Premature questions about financing points at Contemporary Resort Villas

[thelionqueen]

OK, so Disney ROFR'd our small BWV contract oh well..

We originally wanted to buy a small contract for cash and do add-ons later. However, with the rule change regarding transfers, I'm thinking that's not the way to go. I was counting on being able to purchase/transfer points from Diser's to complete any points we'd need for vacations..seems to me that is going to be significantly more difficult with this change...am I correct??


We are DEFINITELY going to buy DVC when (if) Contemporary Resort Villas goes up for sale. I've read on other threads the assumption it could be October 2006 or 2007 that it is announced.

We would REALLY prefer not to finance, but I am thinking that we will need a decent amount of points (250+) to be able to stay comfortably @ CRV.

I KNOW that buying cash would be the Best Bet, but we just do not have $25,000+ cash lying around.

What would be some advice you could offer us regarding financing our dream DVC? Thanks in advance for your suggestions/comments.

 

[spiceycat]

go with 150 points - some people get a second mortage.

then add on 100 points - or just do it once - but only make your first contract be the min.

then if you need to sell it will be easier. the future is hard to predict.

you realize that until Disney says it is building the DVC Cont - this is just a rumor. It might not happen. Or it might happen but in 2009 not in 2007.

I would try again with a BWV resale contract. then you would have both areas - MK, Epcot and Studios all within walking distance of your DVC resorts.

 

[TammyAlphabet]

Personally, I think they are going to have to get started on something pretty soon. They have to have something for the guides to sell. And since they are making money hand over fist, it only makes sense.

 

[spiceycat]

what they did last time - between when BCV was sold out and SSR opened for sales - was use their ROFR BIG time...

they brought up just about everything in the market - and their guides (sales people) got to resell the sold out resorts - there was a long waiting list from current DVC member not to mention new ones that only wanted one resort.

 

[thelionqueen]

Can anyone tell me if they've financed before and how the experience was? I love all the informed people on the Dis!!

 

[JimMIA]

The other thing you have to realize -- in addition to the fact that they may not build it at all -- is that you will not be able to close on your contract until the building is finished. You can't close on a work in progress -- you have to have certification of substantial completion in order for DVD to transfer any partial ownership to you.

Even if they announce in October 2006, that could be quite a long time. If they build what's been rumored (and rendered), they'd probably have to complete the whole 15 story building. It's possible they could split the building up and complete one wing at a time, but even so, you might be well into 2009 before you could close...maybe later.

 

[thelionqueen]

Great info. Jim, thanks!! Guess we have plenty of time to save

 

[aubeone]

I would keep trying for the small contract. We purchased 75 pts. at BWV (it took us three tries). I have since added 100 SSR points. This seems like it will provide me some great options over the years. I financed the SSR points and it was very easy. I plan to pay it off quickly and avoid some finance charges.

 

[Boas]

we bought 100 BCV points.... got it on TSS re-sale.

timing was everything. remember that for a smaller contract you will proably have to pay a little premium per point (a few $$ extra), and you will have a min/ fixed closing cost.

but in the end it is worth it... get to know an agent at TSS, and get on their "call list." you will be surprised what gets sold before it is listed.

 

[keishashadow]

naysayers... , all crystal balls point to Oct. 1st for CRV .

to op, don't forget about ability to bank & borrow, makes multiple small contracts/add ons worthy for 11 month window(s).

 

[thelionqueen]

naysayers... , all crystal balls point to Oct. 1st for CRV .

to op, don't forget about ability to bank & borrow, makes multiple small contracts/add ons worthy for 11 month window(s).

I like your optimism!! We are going to be in WDW 9/29-10/8/06..
PLEASE, PLEASE, PLEASE announce it then!!

Seems like the concensus is not to finance, anyone finance and have any advice or recommendations??
thanks!!

 

[PrincessJasmine08]

I agree with you keishashadow. It will be announced soon. The CRV will open in 2008 if all goes well.

 

[Good Ol Gal]

I like your optimism!! We are going to be in WDW 9/29-10/8/06..
PLEASE, PLEASE, PLEASE announce it then!!

Seems like the concensus is not to finance, anyone finance and have any advice or recommendations??
thanks!!

We financed our master contract and did the one year repayment plan. You put 50% down and pay it off within 12 months at 4.95%. We paid it off in 10mos.

We then went into an add-on. We did that one as the 10 year finance b/c we didn't have th 50% down right then. It was at 9.75% interest. We paid it off in about 11 mos. Sure we could have saved some intrest, but it didn't bother us too much.

