Thinking hard about DVC... questions and opinions, please

[nedac]

OK, we have been to Disney for the past 5 years in a row... yes, i know if we had bought in the first year we would be half way paid for....

Anywho... I listened to the Disney shtick, but I think resale amy be for us... we arent overly particular about resort, since we like to change it up and stay somewhere different from year to year. Given this, does it matter which resort we buy into (other than the 11 month booking window)?

Also, the timeshare store gives an example rate of 12% or so, Disney offers 10% or so... can anyone recommend a good lender with as good a rate as Disney?

There will be more questions, but lets start with these.... big decision here....

 

[Mickey'sApprentice]

OK, we have been to Disney for the past 5 years in a row... yes, i know if we had bought in the first year we would be half way paid for....

Anywho... I listened to the Disney shtick, but I think resale amy be for us... we arent overly particular about resort, since we like to change it up and stay somewhere different from year to year. Given this, does it matter which resort we buy into (other than the 11 month booking window)?

Also, the timeshare store gives an example rate of 12% or so, Disney offers 10% or so... can anyone recommend a good lender with as good a rate as Disney?

There will be more questions, but lets start with these.... big decision here....

Hello Nedac:

Don't beat yourself up about not buying before now.

Resorts end in different years...2042, 2054, 2057, and 2060, according to which one you choose.

Each resort also have different maintenance fees.

As for the 11 month window...do consider what time of year you wish to visit. Busy DVC times are not necessarily busy times for regular Disney guest.

There are also differences in the point charts.

My DH and I chose Boardwalk Villas because we love the Epcot/DHS area, but don't swim. We loved having the 11 month advantage at Boardwalk because the purchase price is less than BCV, Boardwalk views are phenomenal, and standard views are very good and cost efficient.

If I absolutely didn't care about the 11 month advantage...I would buy at SSR in a heartbeat!!

 

[joandegennaro]

OK, we have been to Disney for the past 5 years in a row... yes, i know if we had bought in the first year we would be half way paid for....

We did it for 3 years in a row at CBR and then rented a DVC studio from a co-worker at OKW (needed the 2 queen beds for the 4 of us) This is what convinced DH that DVC was worth the investment into our future vacations. While we bought direct from Disney because I'm not the type to wait and we wanted a specific UY of OKW with the extended years. Had I be willing to wait 6 months I could have saved alot of $$$ but I've been able to plan my vacations sooner. From what I've read on these boards certain resorts at certain times of the year are very hard to get at the 7 month mark. If you want BC or BW during F&W or F&G then you really need the 11 month booking advantage. For us it was OKW all the way...just our style of villas, drive right up to your room, no hallways or elevators(unless you request elevators at OKW). You really should have an idea as to where you will be the most happiest staying and buy there. Then at the 7 month mark if you want to see if another resort is available for a change you can and if nothing is available you will be happy staying at your home resort. I called at the 7 months and found availablity at BC and the family said no they wanted OKW.

 

[chalee94]

Given this, does it matter which resort we buy into (other than the 11 month booking window)?

some would say "buy where you want to stay" and book at 11 months.

i "buy where i don't mind staying" - i book OKW at 10-11 months out and try to change at 7 months if i want. but i have a spot reserved onsite at wdw, regardless.

if you can't book earlier than 7 months out, just buy whatever is cheapest...usually SSR considering price, dues and length of contract.

Also, the timeshare store gives an example rate of 12% or so, Disney offers 10% or so... can anyone recommend a good lender with as good a rate as Disney?

nah - timeshares are pretty weak collateral as property goes. it's a tough sell to a lender.

you can get a better rate by using an home equity loan...but that puts your house on the line...

i wouldn't recommend taking out a loan for a timeshare, but that's me.

 

[JimMIA]

If you MUST finance, a home equity loan is almost certainly the best choice if you have that available.

If you MUST finance, I would get the exact interest rate you'd be paying, the exact price you'd be paying and do the complete math to see which option is better. If you are going to finance for 5 years, get the exact payments and multiply X 60 so you'll know the entire cost.

You won't like the numbers, because financing is going to add a huge amount to the cost of your DVC if you have to pay 10-12% interest -- but you need to really look at honest numbers.

