Going to buy DVC finally! What does this mean?

[LISAMWDW]

Just learning the ropes before doing the deed. What does this mean when looking at buying resale?

• December 2016
• 110 - 100 Banked

• December 2017
• 0

• December 2018
• 100

 

[miTnosnhoJ]

Just learning the ropes before doing the deed. What does this mean when looking at buying resale?

• December 2016
• 110 - 100 Banked

• December 2017
• 0

• December 2018
• 100

It is a little ambiguous, but here is what it looks like to me.

They received 100 point for Dec 2015, and banked them to the Dec 2016 UY.

They received 100 points for Dec 2016, and then borrowed 100 points from Dec 2017, giving them a total of 300 to spend in Dec 2016 UY, which ends Nov 30, 2017. They have spent 190 points, leaving 110 points that will expire if not used by Nov 30, 2017. The banking deadline was July 31, 2017, so the 10 2016 points will also expire at Nov 30, 2017.

Then in Dec 2017, there are no points, because they were borrowed.

In Dec 2018, you would get 100 points, and every year thereafter.

The 110 points would have to spent before Nov 2017. This may be difficult, because you would have to allow 3 months to go through the purchase process before you had your member number and were able to book. By that time, there would be very little availability for a booking by Nov 30 2017.

So in essence, this is a stripped contract with no points until Dec 2018.

 

[LISAMWDW]

Ok, that makes sense.

Thank you very much!!

 

[supersnoop]

Ok, that makes sense.

Thank you very much!!

Is that a real example? Because it doesn't really make sense. You'd have to horribly mismanage your account to end up in that scenario.

 

[_auroraborealis_]

Might explain why they're selling. Mismanagement is a side effect of not understanding product, and people who don't understand DVC tend to be unhappy owners.

 

[Matty B13]

I've seen quite a few contracts up for resale with some very strange points left in UY, I'm guessing it is someone selling a contract that didn't understand the banking and borrowing system and planned trips that they might take, but never did and decided to sell.

See quite a few Poly contracts with borrowed points in current UY about to expire because the UY is almost up (ie. less than 3 months to sell before the end of the UY).

 

[LISAMWDW]

Yes, this is a real example.

 

[Matty B13]

If you are interested in the contract, I would call the broker to verify how many points and which UY the contract has. Sometimes the contracts get posted to their websites incorrectly.

I found this out when I bid on what was a October UY contract and when I got the paperwork it was actually a June UY.

 

[miTnosnhoJ]

I would not recommend bidding on this contract as someone new to DVC. When you join DVC, you should be able to enjoy your purchase within the next 9 to 12 months. This might make sense for someone who is a current owner who thinks they may need additional points by 2019, and can get this at a heavily discounted price. Even then, chances are there are better options.

 

[Matty B13]

I would not recommend bidding on this contract as someone new to DVC. When you join DVC, you should be able to enjoy your purchase within the next 9 to 12 months. This might make sense for someone who is a current owner who thinks they may need additional points by 2019, and can get this at a heavily discounted price. Even then, chances are there are better options.

I second this.

Get on the email list of the major resale brokers and you will get the most up to date listings.

 

[LISAMWDW]

Ok, thanks all!!!

 

[KAT4DISNEY]

I saw that listing a few days ago she also thought about how poorly managed it had been. Made me think the owners may not have been enjoying DVC too much and found it difficult to use.

 

[mustinjourney]

Is that a real example? Because it doesn't really make sense. You'd have to horribly mismanage your account to end up in that scenario.

No kidding!

The owners should have called up member services and tried to see if they could have done a one time reallocation of the points. They did it for me once when my plans changed and I would have ended up with a weird allotment of points like this.

 

[Briana Venturo]

It is a little ambiguous, but here is what it looks like to me.

They received 100 point for Dec 2015, and banked them to the Dec 2016 UY.

They received 100 points for Dec 2016, and then borrowed 100 points from Dec 2017, giving them a total of 300 to spend in Dec 2016 UY, which ends Nov 30, 2017. They have spent 190 points, leaving 110 points that will expire if not used by Nov 30, 2017. The banking deadline was July 31, 2017, so the 10 2016 points will also expire at Nov 30, 2017.

Then in Dec 2017, there are no points, because they were borrowed.

In Dec 2018, you would get 100 points, and every year thereafter.

The 110 points would have to spent before Nov 2017. This may be difficult, because you would have to allow 3 months to go through the purchase process before you had your member number and were able to book. By that time, there would be very little availability for a booking by Nov 30 2017.

So in essence, this is a stripped contract with no points until Dec 2018.

What are your thoughts on buying Boulder Ridge I've been seeing asking prices of 83-100 pp the contract is done in 2042 I have a two year old me and my husband are in our late thirties so a twenty five year contract we wouldn't be super old. I looking to buy in but at a lower price point. I would like your expertise here if you could give me some advice. I haven't really stayed anywhere else on property we are newbies.

 

[miTnosnhoJ]

What are your thoughts on buying Boulder Ridge I've been seeing asking prices of 83-100 pp the contract is done in 2042 I have a two year old me and my husband are in our late thirties so a twenty five year contract we wouldn't be super old. I looking to buy in but at a lower price point. I would like your expertise here if you could give me some advice. I haven't really stayed anywhere else on property we are newbies.

I have never stayed at Boulder Ridge, although i have been in the main WL Lobby. The general advice is to buy where you love to stay, because DVC is getting more crowded, and you will probably staying at your home resort during busy periods.

As to pricing and the 25 years, I would say that the difference in price between Boulder Ridge, and the resorts with a longer life span is mostly explained by THe difference in price of the similar hotel rooms that you are comparing it with. So BR will be a discount off the WL hotel rooms. VGF will be a discount off the GF hotel rooms. The hotel room price also reflects amenities of the resort and location (e.g. Ease of transportation, closeness to a theme park, etc.)

A relatively minor factor in the price is the length of the contract. Because of the time value of money, only 10% to 20% or so of the price is accounted for by years beyond year 10. To understand this, ask yourself, what would I be willing to pay today for a hotel room in 2067? (50 years). The answer should be "not much". The time value of money means that you are paying for discounted vacations that are near, and you don't assign much value to discounted vacations that are far away. To put this another way, if you can't break even on your purchase within the first 10 years, it is probably not a good decision for you.

Most people who buy timeshares do not understand the math. It has been said that the lottery is a tax on those who can't do math. Similarly, a timeshare is a real estate investment for those who can't do math. So the point is, a lot of people will buy after assigning half the value of the contract to years 25-50, when in fact, those years have almost no value today....although they will then.

So you could play it two ways:
1) If you love staying at WL, buy BRV. Chances are, if you can afford it now, you will be able to afford to buy again in 25 years.
2) If you really want to lock in your savings beyond 25 years, look into some of the other resorts, realizing that you are paying for "in demand" resorts #1 and only secondarily for the extended life of the contract.

Others will have different opinions which I hope they share, because a range of views is always good. You may also get better answers if you create your own question with a relevant title rather than adding to a thread on a different topic. Good luck.