. Why not put those $$ towards the purchase of your contract. If I knew that I would be going to WDW half as often that I do, I would have purchased into DVC a long time ago. Plus, with the current year's incentives, you may get some park passes, or at least the DVC member discount off of the annual passes/renewals. I saved over $400 for our family's passes.

If you know that you're going to have the $$ within the year, purchase your points now with the incentive Disney is offering, or find a loaded contract through resale. I'm not for long-term financing for a DVC contract, but I wouldn't wait, especially since you're planning on having enough cash within the year. Point prices keep going up. One contract that I had purchased last year, has already gone up $11-$15 more than what I had paid. Of course, I'll never sell it, but I'm glad that I didn't wait another 6 months.

Best Wishes! You're blessed to have your mother with you on your trips.

 

[dianeschlicht]

She already decided to do that.

 

[Cinderpals]

She already decided to do that.

I'm happy for her. I can't always read throught all of the posts!!

 

[Thesilentstorm]

Bongo59,

Congratulations, finally someone who is thinking clearly. There are NO circumstances where financing makes sense. Disputing this is just plain silly. Your posts in this thread could have been written by me. I also have made a small fortune by taking advantage of those that don't follow a common sense approach to life and investing. Financing luxury purchases is a ticket to the poor house. So is buying that home with little down and with a ARM.

Read "Rich Dad Poor Dad" to see how I've made my fortune. It really isn't tough at all but you must be willing to go against the way the vast majority of Americans live today.

Good Doctor, You also do not have to sacrifice everything to achieve this either. Life is a balance but financing a non essential luxury purchase is a big NO.

OP, wait until you can pay cash. Skip the trip this year and further your investment portfolio. The following year maybe you'll have enough disposable cash to buy in.

Thanks Bongo59, for the brightest posts I've seen on the Dis.


Eugene

 

[Thesilentstorm]

Well, the discount is through my cousin, a CM. So, first, she may not work there forever, and second, even if she did, Disney may not extend such a discount forever, except possibly only to immediate family. Also, renting points at $11 a point would be more than the highest discount, which is 50% off rack rate. However, that is not always available. As with other discounts, they only offer a limited amount of rooms at each tier, 50%, 40%, 25%.

Actually, that is how we fell in love with SSR. We were staying on her discount in 2005 and were going to stay at POR. The only rooms at the moderate level with a CM disc were for 25% off. We were able to reserve a studio for the same price at SSR, because they were still offering 40% off at OKW and SSR. We stayed and LOVED it.

And taking the cost of the # of points we would buy, divided by 48 years, add on dues, and it is still cheaper to buy DVC, even at 50% off rack rate. We would also hate to not buy in now, she leaves the company in 10 years, and points are $150 each!!

Anyway (much to bongo's dismay, I am sure...sorry!) we are going to go with financing for 1 year. We are looking to be "home" by the end of summer!!!

And we love our guide, BTW. hehe

Bongo and I will be likely grabing up your points on the reslae market soon enough. I am truly sorry you didn't take his advice. Lets just hope the instant gratification you've chosen doesn't put a big dent in your long term financial health.

Happy travels and heres to crossing our fingers for your retirement. At least you'll have the DVC right............. well maybe not.


Welcome home,

Eugene

 

[zalansky]

To the OP congrats on your decision. I think it was the right one regardless of what others may think. Also, because you finance through Disney, they will pay your closing costs which is about to end in July, I believe. I agree with many other posters in that you have a good financial head on your shoulders.

I am always amazed at how rude some people can be on the internet. Unbelievable.

And to Jodifla, I have been running across alot of your posts lately and I am agreeing with every one of them!

WELCOME HOME OP!

 

[Paging Tom Morrow]

Buying a house with financing I am OK with but i think it is insanity to buy one if your subject to PMI...........plunk down your conventional 20 % to avoid it or better yet build up your asssets so that your net worth will allow a bank to waive the PMI with a more conventional 5-10% down

You share the same exact thought as my mother-in-law, and thank God we didn't listen to her.

In mid-2003, my wife and I purchased a house for $319k (a small starter house in our area). We were only able to put 8% down, so we were forced to pay $150 in PMI for the better part of 2.5 years.

Instead of paying a $1250 a month for rent, we paid $2400 (including taxes, PMI and homeowner's insurance). If we had saved the difference, for each of the last 30 months, we would have had an additional $34,500 to put toward our down payment.

I am confident that I could sell our house for $420,000, but for the sake of this explanation, let's say I was buying it today for $400,000.

If I were to buy my same house today for $400k and use the additional $34,500 toward the downpayment to eliminate PMI, it would actually cost me $5810.13 more per year than what it currently costs!

