Questions about DVC from prospective new member

[space_monkey]

Hi all!

I've been looking into purchasing points in the Disney Vacation Club as I never really traveled when I was younger and now that I have two young girls (both under 3) I want to make sure that the same thing doesn't happen to them.
I've done my homework so far but there are still some things that I need help with and this looks like the place to be for that! I have some pretty lengthy questions(which appear to be directly proportionate to the size of the investment) so I'll apologize in advance.

I have been to Disney twice in my life so I have limited experience with the resorts and have stayed at none that are part of the DVC. My main interest is Animal Kingdom Lodge(savanna view). So far it appears to be the frontrunner for where my family would like to stay the most(for now but could change in the future as they get older). It would be Studio or 1 bedroom when we stayed and they seem to have a lot of rooms and options at lower points allowing me to possibly book the trip there at the 7 month window were it not my home resort. I would not want a home resort in which I could always get into any time as I would not be optimizing the 11 month window. I'm not saying AKL is like that since the reservation subforum here is hard to see what the numbers were like at the 7 month window (if I look at August 2009 now I am looking at the current bookings and now what they were at the 7 month window...). But I look at OKW or SSR where I could get more for my money and there always seems to be rooms so do I need a home resort that I could get into any time? That is my logic though it may be flawed...

Which then leads me to also consider Bay Lake Towers. Probably not the best Disney theme for the kids but I could see it being harder to book the Magic Kingdom views so the 11 month window would be nice to have that option even if we stayed elsewhere on our points (such as the cheap treehouse villas if I bring relatives once on some banked/borrowed points). Does anybody know how the Magic Kingdom view is apart from the simulated image in their room tour? Is it a case that it sounds better than it is in reality? Also I could see this contract holding its value longer if for some unfortunate reason I did need to sell. Lastly, despite the higher up-front cost, dues as of now are much cheaper. Assuming the dues stay at the same difference per point, I'd cover the difference in upfront cost in about 7 years of dues (BLT could leapfrog AKL in the future but since they'll all only go up, starting lower might be a good thing over the length of the contract...)
I'm just not sure how often we would stay there due to generally more points per night which I could see being more of an issue in the future when I give the contracts separately to each daughter.

However, having stayed in none of the resorts we would likely pick a different resort often enough just to try each one out and may end

Since I have 2 girls and the contract would be so far into the future, I would like to buy 2 smaller contracts at the same resort/same use year so we can use them optimally now and then have one for each daughter when they get older and have their own families. If I buy direct from Disney, would they sell me two 100 point contracts which would be a combined total over their 160 minimum or am I limited to resale?

If I were to take my brother's family of 4 down every other year with us, I'm noticing that I could generally book 2 studios for a bit less than the two bedrooms... Do you think it would be better to have the 2 bedroom for a few more points or 2 studios? It's getting a bit ahead of myself but I am trying to factor it all into the how many points determination.

Lastly for now: use year. In summary, if I understand it right, the main consideration for use year selection is cancellation and the banking of points at the 8 month point. Meaning don't pick a use year within 2 months prior to your main expected travel dates(which I really have no clue but expect it to be summer once the kids hit school age)?

I may have more questions since this is such a big investment and I have only been researching for about a week but that is what I've come up with so far. Thanks!

 

[disneykidatheart]

Lastly for now: use year. In summary, if I understand it right, the main consideration for use year selection is cancellation and the banking of points at the 8 month point. Meaning don't pick a use year within 2 months prior to your main expected travel dates(which I really have no clue but expect it to be summer once the kids hit school age)?

This is an area where you are flawed. An optimal UY is within a few months prior to your main expected travel dates. For example, if you book in October and your UY is December. If you need to cancel your October trip you have to use those points by November 30 or lose them. You are already past your banking window. If your UY is just prior to your travel dates you have several months yet to be within the banking window for your points.

 

[chalee94]

I've been looking into purchasing points in the Disney Vacation Club as I never really traveled when I was younger and now that I have two young girls (both under 3) I want to make sure that the same thing doesn't happen to them.

