Magical Beginnings

[KANSAS]

I OFTEN HEAR THIS TERM, what does it mean??

 

[Granny]

Kansas...it is a term used by Disney to mean that they will buy back your first year of points, thus lowering the cost of purchasing DVC points. I'm not sure what the current Magical Beginnings incentives are, but as an example:

If Vero Beach is selling for $84 a point, and Disney offers a $15 Magical Beginning incentive, you could purchase Vero Beach for $69 per point, but not get any points until next year.

 

[KANSAS]

please correct me if I am wrong about the following

#1
tHE MB buy back is $5 per point, not $15 per point


#2.
U still have 2 pay the annual dues, which r prorated that first year.
so u r only saving $5 per point-$1-per point in protated annual dues, so only reallys aving $4 per point


#3.
THE MS SAVINGS is really on $4 per point and u can easily rent 4 $9 per point

 

[JohnnyII]

DVC currently has the following MB offerings...

BCV $10 per point
HH $15 per point
VB $15 per point

If you use MB, they will buy back up to 100% of your 2002 use year points. There is no dues owed on these points.

John

 

[KANSAS]

so if u do the MB, u save $10 per point, plus the prorated dues 4 the year another $2 per point.

But 2 rent the same points would cost about $9 per point

so u r really ahead only about $3 per point? RIGHT?

 

[KANSAS]

I am really confused
why would someone buy a resale at BC
4 $70 per point plus closing cost of $3 per point.

when u could buy resale
$80-$10/MB x 5% CREDIT CARD REBATE,cost is not $66 per point
and
retail transacation is quicker and u can choose your use year

 

[JohnnyII]

Resale may or may not be a good deal. If buying BCV from Disney the price is $84 per point - 10 Magical Beginnings. So the net price is $74 per point (You do NOT pay any dues on those 2002 points). There are NO closing costs at all when buying direct from Disney. And, Disney will finance the purchase for those who do not have the $$$ upfront.

The down side is you have sold your 2002 points. So, if you bought an August use year, you will not get points until August 1st, 2003. Although you could borrow those points immediately if you wanted too.

Remember that resale prices are not set in stone and you can always make an offer. They may or may not have any currnt points available and closing costs are usually paid by the buyer. Also DVC has rigth of first refusal on all resales, so they could buy it out from under you.

Each deal has to be looked at individually, buy buying direct from Disney may not cost much more right now with magical Beginnings and it is virtually hastle free.

John

 

[CaptainMidnight]

Isn't there a 100 point minimum on the MB for BCV?

 

[Richyams]

Since when do you NOT pay dues on points given up for MB?

Maybe this is something new, but in the past dues, pro-rated dues, were always paid on points given up for MB.

MB is always a bad deal. The only time I would suggest someone using MB is if they can't come up with enough cash for a downpayment.

 

[Dean]

You pay prorated dues so you pay part of the dues. I'm not aware of any rebate card where you can get 5% cash back in your hands. Even if you had a rebate that fit your situation, there's almost always a limit per year of usually $500 or $1000 (the ones I'm aware of) and you would max that limit quickly. If you could buy a resale at $70 pp plus closing of $3 pp (on 150 pts), and get enough extra points, it could still be worth it. The MB is only renting out the points to DVD and not part of the actual purchase price. One could always rent out the points on a resale as well so at $10 pp or less, it doesn't make any difference. Since the $15 pp is over the reasonable rental limt and can be used on 50 pt contracts, VB and HH can be a different story.

 

[DebbieB]

Dues are based on calendar year, not use year. You start paying dues on your points on your contract date (the day you sign up). So if you sign up today and for example they give you an August use year with August 2002 points, you have to start paying pro-rated dues effective today whether you sell them back via magical beginnings or keep them. You don't have to pay back to August, it starts today (your contract date). So if you use magical beginnings, you will start paying dues today but willn't have any points until August 2003.

