Help me decide what makes most sense

[Dizjunkieee]

Hi all,
I am considering purchasing a small allotment of points (50-75) on the resale market as my initial DVC purchase and wonder if there would be any reasons I might not know or think of as to why this might not be the best idea. My reasons for going about it this way are as follows:

• Want to pay cash so I avoid the additional financing fees I would pay if getting a loan to do so. Thus, I don't have a huge amount of cash available to do so.
• I also plan to then make a purchase of a 25 point allotment directly through Disney in order to be eligible for all the "perks" that are currently available to members - Moonlight madness, lounges, discounted AP,etc. (I am fully aware these are not guaranteed benefits that could go away at any time). Hopefully I am correct in that once I have an initial allotment I can buy as little as 25 points directly?

Considering making my first purchase at OKW as we do really enjoy that resort, as well as the points required for a room there are lower than most others. That said, I see myself adding more and more points at other resorts in the coming few years. Likely BWV, BLT, BRV

So generally speaking, is my thought process reasonable here, or is this all craziness on my part. I've done a decent amount of research, but have tons more to learn when it comes to DVC ownership. I have rented points for a few years now and have spent time in most of the DVC resorts at this point (all but Poly, GF and SSR) so it is time to take the leap into ownership.

TIA for any thoughts you have to share that can help me move forward.

 

[mousehockey37]

I'm not a DVC owner, but look at what possible trips you might want to take and the points needed for those trips. Using the resale sites points calculators could tell you that for certain trips, you don't have enough points. Sure, you could bank or borrow, but that's up to you.

I mean, it's a good "foot in the door" but if you aren't ready to jump on that contract like yesterday, more than likely, it's gonna be gone by the time you go to pull the trigger on it. There's lots of people looking for contracts like these that have no hesitations.

Ideally, I think you're in the right place, but as points increase and such, smaller contracts aren't going to do much for you in the short term, especially if the contract is stripped. Make sure you know those details as well. Nothing worse than going after a contract that isn't enough points for a stay, then being told that you're buying a contract with no 2017 or 2018 points and the 2019 points were borrowed and are gone as well, putting you on your first DVC stay in 2020.

 

[Vohdre]

You are correct about being able to add-on as little as 25 points direct from Disney. You may have to wait a bit depending upon the resort and UY. It will be much easier to manage if you have the same resort and UY for the add-on as your resale contract.

I am currently looking at doing something similar with 100 pts resale on BLT and then 25 add-on Direct.

 

[Ben E N]

I like your thinking about not wanting to finance, but if you know for a fact that you want to add on later, it may be worth it to just buy them all and finance now. 2 small purchases are more per point and include double closing costs. I think it is worth it to just look into 130 or so OKW points, plus a direct add on, and then use those points to sleep around when you want to try elsewhere. Obviously pay off financing as quickly as possible.

 

[JETSDAD]

Hi all,
I am considering purchasing a small allotment of points (50-75) on the resale market as my initial DVC purchase and wonder if there would be any reasons I might not know or think of as to why this might not be the best idea. My reasons for going about it this way are as follows:

• Want to pay cash so I avoid the additional financing fees I would pay if getting a loan to do so. Thus, I don't have a huge amount of cash available to do so.
• I also plan to then make a purchase of a 25 point allotment directly through Disney in order to be eligible for all the "perks" that are currently available to members - Moonlight madness, lounges, discounted AP,etc. (I am fully aware these are not guaranteed benefits that could go away at any time). Hopefully I am correct in that once I have an initial allotment I can buy as little as 25 points directly?

Considering making my first purchase at OKW as we do really enjoy that resort, as well as the points required for a room there are lower than most others. That said, I see myself adding more and more points at other resorts in the coming few years. Likely BWV, BLT, BRV

So generally speaking, is my thought process reasonable here, or is this all craziness on my part. I've done a decent amount of research, but have tons more to learn when it comes to DVC ownership. I have rented points for a few years now and have spent time in most of the DVC resorts at this point (all but Poly, GF and SSR) so it is time to take the leap into ownership.

TIA for any thoughts you have to share that can help me move forward.