There is not that much difference between Disney's lowest rate of 10.75% (I think -- somebody correct me if that's wrong) and 12%. However, the difference might be enough to tip the scales in favor of buying direct. The only way you'll really know is to actually do the math.

On a slightly different note, don't believe the "breaking even in X number of trips" stuff you hear. If you finance, your break-even point is going to be WAY down the road because of the greatly increased cost.

 

[disneynutz]

Food for thought. Many who thought that they didn't care, soon learned that after buying, they definitely do care where they stay. Some also found out that the competition to book at their favorite resort at 7 months, has made it necessary for them to sell their existing contract and buy at their favorite resort.

Bill

 

[nedac]

Thanks everyone... I am not crazy about financing at all... but I figure we go every year anyway, so I would rather be putting the money toward something.

I just refinanced my home, wish I had thought to borrow a little more and use it for DVC... silly me.

 

[5forDiz]

jmho, when it comes to DVC there's alot to research & understand so take your time ( it's not going anywhere anytime soon ). The above posters have made excellent points to take into consideration as you begin on the should we/shouldn't we road. I would just add, a small resale is a good place to start and you can always add to the number of points you own even at different resorts if you wish, after you've stayed at some DVC resorts & feel it's a good fit.

Best wishes

 

[sweetsusannah]

We love owning our DVC. However, if we couldn't have paid cash for it then it wouldn't have been a good decision for us, monetarily speaking. You have to pay dues each year on top of those payments, so look at it very closely to make sure with a loan payment and the dues you actually do come out cheaper. You might just find that renting points works out more in your favor over interest and dues. My parents rent because while they love to go with us to Disney and stay deluxe they also know it's a short term vacation plan for them and don't want that commitment 10 years from now.

 

[MrShiny]

The home resort matters in a few ways: 1) 11 month window (which can be critical especially at new and/or smaller resorts) 2) dues - different resorts have diffrent dues - newer resorts tend to be less because there are fewere maintenance costs, but this can change over time 3) resale value - smaller or newer resorts tend to have better values - this only matters if you think you might not hold the resort for the entire length of the deed, but it's worth thinking about.

For loans, if you have the equity a home equity loan is almost always the best way to go. If not, weigh the amount you'll need to finance against the cost of the loan. Even if you pay a higher rate, if you are borrowing less because of the lower cost due to resale, then it could be a wash or even benefical to take the higher rate. Figure out the total cost you'll pay over the life of the loan. Also remember the interest may be deductible.

 

[Mickey'sApprentice]

The home resort matters in a few ways: 1) 11 month window (which can be critical especially at new and/or smaller resorts) 2) dues - different resorts have diffrent dues - newer resorts tend to be less because there are fewere maintenance costs, but this can change over time 3) resale value - smaller or newer resorts tend to have better values - this only matters if you think you might not hold the resort for the entire length of the deed, but it's worth thinking about.

For loans, if you have the equity a home equity loan is almost always the best way to go. If not, weigh the amount you'll need to finance against the cost of the loan. Even if you pay a higher rate, if you are borrowing less because of the lower cost due to resale, then it could be a wash or even benefical to take the higher rate. Figure out the total cost you'll pay over the life of the loan. Also remember the interest may be deductible.

I don't think the age has anything to do with the maintenance fees. Disney keeps a reserve account to pay for rehabs that is built up through our dues. (i.e., if Beach Club Villas needs the outside of the resort painted...it was scheduled, and dues over long periods of time paid for it.)

The newer resorts have to schedule for the same type repairs.

If anything, over time, DVC has figured out a few things that makes dues cheaper. BLT is compact, and takes more points. SSR has a lot of members that spreads the dues.

Look at the dues, and figure that the dues will increase by 2-3% per year. Like anything else, if you find what you want, at a price that you are willing to pay, then buy it.

Our contract is at BWV with the highest dues on WDW property. However, the location, the views, and the point charts made the maintenance fees worth it.

 

[Disneypubgal]

jmho, when it comes to DVC there's alot to research & understand so take your time ( it's not going anywhere anytime soon ). The above posters have made excellent points to take into consideration as you begin on the should we/shouldn't we road. I would just add, a small resale is a good place to start and you can always add to the number of points you own even at different resorts if you wish, after you've stayed at some DVC resorts & feel it's a good fit.

Best wishes

This is a great idea to start off with!! And if you need extra points you can always "transfer" from another member until you have the cash to add on!

