Ready to buy in... advice please!!!

[kathy carleton]

After 6 years of renting points and going two-to three times per year, we have finally decided to bite the bullet and buy in (YEP, I know it, now that we would have had it paid for and for about $5k less....)...

Can you great folks assist?

Money is very tight for us... we think we are looking at about 200-230 points. I am looking into a re-sale, and hope to get in with one that has some banked points. We are usually pretty flexible with our choices, and I know that we like variety. I also know that the 11 month window is imperative for holidays- so we feel that we need to like our home resort enough to plan on that for holidays. SS is not my favorite (there last week), nor is OKW .... BUT... i think the lower dues, and the lower cost to get into DVC may work for us. Any opinions on these thoughts? how important is the 11 month? It is a big difference for us with the difference in dues, and by looking at some of these re sales, it looks like we could get alot more bang for our buck at SS, WL or OKW... frankly, it looks like we could get into OKW for $7 less per point than SS, (but then SS is a 12 year longer lease).

Thanks! any other thoughts are welcome!

 

[Monkey Bum]

I think you are better off buying SSR at $86 per point. You get current points which you can bank into the next use year (whatever that may be) without paying for the full maintenance fees for them. With resale, you will reimburse the seller for banked points maintenance fees. Also, you have to wait to go through ROFR. You also get the 12 extra years.

 

[phorsenuf]

I sent you a PM

 

[nmere]

I just received the news that we passed ROFR for 300 VWL points, 300 banked 2006 pts, Seller pays 2006 MF. We purchased aftermarket because we wanted our pts at Wilderness.
Best of Luck,
Nick

 

[aprince&princess]

I just purchased points from Disney for SSR and my use year is Dec. I was offered Oct, but wanted something later because we usually vacation in the spring and thought the Dec. worked better. So we will only need to pay annual dues for Dec for 2006.

 

[lisaviolet]

Hi,

Exciting times, eh? Just wanted to add that I would split your total amount into different, smaller contracts. Maybe buy first contract resale/or 150 Disney then add-on smaller increments from Disney (no closing for add-ons at Disney). This would allow:

• leaving separate contracts in wills
• easier ability to sell.....small contracts sell much more quickly at a higher rate
• sometimes you might want to sell not just for financial reasons but to scale down points or sell one to buy new resort in the future

All the best,

Lisa

 

[dumbo71]

Money is very tight for us...

Thanks! any other thoughts are welcome!

Well, you welcomed "other" thoughts.

The first line of your post that I quoted sums it up. If money is tight a DVC purchase is the LAST thing you should be considering.

Do you have at least 6 months of living expenses saved? Do you and your husband have 401k or other retirement programs in place? Can you pay cash for this LUXURY purchase without touching the above savings? Will you be able to pay for your childrens college expenses?

If you answered no to any of these then DVC AND annual WDW trips are not for you. Annual WDW trips are not a right of passage. If you must, stay at Allstars and save a bundle.

If this seems harsh it is meant to be because unless you misposted you are not even close to being ready for a luxury purchase. Don't short change your future for the lure of WDW. Money's tight why not go buy that new Mercedes you've ben eyeing.

I'll zip up ther flame suit right now because I'm sure they are coming. Truth is most feel the same way as me, I'm sure, they just are afraid to sound mean and post it. I call it like I see it.

 

[MILLZ]

Well, you welcomed "other" thoughts.

The first line of your post that I quoted sums it up. If money is tight a DVC purchase is the LAST thing you should be considering.

Do you have at least 6 months of living expenses saved? Do you and your husband have 401k or other retirement programs in place? Can you pay cash for this LUXURY purchase without touching the above savings? Will you be able to pay for your childrens college expenses?

If you answered no to any of these then DVC AND annual WDW trips are not for you. Annual WDW trips are not a right of passage. If you must, stay at Allstars and save a bundle.