(DVC is not generally considered a good value when used outside of the wdw resorts - just FYI.)

I have been to Disney twice in my life so I have limited experience with the resorts and have stayed at none that are part of the DVC. My main interest is Animal Kingdom Lodge(savanna view). ...they seem to have a lot of rooms and options at lower points allowing me to possibly book the trip there at the 7 month window were it not my home resort.

if you want to stay AKV in value or concierge rooms, you should definitely own there. otherwise, i'd agree that you've got a decent shot at the 7 month window.

But I look at OKW or SSR where I could get more for my money and there always seems to be rooms so do I need a home resort that I could get into any time? That is my logic though it may be flawed...

very inexpensive if you purchase resale. fairly low dues. but yeah, you could probably book here at 7 months most of the time...

Which then leads me to also consider Bay Lake Towers. Probably not the best Disney theme for the kids but I could see it being harder to book the Magic Kingdom views so the 11 month window would be nice to have that option even if we stayed elsewhere on our points (such as the cheap treehouse villas if I bring relatives once on some banked/borrowed points).

IMO, the MK views will be popular and will be very tough to book at 7 months if you are not an owner. the low dues are tempting. has the latest expiration date at 2060. hard to call it a bad choice (but there are cheaper options in terms of upfront cost if you look resale)...and the lake view rooms might be a possibility to book at 7 months.

Since I have 2 girls and the contract would be so far into the future, I would like to buy 2 smaller contracts at the same resort/same use year so we can use them optimally now and then have one for each daughter when they get older and have their own families. If I buy direct from Disney, would they sell me two 100 point contracts which would be a combined total over their 160 minimum or am I limited to resale?

not sure if this is an option with BLT. in a down economy, it wouldn't hurt to ask.

If I were to take my brother's family of 4 down every other year with us, I'm noticing that I could generally book 2 studios for a bit less than the two bedrooms... Do you think it would be better to have the 2 bedroom for a few more points or 2 studios? It's getting a bit ahead of myself but I am trying to factor it all into the how many points determination.

IMO, the laundry options might make a 2BR the better choice...or having your own separate space might work better depending on the family dynamic. it's up to you.

Lastly for now: use year. In summary, if I understand it right, the main consideration for use year selection is cancellation and the banking of points at the 8 month point. Meaning don't pick a use year within 2 months prior to your main expected travel dates(which I really have no clue but expect it to be summer once the kids hit school age)?

actually, you don't want to typically travel within the 3 months prior to your UY month. so if i hate the heat of summer and would never travel in july-aug-sept, then an october UY is a great choice.

 

[space_monkey]

Lastly for now: use year. In summary, if I understand it right, the main consideration for use year selection is cancellation and the banking of points at the 8 month point. Meaning don't pick a use year within 2 months prior to your main expected travel dates(which I really have no clue but expect it to be summer once the kids hit school age)?

This is an area where you are flawed. An optimal UY is within a few months prior to your main expected travel dates. For example, if you book in October and your UY is December. If you need to cancel your October trip you have to use those points by November 30 or lose them. You are already past your banking window. If your UY is just prior to your travel dates you have several months yet to be within the banking window for your points.

Ahh yeah thanks! I meant to say avoid use year for a couple months AFTER planned travel. I think my brain checked out towards the end of that long post.

 

[Sandisw]

Disney has been allowing new members to purchase their contracts in smaller increments as long as one is at least 100 and the total is more than the 160.

There are even some members who bought 200 points and split between AKV and BLT and will either plan split stays each year or alternate resorts by using banking and borrowing--ie: bank BLT this year, and borrow AKV, giving 200 points to stay there for 2009. In 2010, there would be 200 BLT points to use and book there.

I do think that getting MK view rooms at 7 months will be difficult, not impossible. If that is all you are interested in at BLT, then I would buy points there (at least at some point). The prices for AKV are pretty good right now, even direct through Disney, so if that resort is of interest, you might consider that.

