Super new - considering DVC ?s

All resorts have an expiration.
ResortDeed Expiration
Animal Kingdom2057
Aulani2062
Bay Lake Tower2060
Beach Club2042
Boardwalk2042
Boulder Ridge2042
Copper Creek2068
Grand Californian2060
Grand Floridian2064
Hilton Head2042
Old Key West2042 or 2057
Polynesian2066
Riviera Resort2070
Saratoga Springs2054
Vero Beach2042
* All Deeds Expire on Jan. 31st of respected year
You cannot use your points after the expiration date.
So, BCV points are only good until 2042.
 
LOL. You sound like you are in the same boat as us. We moved out to the Albany area from Boston 15 years ago. We continue to do beach rentals in Orleans. The nice thing about DVC is that there is always a WDW vacation on the horizon. That sort of stuff is good for the mental sanity during these terrible winters. I highly agree with previous comments that you shouldn’t make the purchase if it will be stretching you thin. If you have the available cash to spend without cutting things out, then it makes sense.
Yeah, this winter was extra hard bc we didn’t do a winter Disney trip bc of covid and there are still travel restrictions for Massachusetts. I really missed the break from winter. We do have a cottage rented right on beach in Yarmouth for August, so there’s that!!
There is cash and I could dip in a bit, but probably can not justify 15k to my husband. That’s why the small contract was appealing. The cash is mainly for house repairs that need to happen in the next year or so. My husband won’t give up the new deck he wants for DVC lol and we need to re-side the whole house.
 
All resorts have an expiration.
ResortDeed Expiration
Animal Kingdom2057
Aulani2062
Bay Lake Tower2060
Beach Club2042
Boardwalk2042
Boulder Ridge2042
Copper Creek2068
Grand Californian2060
Grand Floridian2064
Hilton Head2042
Old Key West2042 or 2057
Polynesian2066
Riviera Resort2070
Saratoga Springs2054
Vero Beach2042
* All Deeds Expire on Jan. 31st of respected year
You cannot use your points after the expiration date.
So, BCV points are only good until 2042.

Omg 2068 - I’ll be like 89 then! It’s crazy to see dates like that lol 😆
 
Yeah, this is where I’m at - I want it, but I don’t “15k upfront” want it. I’ll probably spend that on vacation lodgings in the next ten years anyway, but it will be a year to year purchase rather than a right now all at once purchase.

Look at it this way -- Go put 15k into a decent investment, a mutual fund or such. It will grow on average, likely, between $750 up to $1500 per year.
Use the growth to augment your vacations -- Take vacations that are $1000 per year nicer than you'd been taking. Your former budget of $2300, lifted to $3300, could potentially give you a deluxe stay at WDW, possibly by renting points.
And the $15k principle will still be there as a cushion, if you really need it. And if it grows, you may find yourself comfortable putting some of it down towards DVC at some point.
 


I tend to spend a good chunk of money on vacation every year, so it is probably not so much about “savings” per say as it is about upgrading our resort for same or less cost as I already spend on a moderate.
That's good, because in all likelihood you'll end up giving Disney a lot more of your money buying into their timeshare. That's only a bad thing if your objective is to save money over what you're spending today on Disney. Even in your situation though, the plan to buy and use a small 50 point contract is going to hit a few hitches.

1- You'll end up paying a lot more for a small contract on the resale market. Looking at the the largest resale site, a 50pt SSR contract is asking between $129/point and $144/point. Larger contracts (>50pts) are mostly asking between $107/point and $124/point.

2- The challenge you're going to face is that President's day week is in the highest cost period for Disney's timeshare stays outside of Christmas week and Easter week. 50 points won't get you very far even if you have mad skillz and go full Disney Timeshare Ninja, walking an Animal Kingdom Villa Value Studio year-round every year like a machine.

