How is a DVC Purchase Viewed?

[Disneydawg4]

Is a DVC Purchase viewed as an asset? And I have a weird hypothetical, if someone purchased DVC before purchasing a home, would it exclude them from first time homebuyer discounts/programs? I know this is a real estate purchase, but I don't feel like I totally understand it.

 

[maxbuffmelvin]

It's an asset because there is value.

 

[CVG]

It's an asset because there is value.

Well, you know my view, it's as much an asset as a pre-booked hotel room. In fact ......

 

[kilik64]

Its a liability.

 

[RoseGold]

It's a thing you bought for five figures and can sell for five figures. In most contexts where you are counting assets, bankruptcy, FAFSA, divorce, net worth, I can keep going, that's an asset.

We have no idea what the rules of your "first time homebuyer program" are.

 

[dwg]

Can't speak to the First Time Home Buyer program as that can be Federal or Local programs. For that you should speak to a Home Loan Expert or Real Estate Expert.
Regarding how it could affect your purchase of a new home assuming you used a loan to purchase the time share that would reduce your purchasing power of buying the new home as the loan could reduce the amount a bank will loan you. The loan would be included in your total debt that would affect the amount you are allowed to borrow. As far as completing a financial statement as part of a loan application the time share could be considered an asset but the value o the time share might be more or less than the purchase price. Also annual dues might have to be listed as an expense on the financial statement.

Only you know your financial situation so I would speak to an expert especially if you are planning on buying a time share before the home and you are planning to buy the home within a short time after that.

 

[AstroBlasters]

DVC is a timeshare, not a primary residence.

(EDITED) I hope there are not a lot of people buying a timeshare before they can get a mortgage on a primary residence.

 

[Disneydawg4]

DVC is a timeshare, not a primary residence. If you buy DVC before you own an actual primary residence …. so many things I want to say that the moderators would say are against the rules of DIS boards….

Cool

 

[ak517]

DVC is a timeshare, not a primary residence. If you buy DVC before you own an actual primary residence …. so many things I want to say that the moderators would say are against the rules of DIS boards….

Times have changed. I know many people who live in HCOL areas and own vacation homes on rural lakes while renting a primary home.

 

[cedricandsophie]

Our financial guy says it’s a liability. It’s paid for but the annual fees cost us about $11000 since we have about 1200 points at several resorts. And it expires. So once we’re gone we are leaving the right to use our points to our daughter in our trust. But once it expires I wouldnt expect it to continue.

 

[DonMacGregor]

Times have changed. I know many people who live in HCOL areas and own vacation homes on rural lakes while renting a primary home.

I was gonna say there are more than a couple New Yorkers who would disagree with the whole rule of not buying a timeshare before a primary residence.

 

[pineapplepalms]

I was gonna say there are more than a couple New Yorkers who would disagree with the whole rule of not buying a timeshare before a primary residence.

Yep… not just NY but any high cost of living area. When a down payment is hundreds of thousands of dollars, renting for longer is much more common and that doesn’t mean vacation expenses need to be put off until owning. We’re lucky to have bought when the housing market was not as crazy, but if we were looking to buy now, I could definitely see us buying some DVC before buying a house.

 

[DonMacGregor]

Yep… not just NY but any high cost of living area. When a down payment is hundreds of thousands of dollars, renting for longer is much more common and that doesn’t mean vacation expenses need to be put off until owning. We’re lucky to have bought when the housing market was not as crazy, but if we were looking to buy now, I could definitely see us buying some DVC before buying a house.

I agree. So Cal here and I’ll tell you young people my kid’s ages (late 20’s) are really faced with a challenge saving $100k plus for a down payment. I fear mine is the last generation where you could reasonably expect the opportunity for home ownership early in life.

 

[Jack Kerouac]

There were stories a while back of New Yorkers buying the second home in the country prior to buying their first home in the city. Nothing different with DVC, except, perhaps, the number of visits one can afford to make with DVC. I agree about the (lack of) affordability of homes (and I live an hour southwest of Chicago, so median home prices are lower than many places around the country.) My kids are 8, 5, and 2, and I'm investing money every month for each of them with the idea of giving it to them when they are older to use for a down payment on a home. We also plan to help them as much as we can with college or a trade school via their 529s and our own cashflow. No need for them to be bogged down with debt once they get their first job. Children are both expensive while they live in your house and to help them get out of it so they can stay out of it.

 

[DonMacGregor]

There were stories a while back of New Yorkers buying the second home in the country prior to buying their first home in the city. Nothing different with DVC, except, perhaps, the number of visits one can afford to make with DVC. I agree about the (lack of) affordability of homes (and I live an hour southwest of Chicago, so median home prices are lower than many places around the country.) My kids are 8, 5, and 2, and I'm investing money every month for each of them with the idea of giving it to them when they are older to use for a down payment on a home. We also plan to help them as much as we can with college or a trade school via their 529s and our own cashflow. No need for them to be bogged down with debt once they get their first job. Children are both expensive while they live in your house and to help them get out of it so they can stay out of it.

5 years ago, if I told someone I still had a kid at home, I’d be looked at weirdly and asked if I was charging rent. Now, when I say my 28 year old is still at home, I’m met with “I’ve got two at home” or “my 30 year old just moved back in”. Changing times.

 

[AstroBlasters]

There were stories a while back of New Yorkers buying the second home in the country prior to buying their first home in the city. Nothing different with DVC, except, perhaps, the number of visits one can afford to make with DVC.

You believe there is no difference between buying a country property that someone COULD live in vs a timeshare which will mathematically go to $0 in the future because of the expiration?

 

[Jack Kerouac]

You believe there is no difference between buying a country property that someone COULD live in vs a timeshare which will mathematically go to $0 in the future because of the expiration?

I meant it in the way they both provide an escape from the everyday. The stories were of New York City families spending time away from the city, near the woods, around ponds and lakes. The buyers were giving their kids a home away from home, just like DVC does. It was not meant to mean both are equal in the ability to live somewhere and perhaps make some money if one were to sell. Obviously they are not the same in that capacity. Perhaps one day someone will have enough points to live the DVC life every day and then they can let us know how it compares to a second home in the country.

 

[pineapplepalms]

I agree. So Cal here and I’ll tell you young people my kid’s ages (late 20’s) are really faced with a challenge saving $100k plus for a down payment. I fear mine is the last generation where you could reasonably expect the opportunity for home ownership early in life.

It’s definitely on a different timeline when the housing is more expensive. Very few of my friends bought houses in their 20s. Most bought their house in their 30s and some haven’t bought yet.

 

[gmi3804]

It’s an. asset, but not considered a primary, or even secondary, residence.

 

[pineapplepalms]

You believe there is no difference between buying a country property that someone COULD live in vs a timeshare which will mathematically go to $0 in the future because of the expiration?

Personally I have no interest in a country property… I’m also not big into a ski, lake, beach, mountain, etc. property. It’s the idea of a vacation “home” that I want to return to over and over again, which for us is DVC. I’m fine spending money on it even though it will go to zero, since that’s not why we bought it. It’s something that we get to enjoy every year and reduces the cost for us to stay on property in 1 or 2BRs, sometimes 3BRs.