NEW to the community! Question in purchasing DVC

[Jon.Shogun]

Hello.

I'm new and already feel at home. I'm interested in purchasing time share to give down my kids, nephews and nieces. We're very family oriented and feel that this is the best option that I can invest in when the kids get older as they get the chance to reunite when we're gone.

Like everyone else, I'm not rich but would like to get the best investment possible. When we go on vacation it's normally about 20 of us, 10 adults and 10 kids under 15. I've heard some stories to go buy a resell instead of going to Disney. Is this true? I also heard that you can get the cheapest rate possible and since it's a point system you can use all over the world. We saw all the package they offered and ready to invest. My only concern is what am I missing buying from Disney vs resell?

Hope you guys can shine some light and guide me the best way possible. Any site I can look and purchase a resell if anything will be great.

Nice to meet you all.

Thanks
-J

 

[_auroraborealis_]

I've heard some stories to go buy a resell instead of going to Disney. Is this true?

Yes, it is true. Disney is currently only selling points for Aulani (Hawaii) and the Polynesian, which is all Studio Villas, at $168/point. Neither will serve your purposes well, as booking studios is not a good solution for a vacation for 20. You would need 2 2BR units or a Grand Villa + 2BR.

You would be giving up more buying from Disney than you would give up in resale. When you buy from Disney right now, you would get 11-month booking at a resort you would never be booking at, and paying a premium rate. You need to buy at a resort with GVs and 2BRs. Buy DVC to stay DVC. If you want to stay "all over the world," there are cheaper, better ways to do that.

As far as wanting to leave it to the family, keep in mind that there are annual expenses for DVC -- dues are paid per point, and then they have to buy the ever-increasingly priced tickets. Be sure to speak with a qualified estate planner on how to handle a timeshare in trust, and how to handle things like dues payments.

 

[Deb & Bill]

Actually, the OP needs two two bedroom villa and a studio or one bedroom villa or a GV and a two bedroom villa. And those two combinations are exactly 20 each. Or five studios that sleep four or four studios that sleep five.

Unless I misunderstood what combination you were telling him.

As for looking for resales, Google DVC resale. You should get lots of hits. If you plan on dividing up the contracts later on, you'll want to purchase smaller contracts. You cannot split up a contract once you buy it.

 

[Sammie]

As of March 21, 2011, newly purchased resale points do not have all the same privileges as points purchased directly from Disney.

Resale points are valid for reservations at Disney Vacation Club resorts, RCI exchanges, Club Cordial and Club Intrawest.

Resale points are not valid for making reservations within the Disney Collection (including all non-DVC Disney resorts at Disneyland and Walt Disney World, Disney Cruise Line, Disney resorts outside the US), the Concierge Collection (about a dozen high-end hotels and resorts that have a direct relationship with DVC) or the Adventurer Collection (Adventures by Disney).

This might not make a difference but you should be aware of it.

 

[gharter]

I would agree with what has been already said.
Go through the information on purchasing on this site. It was extremely helpful to get a basic understanding of how DVC works. I think I read all of the links in the DVC Information Center post. If you haven't read through it, it will answer many if not most of your questions. It's a really great resource!
If you eventually want to give parts away to your kids, you will either have to purchase multiple smaller contracts (be sure each one is large enough for what you want to reserve now and in the future) or purchase a large one today, and realize that you will be selling it later and buying smaller ones to give away. That option doesn't nessarily make a lot of sense, and large contracts can be difficult to sell.
We looked at buying direct from Disney or going the resale market. For us, it was an easy decision. The few perks that buying direct gave you, didn't matter to us. And the cost savings allowed us to buy a larger contract. Going through ROFR can be stressful, but the savings are worth it.

 

[Jon.Shogun]

Yes, it is true. Disney is currently only selling points for Aulani (Hawaii) and the Polynesian, which is all Studio Villas, at $168/point. Neither will serve your purposes well, as booking studios is not a good solution for a vacation for 20. You would need 2 2BR units or a Grand Villa + 2BR.

