Purchase outright question

[Kellygurlz74]

I will be able to have the option of purchasing DVC (looking at resale) out right instead of financing. Does anyone know if there are still closing costs, taxes, hidden fees etc that I would need to consider?

Thanks!

kelly

 

[chalee94]

I will be able to have the option of purchasing DVC (looking at resale) out right instead of financing. Does anyone know if there are still closing costs, taxes, hidden fees etc that I would need to consider?

there are closing costs but the timeshare store in particular is very open about clearly disclosing what those costs will be.

depending on whether the resale contract has current year pts or not, there may be negotiation over payment of annual dues that you should be clear on.

no other hidden fees to be concerned about.

 

[robert@dvcstore]

The previous post is correct, there are only 3 costs involved in purchasing a DVC resale property, the selling price, closing costs (they vary based on the selling price) and dues on the points you are receiving for the current use year.

Robert

 

[JimMIA]

The previous post is correct, there are only 3 costs involved in purchasing a DVC resale property, the selling price, closing costs (they vary based on the selling price) and dues on the points you are receiving for the current use year.

Robert

I would agree with a couple of caveats -

1. Although Florida law prohibits "hidden" fees, there are other brokers who charge additional fees over and above the traditional closing fees. One firm charges a $195 "administrative fee," I believe it is called. It's fully disclosed, but it's a fee for nothing.
   
   
2. Who pays for what depends. Everything is subject to negotiation, not set in stone. Often the purchaser pays dues for the current year points they are receiving, but not necessarily.
   
   A prospective buyer's negotiating position will be greatly strengthened if they understand that dues have absolutely NOTHING to do with use year or current year points. Dues reflect the costs of operating a particular resort for a calendar year and have nothing to do with points usage. Dues are billed in December and cover the following 12 months.
   
   When a purchaser buys directly from Disney, the dues are pro-rated by the time remaining in the calendar year and that is really the accurate way to apportion dues. You owe dues for the number of months in that year you owned the DVC contract, not the number of points you use. Of course, the seller and buyer are free to use whatever method of apportioning costs they choose.

 

[robert@dvcstore]

Sorry, I should have clarified my answer. My reply was based on purchasing from The Timeshare Store. I cannot speak for other resellers.

Robert

 

[JimMIA]

I'd also add a few other points about cost comparisons between buying resale and financing through Disney.

1. Your per-point price is going to be WAY less purchasing resale. If not...why bother?
2. You will have closing costs either way. You'd have to compare the closing cost differences to get the full picture.
3. The small costs associated with buying resale are a drop in the bucket compared to the finance interest costs over the term of the mortgage.
4. The closing/administrative costs of purchasing - either resale or direct from Disney - are insignificant compared to the total dues costs over the life of the contract...which will be much more than the initial purchase price of the points.

 

[Kellygurlz74]

Thanks for the advice! I'm just trying to see what my budget might be & do some pricing around. I wanted to make sure that I had all my ducks lined up.

any other advice that you want to give, I am open to it regarding the membership too!

 

[Kellygurlz74]

I'm adding on to my original post here.

I've received a lot of great advice from everyone here & I've started a comparison chart to weigh out our pro's & con's. So here is my dilema...WHICH ONE!

We were thinking on SSR, BLT & OKW. So I'm coming to the experts here to get all of your opinions (likes & don't likes) on the resorts that you have stayed at. I think I'm eventually going to stay at each one (probally rent points if I can) just to see which one I really prefer & would spend the most at.

To give you an idea of what type of people we are, Husband is not a huge crowd person & so we tend to travel on the less crowded times. I however go ALOT with my best girlfriend. Our family is only 3 of us, 13 yr old son. And might want to do big family vacation with my sister (total of 5 there) maybe once every few years. (her kids are little) so definitely we would be doing a Studio the majority of the time.

So......what can you tell me so I can add to my comparison chart?

TIA everyone!!

Kelly

 

[Checkers]

You will get many different opinions so here's mine! I would recommend OKW if your DH likes quiet and laid back. It is one of our home resorts and we never tire of it. We, too, like taking family with us and find that the larger accommodations at OKW fill the bill. We love the boat to DTD, too. The studios are larger and have 2 Queen beds. Just love the full size washer and dryer as well (in 1br & larger). We also own at BWVs and do take my DD, SIL & 3 DGC and have stayed there as well but the accommodations are smaller and the 2nd bedroom is a Queen bed with a double sofabed plus there is a Queen sofabed in the LR. Good luck with your decision. That is what is great about DVC, something for everybody!

 

[Ryansdad0727]

I'm adding on to my original post here.

I've received a lot of great advice from everyone here & I've started a comparison chart to weigh out our pro's & con's. So here is my dilema...WHICH ONE!

We were thinking on SSR, BLT & OKW. So I'm coming to the experts here to get all of your opinions (likes & don't likes) on the resorts that you have stayed at. I think I'm eventually going to stay at each one (probally rent points if I can) just to see which one I really prefer & would spend the most at.


Your decision should depend on price per point versus termination year of contract. If you need a lot of point and don't care about a 50 year contract then i would go with OKW. Stayed there and it was great. If you want to own for the longest amount of time and don't need a huge bank of point i would look at BLT or AKV. SSR would fall somewhere inbetween OKW and BLT. It is also laid back and quiet.

 

[nolanboys]

We almost bought AK when we were at Disney in Feb., but knew about the resale market. We love OKW and have stayed there twice. We decided to buy at SSR though for 3 reasons
1) Can't plan trips too far in advance - so certainly no BLT at those prices
2) Cheaper than AK per point and dues
3) Lasts longer than OKW (unless extended contract, but harder to find) and cheaper dues
Just our reasoning and everyone has valid reasons for making their choice. We're on day 17 waiting for ROFR. Will we ever know!!!

 

[vicki_c]

I own @ SSR and have stayed there, but have not stayed at BLT or OKW. Given what you posted, here's my opinion:

1 - SSR and OKW - seem to fit better that "no crowds" thing. Just because of how spread out they are, further from the parks, I think they tend to be a bit more sedate. That might be a good fit for your DH vs. BLT which is of course, right next to a park, the monorail, other resorts, etc.

2 - SSR - that could be great for "girlfriend" trips because of the spa at SSR.

Other than those things, I don't see a lot in what you posted that would sway me from one to the other (except price), and of course, you can always stay where you want, subject to availability.

 

[SamSam]

AKV Kidani would also be a good fit or a no crowds kind of person. I find it very laid back and relaxing there. Also, the studio can sleep 5, as it has a twin size sleeper chair in addition to the sleeper sofa.

I like your idea of renting points and staying at the different resorts so that you will know which one 'fits' you best.

Oops, came back to say that I am wrong about the sleeper chair, it's in the one-bedroom, not the studio.