If this seems harsh it is meant to be because unless you misposted you are not even close to being ready for a luxury purchase. Don't short change your future for the lure of WDW. Money's tight why not go buy that new Mercedes you've ben eyeing.

I'll zip up ther flame suit right now because I'm sure they are coming. Truth is most feel the same way as me, I'm sure, they just are afraid to sound mean and post it. I call it like I see it.

Sad thing is you only say these things to get a rise out of people its actually quite sad.

No one knows your situation do what you feel is right for you

 

[Starr W.]

I feel the same as you Dumbo71, but I hope you have a flameproof suit handy.


Just got my paperwork today! We went with a larger than most contract, since we will be doing a couple of vacations a year and we will stay in a 2br.
Also it gives me a cushion to book a studio for my sister if she wants to come along.

Ran discounted cash flow scenerios, based on this year's trip to WDW, other warmer weather areas and N. Michigan, just looking at lodging, we will turn a positive cash flow in year 5.

Did we pay cash? You bet! Wouldn't have even considered buying if I didn't have all my other bases(as you mentioned) covered.

 

[starbox]

We waited a few years to buy DVC because money was tight. I am glad we waited. Even though I knew "on paper" what we could afford, I purposely purchased a smaller contract just to make sure we could afford everything. In my experience, it's not the DVC that is the issue - it's the park tickets/annual passes, dining plan, and other travel expenses that you have to pay on top of DVC. Pre-DVC, I was used to traveling and staying on a package of some sort - so it was not realistic to think I'd have DVC accomodations and NOT want to do dining and park hoppers.

My advice to you is that if you are at all "one the fence" about money and you know you want to purchase DVC, you should start with a very small contract - about half the size you are considering. Once you are in the system, you can add on as little as 25 points at a time until you get to where you want to be points-wise and are comfortable financially with all the expenses of both DVC and Disney vacations. Make the payments(if applicable)/annual dues/vacation expenses for a year and then decide how many more points you want/need.

 

[Dean]

I don't know your situation and wouldn't want to offer advice on what you should do, only information. However, if money is that tight I would question both 3 trips a year and/or buying in to DVC. Hopefully it's not really as tight as your post suggested and you really can afford this. Hopefully you don't have credit card debt or similar while trying to do this. And heaven help anyone who owes family or friends money in this situation.

I don't think there is a major savings of buying in over renting at present, only more control but also more long term risk. I hope it works out for you and you make the best decision for you and your family, whatever that may be.

 

[nmere]

Good luck on whatever you decide, But as others said up there, you have to be able to afford it, the purchase, the MF & the Trips. Last year we started a 2-3 year remodeling project of our home, in June this 2-3 year project became a 7-8 month project, yup we are expecting a baby girl in Feb 2007. We couldn't be happier!!! We are both professionals, make enough to afford whatever life has to throw at us. Retirement taken care of, The reason we are purchasing into DVC is that this year we went to Diseny with 12 family members, all on us. I plan on doing this every year, so DVC is a perfect fit for us, we stayed at Club level Poly, so inturn what we spent on this trip we could have purchased most of the DVC points we need. Too many folks get taken in by the pixie dust at Disney and forget about the rest of life away from WDW. Whatever you choose to do, just think about it, make sure it is right for you,
Best of everything,
Nick

 

[3DisneyKids]

First, I think it is GREAT that you are asking these questions! DVC is not a decision to be taken lightly, so keep reading and asking (and use the search function liberally, as most topics have been discussed many times and there is tons of great information already available).

As you have probably noticed, there tends to be a consensus on these boards that you should be able to pay for DVC in full up front...if you have to finance, then you shouldn't purchase. (Though, of course, there are plenty here who have financed.)

Considering that you vacation at WDW as often as you state, I am not sure what you mean by "money is tight." I often find myself saying "money is tight right now" when really it is not (compared with those who are truly struggling financially). We have good salaries, are exceeding all of our savings goals, have a ton of equity in our house, etc. and I still find myself uttering the words "well, we have to watch our money right now..." when this is just because I am used to being frugal and careful with money more than b/c money is actually tight. Is this the case with you? You will want to consider that.

