Minimum Points?

[rayelias]

Sorry if this had been discussed before...

I was under the impression that the minimum purchase for DVC was 150 points.

I've also noticed several resales for less than that.

Is there a "minimum" purchase for a first-time owner at DVC? For example, can I, currently owning zero points, purchase a 100 point resale and be an owner? Or, are the >150 point purchases reserved for add-on points?

THANKS!!!

Also, don't know if anyone has this info, but has there been any research on the appreciation of points since original purchase? I've noticed that resales are going for more than the original purchase (I never would've guessed!). Any info on how MUCH they've gone up over time?


I'm REALLY trying to justify to myself a DVC purchase. My fiance and I try to visit at least once a year. We've been down for 2 short trips (3-4 days) this year, and we're trying to go again. We were very fortunate to stay on-property for the first time this year with the GREAT deal they had. Now we're hooked!

 

[CarolMN]

If you buy directly from Disney, the minimum purchase is 150 points.

If you buy resale, you may buy less than that. Since 25 points is the minimum add on contract that Disney sells, that's as low as you are likely to find on the resale market. Contracts that small will end up very expensive per point, though, becasue the buyer usually pays the closing costs. Those can run up to $500 per contract.

IIRC, the earliest DVC contracts (for OKW) went for something in the high 40's low 50's.

Don't buy if you are counting on appreciation - DVC contracts expire. Those for SSR end in 2054 and the rest in 2042. So far, Disney has kept the price artifically high (IMHO) by effectively using its ROFR (Right of First Refusal). Once the contracts get closer to expiration or the remaining length of the contracts approach 20 - 25 years or so, prices are bound to fall. JMHO. YMMV.

Best wishes -

 

[spiceycat]

timeshares are never an investment.

they are savings (in the long run) on your vacation.

if you are going to WDW every year or every other year - and staying in a deluxe or moderate on-site hotel - then do buy DVC.

with DVC - yes 150 points is their lowest contract

with a resalers - anything that meets your needs.

a 25 point is the lowest (the lowest add on allowed at DVC)

you can't break up a contract - only DVC can do that.

for the lower point contract sometime the commission and closing costs are very high - because these generally remain the same no matter how big or little your contract is.

you will pay closing with a resaler - with DVC you will not.

 

[tjkraz]

Originally posted by CarolMN
Don't buy if you are counting on appreciation - DVC contracts expire. Those for SSR end in 2054 and the rest in 2042. So far, Disney has kept the price artifically high (IMHO) by effectively using its ROFR (Right of First Refusal). Once the contracts get closer to expiration or the - 25 years or so, prices are bound to fall. JMHO. YMMV.

My mileage doesn't vary...I agree completely.

Don't think of DVC as an investment. Many people here prefer the term "prepaid vacation", and I think that's the healthiest way to view it.

Some folks get caught up in the issue of not wanting to buy into DVC due to the ending dates on the contract. Yes, many traditional timeshares have a perpetual lifespan. But the reality is the DVC has a captive market. If you want to stay on-site but get hung up on that one clause, IMO you're making a mistake. I'll take 50 years of DVC (with the undisputable savings it provides) over paying Rack Rates anyday.

Specifically on the topic of "value", as long as there is a demand to stay in Disney resorts, there will continue to be a demand for DVC contracts. Yes, ROFR probably does keep resale prices higher (or at least more consistent) than they would be without ROFR, but even if Disney stopped exercising ROFR, there would still be some demand for the contracts.

That said, I still think it's a mistake to buy into DVC with any pre-conceived notions as to what the value might be 10, 20 or 30 years from now. If you fit the profile of a good candidate for DVC, and intend to remain in that category for years to come, it's the best vacation decision you will ever make.

 

[rayelias]

I'm glad to learn that I'm not bound to a "minimum" purchase to be an owner. I've done the math, and I really only need about 80-90 points. I'm REAL flexible with vacations, and that can get me 9 days in a studio at OKW. That's 2 decent get-a-ways or even 3 mini-junkets a year.

Now, here's the question. What are the odds that I'll be able to pick up 80 points on the resale market? I'd prefer OKW or even Saratoga Springs (due to the lower maintenance fees). It seems that there are many options for Hilton Head or Vero Beach at MUCH lower costs, but I think I'd rather have my "home" be AT Disney.

Is it realistic to be able to pick up 80 points or so on the resale market? Is it also realistic to get them in the $70-73/point range? It seems that any more than that, with transfer costs, etc, I might as well buy new at Saratoga Springs (they're at $85, isn't that right?)

Thanks for your help! And, yes, I DO know you're all chuckling under your breath about the 80 points. I'll probably get "add-on-itis" and will probably regret not just getting 150 up front, just like what seems everyone else on these boards!

 

[dianeschlicht]

You need to realize that Vero and HH have higher dues than OKW or SSR.

 

[tjkraz]

If you are patient, you should be able to find a contract at OKW in a couple of months (if not less.) SSR is probably a longshot. Any resales are rare since the resort has only been open for 6 months--resales under 100 pts are pretty much unheard of.

I agree with your thinking--I'd go with OKW. If you will be using your points for WDW, you might as well get that 11-month advantage at a WDW resort.

The pricing may surprise you a bit. My guess is that you're in the right ballpark with the $71-73 per point figure. But, most resale buyers pay the current year maintenance fees (assuming the points are still intact) and closing costs as well. Closing costs are in the $400-500 range regardless of the contract size, so those dollars can seem disproportionately high on a small contract. Once you add everything up, you're probably close to $80 per point.

You could consider renting points to reduce your cash outlay. I won't go into details--my suspicion is that you are buying the points to use them. So, the cost is what it is. If you do want to know more about renting, just search the forum.

Regarding your comment about buying new, I don't see a reason to go that route unless you plan to use the points. If you only need 80 per year, what are you going to do with the other 70 points? Personally, I'm a fan of the larger units (1B / 2B), but I'm certainly not going to criticize your desire to just stay in studios.

And, no, I don't think there are many chuckling at you under their breath. DVC arbitrarily decided that 150 was the lowest contract they wanted to sell. It's their decision to alienate you as a potential customer.