More first time purchase questions

[theostwalts]

Thanks for all the advice on initial point purchase amounts. Based on your suggestions I think I have narrowed it down to an initial purchase of 320 points broken into 2 160 point contracts. That would give me enough points for a 1 bedroom stay in June in a lake view or by borrowing some from the next year, a mk view.

We were thinking of taking a vacation in June of 09 for one of our dds birthdays. Room cost at AKL is right around $3100 for savannah view bunk beds. Looking at a total costs of around $5514 to purchase PAP's and room costs.

With the new bonus points offered, I am thinking it would be better to put that money toward BLT points and use the bonus points for the vacation next June.

With an initial buy in of 320, it looks like the points will be 34,320. Is that right? If you do 2 initial contracts, do you have 2 sets of closing costs? Do you have 2 contracts or one master and one add on? Is the standard deposit on points 10 or 20 percent?

Any insight would be appreciated. Thanks a lot!!!!

 

[hellerjw]

I believe your figures are correct and since you would be splitting the initial contract into two 160 point ones you probably will have to pay closing costs on each, which run somewhere around $300 each (slightly lower for cash buy-ins, slightly higher for financed contracts). There are no closing costs on add-ons but I don't think the 2nd contract would be considered an add-on since its part of your initial DVC buy-in. Your guide could tell you for sure.

Since the 2 contracts would be for the same resort you would have a master contract and secondary contract but for point purposes they would act as one. The contracts would be numbered sequentially (ex. 8500001.0, 8500001.1, etc). The main reason to split it into 2 is if you ever needed to sell one of them the lower point contracts tend to sell faster and for more money than a larger contract. It would also allow you to scale down later and still keep the master contract. I believe the standard down payment is still 10% but there were rumors they may start requiring larger ones with the economy the way it is currently.

I think using the developer points for your upcoming stay in June would be an excellent idea, especially if you are already leaning toward purchasing DVC. The $3000+ you would spend on those accomodations would be your down payment on the DVC contract. Wasting that money on a cash stay just to turn around and buy DVC after the June trip would be a huge loss in my opinion. You would also save around $125 per PAP by being a DVC member (assuming you all live at the same address), one of the few perks we do get.

If it were me and I was on the fence anyway, using those developer points for your upcoming trip would definitely be the tipping point.

 

[senecabeach]

You will be able to have and pay closing costs on the 1st master contract...then..
....No c.c. on the second 160... as it is/will be an add on to the master!!