How would you value your DVC as an "asset"?

[flexsmom]

We're compiling all of our assets & liabilities for a construction loan, and it occurred to DH that we might want to include our DVC. I had not thought of it years ago when we refinanced, but I suppose I could take an average point value from the sale board for our resort and apply it to our total points, along with a copy of the statement that shows our points and how long the lease is valid for BCV. (I think my DH thought of it because he really wants me to sell and apply the cash to our new home, but I didn't take the bait!)

Anyone have a clue if banks seriously consider time-share ownership to be an asset?

 

[Chuck S]

I would guess that the bank would not consider it much of an asset when considering a loan. Only a handful of timeshares hold their value like DVC, and in truth, it is artificially valued, given Disney ROFR.If DIsney should choose in the future to not exercise ROFR, I think the prices would fall quickly...not leaving much of an asset for the bank.

And given the annual dues as a liability, the bank would likely consider it a wash at best.

 

[DisDaydreamer]

Well... You do or will pay taxes on the asset. The value is assessed and reported to you. I would go with that.

 

[Inkmahm]

In my own balance sheet, I value DVC at current sales $ per point X number of points X 90%. I take off 10% as commission cost if I'd decide to sell.

 

[Figment1983]

Realistically they probably won't consider it, they will be more so looking at cash/depsits, stocks, bonds, annuities, 401k, IRA, etc. They tend to be looking for liquid reserves. I'm sure that it won't hurt you, but i don't think that it will help you much either. Hope that helps.

 

[Dean]

Likely not in this situation as the bank will likely not consider it as such. If you have a loan though, you need to list it as a liability. The other related question that sometimes gets asked is whether to list it for student aid, technically it should be listed there but many don't.

 

[crisi]

I'm in the process of getting a loan right now. We are in an unusual situation, but we stopped documenting assets at our house (which is what the loan is against - its paid for and the loan is less than half its value), our savings and checking accounts that our bankd holds (who is going to be the lender) and our salaries. The mortgage officier didn't want anything else, because if we claim more stuff, we have to document more stuff. No interest in our stock portfolios, 401k balances, cars, or DVC.

On my personal value sheet, current sales price *.9% for commission.

 

[JimMIA]

Most accountants would probably value it at the lower value of cost or market. If you bought a number of years ago, your cost may be lower; if you bought within the last 5 years, I'd guess the value is less than what you paid.

But as Dean and others have said, a sensible bank would probably not count it at all. They might turn it around on you -- they don't know what the value is, but they would know you have an ongoing liability for annual dues, so it might make your application look less attractive.

 

[Dean]

Most accountants would probably value it at the lower value of cost or market. If you bought a number of years ago, your cost may be lower; if you bought within the last 5 years, I'd guess the value is less than what you paid.

But as Dean and others have said, a sensible bank would probably not count it at all. They might turn it around on you -- they don't know what the value is, but they would know you have an ongoing liability for annual dues, so it might make your application look less attractive.

The difference between say the FAFSA forms and trying to qualify for a loan is that for FAFSA, you are legally required to list assets. For a loan application you don't have to list any income or assets that you don't want to be considered but you are obligated to list liabilities, that would include loans and I would suspect, timeshare dues.

 

[florep1]

The difference between say the FAFSA forms and trying to qualify for a loan is that for FAFSA, you are legally required to list assets. For a loan application you don't have to list any income or assets that you don't want to be considered but you are obligated to list liabilities, that would include loans and I would suspect, timeshare dues.

So for FAFSA purposes, how would you list DVC?

 

[Dean]

So for FAFSA purposes, how would you list DVC?

To be honest and accurate as required by the form and government, I think you'd have to list it as an asset. I know many don't however and since DVC normally doesn't report to credit agencies, I doubt they have much of a way of finding out. Plus, as alluded to here, one can make a case for it being more of a liability than an asset though that's less true with DVC than most.