Is this a good idea?

[lovethesun12]

Disclaimer: I am totally new to the idea of DVC and have been doing a lot of research before purchasing. Right now I really have no idea what I'm doing so feel free to be very critical =D

DH & I are currently planning to buy DVC resale in 3-4 years time (we do have enough to do it now but it would deplete our savings for what we want and we aren't interested in financing. We could forego our vacation to do it but really that's just ridiculous ).

We currently go once a year during Easter (past two years and are booked this year). We need about 150 points per year for the vacation we want. We also know our holidays in advance and can book 11 months out.

This Easter we are booked and renting points which cost us ~$2600. So for the next three vacations $7800. I'm thinking it would be so much better if this money went against our own DVC.

While we don't want to purchase the full 150 points at our home resort at the moment, we could afford 50 points per year for the next three years (if it happened to be available).

*If* I found a "fully loaded" (I think that's the name?) 50pt contract with 2018, 2019, and 2020 points (so this would be in the new year) could I use all 3 years points to book our resort next year (i.e 2019 Easter vacation)?

Then the following year, look for a similar contract, do the same thing. And again the year after that.

If all three contracts were from the same resort, would they basically combine (if similar use years)? Even if they were at different resorts I would be ok with that. I am good with all things Disney

I'm thinking if I started looking now, I would have to look for a contract with a use year in either April, May, June or July so points would renew as soon as our trip was over and I could book again.

Hopefully this makes sense to some of you Just wondering if anyone thinks this is a good or bad idea and why. I'm thinking finding that type of contract is not completely unrealistic since I've been seeing them come up here and there as I've been watching.

 

[ozliz]

You’ve raised a lot of questions which I don’t have time to address now but I do see that you don’t understand how use years work. You actually want a use year a month or two before you plan to travel rather than travelling at the end of the use year. Near the end of your use year if you need to change/cancel then your points would be past the banking deadline and very difficult if not impossible to use. Points are always there, their timing/availability is based on when you want to stay not when you choose to book.

There are some useful sticky threads and guides on this topic so that would be a good place to start. Hopefully I or someone else can answer your other questions soon.

 

[lovethesun12]

Thank you very much for your response! I have been reading some of the threads but must have skipped or missed the use year one. I will definitely take a look.

 

[PSUDinsey]

50 point contracts are rare and demand a premium price plus you will paying closing costs three times. Finding two more contracts with the same use year will be even more difficult meaning you may have to shuffle multiple member numbers which to my understanding could be very annoying

 

[kboo]

What are you considering for a home resort? If you are wedded to school vacations and will always go over Easter, February or March UY is probably best for you. Keep in mind, though that Easter and Passover weeks are the most expensive time frame (as much as Thanksgiving and Xmas) - take a look at points charts and think about whether you might always want to go then. We love the weather in April around Easter, but after we bought, decided we would not be likely to go around then just because for the same cost we could have a 1-2 day longer vacation at another time.

@PSUDinsey's point is also well taken - a 50 point contract will likely cost more than half of a 100 point contract, and a 100 point contract will probably cost more than 2/3 the cost of a 150 point contract. Add in closing costs and the headache of banking and borrowing across 3 years and possibility of lost points or being a few points short, and it's probably not worth it, if you can afford a 100 point or larger contract.

 

[Deb & Bill]

If wishes were horses, beggars would ride. You are hoping for a lot of miracles with three fully loaded 50 point contracts. No July or May Use Years.

 

[Ben E N]

Disclaimer: I am totally new to the idea of DVC and have been doing a lot of research before purchasing. Right now I really have no idea what I'm doing so feel free to be very critical =D

DH & I are currently planning to buy DVC resale in 3-4 years time (we do have enough to do it now but it would deplete our savings for what we want and we aren't interested in financing. We could forego our vacation to do it but really that's just ridiculous ).

We currently go once a year during Easter (past two years and are booked this year). We need about 150 points per year for the vacation we want. We also know our holidays in advance and can book 11 months out.