The bottom line when it comes to home purchases: Saving an additional $30k is offset by the interest rate raising 1%. When you factor in that house prices will likely appreciate during that time, if you can't save $30k in less than the amount of time analysts project that the fed will raise rates by a full point, you will wind up costing yourself money in the long run.

 

[zalansky]

Paging Tom Morrow -
WOW I am surprised you found anything on Long Island for $319! I grew up there and still have friends and family there and am amazed how people afford to live there.

 

[dianeschlicht]

Eugene, Perhaps you need to look at what you just wrote. Maybe take
a look at Bambi again...."If you can't say something nice, don't say anything at all".

Too bad your EIGTH post makes you such an expert!

 

[NJOYURLIFE]

Can't wait to welcome you home!

Not everyone who finances a luxury purchase gets in trouble and needs to sell.

 

[Squidrific]

Eugene, Perhaps you need to look at what you just wrote. Maybe take
a look at Bambi again...."If you can't say something nice, don't say anything at all".

Too bad your EIGTH post makes you such an expert!

Diane: I agree with you. That post was absolutely uncalled for.

Well, she did ask...

Snowbunny: You should have quoted my whole paragraph instead of taking just a portion. The post that Diane is referring to is what I was afraid of. Good financial advice like Bongo's I don't have a problem with nor do I have a problem with a nice debate because it makes you think of all the options.

I was afraid I was going to see withat I did from Eugene. The reason being that I have been seeing more and more of these kind of snippy comments on this board - even now that Boatboatboat is gone.

 

[2Princes2Princesses]

Bongo and I will be likely grabing up your points on the reslae market soon enough. I am truly sorry you didn't take his advice. Lets just hope the instant gratification you've chosen doesn't put a big dent in your long term financial health.

Financing for one year will send us to financial ruin?? With an outlook from you as bleak as this, I am not sure this will change your mind in anyway, but we will only be financing about $5000 on a 260-point contract due to fortunate circumstances on our end.

I wouldn't hold your breath looking for us on the resale market.

I just found it less prudent to wait until next spring to buy in, pay almost $3000 for 2-weeks in Feb in addition to our DVC contract, and lord knows how much the points will go up in the interim.

And postponing our trip...we take my Mom, who is now in her 70's, and I love that my kids get to spend time with her exclusively....with work and school, that doesn't happen at home. My father died suddenly when i was 23, my 3 younger kids never knew him, and my oldest only had him for 2 years. Disney with us in May was the first vacation she had taken since he died. The risk of 1 year is worth it to us. So far it is the only place we can get her to go.

Our total debt after financing DVC will still be well under $10000 (including remaining student loans, CC, our truck).....and our emergency fund could cover that several times over. Why will I not dip into that and pay cash?? Because to me, once you cross that line and use emergency savings for 1 extra thing, it becomes easier to dip in again and again!

I should say thank you, though.....I appreciate that you would care enough to give an honest opinion, even though it might not be the popular one.

 

[Newcastle]

Diane: I agree with you. That post was absolutely uncalled for.



Snowbunny: You should have quoted my whole paragraph instead of taking just a portion. The post that Diane is referring to is what I was afraid of. Good financial advice like Bongo's I don't have a problem with nor do I have a problem with a nice debate because it makes you think of all the options.

I was afraid I was going to see withat I did from Eugene. The reason being that I have been seeing more and more of these kind of snippy comments on this board - even now that Boatboatboat is gone.

Are you sure Boatboatboat is really gone?? I have a sneaky suspicion that he is lurking around here somewhere!!

 

[Muushka]

I should say thank you, though.....I appreciate that you would care enough to give an honest opinion, even though it might not be the popular one.

2Princes2Princesses, you are one class act! I have read through this thread, wanting to comment, but just listening. I wish you all the best in your decision, and many happy vacations with your family!

 

[browniemtb]

2Princes2Princesses congrats and a soon to be welcome home........As I have found there are many different views, some help some are out there. Apparently the ones that feed off the people in financial ruin sound like bankruptcy Lawyers to me......I could be wrong. There really is nothing wrong with financing......Thesilentstorm and bongo did you pay cash for your cars...no financing.......this is a luxery item, you could always use a bicycle. Again congrats and enjoy...DVC is a great.....see you at Disney.....

