Thinking about purchasing.

[epd0407]

So I admit im very new to this forum and if what im bringing up has already been discussed I apologize.

I was speaking to my sales agent yesterday and I stress I know he is a SALES agent. I am aware sales people make it standard operating procedure to lie about as much as they can. I consider it my job to have to decipher out what is lie and what is truth.

My sales person made the following claims and I hope that you experienced people can either confirm or deny.

First, I told him that I was really considering a resale. His response was that Disney was going to be pulling the ability of resales to do anything but stay at one of the 11 disney resorts. This seems like an outright lie and would make reselling this in the future impossible.

Second he claimed that if I go through disney financing interest is tax deductible. ??
He also claimed that financing through disney makes nothing appear on the credit report. When I questioned him further on this he said they dont report either bad or good because if your delinquent they just take the package back. It seems plausible but hard to believe in this day and age.

Anyone?

 

[kristenrice]

first, i told him that i was really considering a resale. His response was that disney was going to be pulling the ability of resales to do anything but stay at one of the 11 disney resorts. This seems like an outright lie and would make reselling this in the future impossible.

currently, this is only a rumor, but that doesn't mean that it isn't a possibility.

second he claimed that if i go through disney financing interest is tax deductible. ?? don't know about this....

he also claimed that financing through disney makes nothing appear on the credit report. When i questioned him further on this he said they dont report either bad or good because if your delinquent they just take the package back. It seems plausible but hard to believe in this day and age.
this is true
anyone?

hth...

 

[maburke]

My sales person made the following claims and I hope that you experienced people can either confirm or deny.
...
Second he claimed that if I go through disney financing interest is tax deductible. ??
...
Anyone?

I believe that if you finance through Disney it is treated as a mortgage on the property, so the interest MAY be deductible. It is difficult (but maybe not impossible) to get a loan directly on a resale. More likely an unsecured loan with a high interest rate that is not deductible. That's probably what he was referring to, but I'm no tax advisor.

 

[Coach81]

Poor guy is desperate for a sale.... times are tough...

 

[Winston21]

I'm not sure why you would pay more for something that, today is exactly the same as a resale. I just bought resale last month, and got 200 points at sir with 400 currently available plus all 2011 points available in august for 63/point. I paid cash and it was very easy.
We have do concrete evidence that the resales will be treated differently, and if it changes, though, we may be grandfathered.

 

[quinnc19]

I wish more was known about the likelihood of resales being grandfathered. I'm not sure whether to hurry up and buy, or wait it out.

 

[LouisianaDisneyFan]

We have do concrete evidence that the resales will be treated differently, and if it changes, though, we may be grandfathered.

What concrete evidence? And, would this apply to direct purchase contracts that were later passed to children or others through gifts?

 

[LouisianaDisneyFan]

Second he claimed that if I go through disney financing interest is tax deductible. ??

It's a mortgage, but if this is not your primary residence (which obviously it is not), then the interest is not automatically tax deductible. If you are treating your DVC membership like a business and renting out your points, then the interest and MFs FOR THE POINTS YOU RENT OUT are tax-deductible, but the amount you received as rent must also be included in your household income for the year. You cannot take a deduction for the interest and MFs that cover the points you use for your own travel or those that you provide to family and friends.

 

[mphillips76]

I am waiting for ROFR right now and from what I could tell resales are still treated the same as direct purchases...BUT you should still buy wherever you want to stay, so even if they make it impossible to stay anywhere else it won't be a big deal.

However I do think that if they make resales so unpalatable nobody will pay such a high price for a direct purchase.

 

[jstarcze]

You cannot take a deduction for the interest, MFs or property taxes that cover the points you use for your own travel or those that you provide to family and friends.

But I believe you can take a deduction for the property tax portion of the maintenance fees if you can itemize on your tax returns.

 

[LouisianaDisneyFan]

But I believe you can take a deduction for the property tax portion of the maintenance fees if you can itemize on your tax returns.

Yep, you're correct. The litmus test for being able to deduct the property taxes on a timeshare is whether or not the taxes are specifically and separately billed on the statement for your maintenance fees. Fortunately for all of us, DVC DOES break down which portion of the annual maintenance fees is specifically for property taxes.

There's a good discussion of Income Taxes and Timeshares over at TUG. We took a look at that before making our first timeshare purchase and found it to be very helpful.

 

[LouisianaDisneyFan]

However I do think that if they make resales so unpalatable nobody will pay such a high price for a direct purchase.

I agree. The ability to resell the contract without a tremendous loss was a big selling point for our direct purchase when buying BLT and Aulani points. We'd been burned during a purchase with another timeshare company and were nervous taking the plunge again. I think we would have considered DVC greatly devalued without the great opportunity for resale, which will obviously decline substantially if restrictions are suddenly placed on those who purchase this way.

 

[Sandisw]

So I admit im very new to this forum and if what im bringing up has already been discussed I apologize.

I was speaking to my sales agent yesterday and I stress I know he is a SALES agent. I am aware sales people make it standard operating procedure to lie about as much as they can. I consider it my job to have to decipher out what is lie and what is truth.

My sales person made the following claims and I hope that you experienced people can either confirm or deny.

