Help me to decide!

[shortypots]

Folks, I need help with the pros and cons of purchasing through Disney or resale.

I am really liking the concept of the 50year contracts with Saratogoa springs, but am I willing to pay that much for the difference?

What are some other pros and cons to help me with my decision?

 

[dianeschlicht]

The only thing other than the 50 year contract would be that you can finance through Disney when you buy direct, but will have to arrange other financing if you buy a resale.

 

[littlestar]

I'd make sure that I really liked the location for SS. You'll have 12 years of only staying there (if they don't offer extensions on the other resorts or build new ones). Plus, SS is going to be bigger than OKW. I wonder how this will effect booking at the 7 month window for the other locations (there's going to be lots of SS members competing for that 7 month booking window).

 

[stacy6552]

DVC is a cash cow. Dont worry there will be other places to stay in 2043.

For us, we waited for SSR to buy from Disney. Because we felt like there was something obviously tangible more for our money.

SSR from Disney will be an instant gratification kind of thing. You call, you buy, you book, you stay.

With resale there is the thrill of the hunt, but you could go through the process one or more times before you actually get your hands on a contract. We had a very fustrating failed attempt to buy into HH.

examine your travel habits. Do you travel during peak seasons? Then you should buy into the resort you want to stay at the most. For us, the only place we'd buy resale is Hilton Head, because we're far more likely to go there over the summer, during its peak season,than we are to go at the holidays to WDW. Everyoen says buy where you want to stay, but IMHO i think its only important at peak seasons.

Go over to wdwig.com and check out the resort photo gallery. You may look at the SSR photos and think, "yuck. wont stay there often."

Unless you find yourself longing for a sold out resort, buy from Disney. You know how it is. They just do it all better.

 

[Doug Wolfe]

January 31, 2043 is 39 years away, so I would not be losing sleep over what facilities will be available. Heck at that point, I will be a spry 87.

Anyway, I liked financing through DVC because they simply take all my annual fee's, dues, taxes, etc., right out of my checking account each month automatically. Right now, a lot of people are writing their annual fee/tax checks. But, because I have been paying all year, I own them zip.

 

[tjkraz]

Best advice: Buy where you want to stay.

We bought SSR for three primary reasons:

1. 50 year contract. We will be in our 80s, but have no objections to passing this along to our children and their families.

2. Location. Location. Location. We love the Downtown Disney area, and the resort itself looks just great.

3. Price. We were fortunate enough to buy-in when the price was $79 per point. If we had gone with a BCV resale (our second choice), I figure we would have had to pay at least $72 per point, and then add in another $3 per point for closing costs. $79 vs. 75 is pretty negligible. Now the SSR price is at $84, which makes that gap a bid wider. And, if you are looking at OKW or one of the off-site resorts, the resale prices are lower.

The cost of dues need to be factored in, but you don't really know where those will go in the future.

If you buy SSR, you can't stay until at least June 2004. So, that kinda removes the immediacy benefit. Even if it takes you a few months to find and close on a resale, you may be able to accomplish that before you'd even be able to visit SSR.

Tough choice. I don't say this often, but it may be a situation where following your heart is the best course of action.

 

[shortypots]

I was looking at an average cost per year assuming various purchase prices from DVC and resale on all the different properties withing DVC and came up with an interesting conclusion.

If you base your purchase price for SSR at $89 pp(going rate without incentives), assuming $3.80 per point for maintenance and taxes and purchase of 150 pts your average cost per year is $837 (based on 50 year contract, but not including any increases in maintenance fees).

If you were to purchase an OKW resale, you would have to purchase 150 pts at no more than $69 pp in order to get to $838 cost per year. This is mainly due to an assumption of $550 closing costs and due to the 38 year contract vs 50 year contract with SSR.

Now, I am not taking into consideration any loans that might effect the cost per year.

However, I found this incredibly interesting, and am curious as to whether or not Disney is using this as a selling tactic, and if not, WHY NOT?

What do you all think?

 

[tjkraz]

Originally posted by shortypots
If you were to purchase an OKW resale, you would have to purchase 150 pts at no more than $69 pp in order to get to $838 cost per year. This is mainly due to an assumption of $550 closing costs and due to the 38 year contract vs 50 year contract with SSR.

If you value each year equally, then your numbers are probably correct.

However, pesky banker-types will tell you that you really can't value a dollar in 50 years the same as you will value a dollar today. When you consider the time value of money, a much smaller portion of your total investment should really be allocated toward years 39-50 than, say years 1-12.

If you're really not interested in examining a DVC purchase on that level, then you are essentially correct. Fifty years is fifty years.

If your family would be comfortable staying at SSR the vast majority of the time that you visit WDW over the next 50 years, then SSR may well be for you.

 

[pattyT]

Thanks for this thread -
I am researching DVC now -

Do you know if you can get a discount if you pay Cash rather than any financing?
And what is the rate that Disney has for SS?

 

[stacy6552]

No discount for cash. I know this because we paid cash.

The last I heard the going financing rate was about 9.75%.

 

[pumpkinboy]

Originally posted by tjkraz
If you value each year equally, then your numbers are probably correct.
However, pesky banker-types will tell you that you really can't value a dollar in 50 years the same as you will value a dollar today. When you consider the time value of money, a much smaller portion of your total investment should really be allocated toward years 39-50 than, say years 1-12.
If you're really not interested in examining a DVC purchase on that level, then you are essentially correct. Fifty years is fifty years.

Hmmm, pesky banker-type, I guess that's me
But, in terms of time-value of money, DVC Management is charging you less than $1.50 per point (of the $79 per point asked) for those extra 10 years, which in my view is a bargain. But in terms of price differential, SSR@ $79 - OKW@ $69 resale, looks to be $10 per pt difference, not insignificant, but this is likely the maximum differential DVC Mgmt will allow in resale. And it is also a lot less complicated to buy directly thru DVC.
If you want to explore the direct route more thoroughly, PM me and I'll give you the name and toll free telephone # of our most excellent Guide.