Resale or from DVC?

[rkandmjsmommy]

HI

Dh and I just got back from BWV, we bought points from a woman named Dana and WE FELL IN LOVE with Disney

We did the DVC tour and gave a deposit to buy into OKW 150 points, we got the Magical Beginnings and its a price we can most likely swing.

My question is there are a few good deals at the timeshare store, one in particular that we would get 300 points due to the person having some banked and some coming availabe soon, we would most likely rent some points out and use the money to try and go to HH in June

 

[drusba]

With resales you become the same class of owner as anyone who buys from Disney. There is a little distinction in use of points for a short time -- buy from Disney and you can start making ressies before closing, buy resale and you have to wait until after closing (which usually occurs about 30 days or so after you purchase). Resales are usually cheaper. That Disney magical beginnings is really not a great deal as you are giving up valuable points for a time just to get a small discount on price. If you need financing, there are other factors to consider: (1) Disney's rate is usually less than anything you will find for the resale unless you do a home equity loan on your existing home to pay for it; (2) that resale loan, unless it is a home equity loan on your existing home, will be a personal line of credit rather than a mortgage secured by the timeshare property interest as Disney's loans are and thus you will not be able to deduct the interest on your tax returns as you would with the Disney loan. In other words, you need to factor in the higher loan rate and loss of tax benefit to determine if the real overall price you are paying for a resale is actually less than buying from Disney. Also, though negotiable, the buyer in a resale usually pays closing costs ($300 to $500) and Disney includes them in the price and thus you need to factor those costs in to determine true overall price of resale to purchasing from Disney