OK to start with a smaller contract?

[quilthugger]

I saw something that said you were considered a DVC member if you owned 150 points or more. Does that mean I would not be considered an owner if I purchased a 60 point contract? Not only would a smaller contract fit into the budget better, it is also a more reasonable estimate of what we are likely to actually use.

So, are the smaller contracts only for add-ons? Or can you start with one? Also, when you add-on at a different resort, how many points qualify for the "11 month ahead" ressies? All of your points, or just the add-on points?

Thanks!

Susan

 

[salvatorejrm]

We just closed on a 50 point Vero Beach contract about 2 months ago, this is our first DVC contract. It came with 43 banked points. We paid $65 pp this years maintenance and $375 closing costs. The total was around $3850. I was able to book a 2 bedroom at old Key West in January for 5 nights with banking and borrowing. If all goes well in the spring we will by another small contract with banked points. Even though you have to pay closing costs for each small contract it beats financing and paying interest. Good Luck with your decision....

 

[CRobin]

You are a DVC owner regardless the number of points you own.

Buying through Disney, the minimum initial purchase is 150 points, but you can buy any size contract through resale.

The issue with smaller contracts is that the closing costs are relatively fixed regardless the size of the contract (around $450) so your net cost per point can get pretty high.

If you add on through Disney, they will use your same use year for the add on, regardless the resort. If you buy resale, you get whatever use year is on the contract being sold.

Your 11 month window is for the points at your home resort. So, if you have 100 points at OKW, and add on 50 at BWV, you get an 11 month window @ OKW for the 100 points, and an 11 month window @ BWV for the 50 points. Sorry, you can't add them up.

 

[tjkraz]

DVC will only sell contract of 150 points or more. There is a degree of administrative overhead involved in any initial purchase, and apparently they have determined that 150 is the minimum threshold to make it worth their while.

You can buy smaller contracts on the resale market, but they can be difficult to find. Smaller contracts will also have a higher per-point cost in the end due to fairly fixed closing costs. Buyers typically pay closing on resale contracts, and you can figure on about $500 whether you buy 50 points or 500. On a 60 pt contract, the closing will add about $8 per point to what you are actually paying.

With regard to you 11-month question, you only get the 11-month booking advantage for the number of points you own at the given resort. Banking and borrowing can give you more than one year's worth of points at a given time if applied correctly.

 

[Sbacer]

My understanding is that to purchase your "first" contract through Disney you need to buy 150 points or more. We started with a re-sale of 90 OKW, then went to Disney for 100 of VWL and that was approved. We are thinking that with banking and borrowing we will do OK until closer to retirement. But at least this does get us started. Be careful to watch your use years though, you could end up with quite a headache.

Enjoy!
Sandy

 

[DisFlan]

quilthugger-

That's exactly what we've done! We bought a 60 pt. resale at BWV. We don't go every year, and this is plenty for a 1-bedroom for 5 days when we go. We'll add more points as we get closer to retirement and "grandparent status." For now, it fits our budget with no debt, and it has minimal yearly cost.

If this is a comfortable fit for you - go for it!

DisFlan

 

[Dean]

No wrong replies in this thread that I saw but maybe a couple of angles not addressed fully. First as mentioned one can only join through DVC for a min contract, currently 150 points. One can add on for as few as 25 points if paying cash or 50 points financing but it MUST BE THE SAME USE YEAR. After the min, it can be any size, for example, one could buy 26 or 51 pts. One can buy less than 150 resale then add on if they want and there is no requirement realted to 150 points in that situation. One who buys 50 points resale as their first contract can currently add on for 25 cash if they wanted.

Don't let anyone tell you that you can only buy 25 points add on at your HOME RESORT. Also, if DVC doesn't have points at your resort or use year, you can't add on less than 150 points. You can keep looking for points that come available later though.

 

[johde]

I am another person who started out with less than 150 points. I started out purchasing 60 OKW Points. In all of my dealing with MS no one has ever even mentioned the fact that I had less than the minimum. I paid $325 in closing costs on my resale. That was 2 years ago so prices could be higher now. I am happy with my decision and would not have bought had I been required to buy 150 points. If you only need a small number of points I see no reason not to buy small resale.

Jeremy