Magical Beginnings

[vbfamily]

I agree, MB is a good deal at $10 or $15 a pt. but at $5 a pt. it wouldn't have made sense for us.

 

[Sharper]

Originally posted by 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?

No, Magical Beginnings incentive is the same for add-ons or for new members. I briefly considered adding on, and my friend who was very interested took the plunge and purchased and plans to utilize the $10 MB for her purchase.

 

[KANSAS]

any additional exepriences, or thoughts??

 

[Dean]

Originally posted by 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 People on this board try to be helpful, but sometimes opinions and outdated information are given that further complicate the DVC decision.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!

That's not really accurate. You pay prorated dues based on the months remaining on the Calendar for the year which means part is for the current use year and part for the use year that begins during the year. Since you generally have a use year at least 6 months later than you are buying (at least to use MB), that means you will be paying at least 6 months of dues on the preceeding use year. Still not a bad deal if you're going to buy anyway. Since $10 pp paying dues is a fair price, paying only part of the dues and "renting" to DVD for $10 (or $15) pp is fair AS LONG AS YOU DON'T BUY TOO MANY POINTS or more than you need and as long as you don't finance it at an exorbitant rate. Resale will still frequently be cheaper but not always.

I had the GM card previously and there was a max reward to start with of $1000 per year which they quickly changed to $500 per year, and must be used within 7 years. To me even if they give you no max, it's not the same as cash. I would likely never buy another GM car other than SAAB or Saturn and you can't use it for either unless they've changed that restriction as well. IMO, to consider it cash, you'd need to be able to get it as cash within a year. Still, it might be worth it for some, like my Delta or Marriott accounts would be at times.

 

[KANSAS]

I TRADE FREQUENTlY AND PURCHASE GM PRODUCTS ON A REGULAR BASIS

so the ability 2 get 5% on all my purchases in life.
really works 4 me.

I purchase everything thru my business thru my GM CARD
so I earn 2500 a year, that I on a new vehicle every year

 

[KANSAS]

dean

I think u r telling me that if u purchase BCV and sell your points back 4 $10 per point,
u still will ahve 2 pay about $2 per point in prorated annualldues
so u r really only ahead $8 per point

Well if u cannot rent less than $8 per point and u r going 2 use the points.
why would u do the MB

tell me if I misuderstand u??

 

[Cruelladeville]

Dean,
I bought my March contract of 150 pts in November 1998 (Ithink). Since I could not bank my points at that late date, I sold them back on Member Beginnings at $10 per point. I was not charged maintenance on those points in November, but I did begin paying on those points in January of 1999. I don't know if there is a certain cut-off date for dues, but I checked my paperwork to be sure. I did not pay dues until the next calendar year.

While I haven't taken MB on any of my other contracts, I felt that in this case it was a good deal. I would have lost those points otherwise, and, no, they wouldn't make an exception for me because I was just buying . I was very ***#@ mad about that, but it did work out for the best, since I used the $1500 to pay my contract off early

 

[Dean]

Originally posted by KANSAS
dean

I think u r telling me that if u purchase BCV and sell your points back 4 $10 per point,
u still will ahve 2 pay about $2 per point in prorated annualldues
so u r really only ahead $8 per point

Well if u cannot rent less than $8 per point and u r going 2 use the points.
why would u do the MB

tell me if I misuderstand u??

I'm not sure whether you're asking about an owner renting out points or someone renting points instead of buying an add on so I'll will answer a little of both. I must be more dense than normal today. If one has points and rents them out for $10 pp which is a fair and average price in general, one still pays dues on all of those points ($4 pp dues plus $6 return). The deal is a little better on a MB for ONE year as it's $10 (or $15 pp) and generally around $2 pp dues for that year (prorated) so that's a good return compared to just renting them out on the open market.

If one is inclined to rent from a member instead of buying more points, I don't think one can get them for $8 pp consistently.

 

[KANSAS]

DEAN

U made a very good point.
sorry If I sound confused.

1/2 the people that have posted think MB IS GReat and they r not paying prorated annual dues on their MB SELL BACK 2 disney

1/2 the people that have posted think MB Is stupid and they r paying prorated annual dues ont their MB sell back 2 disney

 

[KANSAS]

DEAN
Please explain this 1 2 me

if u can purchase 100 points 2 vero beach, 4 $84-$15/MB
which is $69 per point
then add $2 in prorated annual dues
your cost is $71 per point.
i get 1 5% Gm CARD CREDIT CARD REBATE
then my net cost is $67.50 per point

why would i pay $65 per point and closing costs on a resale and have 2 wait longer, and maybe not get the actual use year I want.

 

[Dean]

Originally posted by Cruelladeville
Dean,
I bought my March contract of 150 pts in November 1998 (Ithink). Since I could not bank my points at that late date, I sold them back on Member Beginnings at $10 per point. I was not charged maintenance on those points in November, but I did begin paying on those points in January of 1999. I don't know if there is a certain cut-off date for dues, but I checked my paperwork to be sure. I did not pay dues until the next calendar year.

While I haven't taken MB on any of my other contracts, I felt that in this case it was a good deal. I would have lost those points otherwise, and, no, they wouldn't make an exception for me because I was just buying . I was very ***#@ mad about that, but it did work out for the best, since I used the $1500 to pay my contract off early

Everyone else I've discussed with in the last couple of years was charged for the remaining time of that year starting from the date they signed the papers, not the closing date.

