Help with this contract - am I getting a decent deal?

[brando5111]

What is your opinion of this contract:

BCV
87 banked points good until 07
120 point contract with the 120 available 2/06 - avail to borrow now
207 points total /87 are a one-time deal

cost:
$95.00 per point
11,400.00

11,400
-870.00 (87 points @ 10 per point)
10530/120= $87.75 per point + closing of $450.00 = true cost per point

$3.75 (one-time closing cost per point - $450/120) = $91.50 =true cost per point first year...

Dues already paid for 05 - Jan 06 new dues owed

Well - for the location we want is this worth it or are we overpaying by .75 per point? I figured for $90.00 extra, it's worth getting my preferred home resort?

Am I figuring this correctly or not....HELP!!!

Thanks,
Brando

 

[lovewdwdvc]

Check this board and see what thas passed ROFR to get a good idea.

 

[problemchild718]

you may want to try DVC direct-I was told by my guide he could sell me anything I wanted on a smaller contract-owing dues for 4 mo and receiving 2005 pts-no closing costs 92 pp

 

[bongo59]

its OK but not the best i have seen.................

 

[isyt]

I saw that this morning and I really debated it my self. Its really hard to do better on a BCV contract. I hope it works out.

 

[brando5111]

Is BCV more popular than others? We just happen to love the Epcot area and thought that this would be a good start for us to get into DVC. I also figured if we ever need to sell this would remain a popular area as I know many people seem to love the Epcot area as we do. Or does it just not matter? Would we be better off buying something cheaper if found @ OKW? Or for the extra money do you find your glad you bought at your favorite area in the longrun?

Thanks...

Also, the poster above that stated we should try Disney direct, I thought we couldn't buy other than SSR if we are new? Am I wrong? Also, would that mean we must buy into 150 points minimum?

Thanks - I know I have so many ??'s

 

[LIFERBABE]

If you want to be in the purchasing process now, and you REALLY want BCV then go for it. It will sell as many people want to own there.

I would suggest also calling DVC to see if they cant put you on a list to purchase 150 points at BCV.

If they find them, you would get all 2005 points, only pay dues for the remaining months of the current year, and wont pay closing. You will have to make the minimum purchase of 150 to purchase from DVC.

You'd be picking up 63 additional bankable points (150-87=63) for the additional $2820 which is like paying $45 per point for anything above the 120 you are considering.

 

[vascubaguy]

Yes, you can buy BCV direct thru DVC at a cost of $92.00 per point, but you would have to buy 150 points. The only difference is that you would have all the points. So, if you were able to get a Feb UY, you would get the 150 points for Feb 2005, and then again in 2006. You'd also have access to the DVC financing and no closing costs. Let's say you bought 150 points thru DVC but didn't need the 2005 points. You could rent those 150 points now. So you'd have 150 * 92.00 = 13,800.00. Then subtract the $1500 you could get for renting. Thus 13800.00-1500.00=12,300.00 or $82.00 per point. Of course, this would all be pressuming that DVC had these points available.

I don't quite understand how you are getting your calculations up there. From what I saw, it would be 120 * 95 = 11400.00 + 450 (closing) = 11850 / 120 = $98.75 per point. And you couldn't use it until Feb. 2006. Now if you decided to rent 87 points when those came available on Feb 1, 2006, then you could get $870. So, 11850.00-870.00=$10,980.00

The difference between resale and DVC would be $1320.00 (but you'd get 30 more points by going with DVC AND you wouldn't have to wait 6 months to make that $870 back). Note: the DVC price would actually be a little bit higher because you'd have to pay dues for a few months in 2005.

It seems like fewer and fewer BCV contracts on the resale market, and those that do show up have higher prices. To me that $95 is WAY high, but I guess that's the premium to pay to own there.


Oh, and if you just want something in the Epcot area... BWV is right there too and you can find those a bit cheaper than BCV.

 

[JimMIA]

Short answer: "The best deal is the one with your name on it!"...Beca

BCV is the smallest resort and sells at a premium. Small contracts anywhere are rare and sell at a premium. So you are paying a premium on a premium.

The question is not whether you like the price, but whether you like your ownership. If you crunch the numbers a thousand different ways, you will undoubtedly find another way to do this which will save you hundreds of dollars. In the grand scheme of 37 years of ownership, are hundreds of dollars material? Naw.

Your contract should certainly pass ROFR. Without question, others have paid less. Without question, others will pay more in the future. If you want to own BCV, and you're comfortable with the price...go for it.

 

[JimC]

Personally I would pass. $87 per point sounds much closer to market for this contract or about $2.38 per point for all remaining points over the contract period. I bet the Timeshare Store could find you a better deal if you are patient.

But then I already own at BCV and I can easily be patient to find what I want. The difference is $960. How important is that amount to you?

 

[brando5111]

Wow - thanks to all for your replies....

