Questions about possibly buying DVC

[hygienejean]

I am considering buying into the DVC and I have a few questions. First: If I do not buy directly through Disney, what benefits(if any) would I be missing out on. At $80 per point the cost difference is quite substantial if I buy a resale.
Second: Is there negotiating with a resale? If it says that there are points "Borrowed" on the ad, does that mean that the owners borrowed from this year so I would have no points this year?
Third: I have seen that there are some things that are tax deductible. Is that the yearly dues?(or a portion of them?)
Fourth: The financing through Disney is at 10.95% or something like that. Has anyone gotten a Home Equity loan for a better rate and was able to deduct in on taxes???
Fifth: Is the Magical beginnings from Disney a ripoff at BCV's. I think they give more off to HH and VB......
Please let me know any pros and cons to ownership....I want to present this to my DH so he will go for it and I am trying to cover all of my bases! THANKS for any advice!!!!!!
Jean

 

[hygienejean]

Oh and will I have a "guide" if I purchase a resale? Do they come with the point package??? Dumb question that has to be asked!
Jean

 

[Richyams]

MB is so much higher at the other resorts because the sales have been EXTREMELY poor.....there was a time that they were giving away free VB points with breakfast at Olivia's.

There is no such thing as a 'guide', they are timeshare sales people. Yes, if you want to add on through Disney later, you can speak to a timeshare salesperson(guide)

Interest may be tax deductable and so may the portion of your dues that goes for real estate taxes.

You should be able to do way better with a home equity loan.

Definitely buy a resale....unless you have your heart set on BCV as a home resort, and even there resales will be showing up soon.

"borrowed" culd mean that not only are this year's points gone, but next year's have been borrowed and used also....no points for two years.

 

[TnRobin]

First: If I do not buy directly through Disney, what benefits(if any) would I be missing out on. At $80 per point the cost difference is quite substantial if I buy a resale.

You will more than likely have to pay for closing cost if you buy a resale (that is always negotiable) In addition, if you buy a resale you can not take advantage of "Magical Beginnings," a way to cash in a portion of your first year points to lower your cost. Other than that - the product you purchase is identical.

Second: Is there negotiating with a resale? If it says that there are points "Borrowed" on the ad, does that mean that the owners borrowed from this year so I would have no points this year?

Resales are always negotiable. If the previous owner has borrowed points, they cannot not be returned to the original year and they have more than likely used them too.

Third: I have seen that there are some things that are tax deductible. Is that the yearly dues?(or a portion of them?)

The portion of the dues attibutable to real estate taxes are deductible on your IRS if you itemize and DVC can qualify as a second mortgage

Fourth: The financing through Disney is at 10.95% or something like that. Has anyone gotten a Home Equity loan for a better rate and was able to deduct in on taxes???

DVC finances with a real estate interest, thus it is considered a "mortgage. Thus the interest paid is mortgage interest and is possibly deductible on your IRS. The same holds true on any home equity loan you may get. (Check with your lender to see what rates you may qualify for - and be sure to ask about clsoing cost on a home equity loan - they can add up quickly)

Fifth: Is the Magical beginnings from Disney a ripoff at BCV's. I think they give more off to HH and VB......

I didn't think so - we did it on our original contract and on our add on - it all depends on your finances and needs at the time. It is just something you need to factor in when comparing DVC sales to a resale.

 

[hygienejean]

Are closing costs charged in only a resale but not through the Disney deal?
I did speak to a "guide" today and he told me that he didn't think the Magical Beginnings deal was worth it for BCR. I guess because the buy back is $5.00 but for VB and HH it is (I think)$10.00 and $15.00.
When you say negotiable: What is reasonable? $1.00 to $2.00 less than the asking price? Would it be foolish to pay what they are asking? Is it like selling a house...ask high then come down in price from there.???.... I guess I am unsure about how flexible they are.......
Thanks all!
Jean

 

[Terry S]

The most repeated advice on these boards is buy where you plan to stay most often. This is really important for the 11 month booking advantage.

 

[POOH&PIGLET]

(1) Disney pays the closing costs for their sales. The buyer usually pays the closing cost on a resale. Buy where you want to stay the most (because of the 11-month booking window).

(2) Sorry - can't help with that question.

(3) I believe that the interest and the property tax are deductible.

(4) We financed through Disney but many have posted about getting cheaper home equity rates. One thing about Disney financing is that they don't report to a credit agency. So whether you make all your payments to them on time or you fall way behind, your credit rating shouldn't be effected.

(5) Don't use Magical Beginnings at BCV. It's a big ripoff.