Explain to me please

[sajetto]

Hi there all you DVC members. My fiance and I are renting points for our honeymoon next year and my fiance just asked me what the 411 is in owning! Yipee, maybe this means one day he'll think about buying in I may sound like a dummy here but lets say we think that we would need about 200 points a year so we buy a contract for that amount. If that is the same amount we need continously year after year will we ever have to buy more points? What I'm asking is that after we use the 200 points the first year, that means we don't have to buy that many again for the next year right (I know you've got to be laughing at me right now b/c that would be nearly 17,000 a year) I've just got to be sure.

So say are use year begins in June and we use the points in August. We start all over again at 200 points the following June right or wrong? What are the average yearly dues now?

One big question we have is what it does to the owner when we rent points. Originally the person that we are renting from was advertising 198 points for rent but she PM'd us and said she had all 240 that we needed. Where did she get the other points from (was she trying to save a few for herself and then found us and took pity b/c its our honeymoon?) What does this do to her for the next year, does it take up all of her points? Also, is she making any profit from renting her points or does all of it practically go toward dues. We were really worried that we are taking up all of her points and that she may have to borrow to accomodate us or rent some herself to have her next vacation.

We would really like to know in case we do actually buy in one day and may have to rent our own points
I know this is a lot but we would really like to know the answers to these questions. Thanks!

 

[Anewman]

One big question we have is what it does to the owner when we rent points. Originally the person that we are renting from was advertising 198 points for rent but she PM'd us and said she had all 240 that we needed. Where did she get the other points from

I imagine that the owner had a reservation or transfer fall through and the extra points suddenly became available. OR depending what you are paying in rent they are renting them for less elsewhere. Rent typicaly goes for $10 per point.

You only BUY the points once.
Dues vary but are about $4-$5 per point, per year.
The use year determines when your points become available each year and does not change. Dues are Due at the begining of the calander year not use year.

 

[sajetto]

I imagine that the owner had a reservation or transfer fall through and the extra points suddenly became available. OR depending what you are paying in rent they are renting them for less elsewhere. Rent typicaly goes for $10 per point.

You only BUY the points once.
Dues vary but are about $4-$5 per point, per year.
The use year determines when your points become available each year and does not change. Dues are Due at the begining of the calander year not use year.

Okay, so does that mean when someone says "I'm looking to buy more points" It is only b/c their vacation needs have changed such as needing a larger room or a longer stay?

 

[LisaS]

Okay, so does that mean when someone says "I'm looking to buy more points" It is only b/c their vacation needs have changed such as needing a larger room or a longer stay?

Yes, generally when people decide to "add on" to their existing DVC contract, it's due to reasons such as you mentioned. Maybe their kids are getting older so they need a 2BR villa now instead of a 1BR. Or maybe they bought a small resale contract expecting to bank/borrow points and go every other year but now want to go every year. Or they bought in expecting to always stay in a studio but then splurged once and stayed in a 1BR and now they want to do that more often!

 

[sajetto]

What about taxes, how bad are they honestly?

And another question, if someone buys 200 points doesn't go one year and banks all their points and the next use year comes up does that leave the with 400 points that year? Isn't that way more than needed? (What do they do with all those exta points if they can't have an extended stay?)

Thanks for all the help so far!

 

[Anewman]

What about taxes, how bad are they honestly?

And another question, if someone buys 200 points doesn't go one year and banks all their points and the next use year comes up does that leave the with 400 points that year? Isn't that way more than needed? (What do they do with all those exta points if they can't have an extended stay?)

Thanks for all the help so far!

Taxes are included in quoted prices.
So part of the dues/fees you pay each year goes to taxes, there are no additional fees for using your points at disney resorts.

And yes you can bank each years points ONCE. So when those 400 points you ask about come available there are many options.
1. Use all 400 points, invite friends and family to go with you.
2. Use the 200 points you had banked from the previous year and BANK the current year points, obviously you will now have 400 again the following year.
3. Rent out points.
4. Any combination of 1-3.

 

[sajetto]

Taxes are included in quoted prices.
So part of the dues/fees you pay each year goes to taxes, there are no additional fees for using your points at disney resorts.
.

What I meant is government taxes. Don't you have to pay taxes on it b/c you have part ownership in something?

 

[tor]

The taxes are paid by the dues so you don't pay anymore in taxes and another option when you dont go one year and you bank the points is to use it for the Disney cruise since that takes a lot of points

 

[LisaS]

What I meant is government taxes. Don't you have to pay taxes on it b/c you have part ownership in something?

The property taxes are one component of the dues, the others being things like maintenance, housekeeping, transportation, etc.

 

[sajetto]

The property taxes are one component of the dues, the others being things like maintenance, housekeeping, transportation, etc.

So you mean that the property taxes are not filed by myself every year but instead are a componet of my yearly dues? I know I've got to sound like a dope

 

[Northern Lights]

Yes, property taxes are a component of your dues and are not filed by you, but you do get the deduction benefit for your income tax return.

 

[calypso*a*go-go]

I know I've got to sound like a dope

No you don't..there's nothing wrong with getting all the info. you need upfront in order to make a decision about purchasing something that is thousands of dollars. I've always believed in the "look before you leap" strategy.

Originally the person that we are renting from was advertising 198 points for rent but she PM'd us and said she had all 240 that we needed. Where did she get the other points from (was she trying to save a few for herself and then found us and took pity b/c its our honeymoon?)

She may have been trying to save them, or might of had to borrow points from the next year's allotment. Many people are hesitant to do this when renting because they would have to be used in the year they were borrowed into if the ressie is cancelled, instead of going back to the year they were borrowed from. Clear as mud?

 

[fishermouse]

Okay, so does that mean when someone says "I'm looking to buy more points" It is only b/c their vacation needs have changed such as needing a larger room or a longer stay?

It's called ADDONITIS, once you start going every year you want to go more so you buy more points so next year you can go maybe two weeks instead of one. DW and I are at the point now that we can do two weeks in a one bedroom, and one week in a studio, depending on the season, and we rarely do a Fri, or SAt night, that would cut out our third week. And we still want more.

 

[sajetto]

Thank you so much everyone!!!


This thread has helped me more than you know. My DF and I just had lunch together and I explained what all of you told me and guess what he said...."Make sure you set up a time for us to take the tour at SSR when we go next time"


Yipeeeeeee! I'm so excited...I'm thinking I've got him hooked. Wish me luck

 

[dianeschlicht]

Hey, Sajetto, hope we get to welcome you home real soon!

 

[sajetto]

Hey, Sajetto, hope we get to welcome you home real soon!

Thanks Diane, I'm hoping so too.