This Easter we are booked and renting points which cost us ~$2600. So for the next three vacations $7800. I'm thinking it would be so much better if this money went against our own DVC.

While we don't want to purchase the full 150 points at our home resort at the moment, we could afford 50 points per year for the next three years (if it happened to be available).

*If* I found a "fully loaded" (I think that's the name?) 50pt contract with 2018, 2019, and 2020 points (so this would be in the new year) could I use all 3 years points to book our resort next year (i.e 2019 Easter vacation)?

Then the following year, look for a similar contract, do the same thing. And again the year after that.

If all three contracts were from the same resort, would they basically combine (if similar use years)? Even if they were at different resorts I would be ok with that. I am good with all things Disney

I'm thinking if I started looking now, I would have to look for a contract with a use year in either April, May, June or July so points would renew as soon as our trip was over and I could book again.

Hopefully this makes sense to some of you Just wondering if anyone thinks this is a good or bad idea and why. I'm thinking finding that type of contract is not completely unrealistic since I've been seeing them come up here and there as I've been watching.

I feel like I am in the twilight zone reccomending this, but I would finance a 150 point resale contract if I were you. By the time you are done searching for loaded use years with loaded contracts, and then playing their closing fees, you would be better off just paying interest on one contract. The key is having the financial discipline to actually pay it off in 3 years.
This way, you wouldn't have to worry about the improbably small odds of finding three small, loaded contracts with the same UY, all for a reasonable price.

 

[lovethesun12]

What are you considering for a home resort? If you are wedded to school vacations and will always go over Easter, February or March UY is probably best for you. Keep in mind, though that Easter and Passover weeks are the most expensive time frame (as much as Thanksgiving and Xmas) - take a look at points charts and think about whether you might always want to go then. We love the weather in April around Easter, but after we bought, decided we would not be likely to go around then just because for the same cost we could have a 1-2 day longer vacation at another time.

@PSUDinsey's point is also well taken - a 50 point contract will likely cost more than half of a 100 point contract, and a 100 point contract will probably cost more than 2/3 the cost of a 150 point contract. Add in closing costs and the headache of banking and borrowing across 3 years and possibility of lost points or being a few points short, and it's probably not worth it, if you can afford a 100 point or larger contract.

Thanks for your reply

I am a teacher so definitely married to the school year! Easter is so expensive! But we have been there twice and I love the weather and work around the crowds. Plus I live in Canada. Our week long vacation costs over $8000! But totally worth it!

Personally I haven't been to any deluxes yet (just POFQ actually, which I loved) but I think I would love (and prefer) AKL based on what I've seen/read. We have it booked this Easter on rented points. I think I would like BLT, Polynesian or GF just as much but AKL seems closer to our price point. I'm not against Saratoga Springs or OKW either. But if I was going to hold multiple contracts I would definitely need at least one at AKL

I guess I'm just thinking it would be much more cost effective to roll the $2600 per year we currently spend (plan to spend) on a resort into a DVC somehow! But it doesn't seem like that may be possible =D.

 

[lovethesun12]

I feel like I am in the twilight zone reccomending this, but I would finance a 150 point resale contract if I were you. By the time you are done searching for loaded use years with loaded contracts, and then playing their closing fees, you would be better off just paying interest on one contract. The key is having the financial discipline to actually pay it off in 3 years.
This way, you wouldn't have to worry about the improbably small odds of finding three small, loaded contracts with the same UY, all for a reasonable price.

Thanks. I feel like I am in the twilight zone for even thinking this too.

The problem now would be convincing my husband to finance (who *I* have worked very hard to convince NOT to finance anything; I've created a monster :O ). LOL

 

[lovethesun12]

Thank you everyone so much for your replies! We definitely have a lot to think about! So helpful.

 

[Wakey]

Resale prices for 50 or sub have got so high now (particularly with closing cost reduction) that it’s probably better to buy direct, my recent 25 add on was.
I’m with the others, go for a 150- 160 resale, unless you dip your toe in with a 50 possibly direct.