We currently have an add-on from F&F right now. We did the same as the first add-on...10 years. We're hoping to have it paid off in March of next year...so 9 months total.

So, yes the financing with DVC is very easy and painless!!

Right now the rate is 4.95% if you do the one year and I think they raised all other options (5/10 years) to 10.75%.

good luck in your decision

 

[carolina_yankee]

We financed our purchase because we couldn't buy it any other way. While this doesn't work for everyone, it works for us. We can afford the cash flow and have no kids to worry about. The bonus for us was that my partner also bought a new car at the same time because his old one had just been totaled by the insurance company. With the cash pay out from insurance, the new monthly payment ended up being lower by the cost of our DVC mortgage payment. Net zero effect to cash flow. Nice!

Dirk

 

[spiceycat]

Right now the rate is 4.95% if you do the one year and I think they raised all other options (5/10 years) to 10.75%.

good luck in your decision

I want your interest rate - mind is 14.95% - okay I am not rushing to pay it off...

but it is definitely the highest interest rate I have on ANYTHING.

 

[senecabeach]

I would really hate to be the one waiting 2-3 yrs. to close on an initial contract when I didn't know the $$.... for the VCR....can you imagine what the cost per pt. will be??

Just looking @ my BCV, in 03' paying $70. thats now (3 yrs. later)$95...and rising!!
Not to mention the wait list that, now, people pay whatever the current price is...regardless of the time they spend on the "wait list".

Its only MO..but..I sure wouldn't deny myself DVC by waiting for the CR to be complete and in fact probably would get my foot into the door, now, enjoy DVC, and with the current trends, sell at a profit when VCR becomes available.

 

[pilferk]

I would really hate to be the one waiting 2-3 yrs. to close on an initial contract when I didn't know the $$.... for the VCR....can you imagine what the cost per pt. will be??

Just looking @ my BCV, in 03' paying $70. thats now (3 yrs. later)$95...and rising!!
Not to mention the wait list that, now, people pay whatever the current price is...regardless of the time they spend on the "wait list".

Its only MO..but..I sure wouldn't deny myself DVC by waiting for the CR to be complete and in fact probably would get my foot into the door, now, enjoy DVC, and with the current trends, sell at a profit when VCR becomes available.

They may very well allow a lock in with down payment. I'm not sure how they've worked it in the past, but they could lock in the price per point and maybe even interest rate with down payment when they begin sales, with closing having to wait until construction is done or far enough along to allow occupancy.

 

[DMKEDM]

There's financing and then there's financing...

If by financing you mean a mortgage (or mortgage-like) loan life of 10 or more years, then stop reading now...

But if you're looking for months (not years) in which to pay off the initial investment, I recommend applying for one of those credit cards w/initial, limited 0% interest--for 9 months, 12 months, 15 months (15 months is the longest I've seen, and that was limited to balance transfers only...for straight cash, the longest I've seen is 6 months) --

We bought 150 points at SSR in June...I put the purchase on a 0% for 6 months credit card and planned to pay $3,000/month til it was paid off (5 months)...turned out I could (and so did) pay it more quickly than that...

This works really well if you can manage the cash flow for a 6-month (or so) period...won't work if you need a longer time frame, of course...but it works really well if you 6 months is all you need...

 

[Disney Doll]

We purchased our first DVC contract in 1997, from Disney. We used their financing and took out a 10 year loan, because it had the lowest monthly payment. Our logic was that we could always pay more every month and pay it off quicker, but if we had a month where $$ was tight, all we had to pay was the low monthly amount. That worked very well for us. Pretty much every month we paid off more than the payment amount. When we got extra, we put it toward the DVC. We had it paid off in about 3.5 years.

Our second contract we bought from The Timeshare Store, and we paid cash for it. We had just inherited $$ from my in-laws' estate, and used a small portion of it to buy a few more points. My in-laws were folks who enjoyed fun and travel, so we thought they wouldn't mind if we used some of their money a little frivolously. The rest of that inheritance was put toward retirement savings and home renovations.

I have known folks who purchased it using the Disney VISA to get the rewards points and then paid it off the next month. Some of them have paid it off using a home equity loan, so they get the tax benefit of that as well.

I have known folks who have refinanced their home when the interest rates were low, pulled a little more $$ out, and used that to pay for it. I have known folks who have used a home equity loan, to get the tax benefits.

Good luck with your purchase. We have never, for a minute, regretted buying our DVC.