Questions About Purchasing DVC Resale

[mom2lilandem]

We are considering purchasing a DVC resale. We have visited WDW twice a year for the past 10 years (each trip being between 10-14 days) with stays at the deluxe resorts.

I was looking at The Timeshare Store and noticed DVC resales at VWL. There is one available for 15K. My question is this: exactly how does this resale work? Do I pay the 15K in cash or on a cc or do they finance it? (Is it financed similiar to a mtg or to a cc?) If I wanted to buy more points could I do so? Also is there a list somewhere of the resorts that I could use my points at other than WDW?

I'm trying to get all my info together so that I can present it all to DH tonight. We both are very unfamiliar with timeshares os anyone who can offer any advice it's more than appreciated!

Thanks in advance for any help you can offer.

 

[mom2lilandem]

I also forgot to ask what the maintenance fee is.

Thanks again!

 

[vascubaguy]

If you look around on the boards and so some searches, you will find LOTS of information about purchasing.

In regards to how the resale purchase works, you would need to come up with the funds for that purchase. HOWEVER, you could utilize credit card checks to cover the cost, OR you could apply for a timeshare loan (TTS has a loan company they recommend and will help with the application. This loan is unsecured so it is more selective in who it approves and may not be tax deductible. Also the interest is 10-11%). You could get a home equity loan or something like that to cover the cost of the contract and save a lot of money on interest and be able to deduct the interest on taxes.

You can always buy more points, either by finding another resale contract to purchase or by purchasing direct thru DVC. Contracts can range from 25 points and up.

If you want to take a look at the different DVC resorts, you can go to www.disneyvacationclub.com and take a look there. You can get a bit of information together there.

Maintenance fees are currently $4.35 per point. These fees are different at each resort and range from 3.83 at SSR to 4.87 per point at Vero Beach Resort. These fees are paid to cover various operational costs of the resort at which you own. They cover such things as property taxes, maintenance costs, insurance, staffing, Member services operations, etc.

HTH, and let us know if you have other questions.

 

[LisaS]

Just a little correction to vascubaguy's otherwise excellent reply:

Instead of "Maintenance fees are currently $4.35 per point" I think he probably meant to say "Maintenance fees currently AVERAGE $4.35 per point".

Also, maintenance fees will go up every year. You should expect them to increase an average of 3%-5% per year.

Edited to add: Use the links in vascubaguy's post to check out his DVC web site. There is a lot of very helpful information posted there.

 

[mom2lilandem]

I checked out the site but I'm at home on dial up and it's painfully slow. I couldn't find an answer to this question:

is maintenance paid yearly or monthly?

Thanks again for all your help guys!

 

[LisaS]

I am new to DVC so somebody please correct me if this is not correct information. I believe you have the option to do it either way. You can either pay in full in January or pay month by month by direct debit from your bank account.

If you pay in full, you can charge it to a credit card. Lots of people charge it to their Disney VISA to get the Disney reward dollars to use on their vacation. You are not limited to just the Disney VISA card though.

If you want to pay by the month, your only option is direct debit.

 

[dizplanner]

Actually what he was saying was that maintenance fees at VWL (which is the one that was asked about) are $4.35/point.

Timeshare brokers do not finance nor do they take credit cards. You are paying the original owner through an escrow company. If you do not have cash or the ability to arrange financing on your own (either through home equity or a finance company such as the one mentioned), you need to go through Disney. You can buy the sold out resorts through Disney, but you might have to wait and the cost will be $92/point.

 

[LisaS]

You asked about financing -- If you need to finance your purchase, you might consider buying directly from Disney. They can sell you points at any of the sold-out resorts, though you might wait quite a while for points at BCV. They charge $92/point for sold-out resorts and you must purchase a minimum of 150 points. I didn't finance so I don't have any personal knowledge, but I have read that it is easier to qualify for financing when buying directly from Disney because it is a secured loan (secured by the points you are purchasing).

You do not pay closing costs when purchasing through Disney. You do pay closing costs when buying through the resale market. Costs vary depending on the number of points you purchase. For a 150-point contract, closing costs would be somewhere around $500.

 

[LisaS]

Actually what he was saying was that maintenance fees at VWL (which is the one that was asked about) are $4.35/point.

D'oh! The figure is pretty much the average dues/point (which I think is actually $4.25/point) so I didn't relate it back to the OP mentioning VWL. Thanks for correcting this.

 

[mom2lilandem]

Sooooo... if I purchased at WLV and had 200 points is it $870 in maintence per year??? Because 870 in maintenance per month seems mighty ridiculous.

 

[LisaS]

Yes, if you owned 200 points at VWL, your annual dues for 2005 would have been $870, payable in full in January 2005 or in equal installments every month by direct debit. Dues for 2006 have not been announced yet.

 

[mom2lilandem]

Poor Lisa.... you must be sick of me and my questions at this point but I have one more for you....

Now if I were to buy into a DVC resale with let's say 200 points... I would pay the seller the cost they are looking for upfront (say the 15K I used in my original question) and then every year I pay maintenance and the cost of my 200 points, correct?

 

[mom2lilandem]

meant to start a new thread... sorry

 

[vascubaguy]

Poor Lisa.... you must be sick of me and my questions at this point but I have one more for you....

Now if I were to buy into a DVC resale with let's say 200 points... I would pay the seller the cost they are looking for upfront (say the 15K I used in my original question) and then every year I pay maintenance and the cost of my 200 points, correct?