However, if the main goal is to get the most points for the best price, then SSR is a very great deal right now via resale. The contract goes until 2054, dues are lower, and the price per point is in the high 60's to low 70's. If you would be okay staying here if nothing else that you wanted opened up at 7 months (or you don't see yourself booking before the 7 month window), then you can get into DVC for a really great price, IMO.

We bought BLT because that is where we want to stay most, if not all, of the time. We spent a lot more to do this but in the end, we know we will be very happy with our decision. Of course, I am a teacher and always go in August so I can take advantage of the 11 month window. We are not always looking at wanting MK view (standard and lake will be fine) so for our yearly trips, I can make our points (180) work for us.

Good luck!

 

[wdrl]

It sounds like you have already done a lot of homework on DVC! Here are some comments to add to those of the other posters:

Two other advantages to buying two smaller than one big contract: If, in the future, you want to sell your contracts, smaller contracts sell faster than larger contracts. Secondly, if you are planning on letting your kids inherit these contracts (or even just plan on giving them the contracts), you can give each kid her own contract rather than having them share one big one.

Treehouse villas seem to be very, very popular. Anyone who really wants to guarantee themselves a THV should probably be an SSR owner and book before the 7-month window opens.

We recently bought into DVC and chose BLT over AKV. We love the animal viewing and theming at AKV, but we also liked the appearance and location of BLT. One big advantage of BLT over AKV was the yearly maintenance fees. Granted, BLT's will probably rise once it begins operation, but AKV is the only DVC resort that has a line item in its budget for animal programs (about $0.24 a year). So AKV should always have higher dues than BLT. And what some people forget is that maintenance fees over the life of a DVC contract will far exceed the initial cost of buying the points.

Good luck on making your decision!

 

[jstarcze]

Since I have 2 girls and the contract would be so far into the future, I would like to buy 2 smaller contracts at the same resort/same use year so we can use them optimally now and then have one for each daughter when they get older and have their own families. If I buy direct from Disney, would they sell me two 100 point contracts which would be a combined total over their 160 minimum or am I limited to resale?

I just joined DVC with BLT as my Home Resort and they allowed me to do this exactly. Rather that buying 1 200 pt contract, I was allowed to buy 2 100 pt contracts. Although when I suggested it to my guide, she said she would have to check with her manager and she gave the impression that it wouldn't be approved. But they did approve it. So I don't think you will have to go the resale route to do this unless it makes sense to do resale for other reasons.

 

[savannahcat]

I just joined DVC with BLT as my Home Resort and they allowed me to do this exactly. Rather that buying 1 200 pt contract, I was allowed to buy 2 100 pt contracts. Although when I suggested it to my guide, she said she would have to check with her manager and she gave the impression that it wouldn't be approved. But they did approve it. So I don't think you will have to go the resale route to do this unless it makes sense to do resale for other reasons.

I have been curious about this too. Did you still get the 200 point level incentive discount even though you purchased two separate contracts?

 

[jstarcze]

I have been curious about this too. Did you still get the 200 point level incentive discount even though you purchased two separate contracts?

Yes I got all the incentives which at the time were the std $5, + $6 for a referral and $2 for 200+ points for $99/pt.

 

[Ivette1980]

how do you know how many pts you can afford? how are the monthly payments calculated?

 

[chalee94]

how do you know how many pts you can afford? how are the monthly payments calculated?

there are DVC point charts linked at the top of the page to figure out how many points you would need to vacation the way you prefer.

here is current pricing for contracts purchased directly. you will find a link to resale contract listings in the top righthand corner of the screen.

for contracts purchased directly, disney will finance for a 10-year period at an interest rate somewhere over 10% depending on your credit rating. (it's really not a good idea to finance a luxury but it's up to you.) not sure how much of a deposit you would need but naturally the larger the better. (and IIRC, you can put part of your downpayment on a disney VISA.)