You would be giving up more buying from Disney than you would give up in resale. When you buy from Disney right now, you would get 11-month booking at a resort you would never be booking at, and paying a premium rate. You need to buy at a resort with GVs and 2BRs. Buy DVC to stay DVC. If you want to stay "all over the world," there are cheaper, better ways to do that.

As far as wanting to leave it to the family, keep in mind that there are annual expenses for DVC -- dues are paid per point, and then they have to buy the ever-increasingly priced tickets. Be sure to speak with a qualified estate planner on how to handle a timeshare in trust, and how to handle things like dues payments.

VEry informative and truly appreciate it.

I may not take everyone at the same time but would like to have that option. We really want to try the Zoo Park for the kids and Aulani in the future.

 

[Jon.Shogun]

Actually, the OP needs two two bedroom villa and a studio or one bedroom villa or a GV and a two bedroom villa. And those two combinations are exactly 20 each. Or five studios that sleep four or four studios that sleep five.

Unless I misunderstood what combination you were telling him.

As for looking for resales, Google DVC resale. You should get lots of hits. If you plan on dividing up the contracts later on, you'll want to purchase smaller contracts. You cannot split up a contract once you buy it.

thank you for this. I'm not going to split this up and will let my daughter handle this with her cousins. Everyone is pretty close. Thanks again.

 

[Deb & Bill]

Ah, Animal Kingdom is Natazu.

 

[Dean]

Hello.

I'm new and already feel at home. I'm interested in purchasing time share to give down my kids, nephews and nieces. We're very family oriented and feel that this is the best option that I can invest in when the kids get older as they get the chance to reunite when we're gone.

Like everyone else, I'm not rich but would like to get the best investment possible. When we go on vacation it's normally about 20 of us, 10 adults and 10 kids under 15. I've heard some stories to go buy a resell instead of going to Disney. Is this true? I also heard that you can get the cheapest rate possible and since it's a point system you can use all over the world. We saw all the package they offered and ready to invest. My only concern is what am I missing buying from Disney vs resell?

Hope you guys can shine some light and guide me the best way possible. Any site I can look and purchase a resell if anything will be great.

Nice to meet you all.

Thanks
-J

You are smart to research. Here are some opinions but they come from a lot of knowledge and experience with DVC and other timeshares as well as seeing a lot of people's posts over the years on such matters and their personal experiences. Buy a timeshare for the here and now but pay attention to future risk, value and usage. Only buy DVC for usage at DVC resorts, it's an extremely poor choice to use for anything else. Never buy FOR a legacy but plan what might happen when you're gone. I've seen too many times when timeshares were left to others and they didn't want it or it was a burden they couldn't afford or put the work into to get the most out of it.

If you're trying to get Disney and other non Disney trips from this also, DVC is not a good choice as a single entity no matter the price. Other timeshare would be much better. For DVC to do a week yearly for the entire group you'll need more than two 2BR villas, maybe two 2BR plus a studio or even three 2BR villas. Maybe 600 points minimum or likely more in the 700-800 range, buy in resale going cheap with SSR somewhere in the $50K range and up. And fees of $3500 or more yearly. One can get far more value in general with a non DVC timeshare. Bluegreen or Wyndham could be as little as a few hundred to a few thousand dollars going in with yearly far less in this situation. Marriott weeks will vary a lot more but for Grande Vista (Orlando) could be $10K or so and lower yearly but there are some limitations. Other locations might be more but better for you. Marriott Trust points will give more options and flexibility but will be more. Worldmark, Starwood and Hilton also come to mind as reasonable options and there are others. For this situation a combination of less DVC and something else might actually be best if you're set on staying on property.

I'd suggest you research and consider how you'll use it now but also what might happen long term after you can not longer use it yourself. Look at budget and look at where you want to go over the years. Then look at who covers those areas and research those systems. For example, Marriott shines for the Caribbean, HI, FL, HH, MB, Branson, LV and the like. Wyndham covers much the same areas other than HH but adds the DC area. Bluegreen is great for Orlando, MB, Branson, Wisconsin, and has options there there are few like Savannah and Charleston. Worldmark is great for the Western US. RCI points can be a good option for some. All of those are FAR better for exchanging than DVC as well as being cheaper.

