Help-just took DVC tour yesterday and still lots of questions!

[GirlfromTN]

My fiance and I took the DVC tour yesterday at WDW. We LOVED the AKL and BLT villas. We are seriously considering buying DVC, but we might try to save the money first so we don't have to finance it.
We came up with tons of questions after the tour during our 6 hour drive home. I know I can call our guide back and ask, but I really think I get more honest answers here Any help or suggestions would be GREATLY appreciated!!!
1) Use year - how do you select your use year? If I chose a Feb use year, would I get points now AND in Feb 2010?
2) Add ons: I have seen a lot of threads about people buying a home resort, and then adding on at another resort. Let's say you bought 160 points at AKL, and then added on 25 points for BLT later. Do you pay additional closing costs for the add-on? And how do reservations then work? You'd have 185 points all together. Could you call 11 months ahead for both resorts, and use the 185 points at either one? Or can you only use 25 points 11 months ahead at BLT, and 160 points 11 months ahead at AKL? Do you need the use years for both sets of points to match up?
3) My fiance is a little concerned about what will happen in the future. All the villas are nice and new now, but what happens in 25 years when they are older? What about 40-50 years from now? Will Disney charge high assessments whenever the whole resort needs to be updated, or do they account for that in reserve funds? Is anyone else concerned about staying in a 40 year old hotel in 40 years??? My fiance is concerned that the hotels won't even be around in 40 years.
4) Finally, I know that the villas are rented out by Disney if they aren't booked by DVC members. I assume this would constitute income fo rthe resort. Is this income attributed to DVC owners? Do we have to pay income taxes on this? (I am worried about phantom income and the associated taxes). I would hope that DVC has the system set up so that the members are not liable for income tax, but just not sure.

Thanks for the help! More and more questions keep coming up

 

[chalee94]

1) Use year - how do you select your use year?

Remember that UY month has nothing to do with when you can call to book a room. It's best to have a UY month that starts right before when you primarily prefer to vacation at wdw.

here's the thread with more detailed information on use year if you need it...


If I chose a Feb use year, would I get points now AND in Feb 2010?

Yes.

2) Add ons: I have seen a lot of threads about people buying a home resort, and then adding on at another resort. Let's say you bought 160 points at AKL, and then added on 25 points for BLT later. Do you pay additional closing costs for the add-on?

There are no closing costs when adding on directly through DVC.

And how do reservations then work? …Or can you only use 25 points 11 months ahead at BLT, and 160 points 11 months ahead at AKL?

Yes, points retain their specific home resort booking advantage. You can combine pts from different resorts at 7 months out. You can also book BLT at 11 months with bankedBLT+currentBLT+borrowed BLT pts every 3 years for a total of 75 pts if that works better.

Do you need the use years for both sets of points to match up?

If you add-on directly, you would have no choice but to match the UY month.

If you buy a resale with a different UY month, it gets a bit more complicated.

3) My fiance is a little concerned about what will happen in the future. All the villas are nice and new now, but what happens in 25 years when they are older? What about 40-50 years from now? Will Disney charge high assessments whenever the whole resort needs to be updated, or do they account for that in reserve funds?

They try to account for it in the reserve funds but assessments are a risk of owning the timeshare. There have not been any assessments so far...

OKW has been around for over 15 years already. I’m ok with the level of maintenance but some don’t feel the DVC resorts are maintained quite as vigorously as the Disney hotels.

Is anyone else concerned about staying in a 40 year old hotel in 40 years??? My fiance is concerned that the hotels won't even be around in 40 years.

40 years is a long time...

4) Finally, I know that the villas are rented out by Disney if they aren't booked by DVC members. I assume this would constitute income fo rthe resort. Is this income attributed to DVC owners?

Disney’s rental income of DVC rooms offsets our dues and, in some cases, pays for our trades.

Do we have to pay income taxes on this?


No.

 

[GirlfromTN]

Thanks, very informative answers!

