Newbie questions on buying in

[scw2step]

I've been patrolling the boards for quite some time gathering information. My wife is currently pregnant and money is a bit tight, but we are do in August of 2010 and wanted to do a small trip around same time in 2011(just the two of us, grandma will love to take the baby!). I'd wait to buy in but honestly just want to get in the club. We were only planning on 100 points to start seeing we can add on and I have a few investments which should allow me to have pretty solid financial freedom but not for a few years down the road. We did our honeymoon last August and that should be the time of year we go seeing its after I teach summer school and reasonable rates. Seeing you know my life story now(LOL) here are my questions?

1.)Should I buy direct or resale?(We like the idea of using DVc points outside of DVC resorts but I have come to realize that its not too smart of an idea anyway). If that's the case then I dont see why I wouldn't do resale if I can get financing.

2.)We love MK so are thinking VWL or BLT. VWL is much cheaper but ends 18years earlier. In your oppinion should we do VWL now because its cheaper? If money isn't tight down the road then I can always buy in again later to a resort that ends later or even adds on time to the expiration. We would love to be in BLT but VWL gives the same location advantage and we were ok with the boat ride to the monorail. Will that change with a child?

3.) If we plan on traveling mostly in August should use year be June/July?

Thanks again. We are so close to this and appreciate your help.

Scott

 

[littlestar]

It sounds like you're a young family starting out. I think I would just rent points and wait until you have the cash saved for a small resale contract - I'd consider a small SSR point contract or OKW extended contract once you have the money saved up. If it were me, I'd want the longer years since you're a young family. You should be able to buy 50 or 60 resale points at those resorts for under $4,000 including closing costs. Or if you find a 100 point contract you'd be looking at probably under $7,000 if bought resale. If you buy direct through Disney, the last time I checked Disney was selling Saratoga for $99 a point. If bought direct through Disney, you should get 2010 points (sometimes resale contracts are stripped - I value the missing points on stripped contracts at $10.00 a point).

There are no July use years. I'd probably consider an August use year (or maybe April or June would be better since once your child gets older you might want earlier summer vacations).

 

[disneydenisel]

Congratulations on the baby on the way, that's very exciting !

Here is my two cents: Given your financial situation, I would definitely consider a resale. I would try not to finance and instead pay cash so that you don't have that monthly payment. If you are comfortable booking at the 7 month window and aren't particular about where you stay, then a resale at SSR would have a long life and be slightly less expensive. Otherwise, the age-old rule applies: Buy where you want to stay.

We spend most of our time at MK, but we own at BCV and don't mind taking the buses back and forth. We actually enjoy the ride! As the kids have gotten older, they enjoy walking around the EPCOT and Boardwalk area, and we like having that close proximity to Disney's Hollywood Studios.

A June or earlier UY would work well for August trips. However, are there other months that you might be traveling in when the kid(s) are older? I also would think about waiting on a purchase until after the baby is born to see how you are feeling about everything. You can always rent a reservation for your first trip with the baby and grandma (highly recommended if you haven't already rented).

Anyhow, just my two cents .

 

[5forDiz]

Take your time, buy resale, start small, pay cash and do it when $ is far from being tight; DVC isn't going anywhere for long time.

jmho, don't worry too much about purchasing at resorts with earlier expiration dates because in 25+ years from now you & your family may not be interested in Disney-related travel and also, there is always the possibility that extensions may be offered as in case of OKW.

Best wishes on the new little one

 

[scw2step]

I appreciate the advice. I was looking into financing a 6500 dollar contract for 10 years where I'd likely pay it off wel before then. I've really already budgeted a payment($90) and not sure if 50 points will be enough for what we want. It's all tough to decide unitl the baby comes. Seeing as resales can probably only go down in value, I'll probably take your advice and wait until after the baby comes. Thing is I'd like to have one closed in time to be able to hit the 11 month window but that may not be possible.

 

[ORD2KOA]

It sounds like you're a young family starting out. I think I would just rent points and wait until you have the cash saved for a small resale contract - I'd consider a small SSR point contract or OKW extended contract once you have the money saved up. If it were me, I'd want the longer years since you're a young family. You should be able to buy 50 or 60 resale points at those resorts for under $4,000 including closing costs. Or if you find a 100 point contract you'd be looking at probably under $7,000 if bought resale. If you buy direct through Disney, the last time I checked Disney was selling Saratoga for $99 a point. If bought direct through Disney, you should get 2010 points (sometimes resale contracts are stripped - I value the missing points on stripped contracts at $10.00 a point).