 

[Ben E N]

Two important factors to account for before you even think about buying in is the length that you are committing to a contract, and the fact that you are signing up for around $1000 a year in annual dues.
If you are really unsure of what resort you would like to buy into, I would spend your current spring break trip checking out your favorite resort options. I would also rent DVC points for your current trip, so that you can see the differences between owning at DVC and staying at a hotel.
Also, spring break is very expensive on the hotel side, but it is equally expensive on the DVC points side. If that is the only time you can go, then go for it. I am paying a major premium to take a cruise over spring break myself. If, on the other hand, you can change your travel plans to go in early or mid June, you will be saving yourself a pretty decent amount of money over the long run.

 

[CarolMN]

Here's a good thread for you to check out:

Understanding Use Year

I also think finding a loaded 50 point contract will be quite difficult. The smaller contract seem to command a premium price per point (compared to the larger contrast) and most of those available seem to be stripped.

Good luck with your research.

 

[4luv2cdisney]

If you could find a great deal on a 100 point contract with say a Feb UY with all 2018 UY points...

Would that leave you enough reserve in your savings to be comfortable?

You could take 150 point trips on 100 points thru 2022 or possibly further.

2019= 2018 +50 2019
2020= 50 2019 +2020
2021= 2021 + 50 2022
2022 = 50 2022 + 2023

You could stretch that further by:

Well, hopefully you are really only using 140-145 points for your trips. Rarely will it be 150 exact and hopefully you've estimated "low" and you have a little more than represented above.

Value studios - don't count on it, but if you buy AKV and book @ 11 months and are lucky enough to snag 1 for even 1 trip, you will put more points into play.

Possibly using OTU points- Book 5-6 nights instead of 7 at 11 months (and be willing to really only stay those nights which saves you points, too) then try to switch your whole reservation at 7 months to whatever is available (OKW/SSR/AKL) for 7 nights or by adding on to your 5-6 nights stay using OTU points. Yes, this costs you a little, but at 25 points @ current pricing it's $408 - probably less than a years worth of finance charges if you are considering that route.

So, if maybe one year you stay 6 nights instead of 7, buy OTU points another year, and get a value studio another year, you could possible have enough points to stay in 2023 as well....maybe even 2024 (likely needing OTU points again or cutting to a 5-6 night stay, etc). So, you plan to purchase your add-on in 2022ish. By then you've hopefully saved enough to do so and you'll definitely know exactly how many points you really need and where you really want to stay by then to make a better decision on your next step. If you are considering ever buying direct for benefits, that would be the easy way / time to do it.

I don't think it's a bad idea. I just think 75-100 to start would be more realistic and is going to be much less per point than 50. At this particular moment, there is not much pricing difference in resale vs direct for 50 points.

At 75 points you're looking at:

2019 = 2018 and 2019
2020 = 2020 and 2021

Getting a 2021 trip by the above methods would be difficult but not impossible. More likely, you would need that 2nd contract pretty quickly, but maybe could stretch by doing a 25 add-on direct to give you another year if you're still not ready (assuming you can still get a 25 add-on direct). I think 100 to start is the way to go if possible, though.

 

[lovethesun12]

If you could find a great deal on a 100 point contract with say a Feb UY with all 2018 UY points...

Would that leave you enough reserve in your savings to be comfortable?

You could take 150 point trips on 100 points thru 2022 or possibly further.

2019= 2018 +50 2019
2020= 50 2019 +2020
2021= 2021 + 50 2022
2022 = 50 2022 + 2023

You could stretch that further by:

Well, hopefully you are really only using 140-145 points for your trips. Rarely will it be 150 exact and hopefully you've estimated "low" and you have a little more than represented above.

Value studios - don't count on it, but if you buy AKV and book @ 11 months and are lucky enough to snag 1 for even 1 trip, you will put more points into play.