(you can use an internet site like bankrate.com to ballpark a monthly cost based on how much you would need to borrow.)

here is a link to historical annual dues for the different DVC resorts. you will owe this amount per point each year (around $5) and it will generally increase around 3-4% per year.

 

[space_monkey]

Thanks for everyone's replies and PMs (which I can't even reply to until my post count gets up...). I am still in the planning stages waiting for my wife to look through the resort tours online to really settle on a home resort. I'd like to stay in the '54 to'60 ownership years to maximize my "investment" and ensure my 2 little princesses can have this into their 40s so that narrows down the resorts my wife needs to initially pick from to 4. Then we'll need to settle on when to vacation (since a family of 4 airfare is at least $500/trip) and how many points we'd need so I can start monitoring the resale listings...

 

[space_monkey]

OK one more question about AKV. Everywhere I looked for research contracts are listed as simply AKV and makes no distinction between Kidani and Jambo. However, I frequently on this board I see owners referencing the specific building like AKV-Kidani, etc. Is this irrelevant and all AKV is equal from an ownership standpoint or do you need to be conscious of whether the contract is for Jambo or Kidani now that both are open?

 

[wdrl]

OK one more question about AKV. Everywhere I looked for research contracts are listed as simply AKV and makes no distinction between Kidani and Jambo. However, I frequently on this board I see owners referencing the specific building like AKV-Kidani, etc. Is this irrelevant and all AKV is equal from an ownership standpoint or do you need to be conscious of whether the contract is for Jambo or Kidani now that both are open?

AKV is one resort, which happens to occupy two buildings (Jambo and Kidani). If AKV is your home resort, you have access to both buildings. There are other threads on the disboards in which posters explain some of the differences between these two buildings.

 

[space_monkey]

OK thanks... That's what I figured but kept seeing DVC members on this board referencing AKV-Kidani in some threads and signatures. Maybe its just expressing preference or pride on where they stay when they go to AKV...

OK the questions just keep on coming and I appreciate all the helpful replies and PMs (maybe I'll hit 10 posts soon and can actually then reply to those...)
My question now is that the Beach Club is popping onto my wife's radar as a possible home resort option as she loves the beach theme, location and thinks the SAB pool would be great for the kids. However, a HUGE disadvantage is the contract end date of 2042 due to my desire for my girls to have this for their families when they are older (until age 35 for 2042 exp or 50 for 2057 exp) and to maximize the cost/benefit. What are the chances that the Beach Club Villas will be offered a contract extension in the future like that offered to Old Key West?

 

[Dean]

OK thanks... That's what I figured but kept seeing DVC members on this board referencing AKV-Kidani in some threads and signatures. Maybe its just expressing preference or pride on where they stay when they go to AKV...

OK the questions just keep on coming and I appreciate all the helpful replies and PMs (maybe I'll hit 10 posts soon and can actually then reply to those...)
My question now is that the Beach Club is popping onto my wife's radar as a possible home resort option as she loves the beach theme, location and thinks the SAB pool would be great for the kids. However, a HUGE disadvantage is the contract end date of 2042 due to my desire for my girls to have this for their families when they are older (until age 35 for 2042 exp or 50 for 2057 exp) and to maximize the cost/benefit. What are the chances that the Beach Club Villas will be offered a contract extension in the future like that offered to Old Key West?

I'd say the chances of an extension being offered are 50/50 but the chances of an offer that's reasonable is close to zero given the OKW experience.

Given you have little Disney experience, any purchase you make it a crap shoot as to your preferences. My first thought is for you to wait, maybe rent from an owner and check out all the on property resorts. IF you must buy now and can't help yourself, you really should consider SSR. Maybe buy the absolute minimum for now and then consider an add on later once you know your preferred resort(s). That'll get you in for a LOT less than any of the other choices and give you a 2054 expiration. It'll also be cheaper and easier to reserve when family comes with you. BTW, while 2 studios is cheaper, the 2 BR is definitely worth the mildly extra points for a group of 7.

UY is important IMO as you want to generally travel in the first half of your UY in case you have to change or cancel trips.