Is this a practical way of buying DVC????

[Jon99]

We went thru some financial problems involving credit cards several years ago and have vowed to never borrow for anything other than a primary mortgage.. Problem is, we love DVC and don't have $15K laying around.. Has anyone bought a 25 point contract to start off with and then adding another 25 points every year or two afterwards???

 

[spiceycat]

not with my first membership - but with add on definitely.

I can't add on 120 points like some here can.

however that say - DVC won't sell you a contract for under 150 points - so go look at resalers.

unless you find a resalers that will work with you - they charge around the same thing no matter what the contract size. there was a post stating what the sponsor of this site charges - I will try and find it for you.

 

[luvindisneyworld]

I dont think I could do that.It would take a while to have enough points to get to do anything.
We bought in,in 2002 and we had problems years ago.But we decided to take the plunge for DVC,it was the best choice we have ever made.The financing through Disney was very easy you just have to have i think 10 or 15% down and then they finance the rest.
DVC is offering the friends and family referral right now where you would get 15% off if you are referred by a member which is a very good deal.Let me know if you need one and I would be happy to help.

Misty

 

[littlestar]

If you don't already have a 2nd mortgage, usually you can take the interest on the DVC loan through Disney off on your taxes if you file long form. We also take the property taxes off. Disney sends us a 1098 mortgage interest statement on our loan.

We financed our 150 point contract through DVC for 10 years, but we pay extra on it each month to pay it off early.

With the friends and family special right now at SSR, I would look into going with Disney and buying 150 from them and financing through DVC if it's in your budget and you like SSR and the extra years at SSR.

Also, we calculated what we were spending on cash rates for our Disney vacations at deluxe and moderate hotels, and we came out ahead by buying.

 

[bavaria]

Personally, I think that it's very sensible. Debt scares me and and I don't think that one should go far into debt for a luxury purchase (just my personal opinion, to each his/her own). I know a few other board members bought small contracts, as I did.

I called this boards sponsor and requested to be put on a waitlist for a 50 point contract. Within 24 hours I had a call that a contract was available and agreed to start the ball rolling!

I still plan to add on 25/50 points a year or so for awhile.

But I do think that you need to be realistic about your travel patterns. I will mainly book a studio at OKW, and don't plan a WDW trip from now until late 2006 (went 6x in 2005) so won't need to use my points. I am also planning to bank/borrow/transfer in points if needed. 50 points/year gives me 6 nights in a studio at OKW, weekdays. By the time of my next trip, I hope to have added on 25-50 more points.

Also remember that the initial purchase is not the larger financial outlay - its the yearly maintenance fees, so factor those into your calculation.

 

[calypso*a*go-go]

Your plan of purchasing 25 points at a time will end up costing you more money in the long run because of closing costs, also the smaller contracts are very popular and tend to get a slightly higher cost per point. If you ended up w/100 points through 4 contracts your costs would be (as an example):
$80 x 25 = $2000
Closing = $ 400
------
$2400 x 4 = $9600

Purchasing 100 points through 1 contract would be:

$78 x 100 = $7800
Closing = $ 400
------
$8200

Although these are just estimates and the prices could vary dramatically depending on which resort you buy...I think you would end up saving at least $1000 by waiting until you can afford at least 100 pts.

 

[bullpup12564]

TTS cost for closing 25 points is 262, Add 60 for insurance.

I got this info from an earlier post that some one sent me. (I think it was Carolmn)
http://www.disboards.com/showthread.php?t=915227

 

[snowbunny]

I think it's sensible. Far better than going into debt. Don't go into debt for vacations!

25 points is not that few if you use them well. If you bank and borrow (points from the coming year), every three years you'll have 75 points to use. That's more than a week at the Boardwalk, if you can be happy in a studio. Not everyone goes to Disney every year - we certainly don't. You can also rent additional points for one-time use at $10 per point, if you want to go more often or longer. Plus your maintenance fees will be low. Then you can add more to your contract as you are able.

Good for you for determining to manage your level of debt wisely.

 

[utahkennedys]

I bought a 25 point contract this spring and will likely add on. Actually, you WON'T pay any more closing costs buying in 25 point increments through Disney, only through Resellers. So, I could call and add on at BWV or OKW probably today, and just pay the per point rate and be done if I went directly through Disney (which I would for add-ons). I wouldn't choose SSR over the previous resorts - just my opinion. And, I certainly didn't want to finance it at all -- cash only for me otherwise the value of DVC dramatically decreases IMHO.

Also, you can do quite a bit at OKW with just 25 points. We stayed in a 2 BR this past Sept. by using the 10 banked points that came with our resale contract, the 2005 points, plus borrowing our 2006 points. Then, I paid $500 for some transferred points from another DVC member and I was done. It was cheap, easy and worked out so nicely for us.

