Thinking of buying DVC...need some advice!

[Kim&Chris]

Well, after many trips to WDW, we're seriously thinking about joining DVC. We can come up with the $ for a resale, but I'm curious about the other costs.

I'd appreciate any input. We're concerned with the yearly maintenance fees, the closing costs, or any other costs other than the initial cost of the points. Also, what are the "pros" and "cons" of DVC.

ANY information would be valuable to us.

Thanks

 

[JimC]

If you buy direct from Disney there are no closing costs. If you buy a resale the closing costs are negotiable (just think of any real estate transaction). I believe that closing costs for buyer generally run about $2 - $4 per point, with actual amount varying with size of contract.

Maintenance fees run from $3.50 (OKW) to $4.38 (VB) per point. Figure that they will increase at roughly the rate of inflation each year (OKW has increased an average 3.1% per year since 1993).
However, hotel room charges have gone up at a higher clip since the early 1990s (roughly 4.6% per year).

If you are paying cash, financing is not an issue.

Keep in mind that you do not pay hotel tax on DVC points (not when you buy nor when you use). And when Florida increased their tax rate 1/1/03 by .5% that added additional savings for us.

We used Pat Spell at The Timeshare Store. She was very professional and responsive. There is a link to their site at top of page.

DVC is great if you visit WDW often (probably at least every other year). At the very least you are paying moderate prices for suite level accommodations at deluxe resorts if you use your points for 1 bedroom units. Most DVC owners will end up doing much better than that. Some early entrants could cash out and probably get back every dime they paid in (including maintenance fees). But past performance is no guarantee of the future.

The option of trading out to other Disney resorts or DCL and to II is a nice benefit. However, I believe the best value to using your points is within the DVC system. If you want II exchange there are less expensive options with other well run timeshares.

I suspect most here will say that DVC has increased the number of vacations taken and the length of vacations taken at WDW. If true, then you have the added costs associated with more vacation time (tickets, meals, travel, etc.)

Then there are those pesky add-ons and additional resale purchases. Many of us have more than one contract (either resales or add-ons direct from Disney or both).

I believe many buy annual passes (generally the cheapest route if staying 8 or more days in any 12 month period).

Best advice I got from these boards was to buy where you want to stay the most. The 11 month reservation window is quite useful at certain times of the year.

1/31/42 the deeds expire. So figure you have 39 years of great vacations ahead of you.

Good luck!

 

[WDWLVR]

Jim covered the money side quite nicely so I'll just address the opinion side.

Cons - reservations can sometimes hard to get meaning you have to call every day at the 11 month window. This only really happens at the times of year when everyone wants to be there (holidays etc.) If you won't be traveling at those times no worries. That's why Jim's advice of buy where you want to stay is important. You have an 11 month window vs. a 7 month window.

Pros - DVC to me if fantastic because of the flexability. When can choose when we want to go, where we want to go, even the size of the accomodations.

I love the size of the 1 bedrooms. Even though it is only DH and I it gives us space - especially at those crucial times when our schedules don't match (I'm a morning person - he's a night owl).

Having a washer/dryer unit (in 1 bedrooms and higher) is fantastic. We don't pack as much and when unexpected things happen (like getting caught in a downpour one December evening) we can get things dried up quickly.

Having a kitchen (or kitchenette in the studio) is great and has actually saved us money as we don't eat out as much. We still treat ourselves to a character breakfast and a few dinners out, but the rest of the time we eat in the room. Again this helps with wierd schedules because if I want to great a quick bite while he's still asleep I can.

DVC is also family. We did the DVC Members Cruise this past February and it was fantastic.

 

[Dizzy4Dizney]

DVC is the best "timeshare" (I hate to call it that because it really doesn't work that way). The fees are managable and there
are no hidden fees.

The little perks are great. You get 10% off at the Disney Store. THis will come in handy when the Disney Club is gone. Also the free parking pool hopping is great.

Another great feature is the flexibility. I gave my brother and nephew some nights in OKW and it was so easy to do and they had no problems checking in.

Also, one year, we got stranded at Disney for 2 days because of a snowstorm in Boston. We stayed 2 extra days on points and it was very easy and fast to do and it really didn't cost us any $$ because we had DVC. If we didn't, we would have had to pay for 2 nights in a hotel.

My advice....buy if you love going to Disney!

 

[zurgswife]

I agree with all the above posters....We purchased 5 years ago and are very very satisfied...

 

[pennyb]

SENT YOU A PM

 

[Cruelladeville]

We bought in 1997, and the cost of DVC has gone up enough that if we sold today we would recoup our original investment, as well as maintenance. We are very pleased with our investment.

Buying resale may not be your best way to buy DVC. Buying thru Disney right now will cost $74 a pt with Magical Beginnings, and their financing is 9.75% for up to 10 years. If you are paying cash, and have a credit card where you get points or cash-back for purchases, at Disney you can charge the purchase price to the credit card. They will even break it up into 3 or 4 separate charges, which you can pay off each month. There are no closing costs. The purchase price is your total cost, except for maintenance fees, and you can make ressies about a week after you sign.

Going resale now will cost you about $72 per point at the very least. Many contracts are in the $77 per point range. You pay closing of $350-$550, there is no financing available, and you may not make ressies until you have closed, up to 2 months later. You may get banked points, however.

