Please help me with some questions re: purchasing DVC via financing

[ead79]

I did a search, but I'm still pretty confused, LOL!

Since discounts on Disney resorts seem to be decreasing as attendance goes back up, DVC is becoming more and more appealing to me. We want to look into buying DVC, but we don't have much money to put down. We would definitely be looking at the 150 point minimum purchase for now. Here are my questions:

1) What is the current price per point at SSR (and at the other DVC resorts since we might be interested in a sold out resort)?

2) Is the tax on the purchase 6.5%?

3) How does Magical Beginnings work?

4) What interest rate does Disney offer if you finance for 10 years?

5) What is the minimum downpayment?

I'm trying to figure out what it would cost us on a monthly basis to pay for DVC, including annual dues. Thanks so much for your help!

 

[jel0511]

O.K. I'll try to answer what I can...

1) What is the current price per point at SSR (and at the other DVC resorts since we might be interested in a sold out resort)?

The current price at SSR is $95 per point, and sold out resorts are at $89 per point. SSR can be bought down to $85 per point, if you sell back your first years points to DVC.

2) Is the tax on the purchase 6.5%?

There is no sales tax on a real estate purchase, so you price is price per point times number of points you wish to purchase. There are no additional fees from purchasing though DVC, with the exception of yearly maintenance, which for SSR is about $3.80 per point.

3) How does Magical Beginnings work?

That's what I mentioned above, you sell back your first years allotment of points and get a $10 per point reduction in your purchase price. This is only available at SSR, there are no incentives for purchasing points at any of the sold out resorts.

4) What interest rate does Disney offer if you finance for 10 years?

I believe it's around 10% if you put down 20% and have direct debit from your checking account. If you put down less than 20% or choose to write a check monthly, the interest rate rises by 1%.

5) What is the minimum downpayment?

The minimum CASH downpayment is 10% of the purchase price. You can use the Magical Beginnings money ($10 off per point) to increase the amount of your down payment, but DVC requires a minimum 10% cash outlay for all DVC purchases now. So, using SSR (with Magical Beginnings) you'd have a total purchase price of $12,750 and would be required to place down $1,275 in cash. You'd also receive an additional $1,500 (Magical Beginnings) in down payment money, so you'd have slightly more than 20% down and receive the better financing rate.

I hope I answered all your questions, please ask if you have more!

 

[pumpkinboy]

I'll take a crack at it!

1) What is the current price per point at SSR (and at the other DVC resorts since we might be interested in a sold out resort)?

They will probably only let you buy SSR initially (tho others have been able to buy sold-out resorts, this is the exception). The list price is $95 per point, so technically $14,250. There are incentives, such as "Magical Beginnings" which reduce the price. The current incentive is either $5 off or $10 off per point (I think it's $10), something a good DVC Guide (aka salesberson) can answer (our's is excellent: I have PMed you her name and number). The price for sold-out resorts is $89 per point with no incentives.

2) Is the tax on the purchase 6.5%?

This is a Real Estate transaction and there is no sales tax on it.

3) How does Magical Beginnings work?

This is the incentive, where you essentially sell back your first year's points in exchange for $ off per point. Notably, the money saved from the list price can be used as part of your downpayment, which is pretty cool.

4) What interest rate does Disney offer if you finance for 10 years?

We have one of those and I believe is is 9.5% or 9.75%. This is something else a good Guide can get you.

5) What is the minimum downpayment?

Not sure, but I believe 20%, but it could be 10% - ask a DVC Guide.

I'm trying to figure out what it would cost us on a monthly basis to pay for DVC, including annual dues. Thanks so much for your help!

Your Guide can tell you this once you have a Guide. Perhaps there is someone who purchased a 150 point SSR contract with a 10 year loan term who can share this info with you.

Good luck in the exploration and decision processes. Lots of folks here can help, but to start off, your best bet again is to get yourself a really good DVC Guide. I hope this helps.

edited to add:
Nice explanation jel0511. I guess we were tapping away at the same time.

 

[phorsenuf]

Not to hijack but since it SSR isnt available to close until August can you stretch the downpayment out until then?

 

[jel0511]

Not to hijack but since it SSR isnt available to close until August can you stretch the downpayment out until then?

I was under the impression that the downpayment had to be made within 30 days of the contract being signed, regardless of when closing was going to take place. I believe that is because after the 15 day "cooling off" period, you can't back out of the contract for any reason, and DVC wants the money to facilitate a quick closing when it does happen. Also, DVC is notorious for having closings occur MUCH earlier than they've stated. Every DVC purchase I've made (I've made 4) has closed MUCH earlier than the stated closing date. My friend bought SSR and was told it wouldn't close until March (she bought before it was built) and it ended up closing in January.

 

[jel0511]

I'm trying to figure out what it would cost us on a monthly basis to pay for DVC, including annual dues.

Doing a quick analysis using the numbers I provided above, I'm guessing about $200 per month would be the payment for the note and dues for a 150 purchase at SSR using Magical Beginings.

 

[brandip22]

THey actually have you put down 10% of the price before teh $10 off per point, so you'd need to come up with $1425, since the price is $14250 for 150 points. Then, they take the $1500 off, leave a remaining balance of $$11,325 to be financed. When you add in your maint fees which can be done monthly, your payment would be roughly $200 a month. Also, my guide siad they would work with me as much as possible on the down payment.Typically it is or maybe was due w/in 30 days, but with SSR not being totallly ready yet, they may be making some adjustments. You have to have $500 as a deposit to get the paperwork started but then my guide said we could probably get it stretched out until we closed, which is suppose to be in June or July. I am currently going through this, so my info should be accurate unless my guide stated something wrong.

 

[disneyeveryyear]

I can tell you the$200/month is accurate. We just bought in on December 26, 2004.

However, we were given a June use year. We took the $10 discount, but we were told that we will still receive this year's points. You can either take the $10 discount, or they will give you an extra 150 points to use on a vacation by September of this year.