 

[Pig Pen]

MB allowed us to purchase. There was no way we could come up with the down payment, especially after just spending 9 days at WDW! We knew we wouldn't be vacationing again until after our use year, so we didn't miss the first year of points.

It definitely helped (tricked?) us decide.

 

[Dean]

Originally posted by KANSAS
DEAN
Please explain this 1 2 me

if u can purchase 100 points 2 vero beach, 4 $84-$15/MB
which is $69 per point
then add $2 in prorated annual dues
your cost is $71 per point.
i get 1 5% Gm CARD CREDIT CARD REBATE
then my net cost is $67.50 per point

why would i pay $65 per point and closing costs on a resale and have 2 wait longer, and maybe not get the actual use year I want.

I've said more times than I can count is one needs to look at each situation individually. VB is a great resort and the MB makes it hard to buy resale cheaper than from DVC for smaller contracts. If you feel the GM rebate gives you that value, that's great, it wouldn't for me. It's also possible to buy resale using a credit card though it's more difficult and many won't do it. I think one can buy VB at around $62 pp and in many cases get the seller to pay closing just for the reasons noted in this thread. The other issue may be the number of points.

Assume one is buying a November use year resale of 100 points now. Lets say that there are 100 points banked, 100 2002 year points and all 2003 points coming in November. Even if it's the same price and dues, the resale is a better deal by around $1000 assuming the seller doesn't want extra maint fees reimbursed. Remember that the MB is only a guaranteed rental program and should be looked at separately from the purchase decision. I'm always concerned when the MB decision is a down payment one, that frequently means the buyer can't afford it. Obviously there are exceptions like bonuses at work or tax returns that are coming but not here yet.

Look at the overall package and see what's best but I don't think that VB is going to sell at $65 pp plus closing, plus dues with the current MB situation. I would be concerned about those wanting to buy VB or HH because it's "cheaper" with the current $15 MB and planning on mostly using them at WDW. I think that's a poor decision and short sighted unless there are plans to use a significant portion at the other resort. I hope this helps.

 

[KANSAS]

DEAN


THANK U very much 4 your response

 

[KANSAS]

can anyone tell me when DVC went from $5 MB buyback 2 a $10-$15 MB BUYBCK.

 

[KANSAS]

DEAN
if a person was attracted 2 the $15 MB buy back 4 vero beach

but, would never use at VERO BEACH, do u think I would regret this
would use at OLd KEY WEST, do not seem 2 have problems using other DVC POINTS AT OLd KEY WEST at 7 month window

 

[DebbieB]

Originally posted by Cruelladeville
Dean,
I bought my March contract of 150 pts in November 1998 (Ithink). Since I could not bank my points at that late date, I sold them back on Member Beginnings at $10 per point. I was not charged maintenance on those points in November, but I did begin paying on those points in January of 1999. I don't know if there is a certain cut-off date for dues, but I checked my paperwork to be sure. I did not pay dues until the next calendar year.

I bought in early September and they did not take the maintenance fee from my checking until 12/1 but the amount was prorated back to September. It takes some time after closing to get the billing setup. So it's possible if you bought in November that they actually billed those dues with your January payment.

 

[Dean]

Originally posted by KANSAS
DEAN
if a person was attracted 2 the $15 MB buy back 4 vero beach

but, would never use at VERO BEACH, do u think I would regret this
would use at OLd KEY WEST, do not seem 2 have problems using other DVC POINTS AT OLd KEY WEST at 7 month window

First, you're welcome. I personally think buying VB to stay at OKW totally is a bad decision, but that's my opinion for what it's worth. You can buy OKW resale for about the same as VB with a lot more add ons than VB available. The fees are what about 70¢ a point cheaper per year and you can bet that trend is likely to continue. You give up the 11 month window which can be important some times of the year and for certain unit sizes. I'm less concerned about buying one place at WDW with the idea of staying at others because you can then book the home resort at 11 months out and change if available at 7 months out, that's especially true for buying OKW as (again) it has the cheapest fees.

I think the change in MB was a couple of weeks ago though VB has been that way off an on for a couple of years. The main change recently was increaseing the on site to $10 pp and HH back to $15 (from $10).

 

[Richyams]

First, I can hardly stand to read your typing, its difficult on the eyes.

Why do you think VB and HH have such a high MB?

Do you know the history?

VB is only a small shadow of its original plans. Dismal sales caused them to dramatically reduce their original plans. Luckily for Disney, HH was never as ambitious a project and was built in an already busy tourist area, it will eventually sell out...although we have been hearing "HH will sell out this fall" for the last five years.

Disney's experience with these resorts forced them to divest themselves of at least one property publically announced as a future DVC location. The dismal sales and lack of interest of these resorts have made it pretty clear that we will NEVER see another off site DVC resort.

These are both beautiful resorts, among the finest in the world, they were also both brutal failures.

Buying off site DVC points with the intention of using them primarily at WDW DVC resorts is a bad idea for a variety of reasons.

Not that it is a real possibility, but worsening economy, VB still not sold out, change in management, VB could be sold and no longer be a DVC resort.

VB also has the highest dues...I don't know how long Disney will just continue paying the dues on the unsold inventory.

 

[Simba's Mom]

Originally posted by Richyams

we have been hearing "HH will sell out this fall" for the last five years.
.

That's funny-when I talked to my guide yesterday, he told me that Hilton Head is 94% sold out, will sell out soon, and only has 2 use years left. Since I've never had any interest in HH, I wondered why he told me-now I know!

BTW, Richyams, your very vocal love of OKW makes DH a big fan of yours!