Actually we are not "married" to BCV, actually I think we'd prefer BWV (my husband spent half our vacation time last week at ESPN and the lounge at BWI!) We just love this resort, even though there is a clown pool

My son of course is thrilled at the prospect of SAB, so this is partially swaying me in the BWV direction. He is 12 and I think this will be a great place for him throughout the teenage years.

In all honesty, money is a factor for us and the best price is what I really want, plus, a good ability to sell if ever required without much hassle. This is partially why I am thinking BCV, as I know this area is so "popular"....(in real estate I've always been told, LOCATION, LOCATION, LOCATION, is the rule to follow....

I think I will call DVC and see what they can possibly do for us. It certainly would be better to have all our points for 2005 and also to be able to partially finance (1/2 the cost through Disney) - but our credit union already ok'd our loan if we want it. Please confirm there is no pre-payment penalty on the loan through Disney - correct? Obviously we will pay this off as fast as we can, but do like the option to just pay the payment if needed.

Another ? for you - Our DVC rep was supposed to call me on Sunday, as she is off until then, but I think I'll try and contact them tomorrow and see what they have to say. If the fact they are not paid on commission is true, why must I stay with the same guide that showed us DVC 4 years ago? For some reason they are making us speak with her again, I'm just wondering?

Thanks Brando!

 

[vascubaguy]

Actually we are not "married" to BCV, actually I think we'd prefer BWV (my husband spent half our vacation time last week at ESPN and the lounge at BWI!) We just love this resort, even though there is a clown pool

BWV is a GREAT location. Very close walking distance to both Disney studios and Epcot. BCV is close too, but a bit longer walk to Disney Studios.

My son of course is thrilled at the prospect of SAB, so this is partially swaying me in the BWV direction. He is 12 and I think this will be a great place for him throughout the teenage years.

I'm assuming you meant BCV as that is where SAB is located. I haven't actually been to BCV, but the pics I've seen of that pool.... woah!

In all honesty, money is a factor for us and the best price is what I really want, plus, a good ability to sell if ever required without much hassle. This is partially why I am thinking BCV, as I know this area is so "popular"....(in real estate I've always been told, LOCATION, LOCATION, LOCATION, is the rule to follow....

I think the key to selling quick, if it came to that, is the size of the contract. Smaller contracts seem to sell faster and at premium prices. Yes, BCV is one of the most in demand because it is one of the smallest resorts. Just remember, in a few years the prices of these will begin dropping as the end of the contracts come close to an end.

You'll get the most for your $$$ by purchasing at OKW (or SSR due to the extra 12 years). And again, the size of the contract is a big factor in sellability. A 100-150 contract will sell MUCH faster than most 200+ contracts.

I think I will call DVC and see what they can possibly do for us. It certainly would be better to have all our points for 2005 and also to be able to partially finance (1/2 the cost through Disney) - but our credit union already ok'd our loan if we want it. Please confirm there is no pre-payment penalty on the loan through Disney - correct? Obviously we will pay this off as fast as we can, but do like the option to just pay the payment if needed.

There is NO pre-pay penalty for the DVC financing. However, if you have the loan thru your credit union, you may have a much better interest rate. If it's below 9% go with your credit union!

Another ? for you - Our DVC rep was supposed to call me on Sunday, as she is off until then, but I think I'll try and contact them tomorrow and see what they have to say. If the fact they are not paid on commission is true, why must I stay with the same guide that showed us DVC 4 years ago? For some reason they are making us speak with her again, I'm just wondering?

I don't know about all this and why, but I imagine it has to do with that guide spending time working with you in the past. So when you actually come back to purchase, they should get some credit, even if they didn't push the sale on you. I'm sure they get some type of recognition if they don't get commission.

Good luck!!!!

 

[tamu91]

BCV resales are the most sought after so $95/pt with 87 banked points is not be a bad deal IMO. Not great but I've seen worst.
If you absolutely don't have to have a BCV contract, BWV is a great option or even OKW if money is a factor. You, sometimes, can find a nice loaded OKW resales for a very decent price.

 

[JimC]

...My son of course is thrilled at the prospect of SAB, so this is partially swaying me in the BWV direction. He is 12 and I think this will be a great place for him throughout the teenage years.

In all honesty, money is a factor for us and the best price is what I really want, plus, a good ability to sell if ever required without much hassle. This is partially why I am thinking BCV, as I know this area is so "popular"....(in real estate I've always been told, LOCATION, LOCATION, LOCATION, is the rule to follow....

I think I will call DVC and see what they can possibly do for us. It certainly would be better to have all our points for 2005 and also to be able to partially finance (1/2 the cost through Disney) - but our credit union already ok'd our loan if we want it. Please confirm there is no pre-payment penalty on the loan through Disney - correct? Obviously we will pay this off as fast as we can, but do like the option to just pay the payment if needed.

Another ? for you - Our DVC rep was supposed to call me on Sunday, as she is off until then, but I think I'll try and contact them tomorrow and see what they have to say. If the fact they are not paid on commission is true, why must I stay with the same guide that showed us DVC 4 years ago? For some reason they are making us speak with her again, I'm just wondering?