Possibly using OTU points- Book 5-6 nights instead of 7 at 11 months (and be willing to really only stay those nights which saves you points, too) then try to switch your whole reservation at 7 months to whatever is available (OKW/SSR/AKL) for 7 nights or by adding on to your 5-6 nights stay using OTU points. Yes, this costs you a little, but at 25 points @ current pricing it's $408 - probably less than a years worth of finance charges if you are considering that route.

So, if maybe one year you stay 6 nights instead of 7, buy OTU points another year, and get a value studio another year, you could possible have enough points to stay in 2023 as well....maybe even 2024 (likely needing OTU points again or cutting to a 5-6 night stay, etc). So, you plan to purchase your add-on in 2022ish. By then you've hopefully saved enough to do so and you'll definitely know exactly how many points you really need and where you really want to stay by then to make a better decision on your next step. If you are considering ever buying direct for benefits, that would be the easy way / time to do it.

I don't think it's a bad idea. I just think 75-100 to start would be more realistic and is going to be much less per point than 50. At this particular moment, there is not much pricing difference in resale vs direct for 50 points.

At 75 points you're looking at:

2019 = 2018 and 2019
2020 = 2020 and 2021

Getting a 2021 trip by the above methods would be difficult but not impossible. More likely, you would need that 2nd contract pretty quickly, but maybe could stretch by doing a 25 add-on direct to give you another year if you're still not ready (assuming you can still get a 25 add-on direct). I think 100 to start is the way to go if possible, though.

Wow, thanks!!! So many great suggestions. I estimate we would need 146 - that would be the standard studio but like you said if we lucked into a value one year it would be great point savings!!! I'm running the numbers on your suggestion. We've been discussing and we could pretty easily pay half now and finance the rest over 3 years. I think we'd come out ahead rather than wait 3 years and pay $7800 towards renting as well. Buying a loaded contract seems like a great option... now I just have to work on figuring out what a good deal is =)

Probably an obvious question for most of you but what does OTU mean?

 

[lovethesun12]

Here's a good thread for you to check out:

Understanding Use Year

I also think finding a loaded 50 point contract will be quite difficult. The smaller contract seem to command a premium price per point (compared to the larger contrast) and most of those available seem to be stripped.

Good luck with your research.

Thanks! I found that thread really helpful!

 

[Ben E N]

Probably an obvious question for most of you but what does OTU mean?

You can buy up to 24, non-home resort advantaged points per year for $17 per point. A good way to round out a 153 point reservation when you only have 150. You can only use them at 7 months, though.

 

[Mrs.Milo]

Remember that if you decide to have more than one home resort, you can use your 11 month booking window at your home resort only, which means you would have to wait for the 7 month mark to use another resort's points to complete that reservation if you need more points.

 

[Deb & Bill]

Wow, thanks!!! So many great suggestions. I estimate we would need 146 - that would be the standard studio but like you said if we lucked into a value one year it would be great point savings!!! I'm running the numbers on your suggestion. We've been discussing and we could pretty easily pay half now and finance the rest over 3 years. I think we'd come out ahead rather than wait 3 years and pay $7800 towards renting as well. Buying a loaded contract seems like a great option... now I just have to work on figuring out what a good deal is =)

Probably an obvious question for most of you but what does OTU mean?

OTU - One Time Use points. You can buy up to 24 OTU points from DVC at seven months out if you are a bit short for your reservation. They used to be $15 a point, now I think $17 or $18 a point. You call to make your reservation, tell them you need Xmany OTU points, they transfer you to Admin to buy the points, who then transfers you back to your Reservation to complete it.

 

[ELMC]

Disclaimer: I am totally new to the idea of DVC and have been doing a lot of research before purchasing. Right now I really have no idea what I'm doing so feel free to be very critical =D

You've definitely come to the right place. I'm going to respond to different statements you've made with my thoughts or to correct some misconceptions. It's going to appear a bit critical, but please take it with all good intentions. Also, I may repeat something already in the thread, but I'll try not to.