 

[KANSAS]

I get a 5% rebate of my GM CREDIT CARD.
IT HAS no maximum points that can be earned per year.
IF a person purchased 1,000 points at BCV 4 $84 per point-$10 PEr piont/MB, whichi would be $74 per point, or $74,000.
I am using big numbers 2 keep this simple 2 add in my head.
I would receive a $3,700 rebate, 2 be used on purchase or lease of new GM CAR or TRUCk,my net cost would be $70.3 per point.

my ?

Why would I pay $70 per point, resale BCV, plus closing costs and no use of credit card. take longer and maybe not get actual use year I want.

 

[KANSAS]

I am extremely extremely confused
some people believet that MB is a great deal, some have posted u should never do MB, unless u have 2

some people tell me that u do not pay any prorated dues on the 2002 Points, that u sell back 4 MB
other people tell me that u do pay proated dues, on the MB points that u sell back

It would seem like 2 me, if u pay $2 of the $4 per point, in annual prorated dues and only get $10 per point in reduction, u r only ahead $8 per point at this time.
Would it not be difficult 2 rent points less than $8 per point

I hope many will reply 2 my questions.
I am so confused??

 

[Sharper]

My understanding (from my conversation with a guide) of the current incentive is that Disney gives you the 2002 points, you pay no dues whatsoever on them. You can sell them back to Disney at $10 per point. You would pay prorated dues on 2003 points based on when your contract was signed.

In my opinion, this Magical Beginnings incentive is great. The $5 off for current year points was NOT, but I think that this is much more of an actual incentive.

Again, you might want to consider calling a DVC guide. People on this board try to be helpful, but sometimes opinions and outdated information are given that further complicate the DVC decision. Good luck!

 

[vbfamily]

I may be wrong, but I think a lot of people use MB because it helps them make a good size down payment. This is just one reason. If you buy DVC and want to rent pts-you have to buy first, making your own down payment, etc. and then rent them out. I think some people just do it to get a bigger down payment and then they finance less. Doesn't this save interest, etc. Is it better than buying without using MB and then renting-I don't know.

I'm glad MB is offered. I don't really have an opinion on renting.

 

[JohnnyII]

Debbie is correct on the dues. I was trying to simplify it by saying you didn't pay dues on your 2002 points because dues is based on calendar year. I guess I look at it a little differently than some or most. I figure my dues that starts on January 1 2003 is for my 2003 points, even though I don't get my points until August even though that isn't exactly the case.

I am in the process of a 100 point add-on at BCV and will use MB. My use year is August and I don't need the points right now, so I would rather buy at $74 per point and not get points for 7 months. If I look to re-sell it down the road, I only need to get back $74 per point to be whole. For me, it's a good deal.

 

[Noelle]

We decided to use MB for a couple of reasons. We already had airfare booked for Easter Week and there was NO WAY for us to use our new 2002 points toward this trip. They checked every DVC Resort. We would have had to change hotels 3 times in 8 days. (with 2 small kids, IT WAS JUST NOT WORTH IT!!!) And there was still 1 day they couldn't guarentee a room for at all!!!
Secondly, we probably won't go back to Walt Disney World until Late July / August 2004. We don't need anything more than a studio. Yes, we could have banked 170 points and had 340, but that would be more than we'd need. I'd rather sell those back and help to pay for the Port Orleans Riverside Room we have this Easter. Further, We put down 20%. If you subtract $1200 (POR Reservation 2003) from the $1700 MB, we put an additional $500 down. Better for us! Closer to being paid off and sooner til we can think about adding on to another resort.

 

[Jen D]

Question re: BCV $10 Magical Beginnings

I thought I remembered there was a minimum of 100 points for this, but I also thought I remembered that this was only for current DVCers doing an add-on and for new members it was still only $5 magical beginnings. Can anyone confirm or deny?

 

[KANSAS]

will some one please answer this question

very good ???

 

[DebbieB]

At $10 per point, MB isn't a bad deal. It was a bad deal at $5 per point. When I bought in 1999, they would only allow you to use up to 150 points for MB when you bought over the phone or 200 in person. I bought in September of 1999 over the phone, got an April use year and didn't plan to go to WDW until May 2000. So I bought 250 points, I sold back 150, got $1,500 off and banked the other 100 into 2000. I did have to start paying pro-rated dues in September 99 on the whole 250 points.