The main concern I would have is that smaller contracts on the resale market bring top dollar. The closing costs can also add a lot to the overall per point cost on a small resale so just be sure to factor that in. The savings may not be as great as it first looks.

 

[disneynutz]

Up to you but if you want to be happy, save up enough money to buy a few more points at your favorite resort.

Select the best UY for your vacation patterns.
Buy where you love to stay.
Book at 11 months.
Buy resale if you can.
If you buy additional contracts, keep the same UY and names on deeds.
If you intend to buy a small direct contract for the perks, buy now before the minimum increases.
DVD/DVC marketing can change the perks at any time.
Perks and policies tend to change when management changes.
Expect to spend more on Disney vacations after you buy DVC.

Bill

 

[Popouri DVC]

Up to you but if you want to be happy, save up enough money to buy a few more points at your favorite resort.

Select the best UY for your vacation patterns.
Buy where you love to stay.
Book at 11 months.
Buy resale if you can.
If you buy additional contracts, keep the same UY and names on deeds.
If you intend to buy a small direct contract for the perks, buy now before the minimum increases.
DVD/DVC marketing can change the perks at any time.
Perks and policies tend to change when management changes.
Expect to spend more on Disney vacations after you buy DVC.

Bill

Bill I think you distilled an entire thread of discussion in that one post!

You’ll have to copy and paste that for future use: it is full of truths that you’ve been declaring for the almost three years of my being a member of these boards.

Great advice!

 

[Dizjunkieee]

I'm not a DVC owner, but look at what possible trips you might want to take and the points needed for those trips. Using the resale sites points calculators could tell you that for certain trips, you don't have enough points. Sure, you could bank or borrow, but that's up to you.

I mean, it's a good "foot in the door" but if you aren't ready to jump on that contract like yesterday, more than likely, it's gonna be gone by the time you go to pull the trigger on it. There's lots of people looking for contracts like these that have no hesitations.

Ideally, I think you're in the right place, but as points increase and such, smaller contracts aren't going to do much for you in the short term, especially if the contract is stripped. Make sure you know those details as well. Nothing worse than going after a contract that isn't enough points for a stay, then being told that you're buying a contract with no 2017 or 2018 points and the 2019 points were borrowed and are gone as well, putting you on your first DVC stay in 2020.

Thanks for all the great info! I do know that those small contracts are scooped up right quick!! And I do know that that tiny allotment wouldn't be anywhere what I would need for the trip(s) yes - plural! that I take each year. Just thought it might be a good way to get my foot in the door. Definitely need to figure out what makes the most sense though. Thanks again!

 

[Dizjunkieee]

You are correct about being able to add-on as little as 25 points direct from Disney. You may have to wait a bit depending upon the resort and UY. It will be much easier to manage if you have the same resort and UY for the add-on as your resale contract.

I am currently looking at doing something similar with 100 pts resale on BLT and then 25 add-on Direct.

I've seen UY mentioned quite a bit as far as its best to have any and all contracts have the same UY. Any more info on why that is? Sorry if I sound dumb - this is the area of owning that I have lots to learn about!

 

[hlhlaw07]

Bill I think you distilled an entire thread of discussion in that one post!

You’ll have to copy and paste that for future use: it is full of truths that you’ve been declaring for the almost three years of my being a member of these boards.

Great advice!

I can't tell if you are being sarcastic or serious. He pretty much answers with that every posting already.

 

[Dizjunkieee]

I like your thinking about not wanting to finance, but if you know for a fact that you want to add on later, it may be worth it to just buy them all and finance now. 2 small purchases are more per point and include double closing costs. I think it is worth it to just look into 130 or so OKW points, plus a direct add on, and then use those points to sleep around when you want to try elsewhere. Obviously pay off financing as quickly as possible.

Great points! I hadn't even thought about the fact I'd have to consider multiple closing costs & that sure can add up quick! See, I knew there were things I would be missing and that you all would have excellent thoughts. Thank you, thank you!

 

[Dizjunkieee]

The main concern I would have is that smaller contracts on the resale market bring top dollar. The closing costs can also add a lot to the overall per point cost on a small resale so just be sure to factor that in. The savings may not be as great as it first looks.

Great points! Thank you so much!

