Just took the DVC tour, a few questions

[Misty89]

Hello. My family just took the DVC tour on Thursday, and i really want to join.......i know i have alot to think about before i do anything else, but the first hurdle i have to overcome is the price.
if we decide to buy, we will buy the 100 pt package for now, grow later as we have more $$ and less bills.( not overcome w/bills now- but an extra $150 each mth would make it tight) is there a way to get that price down?
i would be needing my payment down to 100$ /mth or less for 10 year financing - Should i see if i could get a loan on my own that would be lower than the 10.75% intrest adn pay Disney off and then pay it to my financial lender? ( thinking my credit union)

thank you i will have tons of more questions later, but wanted to get that one out for some help first.

thank you
Tina

 

[JPS439]

Oh boy, here it comes. You're about to be innundated w/ people who will tell you all of the evil in the world stems from financing a DVC purchase....


One way to get the price down would be to buy a resale, they are less expensive but do have some drawbacks. Pros and cons to everything in life though.

A private loan would most likely have to a home equity or personal loan situation as banks usually won't mortgage time share purchases- there's no colateral for the bank to take should the loan go sour (does that happen?)

What's this 100point thing you're speaking of? I thought minimum purchase from Disney was 160pts.

Whatever you decide take your time, read up on the boards here there's a ton of good info- but take it all w/ a big grain of salt

 

[Misty89]

Oh boy, here it comes. You're about to be innundated w/ people who will tell you all of the evil in the world stems from financing a DVC purchase....


One way to get the price down would be to buy a resale, they are less expensive but do have some drawbacks. Pros and cons to everything in life though.

A private loan would most likely have to a home equity or personal loan situation as banks usually won't mortgage time share purchases- there's no colateral for the bank to take should the loan go sour (does that happen?)

What's this 100point thing you're speaking of? I thought minimum purchase from Disney was 160pts.

Whatever you decide take your time, read up on the boards here there's a ton of good info- but take it all w/ a big grain of salt

I wa told at the meeting that i can buy 100 pts at SSR and AKV

i am not sure what other option i would have, if i did not finance DVC, it would go on the back burner until my children grown up. - what would be the point of a DVC if we were empty nesters? like i said, i have alot of thinking to do and alot of information to gather.....but the price is the biggest factor and how i am going to finance it.
I was only wondering about bank financing because i could mabye get a better intrest rate.
i will keep reading and gathering.......it's not like i have to have this "Done" in any timeframe.


thank you very much

Tina

 

[december14disney]

People just tend to come on here and say that financing is a bad idea. My thought-to each his own. Only you know if you can afford it or not.
Either way-you cant get the price down with Disney. I would look at a smaller resale contract and use banking and borrowing to take your trips. You can get 50 pts AKV for around 95 a point resale... Keep in mind to factor in your monthly dues as well. Adds about 40 dollars a month to the payment if you have 100 pts and obviously like 20 bucks month for 50 pts. Keep in mind--securing financing for this type of purchase is much easier through Disney than through the resale companies. Especially during these times.

 

[backyardponder]

Please make sure you can afford this. I think a lot of the resales available are from folks who couldn't afford.

In addition to the initial cost and financing, figure at least $5 per point per year for dues. Also, owning DVC doesn't include "feeding the Mouse" when you use the unit. Tickets, meals, trinkets, etc. can really add to the cost.

 

[Deb & Bill]

Dues continue to go up each year. In fact, over the life of your ownership, you will spend more on dues than your initial investment of the points. So if the initial buy in is going to be tough, think again because just paying the membership fees each month (and that's easier than a lump sum in January for the entire year) can also hit you hard if the monthly payment on the points is going to be hard.

100 points for ten years will make you pay a whole lot in interest. And depending on the size of your family and when you can go to WDW, 100 points won't give you much of a vacation.

Why not just take advantage of renting points from a member? Find someone on the Rent/Trade Board that you feel comfortable with and strike up a long term relationship.

 

[flyerron]

Well I guess you are getting the expected all over the place advice. IMHO the only thing to really consider is cash flow. Cash flow is KING. If the only way to afford the unit is with Disney financing (should include the annual dues) and you want to do it--then do it. If you can work out a home equity loan then do that. If you can't work out a comfortable financial arrangement then wait until you can. WDW will wait for you too.

 

[WolfpackFan]

what would be the point of a DVC if we were empty nesters?

