Some questions before purchasing??

[Willow25]

Hello my husband has finally relented and told me the other night to compile information regarding DVC as we will have a chunk of money June, 2009 to make a purchase. We currently live in Australia but will likely move back to the states in 5-6 years. We have gone to Disney three times since 2004 and will plan on another trip in 4 years (we just had our first child and are planning on number two soon). Once we are in the states we will go every year. We have stayed at Old Key West, Animal Kingdom Lodge and Boardwalk Villas.

Here are my questions:

What are developer's points?

In regards to UY is that when you get your points refreshed?? If we will primarily travel in December what UY should we get.

Should we buy directly from Disney or resale?? What is the difference??

Is there any perk to waiting for a new resort to open and purchase there??

Thanks for your help

Staci

 

[Buckeye Fan]

What are developer's points?

They are basically incentives offered by DVC. They are a one time gift and developer's points have some limitations. Others may be able to talk more about the limitations if you're interested.

In regards to UY is that when you get your points refreshed??

Yes. Points are deposited on the 1st day of your UY. For example, my UY is August. My points were deposited into my account August 1, 2007 and will expire July 31, 2008 unless I bank them. If I bank them, they will expire July 31, 2009. Points can only be banked once, so once banked, you have to use them by the end of the UY or you lose them.

If we will primarily travel in December what UY should we get.

Most people would recommend an October UY. It's best to pick a UY that's right before your scheduled travel. That way, you still have plenty of time to reschedule the trip or bank the points should you choose not to travel.

Should we buy directly from Disney or resale?? What is the difference??

Buying direct or through resale has it's pros and cons. If you purchase through Dis, you have to purchase 160 points or more, but your points are available almost immediately. In resale, there is no minimum purchase required. Depending on resort, there could be significant savings over purchasing direct. However, it takes 2 1/2 - 3 months to close and get access to your points.

My recommendation? Since you have time, keep reading and asking. Decide on the resort, and that will help drive whether you purchase through Dis or buy resale. For instance, SSR, with a 2054 expiration date whether through Dis or resale, will go for low $80s per point in the resale market versus low $90s per point via Dis. Or, by the time you're looking to buy, maybe the rumored Contemporary DVC (they're calling it KTV on the boards) will be for sale. Just all depends on what appeals to you.

Is there any perk to waiting for a new resort to open and purchase there??

Just a personal preference. New resort prices are higher, even with incentives. However, Dis does usually offer some good incentives on new resorts. Check out MFs as well. Some resorts' MFs are higher and will continue to trend upward for the life of the contract.

Wishing you the best of luck on your research and your future purchase!!!

 

[Caskbill]

What are developer's points?

These are basically 'bonus' points that have a one time use. They do not have a 'home resort' so they can only be used at the 7-month window. They cannot be banked and have a 1-year life span, meaning you have to use them within 1-year of receiving them.

In regards to UY is that when you get your points refreshed?? If we will primarily travel in December what UY should we get.

Yes and No. Actually points aren't 'refreshed'. They are already there, already allocated to each and every use year. Use year is simply the 12-month timeframe those points can be used. You make reservations using points already there. You don't have to wait for them to be 'refreshed'. For example, I have a June UY which goes Jun 1st through May 31st every year. So today I'm still in my 2007 Use Year. I could call today, make a reservation for April 2009, and use June 2009 points. (april 2009 is in my 2008 Use Year, and I could borrow 2009 points for that reservation. This is because all points are already allocated, even my June 2009 points)

As far as reservations, Use Year means nothing. Reservations are made based on booking windows from the date of your actual vacation. Every DVC member could book December at their home resort, right now, regardless of what use year they own. Use year is really only important if you ever have to cancel a vacation. When you cancel, points are returned to your account. If you're outside your banking window then you're stuck. Generally having a use year that starts just prior to your normal vacation dates is better if you ever have to cancel because you would be within your banking window. For example, if you had a September Use Year and made a December reservation that you later cancelled, you could bank those points. But if you had a February Use Year and made a December reservation that you later cancelled, you would get them back but would be beyone your banking window.

Should we buy directly from Disney or resale?? What is the difference??

That's a personal choice. With resale you will have some additional costs (higher closing costs), may not get the same points because the previous owner may have already used some, or even borrowed some and used them, will have to wait a number of weeks before you actually get the points, are subject to ROFR meaning you could do a lot and still not be able to purchase the points. OTOH you will probably pay less $$/point. Maintenance fees are negotiable but many sellers will expect you pay maintenance fees even when technically you shouldn't. Fnally no choice in contract size. You can only purchase whatever size contracts are being offered for sale.

Buy through Disney and you will probably pay more $$/point, but smaller closing costs. Disney will pro-rate the dues based on how many months are left in the calendar year. You get the points to use immediately, and you always get 'current' points. Example, if you bought a June Use Year, you would get all 2007 June UY points now, and of course you'd still have your June 2008 allocation to use.

Is there any perk to waiting for a new resort to open and purchase there??

Again, personal choice. If home resort is important then that's a big factor. Prices will go up so if they have new perks they may be offset simply by the raising prices. Right now the dollar is weak so that may be another factor for you to consider.

Hope this helps.