 

[reon1301]

I was speaking with a DVC representative last week and he mentioned that Disney "might" change the rules on DVC resales. Anyone know what those might be and how all resales might be affected?

 

[McCrae]

if you can't book earlier than 7 months out, just buy whatever is cheapest...usually SSR considering price, dues and length of contract. [/COLOR]
.[/COLOR]

Don't agree with this statement when you look at the full picture SSR is not usually the cheapest option due to it's shorter contract and higher dues. If you want to stay at SSR, but are not concerned about booking priority the cheapest option over the long run is to buy BLT and possibly VGC and then use your points to stay at SSR.

 

[JimMIA]

I was speaking with a DVC representative last week and he mentioned that Disney "might" change the rules on DVC resales. Anyone know what those might be and how all resales might be affected?

Just remember that you are talking to a timeshare salesman. Any time you talk to a timeshare salesman, you'd better take every word they say with a huge helping of salt and confirm every claim they make independently. This rumor pops up from time to time because some of DVC's timeshare sales people spread it, but the more ethical ones deny it.

Anything could happen at some point in the future, but most think it is unlikely. And even if there were some restrictions placed on resales, they would likely not be anything anyone would miss and existing owners would probably be grandfathered.

 

[TisBit]

Just remember that you are talking to a timeshare salesman. Any time you talk to a timeshare salesman, you'd better take every word they say with a huge helping of salt and confirm every claim they make independently. This rumor pops up from time to time because some of DVC's timeshare sales people spread it, but the more ethical ones deny it.

Anything could happen at some point in the future, but most think it is unlikely. And even if there were some restrictions placed on resales, they would likely not be anything anyone would miss and existing owners would probably be grandfathered.

I agree that any changes to resale will be minimal. DVC prides itself in trying to keep resale rates higher by excercising ROFR. In this economy they are being pounded by all the people that have lost their jobs or over exteded themselves and are now defaulting or trying to sell their units.

When I purchased resale was not a very appealing option, yes you could get it a bit cheaper then through Disney, but they were competitive when you weighed all the pros and cons....currently, unless you want BLT or Aulani, resale is a good option (and some deals on BLT pop up, not sure if they are going through ROFR though).

 

[Jaaron2]

I would HIGHLY reccommend that you try a few places out before buying. We bought sight unseen at AKV (and will be staying their in 31 days). But.....we bought 4 years ago. We have always stayed at BCV and also bought there as well. We own 300 at BCV and 250 at AKV. Not that we wont like AKV (I am sure we will), especially since AKV is our favorite park but.......we love BCV, the location, the theme.....everything! Had we known what we know now, we would probably own all of our points at BCV (especially considering it is a smaller resort and we would have more luck booking at AKV at 7 months than BCV)

Things to consider:

Age of Children (what type of pool are you looking for at the resort, are you looking for easy access to the parks etc)
Where you like to eat (BCV is the BEST for eating if you go to Epcot alot, it saves a ton of time....NO BUSES!!!)
Theme
Type of Resort (all DVC resorts are very different)

We love staying at the Epcot Resorts because it fits our vacation needs. Easy access to Epcot for eating, nighlty entertainment at the Boardwalk, easy access to 2 of the 4 parks.

Trying out new resorts is always fun, but IMHO you should buy what fits your vacation needs best.

 

[LSchrow]

Food for thought. Many who thought that they didn't care, soon learned that after buying, they definitely do care where they stay. Some also found out that the competition to book at their favorite resort at 7 months, has made it necessary for them to sell their existing contract and buy at their favorite resort.

Bill

do consider what bill had wriiten...
we stayed at, and enjoyed, almost all the mod, deluxe, and existing DVC resorts. after another fantastic, but expensive, stay at the BWVs, we bought 240 points there (feb 2000).
within a few years, we added at two other DVC resorts during their preopening phases.
now that we go 2-3x a year, we found we really love the BWVs, and that no other resort gives us that same immersion, has as many activities we enjoy, those incredible views, evening entertainment, beautiful walks to EPCOT and DHS....the list goes on and on and on
so now we are struggling at least once a year at the 7 month mark, trying to get a room (BW view is a must)......i know that we need to sell at least one of our other contracts (prob the BCV one) to get more BWV - i just wish we had waited to buy there until we stayed