Why in the world would you say that? Our "children" are 29 and 34 and we have no grandchildren. But we love WDW just as much as if we had all kinds of children. WDW is NOT just for those with children. Also, we used the WDW financing and have had no regrets at all. You have to be careful with the advice you get here (including mine). Everyone is a "expert" and claims to have all the answers, if you don't believe it just ask them . In the end, it's your decision, just do what feels best for you.

 

[jgus]

The key thing to remember is you are getting QUALITY lodging for almost 50 years at todays price. Can you imagine what Disney is going to charge for a night in a 2 bedroom villa 20 years form now? I wouldn't worry about financing, it's an asset. People finance 2nd homes don't they? The one thing DVC has done for us, is force us to take time out of our busy lives and VACATION!!! It gives us somehting to look forward to, it's easy to plan.

 

[Sandisw]

As far as financing, I certainly would look for an alternative option if possible, since the rate is higher than other options.

Here is how I looked at my recent purchases. I have a certain amount of vacation dollars I spend every year. When I calculated all my costs (financing, monthly payments, MF, tickets, airfare, food, etc.) and compared it to the amount in my "vacation fund", I realized that my yearly expenses for the DVC purchases (I did resale and then a 100 pt add on direct) would fall well within my budget.

I did end up using Disney for the financing of the add-on, but only because I wanted to do it last Saturday for BLT so I could book a December trip on the first day of booking on the 8th. I was approved immediately and the points were in my account in about 2 hours.

This week, I was able to secure alternative financing at a lower rate and will just pay off the Disney when that financing comes through.

If you feel that your situation allows you to afford the trips to Disney, then I say go for it!!! My DH and I have always made going on a vacation a priority and after almost yearly trips to WDW, we realized that this is what we love to do (and our kids are now older).

Good luck!!!!

 

[flyerron]

Misty89, We are & have been empty nesters for lots of years. WDW is really for adults all the way around. Adults appreciate the kids reactions etc but the memories linges=r just as well with adults as kids. There are incredible things to do as adults without kids. N ext time you are in WDW take notice of the number of adults who are there w/o children. It will be an eye opener for you. ENJOY!

 

[jlewisinsyr]

We have no kids, never will, we're 29 and 30.

As for financing, I have no issues with financing DVC. For us the payment and dues are nothing in the scheme of our cash flow (we have 205 points). That said, if it was close, where $300 - $400 a month would put a crimp in our lifestyle, we would have never purchased/financed DVC.

Also, unless you are purchasing resale, I'd really look into the minimum point requirement again, because general consensus is for first time buyers the minimum is 160 for all resorts except BLT which is 200. Add-ons are different and you may have got the two mixed up.

 

[mecllap]

Misty -- judging by your post number, you're very familiar with what Disney has to offer. To think about buying DVC, you need to do a lot of reading on the boards here and other places -- there are a lot of pros and cons, even for us Disney-lovers. It is expensive to buy in and it is not what would be considered a sound financial investment -- it is a purchase of a probably higher pleasure level vacation opportunity. It can lure you into taking more expensive vacations more often, unless you're very disciplined -- but if you try to "amortize" it over time -- it may save you in lodging costs after several years.

I've been tempted by it for years, and even tho at my age, I won't see a financial benefit from it, I will have more pleasant vacations with my DD and DGS than I would have staying in generic hotels off-site [or value hotels on site] (and hopefully they will have lots of extra years of enjoyment from it).

I'm just starting the resale process and looking forward to being a member/owner -- but you have to be sure that it's within your financial comfort zone and not be having to work it into your budget with any anxiety. You have to have the "discretionary" income for it. There are stiff annual fees -- that you may only see the benefit of every two or three years (and that's adding them up), along with all the other costs of taking vacations (can you drive to WDW or will you have to fly at ever-increasing costs, etc.).

(The initial buy-in through Disney is 160 points -- close to $18,000 with closing costs; closing costs with resale are a little higher, but the buy-in is less). Generally, it doesn't seem wise to me to finance it, unless you're doing it in a way that you can pay it off quickly.

 

[calgarygary]

Tina, before you consider buying DVC or any timeshare, educate yourself about the commitment you are about to make. Visit TUG where you will get a great primer in timeshares including DVC. Remember, no matter how long it takes to get that education, DVC will still be there. Afterwards, determine how much you feel staying onsite is worth. You may find that you can visit WDW more often in better accomodations and have greater flexibility with non-Orlando vacations by staying offsite. Decide what best works for you and your financial situation.

