Resale Closing Costs? Tax questions?

[raelee]

Have been lurking on the boards for over a year now...

I am getting very serious about buying a DVC resale- we already could have with all the money we've spent on WDW vacations-LOL.

Anyway, realizing straight off that all is negotiable- what kind of closing costs are associated with a timeshare?? Besides title search, ins., and the transfer fee to DVC, what costs are involved?? Is it the same as buying a home? (We are looking in the $16-17k range)

Also, what kind of tax implications does this have- agin realizing that it depends on our tax bracket?? When I talked to the DVC representative he said that a portion of the dues (that goes to real estate taxes was deductible) and I know that if I finance thru my home equity loan the interest would be deductible.

Any other "stuff" we need to know? Hidden costs, other fees??

Thanks for all help,
Steph

 

[drusba]

Closing costs range from $400 to $500 for a resale (if you buy from Disney closing costs are included in sale price) and the amount does not vary much in relation to number of points purchased. They include transfer taxes, title insurance, and other closing fees typically associated with a real estate transfer. You can also have dues payable at time of sale. For example, if the seller has already paid the dues for the calander year, you may have to reimburse the seller for the annual dues or a prorata portion; if there are still dues owed for the year, you may have to pay at closing the amount due for the year which gets paid to Disney. How dues for the applicable year get divided at closing is a negotiable point in any resale.

You can deduct the porperty tax portion of your annual dues which is about 20% of the total annual dues. You can deduct interest paid on a loan only if it is a mortgage type loan secured by the DVC or other property like your home. Thus, a home equity loan would qualify for a deduction but many regular timeshare loans for resales are merely personal loans not secured by the property and thus not having deductible interest.

 

[Shontell_Crawford]

I'll just reinforce what drusba said:
Three cost associated with buying resale are:
1. Purchase price
2. Closing costs $375-$525
3. Maintenance fees and taxes on points available to you for the current year.

As many may add - offers can always be presented on any part of the transaction.

Good luck with your purchase!

Kind regards,
Shontell