 

[ErinC]

You should only buy what you can afford, don't extend yourself and then regret it. You obviously are already self disciplined in this area to want to do it in this way. Utahkennedy already told you that you could buy a small contract through a resaler and then add on from disney without paying closing costs each time you add on from Disney. One thing that I thought I would mention would be that you can buy direct from Disney and pay it out in one year with no finance charges. I think you put 20-30% down and pay the rest out in a year. I'm not sure if that is an option for you but I thought I would mention it. Of course you would have to do the 150 min. point purchase if you went through Disney for your initial purchase. If you think the smaller points purchases can work for you, than by all means contact some resellers and let them know what you are looking for. If you decide to go through Disney, than try to make your decision by the 15th before the price goes back up. Good luck!

 

[Steamboat Bill]

I would reccomend RENTING points from a DVC member on this web site at $10 per point from a reputable owner (like me) hee-hee.

That way you can experience the DVC experience with minimal outlay of cash. Then when things improve....buy a resale from The Timeshare store.

-Bill

 

[dvcnewgirl]

I think it is a good way to start. I just bought an 80 pt contract and will be adding on 25 pts every couple of years. I also did not want to go into debt for this ( but wanted it really bad!). Buying 25 pts can get you in OKW for 5 nights every other year during the off season and you can bank the other 10pts you have left. So if you are flexible with travel dates I would go for it!

 

[MELSMICE]

Totally OT - luvindisneyworld - your baby is beautiful!

 

[doubletrouble_vb]

1. Buying from a reseller initiallly you will pay closing costs. I'd get the biggest contract I could afford under those circumstances. The small contracts go for pretty close to retail from Disney once closing and maintenance fees are factored in.

2. Add ons from Disney. It appears to me that the small add ons from Disney usually cost more than the current promotion. For example I think the current one is 15% off but you have to buy a minimum amount.

If you don't have the money available to make the purchase outright realistically you shouldn't borrow it. If you do have it then borrowing is okay because you can pay it off at will.

What I would probably do is buy it at the point in time I'm gearing up to go to Disney. That way you can apply the money you would have spent on a room on the down payment to Disney...and then use your points to go. Odds are you would have excess points so you could rent those out and apply that money to the contract as well. Or you can apply that money to a resale contract with enough points available and then get a loan for the remainder.

 

[drakethib]

We went thru some financial problems involving credit cards several years ago and have vowed to never borrow for anything other than a primary mortgage.. Problem is, we love DVC and don't have $15K laying around.. Has anyone bought a 25 point contract to start off with and then adding another 25 points every year or two afterwards???

I think it would work and just supplement yout points by renting them as needed on your trips.

A DVC free and clear title is a great place to be.

 

[CALNEVA DISNEYFANS]

I think its a great idea. It worked for me. I bought a 50pts contract (I'm selling it right now for $4000.00) Instead of adding on... I'm purchasing a 100 pt contract, with my sale proceeds, in a home resort and a month that makes the best sense for our travel plans. If you don;t go to WDW every year, a lower point count works. You can always rent additional points and sell the ones you dont use... plus with 50pts you get all of the benefits of someone with 500 points.

Good Luck

 

[vascubaguy]

I agree with the concept of buying small to avoid debt. However, it appears that the current trend is that DVC is exercising their Right of First Refusal (ROFR) on resale contracts if you aren't already a memeber, unless the price on that contract is pretty high (or off-site). Of course, this doesn't mean that the trend will continue or that some aren't going through.

Ok, all that said, I started out by purchasing a resale contract of 40 points at OKW, which is enough for 5 nights in a studio. I also had the $$$ that I could pay for it without financing. Now, for a 25 pt contract, the most you could hope for is maybe 3 nights in a studio at OKW, which still isn't bad. Of course you could always bank and borrow points as needed to stay longer. The biggest problem will be finding a contract that small (at a resort that you want) that isn't completely stripped and that will pass ROFR. If you can get over those hurdles, then it would be much easier to add-on 25 pts each year direct thru DVC.

For me, right after I purchased the 40 pts, addonitis kicked in and I immediately purchased 110 more pts... Thank goodness for 0% interest credit cards.

 

[bavaria]

For me, right after I purchased the 40 pts, addonitis kicked in and I immediately purchased 110 more pts... Thank goodness for 0% interest credit cards.

Again, vascubaguy has words of wisdom re ROFR. I know that several of us (vascubaguy, Utahkennedys, bavaria) successfully purchased our first contract of 50 points or less in mid 2005, but lately it does seem like smaller contracts are not passing.

And of course the greatest words of wisdom are to fight off addonitis - it hits you hard!