 

[blondietink]

I think the OP needs to clarify whether or not she can get in for a 100 pt. buy-in. If so, this is a new incentive to get more people to buy in that has not be advertised to the general public. I assumed that the initial buy-in had stayed at a minimum 160pts. for all resorts except BLT, which is now a 200 pt. minimum buy in. Anyone like to attempt to clarify?

 

[alice99]

I would definitely look at resale units, since cost is a concern.

In addition, when you figure out the interest you will be paying, financing may not be so appealing.
I financed through Disney, and when I got my "Truth in Lending" statement, it showed I would be paying 50K for my purchase which was 30K. You may want to consider this "real cost".

I knew that when I purchased. But I am prepared to pay in full when a bank CD matures and home equity loan comes through (3% interest vs. Disney's 10.75% interest). Disney's loan will be paid by the end of this May.

Good Luck

 

[flyerron]

Tina, This is an on going topic of discussion for you & actually quite a lot of potential buyers. Everyone has an opinion & of course it works for them. Since a lot of buying a DVC is emotional (& there is no way to get away form this) The real thought process is 1) can you swing it? 2) will you use it? 3) can you afford to use it? 4) are you able to use it as intended. Sometimes it makes sense to use it every other year. Unfortunately all of the time share purcheses appeal to our emotions. If you can swing it & want to do it then do it. Sometimes we get involved with over analyizing. The more you ask the more oppinions you get & that just scrambles your mind. Taks a deep breath & make a decision & live with it one way or the other.

 

[nunzia]

As others have mentioned, you may want to start with a resale, then do add ons as you find you want/can afford more points. I did my first purchase resale, cash, and am hoping to do my add on at VGC with a large down, partially financed and then pay off the loan way earlier than the 5 years. Everyone has to do what works for them!
Good luck

 

[DebbieB]

I think the OP needs to clarify whether or not she can get in for a 100 pt. buy-in. If so, this is a new incentive to get more people to buy in that has not be advertised to the general public. I assumed that the initial buy-in had stayed at a minimum 160pts. for all resorts except BLT, which is now a 200 pt. minimum buy in. Anyone like to attempt to clarify?

I've seen that posted before - I believe they are offering 100 point buy-ins at AKV, probably to get sales moving. With new points open at SSR, they may be also offering it there.

 

[Dean]

Count me in the group that feel people shouldn't buy a luxury purchase and finance it, but it is your decision. As to ways to get the cost down, there are relatively few. One is to buy resale for around the same # of points. You will pay closing in almost all cases which will add about $5 a point to your purchase on 100 points. Of course you have to pay closing on retail but the $$$ is lower. While you could buy VB or HH even cheaper, I don't think that's a good idea for most. The best current value is likely SSR resale. You may end up buying a few more or less points but the overall savings should be worth it.

There is an even cheaper way to go but it is a lot more complicated and carries far more risk if getting DVC is your ultimate goal. That is to buy either an RCI weeks AND/OR RCI points timeshare and try to trade in. I have two 1 BR weeks set for this fall already at a total cost under $500 a week including indirect timeshare costs. For a time we usually go, we could have had a BCV 2 BR in mid Dec. You wouldn't want to have as complicated a setup as I do but if you bought say enough RCI points for a 2 BR one week a year, you could do that for around $3000 with yearly fees around $750-800 including RCI membership. Add another $150 average per exchange and another $100 that DVC charges extra. So assuming a return of your initial investment over 10 years ($300 a year), you could potentially get a 2 BR once a year for in the range of $1300 per year or a 1 BR for less. After the 10 years would simply be gravy, IMO. This would be comparable to around 250 DVC points a year. Resale you're looking at $7000 for around 100 SSR points plus yearly fees of $500 a year with no additional fees for DVC, currently. However, you'd then be better positioned for non DVC trips as well and the costs to you for non DVC timeshares trips would be FAR less than would be an DVC owner trading their DVC points.

This option isn't for the faint of heart, carries some additional risk, requires you're willing to go out and truly learn and use the systems and can stomach the waiting and hoping that you get what you want. And had you taken that approach with II, you would be left out in the cold right now from a DVC standpoint, the same could happen with RCI in a few years, you never know. But you'd still have the underlying asset and trade option. Personally I've gone the route of diversification with Marriott floating weeks, DVC points, Bluegreen Points, RCI weeks, II weeks and RCI points. Not everyone wants that much involvement, complexity or commitment.