3- Traveling with a teacher, you'll be tied to higher cost travel periods. Disney's point charts, do not accurately reflecting high Disney timeshare demand periods anymore. When Disney first created the five-season point chart, point requirements mirrored cash hotel demand (i.e., high travel periods required more points while low travel periods, required fewer points). Timeshare usage has evolved to be almost the inverse of this. For you, this will be a double edged sword. This is good because higher point requirements normally equates to less demand, so you may have more options on where to stay (see 4 below for caveat). This is bad because the whenever you travel prices will be high with all the usual suspects, Thanksgiving, Christmas, President's Day, Easter, but as an added bonus, as soon as MA schools let out, point costs jump for the summer, and only go down a week before school starts back up again - while your husband will be prepping his classroom for the start of the school year.

4- If you have inflexible dates as to when you will go every year (specific weeks you'll have to travel based on school holidays) you'll need to buy where you want to stay. Being "able" to book at BCV with your SSR points will mean nothing if you're trying to get into a studio at 7-months. You'll have to buy at BCV, and as mentioned in point 1 above, BCV ran for about $165-$175/point for 50 point contracts vs. $145-$150/point for larger contracts.

All that suggests you'll probably need closer to 100 points if you want to continue your pattern of one week year one, two days year two, rinse and repeat. Which ultimately means you likely won't be saving anything over what you're paying today for your moderate room.
Yeah, this is where I’m at - I want it, but I don’t “15k upfront” want it. I’ll probably spend that on vacation lodgings in the next ten years anyway, but it will be a year to year purchase rather than a right now all at once purchase.
There's something to be said about financial freedom. On your current Disney plan, you can turn off the Disney spigot whenever you want. Whatever life throws at you, you can pivot and postpone that Disney trip, be it a pandemic or a home improvement.

The timeshare commitment means that until you sell, you're on the hook to pay the dues regardless of what is happening in your life. And the $15K upfront is just the tip of the iceberg. Nestled snugly beneath it is a lot of annual dues that will need to be paid regardless of whether or not you go to Disney; anywhere from roughly $700-$1,000/year depending on where you buy. On the Disney timeshare plan, over those 10 years you travel, you'll spend between $22,000 and $25,000 for just the room (in today's dollars, not calculated for inflation or dues increases which have historically exceeded inflation).

The longer you use the contract, the less your cost per stay is going to be, but you will likely be spending more than what you're paying now. If you and your husband are cool with that, you'll love your Disney timeshare ownership.
 
...
It's Right of First Refusal. Basically, Disney has the right to buy any resale contract back at the same price that the buyer and seller agree to. It's a way for Disney to set a price floor for resale contracts. Here's a list of the highest ROFR price for January of this year at one DVC resale website:
https://www.dvcresalemarket.com/blog/dvc-right-of-first-refusal-report-rofr-january-21-report/This should give you an idea of what your absolute minimum price could be. I would expect to pay a bit more than these values per point.
...
Excellent summary, I know in the past some in DVC sales used the set a floor on resale value as a selling point, but when the rescission of ‘08 hit, DVC failed to use ROFR to prop up resale prices.
I believe they exercise ROFR to acquire points & resell them as direct at a profit. I believe they even changed the rules to allow them to change use year on the resale contracts they bought to make it easier for them to resell.
The first page of the ROFR thread here on DIS is also a great source for the price at which DVC is exercising ROFR https://www.disboards.com/threads/r...ost-for-instructions-formatting-tool.3821777/
I actually have the liquid cash to buy a larger resale contract, but it’s supposed to be for siding my house, building a deck, and redoing my kitchen lol. Ironically, when we refinanced to get the money, my husband actually said - this is for the house stuff, not for vacations. He knows me too well.
So you would be using borrowed money to dip your toe into the DVC pool, albeit at a lower interest rate than if you financed the DVC purchase. When DVC prices were going up rapidly, there was some justification for short term financing v. waiting till you had the money saved because the cost to finance was less than the likely price appreciation.
How do you pay for your vacations currently? If from current income, maybe take the money you didn’t spend on vacations during the Covid shutdown & add to it until you can buy a resale contract w/ cash on hand. That’s how I ended up buying my first contract, we skipped a WDW year & I used that money to buy a contract - but we were already staying in deluxe resorts, usually 2 deluxe rooms, so it penciled out for the way we traveled, particularly w/ the room cost inflation I was seeing at WDW. However, it’s much harder to justify financially if you stay & are happy at moderate resorts.
 