I'm not Lisa, but I'll chime in with an answer...

If you purchase a 200 point resale you would have the following expenses:
1. Initial cost of the contract = $15K
2. Closing costs = $500-600 (I don't know exact, but TTS could give you exact)
3. Reimbursal of current year fees for any current year points still available.
4. Annual dues for the next 36 years.

Note: with resale purchases, #2 and #3 may be negotiable as to who covers those.

 

[vascubaguy]

Just wanted to add that there is a really nice 180 point contract at VWL listed on TTS. It's a loaded contract with banked and current year points for $79 per point. IMO, better than the 200 listings because you'd have 312 points available by the time you close. For that contract you might could negotiate some with the reimbursal of the maintenance fees and only reimburse the 2005 fees but not 2004... but that would be up to the seller.

I certainly don't recommend jumping in head first, but if you are definately ready to buy and want VWL, you might give TTS a call and inquire about what you are interested in. Tom and his group are great and will gladly help you find what you are looking for.

 

[mom2lilandem]

God am I annoying or what????

So every year I'm only responsible for maintenance.... I'm not going to be paying 79 bucks pp per year (using the VWL that you sited in your response.)

 

[vascubaguy]

God am I annoying or what????

So every year I'm only responsible for maintenance.... I'm not going to be paying 79 bucks pp per year (using the VWL that you sited in your response.)

We learn by asking questions.

You definately don't pay $79 per point per year....
after that initial investment, your only other expense would be the annual maintenance fees

 

[rayelias]

We are considering purchasing a DVC resale. We have visited WDW twice a year for the past 10 years (each trip being between 10-14 days) with stays at the deluxe resorts.

I was looking at The Timeshare Store and noticed DVC resales at VWL. There is one available for 15K. My question is this: exactly how does this resale work? Do I pay the 15K in cash or on a cc or do they finance it? (Is it financed similiar to a mtg or to a cc?) If I wanted to buy more points could I do so? Also is there a list somewhere of the resorts that I could use my points at other than WDW?

I'm trying to get all my info together so that I can present it all to DH tonight. We both are very unfamiliar with timeshares os anyone who can offer any advice it's more than appreciated!

Thanks in advance for any help you can offer.

I replied to your other post, but let me add my 2 cents here.

When buying resale (which I did), the biggest thing to remember is you have to pass ROFR.

This may sound like I'm trying to "sell" you something, but honestly, for the most part, "haggling" over a dollar or two on the price is not worth the risk of losing the "perfect contract" to ROFR. In the long run, that $150 or $200 will more than be worth it. You'll KICK yourself if you lose the right contract at the right resort with the right use year because you tried to save a couple hundred bucks.

Also, I HIGHLY recommend The Timeshare Store. Tom is a sponsor of the boards here, and is always VERY helpful (even if you're not a customer of his). We used them to purchase our DVC. There was no "high-pressure" sales tactic at all. We wanted something pretty specific (and rare). We left our requirements with them and they got back to us in about a week or two with our perfect contract.

One last warning. Get the right # of points up front. The point values keep going up. We bought 100 points about 10 months ago. If I had to buy that same contract today, I'd wind up spending $3-4 a point more (thanks to SSR and ROFR). And, the other reason is, once you're a member, the odds are VERY good that you'll catch "addonitus" and want more points.

 

[dizplanner]

For resales, the price is negotiatable, as is who pays the closing costs and any reimbursement for 2005 dues. The standard is for the buyer to pay closing costs and to reimburse maintenance fees for remaining 2005 points, assuming they are not about to expire (i.e. banked or early enough in the use year that you can still bank them if you are not going to use them before the end of the use year). If points have been borrowed from the 2006 year, the seller should reduce the price by the maintenance fees for those points. (Some people argue that you should prorate the 2005 fees based on the number of months left in the calendar year, since that is what Disney does. Makes sense, but that is not typical.)

The deal has to be high enough to pass Disney's Right of First Refusal. If it is too good of a deal, Disney will buy the contract instead of you. There is a thread on the DVC Planning board where people have told what contracts passed ROFR and which were taken by Disney. This gives you an idea, imperfect of course, of what prices might pass.

To give you an example, I purchased a 150 point VWL August use year last November. It had no 2003 points and all 2004 points. They were asking $75 a point. I offered $73 which at the time was about where the passing ROFR price seemed to be. They countered with $74 and I took it. I paid $450 in closing costs and 2004 maintenance fees on all 150 points. Then in January I paid the 2005 dues to Disney. I chose to pay them all at once on my credit card to get the miles - had the money. After I closed, I banked my 2004 points since I knew I would not be back before Aug 2005. I am going next March and am using my 2004, 2005 and 36 of my 2006 points (getting a OKW grand villa).

 

[Disney Doll]

Timeshare brokers do not finance nor do they take credit cards. You are paying the original owner through an escrow company. If you do not have cash or the ability to arrange financing on your own (either through home equity or a finance company such as the one mentioned), you need to go through Disney. You can buy the sold out resorts through Disney, but you might have to wait and the cost will be $92/point.

Actually, this information is incorrect.

We have friends who purchased their DVC contract using the Disney credit card. They got the reward points, and the next month when they got the bill, they paid it off with their home equity line of credit, and then they paid that off on a monthly basis. Using the home equity line of credit enabled them to take off the interest on their income taxes.