If you vacation at WDW as frequently as you state, if you plan to continue coming to WDW yearly for many years to come, then yes, DVC is likely a good choice for you. The best advice has already been given to you--don't bite off more than you can chew. Yes, having 300, 400 or more points sounds wonderful (I could spend hours just fantasizing how to use those points ever year! ), BUT I agree with others and say to START SMALL. Two reasons: one, this will get you in the system without having to front a ton of money; two, if you want to sell down the line, it is much easier to sell smaller contracts.

For us, we started with the "basic" 150 point contract. I know we need more points, but this is what we could afford out of pocket without financing. That was how we decided how many points to buy--what we could comfortably afford, as opposed to the amount of days we want to be there ("Hello, DVC, I'd like 5,000 points please! " ) And now I have a nice little stash set aside for 50 point AKV contract when that is announced.

YOU know what is right for you and your family's financial needs. DVC can be an emotionally-charged purchase. Make sure you decide with your checkbook as opposed to your heart.

FWIW, I think that the best decision from a financial perspective right now is SSR. The $86 per point, the lower MFs and the extra 12 years make it a good choice. However, you will never really need the 11-month window there (except maybe for a Grand Villa at peak times perhaps). There are a ton of threads about "buy where you stay" so I would definitely check those out.

Good luck with your decision.
Best wishes.

 

[kathy carleton]

Wow!! I am stunned by all of the financial advice!! I think I was asking for DVC advice.... and some feedback on resorts etc.. not if it was a good decision for us to buy in.

 

[nmere]

Kathy,
You started your post with "Money is very tight for us... " The fine folks here are just trying to be helpful, as was I, That comment was a red flag, If I offened you I apologies, When we decided to purchase we went through the a process to decide if it was right for us, I was simply pointing out that life has a way of throwing curve balls at you, Hence our 2-3 year remodeling that became a 7-8 month one instead, That being said, In our decision to buy, it was important for us to buy into the resort we would want to stay at the most.
Best of all for the holidays,
Nick

 

[kathy carleton]

I was not offended at all. Also don't think I was waving any red flags. Love these boards, and have used them frequently. Everyone has their own opinions, and I am one who takes it all in. Just was quite surprised by some of the responses!

 

[tomandrobin]

Sounds like you don't need convincing to buy Disney, you already go enough to qualify as a nut like the rest of us!

Unless booking at 11 months and traveling to Disney at peak times, I would go for the best bargain. If the 12 extra years matter go for SSR. Our top priority is going to Disney, followed by the resort where we are staying. We go to all the parks not just one or two.

I would recommend getting two smaller contracts so resale is easier down the road. We choose SSR for location (we like Downtown Disney), longer contract, Resort design/layout (we like open space), and a better deal (for us anyway). So far, we have not used the 11 month window for booking. I won't use points for Christmas, Easter, Thanksgiving. We booked F&W festival at 5 months out. July 4th was booked 5 weeks out.

 

[MILLZ]

Wow!! I am stunned by all of the financial advice!! I think I was asking for DVC advice.... and some feedback on resorts etc.. not if it was a good decision for us to buy in.

Exactly. One thing I will tell you is there are a lot of no it alls here who want to tell you how to live ur life or how to spend ur money. One thing I will say is just dont ask about finance just ask about resorts.

With that being said I chose ssr b/c of the discount and the extra 12 years plus the proximity to dtd so when the kids are gone the adults can play. Plus its an awesome resort

 

[TenThousandVolts]

I am in the same boat as you and just wanted to point out that it would be unlikely that you could get into OKW for $12 less than $86pp. Figuring the higher closing costs and the need to make a decent offer that will pass ROFR you will probably see the difference is more like $8-$9.
Good luck.

 

[kathy carleton]

I stated that it was about $7 less per point and a 12 year longer lease, not $12 less. Thanks for your input