Excellent summary, I know in the past some in DVC sales used the set a floor on resale value as a selling point, but when the rescission of ‘08 hit, DVC failed to use ROFR to prop up resale prices.
I believe they exercise ROFR to acquire points & resell them as direct at a profit. I believe they even changed the rules to allow them to change use year on the resale contracts they bought to make it easier for them to resell.
The first page of the ROFR thread here on DIS is also a great source for the price at which DVC is exercising ROFR https://www.disboards.com/threads/r...ost-for-instructions-formatting-tool.3821777/

So you would be using borrowed money to dip your toe into the DVC pool, albeit at a lower interest rate than if you financed the DVC purchase. When DVC prices were going up rapidly, there was some justification for short term financing v. waiting till you had the money saved because the cost to finance was less than the likely price appreciation.
How do you pay for your vacations currently? If from current income, maybe take the money you didn’t spend on vacations during the Covid shutdown & add to it until you can buy a resale contract w/ cash on hand. That’s how I ended up buying my first contract, we skipped a WDW year & I used that money to buy a contract - but we were already staying in deluxe resorts, usually 2 deluxe rooms, so it penciled out for the way we traveled, particularly w/ the room cost inflation I was seeing at WDW. However, it’s much harder to justify financially if you stay & are happy at moderate resorts.

It’s not borrowed money - it’s my money in a saving account, but it’s purpose was not for dvc lol.
Edit; I see you mean borrowed as in was meant for something else and from a refi... Nevermind.
 
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Excellent summary, I know in the past some in DVC sales used the set a floor on resale value as a selling point, but when the rescission of ‘08 hit, DVC failed to use ROFR to prop up resale prices.
I believe they exercise ROFR to acquire points & resell them as direct at a profit. I believe they even changed the rules to allow them to change use year on the resale contracts they bought to make it easier for them to resell.
The first page of the ROFR thread here on DIS is also a great source for the price at which DVC is exercising ROFR https://www.disboards.com/threads/r...ost-for-instructions-formatting-tool.3821777/

So you would be using borrowed money to dip your toe into the DVC pool, albeit at a lower interest rate than if you financed the DVC purchase. When DVC prices were going up rapidly, there was some justification for short term financing v. waiting till you had the money saved because the cost to finance was less than the likely price appreciation.
How do you pay for your vacations currently? If from current income, maybe take the money you didn’t spend on vacations during the Covid shutdown & add to it until you can buy a resale contract w/ cash on hand. That’s how I ended up buying my first contract, we skipped a WDW year & I used that money to buy a contract - but we were already staying in deluxe resorts, usually 2 deluxe rooms, so it penciled out for the way we traveled, particularly w/ the room cost inflation I was seeing at WDW. However, it’s much harder to justify financially if you stay & are happy at moderate resorts.

Now I just pay for my vacations from my regular “spending” money I guess you’d call it. Just regular old income. We didn’t go away this February, but I pretty much spent that money on an echelon bike since we dropped the gym during covid and then I splurged more on my summer vacation last summer bc I knew we weren’t going to Disney this winter.
I do see all you are saying though and you do make very good points that I’m probably better off doing what I’m doing based on my situation.
 
That's good, because in all likelihood you'll end up giving Disney a lot more of your money buying into their timeshare. That's only a bad thing if your objective is to save money over what you're spending today on Disney. Even in your situation though, the plan to buy and use a small 50 point contract is going to hit a few hitches.

1- You'll end up paying a lot more for a small contract on the resale market. Looking at the the largest resale site, a 50pt SSR contract is asking between $129/point and $144/point. Larger contracts (>50pts) are mostly asking between $107/point and $124/point.

2- The challenge you're going to face is that President's day week is in the highest cost period for Disney's timeshare stays outside of Christmas week and Easter week. 50 points won't get you very far even if you have mad skillz and go full Disney Timeshare Ninja, walking an Animal Kingdom Villa Value Studio year-round every year like a machine.

