Thinking about buying...have a few ?'s

[SnowWhite33]

After 5 trips in the last 4 years and getting itchy to return, we are now considering just biting the bullet and buying. When I first started looking and discussing this w/DH I figured 150 pts would be plenty, but the more we talk about it he thinks we will need more. So after much reading here, I've seen the threads about add on incentives. My question is this, should we buy what the minimum pts and then add on as we get more experienced with this, (and hopefully take advantage of a good incentive), or should we go all out and purchase more at the start. Also, when doing an add on is it the same process (deposit + % down) or do they just add on to your existing contract and increase your payments accordingly. We will most likely take the 10 year option and pay off early, as I understand there is no penalty for this correct? Also, can someone give me an idea of how trading to other destinations works? We LOVE Disney, but as our ds gets older, we might get a little more adventurous . Thanks in advance, as always these boards are what makes Disney so easy and fun!!

 

[tjkraz]

To stave off inflation, I'd buy whatever you can / think you'll need now. There hasn't been a price increase in about a year, so that could happen without much warning. If you wait for incentives, they could 1) never materialize, 2) barely offset the incresed cost of the points, or 3) not be anything you are particularly interested in.

For add-ons, you still need to put 20% down (you can go 10% but the interest rate is higher.)

There is no prepayment penalty.

 

[kjkelley]

I bought 160 as our initial contract at SSR. I chose 160 because that is what is required for a World Passport transfer into a 1 bedroom at high season. If I were you, I would consider an initial purchase of 150-160 and then do a second add on for whatever # of additional points you are looking for. Here are my reasons:

1. If you ever need to sell, you could sell in the same chunks you purchased in, this is the only way to break up your points.
2. You could make an initial purchase and due an add on through the used market is you are interested in more than just SSR (although 12 less years at any other resort).
3. If you add on 120 at SSR, you get better incentives than original purchase (i.e. bonus 100 points and no dues for 2005).
4. I am not sure why tj says there has not been an increase in 1 year, when the incentive just changed from $85/pt to $87/pt on 2/28. I view that as an increase even though the $95/pt did not change. I think you could start with the 150-160 pt contract and still get more points @ $87/pt for at least a few months but nothing is guaranteed.

Hope this helps your thought process!

 

[Cruelladeville]

Changing the incentive is not an increase in cost, since not everyone takes the incentive. Also, for those of us who are in the process of adding-on to existing contracts, there is no incentive, so we are paying the full cost of $95. An incentive is just that--it's a way to get you to buy at one resort rather than any of the others.

 

[DanPadavona]

SnowWhite,

Congratulations. My wife, kids, and I are very happy DVC members. I hope you enjoy DVC as much as we do.

As far as how many points to purchase...I certainly recognize the inflation of point prices in recent years. However this does not seem to me to be sustainable, and I personally would bet against it. If you look at DVC point prices they are quite comparable to housing inflation in many areas. What they have in common is people are leveraging themselves to the hilt because credit is so cheap these days. Credit historically is not nearly so cheap, and I am a big believer in "reversion to the mean." In other words, I think interest rates will eventually rise more than people are comfortable with. More expensive credit will lead to less money for average folks to play with, and hence less demand for luxuries like DVC property. A little supply on the DVC books will knock prices back down or hold them flat.

Rather than try to guess how much things will change in the next few years, the most prudent thing to do is to only buy what you can comfortably afford. When you are ready for more points, they will be there. Don't feel rushed to buy as much as possible.

 

[RobDoc]

Unless SSR is what you are interested in purchasing, you might also consider a resale at one of the other resorts. You will likely get a few more points for the same money.

I'd agree with those suggesting to buy what you are able to afford at this time. Add-ons will be available should you want/need more in the future.

The best pricing you'll find is available right now but add-ons, in small (under 100 points) anounts will be much more costly. ($95 at SSR and $89 at other resorts with a wait).

For now, you might want to assess what number of points you'll be comfortable using each year (plan to maximize usage by avoiding weekend nites). Many of us here quickly found that we were able to plan more trips to WDW after joining DVC and added on to satisfy that realization.

There is no right or wrong way to do this. DVC offers great flexibility and once you experienced that aspect of the program you may discover that more points are desirable.

Do what is comfortable for you today. (Tomorrow may offer another level of comfort!)

Enjoy!

 

[DanPadavona]

The same thing happened with us, although we purchased all our points (280) upfront. Suddenly our usual 5 to 7 day vacation turned into 7-9 days, plus points being added to the bank. This summer we are staying 14 nights at BCV, which just about uses up all 280 pts per year if used during the summer. Cannot wait!

 

[bongo59]

your point total should be based upon your family numbers and how many times you want to go per yr...........as for where you buy.........i would always recommend a resale first because they are cheaper but if you need to finance just buy SSR with DVC.........you wont regret it

 

[SnowWhite33]

Just wanted to say thanks to everyone, we've only received the video and information book, but already have plans for what to do with our points I believe our best bet will be to buy in at minimum, pay off early and add on at another time if need be. This will give me the opportunity to buy the APs (hopefully using a discount for a room at the Poly on the Weekend) and have a great excuse to go more than once a year. Again, I knew that the wealth of experience the DIS offers would help!