DH & I are currently planning to buy DVC resale in 3-4 years time (we do have enough to do it now but it would deplete our savings for what we want and we aren't interested in financing. We could forego our vacation to do it but really that's just ridiculous ).

You mention that depleting your savings is a bad thing, so it sounds like you're reasonable. I think the first step to buying DVC is to recognize whether or not you can purchase without getting into trouble.

We currently go once a year during Easter (past two years and are booked this year). We need about 150 points per year for the vacation we want. We also know our holidays in advance and can book 11 months out.

This Easter we are booked and renting points which cost us ~$2600. So for the next three vacations $7800. I'm thinking it would be so much better if this money went against our own DVC.

Yes and no. At today's resale prices, you are looking at about a 9-11 year break even point vs. simply renting points each year. The initial purchase price is just a fraction of the cost of owning DVC. The annual maintenance fees are what make up the bulk of the cost. To use your example, you are paying $2600 to rent your upcoming reservation. So you think that if you owned you would be saving $2,600. But you wouldn't. You'd still have to pay maintenance fees on those points, which would cost you about $1,000. So really you're only "saving" $1,600 by purchasing over renting. That is the number you should use when you make the comparison between renting and ownership.

This is a bit of an over simplification but it's a good rule of thumb for the purposes of this conversation. So if you're thinking that you're going to save a ton of money by purchasing DVC rather than renting, you're not. That being said, there could be some benefits to ownership, but in your case none that are likely to translate to significant cost savings.

While we don't want to purchase the full 150 points at our home resort at the moment, we could afford 50 points per year for the next three years (if it happened to be available).

So a few things. While at first it sounds like a good idea to break your purchase into smaller parts, you have to realize that you will likely pay as much as 25% more for your points if you buy a small contract. Plus the odds of finding those contracts all with the same UY will be critical, and the chances of that happening are slim. I think it's a pretty good idea to rule that option out.

*If* I found a "fully loaded" (I think that's the name?) 50pt contract with 2018, 2019, and 2020 points (so this would be in the new year) could I use all 3 years points to book our resort next year (i.e 2019 Easter vacation)?

Then the following year, look for a similar contract, do the same thing. And again the year after that.

You are misunderstanding the term "fully loaded". A fully loaded contract has as many past calendar year's worth of points as possible as well as current and future year's points. What you describe is a contract that only has current and future year's points, and that's not that great of a deal. But to answer your question, depending on the UY of your contract, it is theoretically possible to do what you describe. But not necessarily advisable.

If all three contracts were from the same resort, would they basically combine (if similar use years)? Even if they were at different resorts I would be ok with that. I am good with all things Disney

They would all need to be at the same resort in order to do what you want to do. With separate resorts you would have to wait until the 7 month mark to book. While that's possible, you are also going during a high demand time, so you will have challenges getting a standard view room where you want to be.

I'm thinking if I started looking now, I would have to look for a contract with a use year in either April, May, June or July so points would renew as soon as our trip was over and I could book again.

I know this was covered above, but just to move it all into one place. There are no May or July Use Years. April would work for you but could be problematic in years where Easter is in March. As was said earlier, you want a UY that is at the beginning of your travel dates, not right after. Remember, you don't need to have the points at the time you book. They just need to be available when the stay is occurring. So in that case you would accomplish your goals by buying a FEB or MAR UY. In May of 2018 you will book a vacation for April of 2019, even if you don't currently have any points. On FEB 1 or MAR 1 of 2019 your points will be available for your stay that coming April.

Hopefully this makes sense to some of you Just wondering if anyone thinks this is a good or bad idea and why. I'm thinking finding that type of contract is not completely unrealistic since I've been seeing them come up here and there as I've been watching.

You should really read up on how DVC changes your vacation habits. You may start using your points out of pattern and realize that you want to buy more. That means more trips to Disney and more on airfare, food, park tickets, etc. etc. My guess is that if you go once a year and are happy renting, you might want to consider the possibility that renting points once a year is the best way for your family to visit Disney.