If you want OKW you must buy resale. BCV you need to buy Disney, and for WLV and BWV you may be able to go thru either resale or Disney.

 

[crisi]

Pros:

Nice accomodations for a reasonable price (for those accomodations - there are cheaper alternatives).

A motivator to get to Disney every year or so.

Great flexibility. We can go for a ton of nights every year in a studio in a low point season, we can go in a one bedroom every year for almost a week in a low point season, or we can go every other year in a two bedroom for a week. If we want to go over Christmas, we save our points and book a lower point value room. We could also use our points to cruise or trade.

Disney quality.

Cons:

It isn't cheap.

You are tied into vacations. If airfare and park tickets are going to be prohibitive, you still have to pay maintenance on your points (a lot of people will rent out in this situation).

Some people do get burned out on Disney.

There is a risk that your circumstances will change before you reach the payback point on your purchase. History says you can resell your points without too much bother - but whether you will make your money back after commissions and fees depends on how long you have held your points. People have bought points only to get laid off, divorced, etc. There is some risk that something will happen to Disney - the park gets wiped out in a freak tornado and they don't rebuild - or they turn into Enron.

 

[Jimbo]

A couple of points about resales...

Originally posted by JimC
If you buy direct from Disney there are no closing costs. If you buy a resale the closing costs are negotiable (just think of any real estate transaction). I believe that closing costs for buyer generally run about $2 - $4 per point, with actual amount varying with size of contract.

I could be wrong, but I don't believe closing costs increase with the size of the contract. Closing costs aren't a commission, you're paying for a service. And the service is the same if it's a 500 point contract or a 150 point contract.

You should expect to pay around $450 in closing costs, unless there's something "odd," such as the seller living in another country, or something like that.

Originally posted by Cruelladeville
Buying thru Disney right now will cost $74 a pt with Magical Beginnings, and their financing is 9.75% for up to 10 years.

It's kind of an oversimplification to say that buying through Disney costs $74 per point. It currently costs $84 per point, but they will buy back your current year's points at $10 per point. So it only feels like $74 per point. This buyback can be very useful, and I've used it myself, but make sure you understand it.

And 9.75% is certainly less than you'd pay if you looked for your own timeshare loan. But it's a LOT higher than if you could use a home equity loan to pay for your purchase.

Originally posted by Cruelladeville
Going resale now will cost you about $72 per point at the very least. Many contracts are in the $77 per point range.

Actually, the going rate lately has been around $68. It was around $72 for a while, but I can't believe anybody ever paid $77. And the difference between $68 and $72 may not sound like much, but it will more than pay for your closing costs.

Good luck!

 

[disneyberry]

just wanted to mention that i believe closing costs are dependent on the total purchase price of a resale.

i.e. if you buy a tiny contract that costs less than $5k, the closing costs are $375. if you buy a contract that costs between $5k and $10k, the closing costs are $400, if you buy a contract that costs between $10k and $15k, the closing costs are $450, more than $20k closing costs are $500, etc. etc.
(i'm just estimating these figures, so they're not exact)

also, with MB you have to pay some dues on points you will sell back, so really MB only makes the cost around $76/pt or something depending on the size of the contract you buy.

 

[Jimbo]

Originally posted by disneyberry
just wanted to mention that i believe closing costs are dependent on the total purchase price of a resale.

I'm really curious about this. It totally doesn't seem logical to me. Where does the extra money go? Why would extra points mean extra costs?

 

[Lisa P.]

Recording costs with the county are based on the purchase price. So it may be slightly more for the closing on a higher points resale package. There are no separate closing costs with a developer purchase from Disney (where the purchase price is higher). Developer purchases of very small add-ons can cost similar to resales because of this, and they are processed more quickly and simply.

 

[disneyberry]

yeah, Jimbo, i don't get it either... i think they just charge extra and roll it into the "Settlement or Closing Fee".
my closing statement had standard $ amounts for the deed recording, title insurance, taxes etc. but i think the itemized charge listed as "Settlement or Closing Fee" is a different $ amount than other example closing statements i've seen posted on the boards.
they don't bother to break down the charges even further.
guess the closing agents have to make money somehow, and that's how they do it. heh.

anyway, sorry Kim&Chris that this is getting off-topic!

 

[Maistre Gracey]

A satisfied DVCer checking in here. Many pros and cons have already been pointed out.

One more pro- Just think......You can hang out here with us on the DVC Board!!! (that alone is worth about $10 per point)

 

[Kim&Chris]

Just a quick note of thanks to all of you who took the time to answer my questions!

We're very close to refinancing, which will give us the extra $$ for this, so I'm getting really excited!

 

[JOC]

Not to beat a dead horse, but maybe the closing cost depends on the company doing the closing? I bought a 150-point resale and my closing cost was $400; others who have purchased 150-point resales have had closing costs of $450+.

 

[Maistre Gracey]

Perhaps I misunderstood, but when JimC said-

Originally posted by JimC
I believe that closing costs for buyer generally run about $2 - $4 per point, with actual amount varying with size of contract.
Good luck!

I thought he meant the same amount of closing costs spread over a smaller contract would cost more dollars per point.

-Just a thought......