 

[crisi]

The other thing to know and understand is DVC cancellation and point use policies. With a big group and multiple families, the chances that you'll need to cancel reservations go up. Someone will get ill, break a leg, lose a job or have to work. We cancelled a trip when my sister was going to have a newborn, then turned around and cancelled it again when the same sister got breast cancer - the trip finally happened four years after the original plan - missing my other sister who chose to skip since she was early in recovery for alcoholism. You don't say what the ages involved are, but with our own two kids in high school now, there is a very short window when we can go that they don't have other commitments - everything from drama and sports to church to school to school trips. This year, Spring Break is also baseball tryouts and mandatory set build. Summer has baseball, camps, and work commitments. There are about two weeks at the end of August, right before school starts, that we can squeeze in a vacation now.

 

[_auroraborealis_]

They get along and are close now, but family dynamics change over time, especially if one child is left in control of a commodity. I urge you to discuss this purchase with all concerned, as well as with an estate planner.

DVC works best for families that visit WDW every year or every other year. Tickets are not included and add significant expense. Coordinating everyone's school breaks or going at the busiest seasons of the year create additional logistical challenges.

What you intend as a gift can easily become contention or a burden.

 

[Pieps86]

If you plan on passing down your contract, one thing to keep in mind is the expiration of the contract. The Polynesian expires in 50 years, but if you buy an older one, you'll only have 26 years to go in some cases. It's up in the air what happens at expiration. Here's the expiration years for each resort, pulled from https://www.dvcresalemarket.com/buying/faqs-for-buyers/:

Resort Deed Expiration
Aulani 2062
Animal Kingdom 2057
Bay Lake Tower 2060
Beach Club 2042
Boardwalk 2042
Grand Californian 2060
Grand Floridian 2064
Hilton Head 2042
Old Key West 2042 or 2057
Polynesian 2066
Saratoga Springs 2054
Vero Beach 2042
Wilderness Lodge 2042
* All Deeds Expire on Jan. 31st of respected year

 

[kniquy]

I would seriously take a step back and focus on your immediate family first and your needs (room requirement) for your typical stay. Look at the points charts and figure out the minimum number of points for the room you want in the season you want.

As a previous poster mentioned accomidating that many people would be an expensive purchase. You kept mentioning the word "investment" which bothered me because this is a vacation purchase $50,000 plus is expensive plus yearly maintenance fees. This is not a real estate investment. If you have the money then great do it but don't expect that all familes involved will want to travel like this every year for the next 20 years. When you are planning to accommodate that many people it will become more difficult as the children get older and more involved in other activities. And everyone might not always get along, just a fact of life.

If you purchase a DVC for your family any of the others wanting to travel with you could always rent their own DVC accommodations at the same resort you are at or they can look into purchasing their own contracts to leave to their own children. The yearly maintenance fees will increase every year so what could be affordable now may not be in 20 years when your children might take over the contract.

Figure out your own needs and dive into DVC with a smaller contract. You can always add on with additional contracts. Good luck!

 

[Lynne M]

Yes, that's a very important point. Timeshares aren't investments, not in the sense that land or a house is. Especially a timeshare with an end date like DVC, meaning that it will inevitably begin to lose value at some point.

Also consider that your gift will come with hundreds to thousands of dollars a year in fees for the recipient. Are you sure that your kids, nieces and nephews will be in a position to pay those fees after you pass on, without it causing financial hardship? Or will they be forced to sell your gift? Are you sure that they'll have any interest in regular visits to WDW when they grow up? Can you know what their tastes in vacations will be 20 years from now? 30 years? Even if they love WDW, will they be able to afford the transportation costs to get there and use the gift you gave them? How about food and park tickets?

Your heart is in the right place, but give this some serious thought before proceeding. If anything, I'd buy what you need for your immediate family's use. If, as time passes, you think some of them would like to have their own DVC contract, leave them a financial gift that would cover the cost.

 

[zavandor]

You already got a lot of great suggestions here, I can only add to read this post and the linked threads:
http://www.disboards.com/threads/★-☆-★-the-dvc-information-center-★-☆-★.3436037/

If you read everything in the "Purchasing DVC" and "Using your membership" sections you should have most of the knowledge to make an informed decision.