More Questions Before Decision

[PrincessSuzanne]

I have a few more questions befroe I can make a decision.

If I have the cash right out to purchase, would it be wiser to take out a loan to be able to deduct from taxes or just pay cash? I don't want a home equity loan, since we have only been in the house a year.

I am really leaning towards AKV, would it be wiser to go for Re-Sale or with the incentives go ahead and purchase through Disney?

Suzanne

 

[disneynutz]

Pay cash and get it over with. Your tax benefit would be minimal.

You need to take the time to look at the resales and the current AKV direct deals.

Have you stayed at a DVC resort before? You might want to rent before you buy. You are looking at spending a good amount of money and you really should buy where you love to stay. Don't settle for less.

 

[BigDogHU75]

I have a few more questions befroe I can make a decision.

If I have the cash right out to purchase, would it be wiser to take out a loan to be able to deduct from taxes or just pay cash? I don't want a home equity loan, since we have only been in the house a year.

I am really leaning towards AKV, would it be wiser to go for Re-Sale or with the incentives go ahead and purchase through Disney?

Suzanne

I agree that you should pay cash if you can because the amount you are able to deduct from your taxes would not compare to the interest you pay on the loan.

I would definitely weigh the options. I just did an add-on to my AKV contract and looked at both resales and DVC incentives. DVC was best for me because there were no closing costs (since it was an add-on). There would have been closing cost with a resale. And, since I purchased an amount of points that qualified for an incentive, the deal would have been better than purchasing a resale.

Also, it depends on the amount of points you would like to purchase. With DVC, if this is your initial purchase, you have to purchase a minimum amount of points (uesually 160). With a resale, of course, you can purchase whichever contract works best for you. So, determine the amount of points you would like and if you are willing to purchase the minimum through DVC then, weigh the incentives that DVC is offering against the price per point of the resale. Also, consider the use year - when will you be able to recieve your points. With a resale are there already banked points that will expire soon?

If you have anymore questions, please feel free to PM me.

BTW, I purchased into AKV even though I have not stayed there before. For my family, I knew that we would love the atmosphere and we could always make ressies at the 7-month window and/or add-on at another resort.

 

[Dean]

It doesn't make sense to pay someone else $10 to save $1 in taxes, pay cash if you can.

 

[dcfromva]

I would not finance in order to get a reduction in taxes. Even if you are in the highest tax bracket, you will basically be throwing away 3 dollars in order to get 1 back on your taxes.

But, if you have a reward credit card, you can charge your DVC and assuming you don't pay interest on the card you could get a nice payback with your rewards.

 

[WendyinNC]

Disney offers a good interest rate if you put 1/2 down and pay the rest over 12 months. I think the rate is around 4%.