3- Traveling with a teacher, you'll be tied to higher cost travel periods. Disney's point charts, do not accurately reflecting high Disney timeshare demand periods anymore. When Disney first created the five-season point chart, point requirements mirrored cash hotel demand (i.e., high travel periods required more points while low travel periods, required fewer points). Timeshare usage has evolved to be almost the inverse of this. For you, this will be a double edged sword. This is good because higher point requirements normally equates to less demand, so you may have more options on where to stay (see 4 below for caveat). This is bad because the whenever you travel prices will be high with all the usual suspects, Thanksgiving, Christmas, President's Day, Easter, but as an added bonus, as soon as MA schools let out, point costs jump for the summer, and only go down a week before school starts back up again - while your husband will be prepping his classroom for the start of the school year.

4- If you have inflexible dates as to when you will go every year (specific weeks you'll have to travel based on school holidays) you'll need to buy where you want to stay. Being "able" to book at BCV with your SSR points will mean nothing if you're trying to get into a studio at 7-months. You'll have to buy at BCV, and as mentioned in point 1 above, BCV ran for about $165-$175/point for 50 point contracts vs. $145-$150/point for larger contracts.

All that suggests you'll probably need closer to 100 points if you want to continue your pattern of one week year one, two days year two, rinse and repeat. Which ultimately means you likely won't be saving anything over what you're paying today for your moderate room.

There's something to be said about financial freedom. On your current Disney plan, you can turn off the Disney spigot whenever you want. Whatever life throws at you, you can pivot and postpone that Disney trip, be it a pandemic or a home improvement.

The timeshare commitment means that until you sell, you're on the hook to pay the dues regardless of what is happening in your life. And the $15K upfront is just the tip of the iceberg. Nestled snugly beneath it is a lot of annual dues that will need to be paid regardless of whether or not you go to Disney; anywhere from roughly $700-$1,000/year depending on where you buy. On the Disney timeshare plan, over those 10 years you travel, you'll spend between $22,000 and $25,000 for just the room (in today's dollars, not calculated for inflation or dues increases which have historically exceeded inflation).

The longer you use the contract, the less your cost per stay is going to be, but you will likely be spending more than what you're paying now. If you and your husband are cool with that, you'll love your Disney timeshare ownership.

i just reread this bc even though I said in a previous post that it probably isn’t the time for me to buy.... yet I keep doing my research and still WANT to buy lol. Your post above/quoted is super helpful and I appreciate it.
 
i just reread this bc even though I said in a previous post that it probably isn’t the time for me to buy.... yet I keep doing my research and still WANT to buy lol. Your post above/quoted is super helpful and I appreciate it.
If you tire of that reading and want to branch out, here’s an interesting thread about whether or not Disney’s timeshare will save you money.

If you can filter out the sniping, noise about long term capital gains, and Hawaiian AirBNBs, there is an interesting conversation around the financial benefits and costs around Disney timeshare ownership.

I mention this only because buying a timeshare; converting your discretionary income into a financial liability; is a big decision that should be thought through thoroughly.

I think the point sndral made when they said this:
So you would be using borrowed money to dip your toe into the DVC pool, albeit at a lower interest rate than if you financed the DVC purchase.
was that you would be using leveraging (debt) to finance your Disney timeshare. Taking the equity stake in your home and signing it over to the bank for cash to reinvest in your home (deck, siding, kitchen, etc.) is reinvesting in the asset you leveraged in the first place. The enjoyment of your home will go up and the value of your property could potentially benefit as well. The case could be made that it’s a smart money move.

While some may argue buying a a Disney timeshare would do some of the same things (enjoyment in use of product, value could potentially go up), I’d be wary of seeing a Disney timeshare as any sort of investment, or at least be wary of not fully appreciating the liability aspects of any timeshare. A Disney timeshare is not without its risks. I think the pandemic was a rude awakening for a lot of owners (forced closing, expiring points, disputed rentals, timeshare open but theme parks closed, no hotel restaurants, no pools or spas, diminished vacation experiences, Chapek cost cutting, no Annual Passes, etc.).

The funds you mentioned in your account seem to be earmarked for home improvement. Without disposable cash in hand to make a luxury purchase like a Disney timeshare, be sure to understand all the risks/costs involved in ownership if you choose to go that route.