Brownie

 

[blitzkrieg048]

i cant be any more clear than NEVER BUY a luxury purchase on credit.................it is a huge financial mistake........buying a house is not equivalent to a DVC purchase and in todays mkt most buyers over the last 5 yrs have bought too much house on too little foundation and our now getting creamed on thier adjustable arms after 16 consecutive Fed rate increases..................Buying a house with financing I am OK with but i think it is insanity to buy one if your subject to PMI...........plunk down your conventional 20 % to avoid it or better yet build up your asssets so that your net worth will allow a bank to waive the PMI with a more conventional 5-10% down...............No, I am not a fan of the recent real estate boom because it is now crumbling rigth infront of some shocked folks...........and people like me are buying these distressed properties for 40 to 60% less than they financed them for..............that is a different talk however.............back on topic.........my advice is to avoid trips WDW for several yrs because as we all know WDW has huge associated cost too with the cost of a room............vacation locally and more frugally the next 4 yrs and bank your money in an asset management account and buy a growth stock with a high dividend that will give you 4-7% per yr growth.................here are some recs.............Citigroup, Pfizer, Conoco Phillips and Wells Fargo.................if you want to be more aggressive then i would suggest you buy fallen angels or small growth stocks.................things in this category Ebay Yahoo Chico's Kyphon etc...............good luck..............and no i am not flexible on my beliefs on financing DVC............it is a mistake in every circumstance and any finacial counselor worth their salt will tell you the same....................good Luck

You lost me.

 

[shantay1008]

I propose that from now on, DVC not be classified as a "luxury" item. Fur coat, yes...diamond tennis bracelet, yes...fancy little sports car, sure. But don't you think Disney World belongs in a category of its own and should be given a free pass from being considered frivolous? Seriously.

Many of us who normally shy away from credit, debt, etc., happily financed our DVC purchases (I've read lots of threads on the subject). It would have taken me a long time to save the $$$ to purchase DVC outright, so we financed back in 2002. But it's been soooo worth it to be able to take my wonderful parents to WDW...now. Instant gratification-shmatification. Yeah, definitely need to avoid it when it comes to cookie dough ice cream or a new minivan. But watching my mother (who had just suffered the loss of her best friend to cancer) and daughter rapturously watching Wishes? Well, that's why I don't think DVC is your typical luxury purchase.

Thanks to a big ol' tax refund from an adoption credit, we were able to pay off our DVC loan, anyway. Stuff works out....

 

[thelobstershanty]

Diane: I agree with you. That post was absolutely uncalled for.



Snowbunny: You should have quoted my whole paragraph instead of taking just a portion. The post that Diane is referring to is what I was afraid of. Good financial advice like Bongo's I don't have a problem with nor do I have a problem with a nice debate because it makes you think of all the options.

I was afraid I was going to see withat I did from Eugene. The reason being that I have been seeing more and more of these kind of snippy comments on this board - even now that Boatboatboat is gone.

I agree that what Eugene wrote was very rude and uncalled for. But I found Diane's response to be equally as rude and snippy. "If you can't say something nice, don't say anything at all", applies to everyone.

 

[WDW LOVR]

And postponing our trip...we take my Mom, who is now in her 70's, and I love that my kids get to spend time with her exclusively....with work and school, that doesn't happen at home. My father died suddenly when i was 23, my 3 younger kids never knew him, and my oldest only had him for 2 years. Disney with us in May was the first vacation she had taken since he died. The risk of 1 year is worth it to us. So far it is the only place we can get her to go.

I agree. It's the same point a number of us have made here. My dad died one month after he found out he had cancer a number of years ago. A couple of nature trips my brothers, my kids and I took with him in the year before his passing are priceless to me. What if we hadn't taken those trips?

I'm glad you decided to do it. You're obviously not careless with your spending, and if you're going to spend a big chunk of money for a trip that could be used as a big part of a DVC purchase it makes sense to do it.

Trips where your kids get to spend time with family are to be valued. You never know when your number is up. Enjoy it while you can.

 

[Muushka]

I propose that from now on, DVC not be classified as a "luxury" item. Fur coat, yes...diamond tennis bracelet, yes...fancy little sports car, sure. But don't you think Disney World belongs in a category of its own and should be given a free pass from being considered frivolous? Seriously.
Many of us who normally shy away from credit, debt, etc., happily financed our DVC purchases (I've read lots of threads on the subject). It would have taken me a long time to save the $$$ to purchase DVC outright, so we financed back in 2002. But it's been soooo worth it to be able to take my wonderful parents to WDW...now. Instant gratification-shmatification. Yeah, definitely need to avoid it when it comes to cookie dough ice cream or a new minivan. But watching my mother (who had just suffered the loss of her best friend to cancer) and daughter rapturously watching Wishes? Well, that's why I don't think DVC is your typical luxury purchase.

Thanks to a big ol' tax refund from an adoption credit, we were able to pay off our DVC loan, anyway. Stuff works out....

Sorry, I cannot agree with this mentality. DVC is a luxury (no matter how much fun we get out of it!)