more DVC buying help!!

[firedogemb]

More questions!!
First one is about how much can you expect to get for % rate for financing a resale DVC and for how long a term?

Also, would it pay to buy extra points that you don't plan on using yet and then renting out those points to help pay for your vacation? How much do rental points go for, usually?
We really need about 300 points for our family size and the amount of time we want to stay, but am considering getting more if it might help pay for itself by renting out points.

Thanks!!
Leslie

 

[Dan Murphy]

Welcome to the DIS, Leslie!! Nice to see you.

I have no knowledge of DVC stuff, but do know many here do. You might also make a copy of this post on one of the DVC boards here on the DIS.........

http://130.94.75.33/forumdisplay.php?f=7

The post here is fine, anything can be posted here, but one of those focused boards might do well too.

PS: My son is also a FF/PM

 

[Disney Doll]

It will be tough to get any kind of loan for a DVC resale, to the best of my knowledge. Most lenders do not loan out for timeshares. I do not think that the timeshare resellers offer financing. I could be wrong on that point though. If you buy a resale through DVC (and there are a few avaiable usually, due to ROFR), I think the financing is about 8%. Probably the best thing to do is to call the DVC directly with regard to what contracts they have available and what the financing rates would be.

Renting points is, overall, not the best way to make money. It can be time-consuming. You may make a rental deal with someone and if they cancel within a certain time frame, you only have a certain time frame to use those points or lose them. Lost points=lost $$$$$. My recommendation would be to buy what you think you'd need for your own family's vacation needs.

If you think 300 points would suffice for your family's needs, then buy 300 points. You might want to consider buying the points in more than 1 contract. Some folks feel that, in the horrific event that you had to sell your points down the line for some reason it might be easier to sell smaller contracts...less expensive for another buyer, less of a commitment.

DH& I have 2 contracts...one is 200 points & one is 230 points. We bought the 200 points first...it was what we could afford at the time and the point amount worked for us. When we started wanting to go to WDW more, and we had the financial wherewithal to afford it, we bought the second 230 point contract from The Timeshare Store reseller. We paid cash, but I have heard of folks buying it with the Disney VISA to get the rewards points and then paying it off the VISA the next month with cash, or a home equity loan to get the tax advantage. I have heard of folks buying it directly with a home equity loan....again, that gets you a tax advantage. I have heard of folks refinancing their primary residence and including enough $$ in the refi amount to cover the cost of the DVC purchase. There are not a lot of lenders who will loan for a timeshare purchase, so that one might be tough.


I will add that DH & I have owned DVC since 1997. We still consider it one of the best purchases we have ever made.

 

[Dan Murphy]

You might post this on the Community Board also, lots of DVC people there to help. Looks like this was moved, not copied.

 

[DVCconvert]

would it pay to buy extra points that you don't plan on using yet and then renting out those points to help pay for your vacation? How much do rental points go for, usually?

Another possible strategy to consider might be to but enough "extra" points so that by renting those the proceeds will pay the annual fees.

For example, if you're buying OKW, the annual fee per point is $ 3.68
( or $ 368 per year, per 100 pts).
If you know you want to use 300 points per year there (at the present rate for fees), that will cost you $1104 per year.

Points rent out (usually) between $9 - $11 per point. So assuming you rent at $ 10 per point, and that you buy about 200 more points than the 300 you know you'll use, the rental income from the 175 extra points should cover the MF's on the 500 +/- points.

HTH

 

[Dean]

Tammac is the only company I know of. I don't know their current rate but would suspect around 12-13% roughly. A home equity or some type of CC with an interest free period might work well. Best option is to save up and pay cash, even if you have to sacrifice vacations for a couple of years. I wouldn't buy more points than you need, but I would give yourself a little margin just in case. In part it depends on what you're comparing to. If you're looking at 5 days avoiding weekends in a studio, I'd definitely get more points than your calculations suggest. If you're looking at 7 days in a 2 BR in a higher season, you won't need any extra in all likelihood. Buying to rent long term doesn't make any sense. But if you will need more points later than you do now, it might be worthwhile in the short run. Don't forget you can bank and borrow and stretch points by avoiding weekends.

 

[DVC-Don]

We used our Home Equity Line of Credit for our OKW resale a few years ago. I think it was 4.5% back then. It's paid off now but, I think the HELoC is now 6.5%.

 

[T.E. Yeary]

The Timeshare Store, Inc. has consistently used a company called Tammac Financial Corp. in our 11 years of doing business. We handle the paperwork for our customers. To my knowledge, we have had no complaints from any of our customers who have financed through them. A person does have to be what they consider "credit worthy" to qualify. Applicant MUST reside in the US. Tammac just sent a new flyer to the office informing us of their new rates. The flyer says:

Rates as low as 10.99% A.P.R. (They were at 9.9%, the prime rate has gone up)
Minimum loan amount $2,000
Maximum loan amount $25,000
In most cases, approval granted within 24 to 48 hours
This is an open-ended mortgage with NO prepayment penalty(a GOOD thing)
__________________________________________________ __________
www.tammacfinancial.com

Tammac Financial Corp.
12995 S. Cleveland Ave., Suite 256
Fort Myers, Fl. 33907
Toll-free 800-640-6753
Phone 239-278-7974
Fax 239-278-7978

 

[Dean]

The Timeshare Store, Inc. has consistently used a company called Tammac Financial Corp. in our 11 years of doing business. We handle the paperwork for our customers. To my knowledge, we have had no complaints from any of our customers who have financed through them.

Tom, unfortunately that is not the story I've heard on TUG where some have reported issues. Glad your experience has been different.

 

[crisi]

Renting points is not a risk free operation. There is the cancellation issue. There is your time involved. Plus someone here just had his/her account put on hold until his/her guest's bill got paid! Her guest (her BIL) made every attempt to clear his room charges before leaving, but due to some snafu, it didn't happen and she now has the bill. (This is the second time I've been around that this has happened to someone who posts on this board, I've been here about four years).

If you are willing to accept these risks, renting could be a fine way to cover some dues. But do buy several smaller contracts which are easier to sell if you need to.

 

[T.E. Yeary]

Dean- I haven't read the tug reports so I can't comment.

I did check with the office to get an average count. We have an average of 2 buyers per month to use them. That would equate to 2% of our deals. We simply tell folks the different financing options available to them, as stated in earlier posts on this thread, and they can take it from there.

Tom

 

[T.E. Yeary]

One very important thing I want all of you on the board to know.

We are always on the lookout for new and better ways to help our purchasers become DVC members.

You board members have a wealth of information and creative ideas concerning financing issues.

If you've found something that works and could be a benefit to our customers, buyers or sellers, please pass it on to me. I'm as close as your PM button and I would really appreciate it!

Thanks,
Tom