There are no July use years. I'd probably consider an August use year (or maybe April or June would be better since once your child gets older you might want earlier summer vacations).

I absolutely agree with this littlestar's advice. Don't forget that beyond making the purchase you'll also be responsible for annual fees. IMO, in the big scheme of things, save for DVC until you don't have to finance the purchase. In the meantime, renting is an excellent option.

Congratulations on the new little light in your life.

 

[Kidanifan08]

I appreciate the advice. I was looking into financing a 6500 dollar contract for 10 years where I'd likely pay it off wel before then. I've really already budgeted a payment($90) and not sure if 50 points will be enough for what we want.

50 points ain't gonna get you much. Look closely at the point charts and decide what you want to do with DVC. If you have to fly to Disney, the cost of flights is such that you would want to spend more than 3 days, which is about what 50 points will get you -- 6 days if you go every other year.

There are certainly strong opinions on this board about financing a DVC purchase. We financed because we wanted to buy in while our son was still young. The finance charge of 11% has been ridiculous, but at least it has been tax deductible. DVC is a bigger commitment than just the initial purchase price. This is the kind of luxury purchase that probably should not have to be built into the monthly budget.

Congratulations on the new addition to the family! Good luck with you decision!

 

[Sandisw]

If you buy direct, you can also use a Disney Visa to get 6 months, 0% interest on your purchase.

For me, this was enough to do an add on but delaying the payment until the end of the Fall semester--I teach a college course and knew that the money would be there when the bill came due.

The prices for direct, however, are a lot more than resale. Given the interest rate, that adds to the cost.

There are lenders who deal with the resale market. Since you have budgeted for the monthly payment, be sure you have also budgeted for the other costs--MF's, tickets, travel, food, etc.--of a yearly Disney trip. Once you have all those figures, check out the resale market and go from there.

Saving $25 - $40 per point is several thousand dollars. You would be financing either way so why not save upfront at least some of the cost.

We bought BLT and love that location although VWL is nice. However, we also started out with a small VWL contract because we thought it would be our 2nd choice. I am not a woodsy person so it wasn't my cup of tea--of course, a tree frog jumped on my twice while on my balcony so that didn't help!!! We ended up selling it and will now add on at BWV at some point if we decide we need more points--well, I have decided we do but DH says we don't. He is right, of course, (just don't tell him).

If you have not yet explored those resorts, though, I don't think I would buy until I had a chance. They are completely different, IMO, in theme and feel.

Good luck!

 

[DizGirl20]

Hi Scott,

1. Resale. Using your points for DVC Resorts is the smartest use of points. Consider paying cash for other vacations outside of Disney. Also, if you buy resale points you can still use them with RCI.

2. We have been taking my kids to Disney for 10 years. Their favorite parks have changed over the years and we enjoy trying a new resort each time. Keep in mind you may have more children. To give you some perspective, my 10 year old loves the Magic Kingdom - while my 13 year old loves Hollywood Studios - while DH & I enjoy Epcot. So it would be tough to say "buy at a MK resort and you'll be happy forever". Truth is, as long as we are on property we are happy anywhere. We are staying at Kidani in a few weeks and plan to visit all the parks. We stayed at BCV last year and visited all the parks. To us it's more about having a new experience each time as Disney has so much to offer. That's why we keep going back!

If it were me in your shoes (and I was not too long ago!) I would focus on finding the best resale value for your budget. Look at where you can get the biggest bang for your buck. And remember, you can always add on down the road!

3. Yes, June UY should work well if you are focusing on August trips... but just remember down the road when the kids get older, you might be interested in travelling during Easter/Spring Break?

Good Luck to you and your growing family!

 

[BlackRock]

I would buy small packages and I would buy into OKW. You will still be able to book at any resort with a 7 month window.

BlackRock

 

[Deb & Bill]

Are you sure your wife is due in Aug 2010? She should have had that baby months ago.