First, I told him that I was really considering a resale. His response was that Disney was going to be pulling the ability of resales to do anything but stay at one of the 11 disney resorts. This seems like an outright lie and would make reselling this in the future impossible.

Second he claimed that if I go through disney financing interest is tax deductible. ??
He also claimed that financing through disney makes nothing appear on the credit report. When I questioned him further on this he said they dont report either bad or good because if your delinquent they just take the package back. It seems plausible but hard to believe in this day and age.

Anyone?

The only piece that he has shared with you that is strictly rumor at this point is that resale purchases will, at some point, have restrictions on them over points bought direct.

That has been around for a while and from what I understand, the issue has been discussed at the upper levels of DVC but it has not yet gone anywhere. But, I am sure that there is plenty of things talked about in the DVC offices about the program that never make it into practice so I would not worry about that one.

All the other information he told you was true. You do have to check with an accountant, but the interest is considered mortgage interest and should be deductible and the loan does not show up on your credit report.

Good luck!

 

[Winston21]

What concrete evidence? And, would this apply to direct purchase contracts that were later passed to children or others through gifts?

Wow, I really butchered that post. Don't listen to what anyone says...typing on an iPad sucks.

What I meant to say was we don't have any concrete evidence...

 

[LouisianaDisneyFan]

Wow, I really butchered that post. Don't listen to what anyone says...typing on an iPad sucks.

What I meant to say was we don't have any concrete evidence...

Thanks for the clarification! *sigh of relief*!!!

 

[senecabeach]

I agree that in the real world...salesmen are salesmen and beware. Disney is not the same as going to a timeshare presentation somewhere else with "tons of pressure".

I dont feel the same about Disney guides. I know there is no comission competition because there is no "tweaking" of prices or perks and my guide has never worked on on comission in his 20 yrs. as a DVC guide.
Yes, a certain quota seems reasonable/accountable...but nothing to lie about. Remember...some guides are part timers and may not know an answer but should say that.

RUMORS...Disney is looking to make major changes/differentiations of direct buyers vs. resale buyers.
There are a number of proposals that are actively being studied... It would be difficult to cover all of the them, so I am going to cover the one that seems to give DVC the biggest bang for the buck... ie, costs them the least but gives them the biggest "differentiator" of new vs resale.. that is --- messing with the booking windows.

The variations at the top of the list.

1) A preference system given to individuals with more points.. consisting of a longer booking window depending on number of points. The only points that would be eligible are the ones purchased directly from Disney or "grandfathered" in
2) Longer booking windows on the home resort that is bought directly from DVC
3) Longer booking windows in the non-home resorts when points are bought directly.
4) "Locking" the older resorts so that they cannot book in the "new" resorts at all or only with the last 60 days. ie.. people who bought resale in OKW could not book at BLT, SSR-THV, AKV and Aulani and all future resorts except in the last 60 days.

We'll see what happens ??

 

[epd0407]

My guide told me outright he works on commission.

I agree that in the real world...salesmen are salesmen and beware. Disney is not the same as going to a timeshare presentation somewhere else with "tons of pressure".

I dont feel the same about Disney guides. I know there is no comission competition because there is no "tweaking" of prices or perks and my guide has never worked on on comission in his 20 yrs. as a DVC guide.
Yes, a certain quota seems reasonable/accountable...but nothing to lie about. Remember...some guides are part timers and may not know an answer but should say that.

RUMORS...Disney is looking to make major changes/differentiations of direct buyers vs. resale buyers.
There are a number of proposals that are actively being studied... It would be difficult to cover all of the them, so I am going to cover the one that seems to give DVC the biggest bang for the buck... ie, costs them the least but gives them the biggest "differentiator" of new vs resale.. that is --- messing with the booking windows.

The variations at the top of the list.

1) A preference system given to individuals with more points.. consisting of a longer booking window depending on number of points. The only points that would be eligible are the ones purchased directly from Disney or "grandfathered" in
2) Longer booking windows on the home resort that is bought directly from DVC
3) Longer booking windows in the non-home resorts when points are bought directly.
4) "Locking" the older resorts so that they cannot book in the "new" resorts at all or only with the last 60 days. ie.. people who bought resale in OKW could not book at BLT, SSR-THV, AKV and Aulani and all future resorts except in the last 60 days.

We'll see what happens ??

 

[senecabeach]

My guide told me outright he works on commission.

OK, maybe some do now...but either way it seems that he has answered your concerns correctly.

 

[Kymm1111]

H an R block has done my taxes for years and I always get a tax deduction for dvc. Hope she knows what she is doing!

 

[epd0407]

Just an update. We put an offer on a resale and it got accepted. I received this from my sales agent "name omitted"

"Thanks for the update. We will have to agree to disagree because I like the decision.It will be announced tomorrow. Good Luck "

The previous email was my email to him saying we decided on a resale because when this decision on the policy change goes into effect ide lose less money on a resale than selling my direct points".

So seems like we have a date penciled in for an "announcement"

Not for nothing, but I believe in MA if a Sales person lied this overtly it would be illegal. Why and how is this tolerated by the state of Florida if this is false?