I thought of another question: the DVC guides talk alot about the option of using points to stay at RCI resorts. I understand this may not be the best "value" in terms of using points, but it seems like a good opportunity to use points to travel other places. Does anyone have insight into how difficult it is to book stays through RCI, and what the general quality level of the resorts tends to be? I know that DVC just switched to RCI from II so not sure if there will be many opinions about this yet. Is it a bad idea to buy DVC with the thought that you *might* use points every few years for RCI, or a Disney Cruise, etc.? Or is it better to just assume that you'll use DVC points at Disney resorts or HH/VB only, since that is the best value for points?

I asked the guide about Hawaii, and he said it would definitely be open in 2011. Does anyone have insight into this? If it opens, will it be absolutely impossible to book a stay there if it is not your "home" resort?

 

[Mickey'sApprentice]

Thanks, very informative answers!

I thought of another question: the DVC guides talk alot about the option of using points to stay at RCI resorts. I understand this may not be the best "value" in terms of using points, but it seems like a good opportunity to use points to travel other places. Does anyone have insight into how difficult it is to book stays through RCI, and what the general quality level of the resorts tends to be? I know that DVC just switched to RCI from II so not sure if there will be many opinions about this yet. Is it a bad idea to buy DVC with the thought that you *might* use points every few years for RCI, or a Disney Cruise, etc.? Or is it better to just assume that you'll use DVC points at Disney resorts or HH/VB only, since that is the best value for points?

I asked the guide about Hawaii, and he said it would definitely be open in 2011. Does anyone have insight into this? If it opens, will it be absolutely impossible to book a stay there if it is not your "home" resort?

There are basically 2 views about trading out on the DIS. If you look at in a strictly financial sense, then trading out is a bad deal. You should always rent your DVC points and pay cash for other locations.

However, if you look at it in terms of enjoying yourself, you can get a lot of enjoyment from the traded destination, when you finally feel burned out on Disney.

My thought is that its best to USUALLY use your points at Disney, but its totally ok to do an exchange from time to time.

Being in Alabama...we have seriously considered Gulf Shores, Destin, and Gatlinburg. We have also considered Washington DC, Williamsburg, and New York City.

We just can't seem to drag ourselves away from Disney.

 

[chalee94]

I asked the guide about Hawaii, and he said it would definitely be open in 2011. Does anyone have insight into this? If it opens, will it be absolutely impossible to book a stay there if it is not your "home" resort?

too much uncertainty in the economy for guides to be definite about what will happen in 2011, IMO. most likely, there will be some availability at 7 months, but until it opens, it's hard to know for sure. (the more general concern is how disney will sell enough points to owners who will be able to book at 11 months - not whether other DVC owners will want an occasional stay in hawaii.)

 

[GirlfromTN]

Ugh hate all the uncertainty !
I have now come up with an idea to buy a resale contract for SSR or VWL or something like that, and possibly just add on some BLT points. Are you currently allowed to add on 25 or 50 point contracts to an existing contract? And what would the price be for an add-on; would it be the discounted $107 price or the full $112? I assume there wouldn't be any incentives for such a small add-on contract.
My thought is that I'll have enough points (with banking/borrowing) to stay at least a couple nights each year or every other year at BLT (love love love it). I'll also have some extra points which I can either 1) use at BLT if there is availability, 2) use for other resorts at WDW (don't REALLY care where I stay there if it is not BLT, but prefer to have lower maintenance fees), or 3) perhaps do an RCI trade or go on a cruise occasionally. Thoughts? Would I be better off buying the bulk of the points at SSR since they are currently pretty cheap on the resale market and have a long term?

OR would it be better to just go ahead and buy as many points as I'll need as a resale contract from the same home resort....??

