need another mathematical genius--addon w/without MB

[trampslady]

Help! We want to add on at BCV before it's all sold out. We were thinking between 50 and 100 points. Obviously 100 points will allow for Magical Beginnings, making the purchase price $74.00 per point, with 20% down ($840) we would be increasing our loan by $208 over three years and would not have the use of the points, which is really no big deal this year at all.

If we purchase less than 100, let's say 50, we will be required to put the same deposit of $840 down, increase the loan by $110 per month over three years, and have the 50 points, which we would definitely bank.

Question....in the long run, is using the MB the most logical way to do this or not?

 

[TroyWDW]

How much will you have to pay in 2003 maintenance fees for the 100 points that you will be giving back for MB?

I'd include that cost in your comparison.

Troy

 

[trampslady]

Oh, that's a good question and one which I failed to ask when getting info from my guide. Let's see, I would assume (not always good!) that I would be responsible for the dues between purchase time and the end of the year...that would be around $200.00.

 

[lizziepooh]

Is MB still available for BCV purchases over 100 points?

 

[Dean]

As a member, you should have an idea of how many points you will use. While you may want to buy a few extra, buying 50 extra just to get the MB is crazy. If you need 50, buy 50, you can always add on later if you find need more. Sure you may not be looking at the same home resort but you might want a different one for variety anyway.

The extra dues on the 100 points for the rest of this year would be a little less than $200 and the dues on the EXTRA 50 points less than $100. If you did the MB, that means your return is only about $8 pp after you pay the dues. You would also be financing these points which will erode their value. Persosonally, I'd never add on unless I could pay it for cash, but maybe that's just me.

MB is a good deal if you need the points in the long run but not right now. It is not a good deal in all cases.

 

[Shamus]

If you believe you would likely purchase the additional 50 points in the future anyway I would strongly suggest you buy them now.

Here's the Sales pitch................... #1 - With the 100 point MB option you could still borrow 50 "New" points for the current year and have 50 "New points in year two (The same as your 50 point option). In years 3 and on you would have 100 "New" points to use.

#2 -Those extra 50 points if purchased today would be the equivalent of $20.00 below cost (plus 2 years of dues) for the extra 50 compared to buying 50 now and 50 in the future. (100 pts X $10 = $1000 $1000/50pt = $20) If you purchased 50 pts now and 50 more in a few years both purchases would likely be at full price.

So if you feel you would likely buy them in the future I would suggest you buy them now.

Shamus