Thanks Brando!

SAB is at BCV and is probably the best pool complex on property. It is one of the draws for us to own at BCV. It is a small resort and if you want in during peak times owning there is likely going to be increasingly important. That said BWV location is just as good, just no SAB.

If you want the best price then pass on the contract you saw and ask them to find you a better deal. We work with Pat Spell at the Timeshare Store. She knows the product, answers questions and can guide you on an appropriate contract.

DVC direct would be better than the deal you were asking about, but probably not as good as a resale. But it is worth the call to see. If you call Disney you might ask for our guide, Byron. He is also very patient answering questions and is a classic gentleman. But I personally would wait and speak with your current guide on Sunday. One day is not critical and I believe it is a courtesy.

Disney loans have no prepayment penalty. But if you already have a credit union financing then that will likely be a lower rate.

 

[Dean]

IMO, it is far too high. And the only way your getting the price per point under that DVC charges directly is by crediting the contract with $10 per point for the banked points. You still have to pay closing. Still, if it's exactly what you want and you were really set on BCV, it's may be hard to justify the few dollars and time you'd spend if you kept looking. I agree with the above post about BWV. It's likely to be easier to find and cheaper and with the standard view points option, can be a much better value. You could still stay at BCV part of the time by reserving at the 7 month window.

 

[tjkraz]

My son of course is thrilled at the prospect of SAB, so this is partially swaying me in the BWV direction. He is 12 and I think this will be a great place for him throughout the teenage years.

Well, he's not going to be 12 or a teenager forever.

DVC is a 40-50 year commitment. Personally, I think you're making a mistake basing your decision on the perceived desires of a soon-to-be-fickle teenager.

Pick the resort that YOU (and your significant other, if applicable) like the best. YOU need to live with the decision for the next several decades, long after the 12 year old has married and started a family of his own.

Remember, you're not planning one trip, you're planning dozens. You need to think long term. If you plan ahead, there will be plenty of opportunities to book a room at BCV while your son is still young.

...but our credit union already ok'd our loan if we want it.

If you're referring to a signature loan, bear in mind that you won't be able to deduct the interest as a mortgage. DVC's loans are secured by the property, as are Home Equity notes. If you go either of these routes you usually can deduct the interest on your taxes as interest paid against a second home mortgage.

 

[brando5111]

Just curious, why are BCV most sought after? Is it the pool? In all honesty we went to Beaches & Cream for a shake and we weren't impressed. There were way too many tables that weren't bussed and had dirty dishes all over them and the smell in the restaurant was not pleasant (think comet cleanser)...

I do love the area and quite frankly, I think Beach Club looks very nice (loved our steaks at Yachtsman as well, but anywhoo)....if we can save 1k to purchase at BWV, I would much prefer - as we like this resort better anyway. The pool is the only thing keeping me wondering here....as my son is very taken with the ship waterslide, but quite frankly, I'm not inclined to pay an extra grand for a pool....I'm sure he can be just as happy with the scary clown

Should I get out of this now? I am confused! I just know paying too much is NOT what I want to do...but I also think OKW or SSR is not what we want either...HELP!!!

 

[tjkraz]

Just curious, why are BCV most sought after? Is it the pool?

IMO, the main factors are likely the pool, the location (VERY close to Epcot) and, perhaps most importantly, the short supply of points. BCV is the second smallest resort and DVC initially ran out of points less than 2 years ago. So, the only contracts that are hitting the resale market are those that have literally been turned-around in 3 years or less.

Compare that with OKW and BWV owners, many of whom have had their contracts for 9 years or more. That's a much more reasonable timeframe for people to decide they don't care for Disney, decide they have too many points, have life-changing issues that mandate a change, and so on.

With prices like you're paying, people selling BCV now are at least breaking-even. Many are probably making a profit. That's virtually unheard of in the timeshare industry--buying from a developer and selling 2-3 years later for a profit. That factor alone may be convincing some to sell.

 

[vascubaguy]

This is just my opinion, but if you aren't sure, don't proceed with it. That is a lot of money to not be certain of what you want. It definately isn't a great deal and I'm sure you can get better.

 

[pumpkinboy]

Well, you have most certainly heard the maxim:
Buy where you want to stay

But remember, this really only matters if you are able to plan >7 months in advance, and if you go at popular (DVC definition) times. If you plan to go to Food & Wine every year and will therefore need the 11 month window to assure your spot, then BCV and BWV are what you must have. Between the two, different ppl will have differing opinions. We are BWV ppl and are completely hooked on the low points Std View rooms, booked at 11 months. We also envision a time when we may want to get a GV for a weekend during F&W, and that also necessitates the 11 month window. Your DS loves SAB, so at least for the next year or so, BCV is where you will want to be, but are you going at popular times? or could you just as easily get the room you want at 7 months with cheaper OKW points?

Just to repeat, home resort is only going to matter if you are booking at popular times and if you are able to plan more than 7 months ahead. Otherwise, save your money and buy cheaper points at another DVC home resort.

Good luck!