 

[Dizjunkieee]

Up to you but if you want to be happy, save up enough money to buy a few more points at your favorite resort.

Select the best UY for your vacation patterns.
Buy where you love to stay.
Book at 11 months.
Buy resale if you can.
If you buy additional contracts, keep the same UY and names on deeds.
If you intend to buy a small direct contract for the perks, buy now before the minimum increases.
DVD/DVC marketing can change the perks at any time.
Perks and policies tend to change when management changes.
Expect to spend more on Disney vacations after you buy DVC.

Bill

All excellent points! Can you elaborate on UY? Am I correct in thinking that if I typically plan to go in October that is the month I would ideally have as my UY? And why is that exactly? I'm sure I sound dumb with that question, but the whole UY thing is where I have the most to learn about. Thank you!

 

[Bing Showei]

All excellent points! Can you elaborate on UY? Am I correct in thinking that if I typically plan to go in October that is the month I would ideally have as my UY? And why is that exactly? I'm sure I sound dumb with that question, but the whole UY thing is where I have the most to learn about. Thank you!

[Doing my best @CarolMN impression]

When you get a chance...

https://www.disboards.com/threads/understanding-use-year-updated-april-27-2016.1942668/

 

[Dizjunkieee]

[Doing my best @CarolMN impression]

When you get a chance...

https://www.disboards.com/threads/understanding-use-year-updated-april-27-2016.1942668/

Awesome! Thanks!

 

[igrsod]

Up to you but if you want to be happy, save up enough money to buy a few more points at your favorite resort.

Select the best UY for your vacation patterns.
Buy where you love to stay.
Book at 11 months.
Buy resale if you can.
If you buy additional contracts, keep the same UY and names on deeds.
If you intend to buy a small direct contract for the perks, buy now before the minimum increases.
DVD/DVC marketing can change the perks at any time.
Perks and policies tend to change when management changes.
Expect to spend more on Disney vacations after you buy DVC.

Bill

Just curious about your last point.... How should I expect to spend more? We already go at least once a year, but I was hoping DVC would help me spend less.... lol

 

[Ben E N]

Just curious about your last point.... How should I expect to spend more? We already go at least once a year, but I was hoping DVC would help me spend less.... lol

You get locked into more trips, and hooked on the good times. I got a 'great deal' on annual passes I probably would not have otherwise bought, and am now taking am extra trip this summer because it is "free". In reality, I paid for those passes and will be buying meals and many, many dole whips.

 

[igrsod]

You get locked into more trips, and hooked on the good times. I got a 'great deal' on annual passes I probably would not have otherwise bought, and am now taking am extra trip this summer because it is "free". In reality, I paid for those passes and will be buying meals and many, many dole whips.

I like the way you think. I could soooo see that happening with us too.
It's only 24 hours drive to WDW... that's totally doable multiple times a year. I see the justification happening now.

 

[disneynutz]

I can't tell if you are being sarcastic or serious. He pretty much answers with that every posting already.

Select the best UY for your vacation patterns.
Buy where you love to stay.
Book at 11 months.
Buy resale if you can.
If you buy additional contracts, keep the same UY and names on deeds.
If you intend to buy a small direct contract for the perks, buy now before the minimum increases.
DVD/DVC marketing can change the perks at any time.
Perks and policies tend to change when management changes.
Expect to spend more on Disney vacations after you buy DVC.

Great information should be shared and not everyone reads every post.

Bill

 

[disneynutz]

All excellent points! Can you elaborate on UY? Am I correct in thinking that if I typically plan to go in October that is the month I would ideally have as my UY? And why is that exactly? I'm sure I sound dumb with that question, but the whole UY thing is where I have the most to learn about. Thank you!

The correct UY is free insurance should you have to cancel a vacation and it will happen. Your UY should cover the 8 months that you would normally vacation. Many vacation by season, we enjoy the cooler months and Christmas holidays at WDW and hate the heat, especially with the growing crowds.

Points need to be banked during the first 8 months of your UY. Your UY is not a calendar year. Points need to be available during the dates of your stay, not when you make the reservation. Banking moves points one UY forward, borrowing moves points one UY back. Banking and borrowing are final transactions and can not be reversed.

Bill