 

[Sandisw]

Ugh hate all the uncertainty !
I have now come up with an idea to buy a resale contract for SSR or VWL or something like that, and possibly just add on some BLT points. Are you currently allowed to add on 25 or 50 point contracts to an existing contract? And what would the price be for an add-on; would it be the discounted $107 price or the full $112? I assume there wouldn't be any incentives for such a small add-on contract.
My thought is that I'll have enough points (with banking/borrowing) to stay at least a couple nights each year or every other year at BLT (love love love it). I'll also have some extra points which I can either 1) use at BLT if there is availability, 2) use for other resorts at WDW (don't REALLY care where I stay there if it is not BLT, but prefer to have lower maintenance fees), or 3) perhaps do an RCI trade or go on a cruise occasionally. Thoughts? Would I be better off buying the bulk of the points at SSR since they are currently pretty cheap on the resale market and have a long term?

OR would it be better to just go ahead and buy as many points as I'll need as a resale contract from the same home resort....??

That is exactly what I did. I bought in through a small resale contract (50 pts. @ VWL). I then added on at BLT with 115 points.

Once you are a member, no matter what size your first contract, you can add on at any of the resorts, including BLT, with a minimum purchase of 25 points.

Add ons with less than 50 points are cash sales. You can add on at the 50 pt level and finance. Right now, DVC is not offering any incentives, including a discount off the price for add ons of less than 100 points.

So, for contracts that are less than 100 points, you would be paying the full $112.00 price. For the 100 point level, you do get the $5.00 per point discount AND either a 3 day cruise or matching Developer points to use at SSR (by October 3rd), at Disneyland resorts, or than can be banked for a trip through RCI (which you would have 2 years to use).

I took the DP's since I was planning a trip in August to the Contemporary (planned before I bought) and was able to use those for the trip instead.

I think that availability, at least for the time being, will be there at the 7 month mark for BLT, if you are not traveling at really peak times. Buying in at SSR will save you money, but you really need to be okay with staying there is there is no availability at BLT or other DVC resorts.

When I decided what to do, I went back and forth and as much as I would have loved to just save money (who doesn't!), I was just not willing to chance NOT being at BLT. In the long run, it cost me about $4000.00 more to add on at BLT vs. resale, but to be honest, I am not regretting that one bit. And, if you ask my DH, small price to pay to keep his darling little wife HAPPY!!!!

 

[brianm27]

3) My fiance is a little concerned about what will happen in the future. All the villas are nice and new now, but what happens in 25 years when they are older? What about 40-50 years from now? Will Disney charge high assessments whenever the whole resort needs to be updated, or do they account for that in reserve funds? Is anyone else concerned about staying in a 40 year old hotel in 40 years??? My fiance is concerned that the hotels won't even be around in 40 years.

Although not DVC resorts, the Contemporary and Polynesian are both just 2 years shy of 40. When I travel to the UK on business, I stay at Down Hall Country House Hotel, which dates back to 1624 for the original part, with a big expansion completed in 1777. I think based on the upkeep of Disney's older resorts, reserves "should" be reasonable to cover upkeep.

 

[Malaguti Ball Clan]

stay at Down Hall Country House Hotel, which dates back to 1624 for the original part,

If only the DVC resorts were built nearly as well

 

[GirlfromTN]

Now I just have to convince DF He wants to wait a while to buy since we are getting married in a few months and have to pay for part of wedding, honeymoon, etc....I keep trying to get him to look at it as an investment but he just wants to have more $$ saved before we spend on DVC. We've worked out kind of a compromise where I can plan for a trip to WDW in December to see the Christmas decorations and go to Mickey's Christmas Party, as long as I "find a deal" (here's hoping I get a pin code or something!!!)
I'm going to plan to try to stay at WL or somewhere else on the monorail/boat to MK, but I might also try to either rent a Villa or rent someone's points confused: about renting points!!!) to give DF a "taste" of what it would be like if we bought DVC.
I'm still trying to figure out what the best combination of points would be for us. I would really like to buy all 160 at BLT because it is my favorite and I love the location, the maintenance fees are low and the contract is longest. But I am also thinking I could buy some points somewhere else (not sure where though, really no idea) and add on enough BLT points to make sure we could get a reservation a couple nights a year. I am so excited