A Disney timeshare can be a wonderful joyous thing to have for your family. You see that reflected in the shared experiences all over these boards. What you don’t see are the people who stretch themselves too thin. What you don’t hear about is how someone’s timeshare ownership lead to financial stress or ruin. It’s not that these people don’t exist or that this never happens, it’s just that they just tend to recede from this bubble we’re in when it does.

It’s easy to cheer people and :welcome: them home when they buy in, or give them a 🙁 when they have to sell, it’s harder and less popular to tell people to tap the brakes. The people I respect most in this community are the ones who are willing to do exactly that.

Take your time and learn about Disney’s timeshare. It’s not as straightforward as the marketing “Save up to 50% on future accommodations!” advertises. I’d say if you have reservations, there may be really good reasons why. Godspeed.
 
If you tire of that reading and want to branch out, here’s an interesting thread about whether or not Disney’s timeshare will save you money.

If you can filter out the sniping, noise about long term capital gains, and Hawaiian AirBNBs, there is an interesting conversation around the financial benefits and costs around Disney timeshare ownership.

I mention this only because buying a timeshare; converting your discretionary income into a financial liability; is a big decision that should be thought through thoroughly.

I think the point sndral made when they said this:

was that you would be using leveraging (debt) to finance your Disney timeshare. Taking the equity stake in your home and signing it over to the bank for cash to reinvest in your home (deck, siding, kitchen, etc.) is reinvesting in the asset you leveraged in the first place. The enjoyment of your home will go up and the value of your property could potentially benefit as well. The case could be made that it’s a smart money move.

While some may argue buying a a Disney timeshare would do some of the same things (enjoyment in use of product, value could potentially go up), I’d be wary of seeing a Disney timeshare as any sort of investment, or at least be wary of not fully appreciating the liability aspects of any timeshare. A Disney timeshare is not without its risks. I think the pandemic was a rude awakening for a lot of owners (forced closing, expiring points, disputed rentals, timeshare open but theme parks closed, no hotel restaurants, no pools or spas, diminished vacation experiences, Chapek cost cutting, no Annual Passes, etc.).

The funds you mentioned in your account seem to be earmarked for home improvement. Without disposable cash in hand to make a luxury purchase like a Disney timeshare, be sure to understand all the risks/costs involved in ownership if you choose to go that route.

A Disney timeshare can be a wonderful joyous thing to have for your family. You see that reflected in the shared experiences all over these boards. What you don’t see are the people who stretch themselves too thin. What you don’t hear about is how someone’s timeshare ownership lead to financial stress or ruin. It’s not that these people don’t exist or that this never happens, it’s just that they just tend to recede from this bubble we’re in when it does.

It’s easy to cheer people and :welcome: them home when they buy in, or give them a 🙁 when they have to sell, it’s harder and less popular to tell people to tap the brakes. The people I respect most in this community are the ones who are willing to do exactly that.

Take your time and learn about Disney’s timeshare. It’s not as straightforward as the marketing “Save up to 50% on future accommodations!” advertises. I’d say if you have reservations, there may be really good reasons why. Godspeed.

Wow - love this - really all of it. You have a nice way of putting it that is honest and not overly negative or overly positive. I appreciate that immensely.
 
I'll add one more to point Bing's post - you are in education. Your kids are 10 and 12. Post secondary schooling (college?) is coming way faster than you think it is. And you will NOT get as much financial aid as you think you will - and you may find scholarships and merit aid don't meet your expectations either. Check out this thread on the Budget Board https://www.disboards.com/threads/fafsa-changes-coming.3825071/.
 
I'll add one more to point Bing's post - you are in education. Your kids are 10 and 12. Post secondary schooling (college?) is coming way faster than you think it is. And you will NOT get as much financial aid as you think you will - and you may find scholarships and merit aid don't meet your expectations either. Check out this thread on the Budget Board https://www.disboards.com/threads/fafsa-changes-coming.3825071/.

My husband is the teacher. I’m inot in education- though that being said, I’m still paying my own graduate school loans- yeah :( In truth, I hardly feel that payment bc I’ve been paying it since 2002.
This is a really good point though! I always say I’ll finish my loans right as they have to go to college. I hadn’t even thought of that until you said it! Honestly, this might be the deciding factor. Such a good point.
 

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