Need help deciding when to buy please!

[traceyr13]

Hello everyone - longtime lurker coming out of lurkdom to ask a question if that is okay. This board has been AWESOME helping me understand and decide to buy DVC, so thank you!

Okay - so, I have decided to buy at BCV. I know many of you are probably thinking "What are you waiting for!" but it's not that simple. I want my first trip to be in spring 2008 at the earliest, but more likely spring 2009. I am entering a 2 year graduate program next year (full time) so money will be very tight, and I would like my youngest child to be older before we go.

Given my flexible timeframe of when I want to do the trip (that I'm in no rush), any advice on the best time to purchase? A few other details - I have the money put aside to buy it, but I'm very hesitant to use it at this point because there is a strong possibility that we may be selling our current house and buying a new one this summer, and I would like that money in reserve "in case". However, are there incentives going on right now that would be of such benefit that I should consider purchasing earlier? I'm not sure at this point if I will be paying cash for the entire purchase (depending on what happens with our home). I may look into financing part of it.

If I haven't totally frustrated or confused you, any feedback is appreciated!

 

[RobDoc]

There are no purchase incentives for any resort except SSR. Direct purchase of BCV thru DVC will be at $95 per point at this time. The available incentive at SSR would allow a purchase at $86 per point.

Resales can probably be found for a little less than $95.

It sounds as though you are being very practical - both by saving for the purchase and in wanting to wait to see if those funds might be needed for something more important.

Good luck with your decision!

 

[Didney Daddy]

DVC will always be there as will resales of BCV. Depending upon when you want to travel in 08 or 09, consider owning 11 months out from that point. Add to that point in time probably 3 months to secure the BCV points though others may have a different perspective.

It sounds as though you are practical and have the funds. Remember, DVC is a prepayment for luxury accomodations. This is an expense and not an investment. If you truly in a position or will be to afford such a personal luxury, then we will all be thrilled to welcome you and your family home.

 

[WDW LifeLong Fan]

Doc beat me to the information on current incentives at SSR and the "going" rate for a resale.

I wanted to echo both comments concerning your thoughtful deliberation process.

 

[traceyr13]

Thank you so much for the feedback! Okay, so you would recommend purchasing roughly 12-14 months prior to when I would like to take my first trip?

Given my situation, are there any glaring benefits/drawbacks to waitlisting with Disney or going resale? I have the time to be on a waitlist for Disney, so that's not a problem. I know closing costs are usually higher with resale, I think? Is one much better for financing, should I need to finance part of it?

Thanks again!

 

[traceyr13]

bumping in case anyone has any opinions on possible financing with resale vs Disney.

 

[dianeschlicht]

You will have to get your own financing if you go the resale route outside of the Disney direct. If you purchase from Disney directly, you will be able to do their financing, but obviously, it would be best to not need financing.

 

[JimMIA]

For resale, TTS has some sort of financing connection, and of course Disney has their own. However, if you need to finance and have the option of a home equity line, that may be less expensive than either Disney or other financing on the DVC contract itself.

In addition, depending on your particular tax situation, the interest on the home equity loan would probably be deductible. I'm not sure about regular DVC financing, but I don't think it's deductible (I could well be wrong). Obviously, you'd need to check with a tax professional to be sure in any event.

 

[JimMIA]

As far as pricing, you will see some BCV contracts priced below Disney's $95 price. But looking at the ROFR thread, I don't see anything passing ROFR with a price of less than $96 recently.

Given that...unless you found a contract that was just perfect for you (perfect UY in a situation where UY really matters to you, lots of banked points, etc.), I think I'd just buy BCV direct right now.

The only resale contract I found attractive on the TTS listing (I didn't study them closely) was the one priced at $100, but with 197 banked points and all current and future points intact.

 

[Parkhopper13]

I think your conclusions make sense. Let me be the first to wish you a warm welcome to both this site and the DVC commuinity.

 

[traceyr13]

Thank you so much! That helped me in my thinking. I will definitely "hang around" here and learn more over the next year as we get ready to buy!

 

[kdzgon]

For resale, TTS has some sort of financing connection, and of course Disney has their own. However, if you need to finance and have the option of a home equity line, that may be less expensive than either Disney or other financing on the DVC contract itself.

In addition, depending on your particular tax situation, the interest on the home equity loan would probably be deductible. I'm not sure about regular DVC financing, but I don't think it's deductible (I could well be wrong). Obviously, you'd need to check with a tax professional to be sure in any event.

I understand Disney structures their refinancing as a mortgage, so it could qualify for a deduction, depending on what else you are already deducting (re: real estate).