Thinking of purchasing a DVC

[princess_disneymom]

I think I might have my husband talked into purchasing a DVC.
I have a few questions
1. What is the difference of purchasing from Disney or a ReSale?
2. What perks do you get when you purchase a DVC (discount on AP's ect)?
3. Are the annual fees really $1200-$1500 a year for the length of your contract (if your contract is up in 2057 you would pay $60K-$75K in annual/maintenance fees)?

Thanks!!

 

[hsteacher]

We are in the process of purchasing a resale through TTS so I'm not an expert on this but here is what went into our thinking to finally purchase DVC:

We needed to have a tax deduction so using home equity was a factor. With the possible current tax hikes for us, we needed to use some equity and get the write off. We go to Disney every year or DCL every other year so we really should have done this years ago -- it would have paid for itself but we were young and stupid. Silly us!

The yearly maintenance fees are what you would pay almost anywhere you "owned". Though a little more expensive, part of them (possibly 22%) are tax deductible as they go towards property taxes. We had looked into purchasing a "lake house" in Wisconsin but the maintenance fees in the community along with me having to keep it up were just not what we wanted. A lakehouse isn't a vacation to me -- just my opinion. I like to vacation and I like Disney, even if I don't go to the parks so that's a factor.

Perks -- not sure on all of them. I know there's a discount on the Annual Passes, restaurants, etc. Free valet if I remember. To us, the biggest perk is being in the deluxe resorts with a kitchen. My kids have food issues and the full kitchen is valuable to us. I like the 1 and 2 bedroom options.

A timeshare of any kind is a "paying it forward" for vacation. We vacation and like to vacation at Disney -- so that made our decision. We're spending the money anyway so it gave us a tax write off with the equity loan. We could have paid cash outright but the write off of using the home equity was important to us.

I regret not doing this years ago as we always end up at Disney. Didn't realize that 20 years ago when we began the family but boy -- we would have save $$$ doing it back then. It all depends on what your vacation habits and personal choices are.

Hope that helps.

 

[hellerjw]

What is the difference of purchasing from Disney or a ReSale?

Purchasing direct through Disney lets you take advantage of whatever incentives they are offering at the moment. You also get into the system almost immediately and can usually start making reservations within 24 hours of making a deposit. You also can take advantage of Disney's financing which offers a competitive interest rate for a personal loan and is usually deductible as mortgage interest (like on a 2nd home) for most folks. Disney actively pushes its newer resorts but you can always buy-in at the "sold out" resorts by going on a waitlist. The closing costs through Disney are around $350.

With resale you can buy in for fewer points (Disney requires a minimum buy-in of 160pts at the moment). It is also usually easier to buy in at the sold out resorts through resale. The cost per point is usually much cheaper, but you will need to compare its total cost vs a comparable direct buy through Disney to be sure. The process takes much longer (6-10 weeks) as Disney has the right to review each resale and decide if it wants to buy it before they allow you to buy it. You also have to find your own financing if you need it. The closing costs vary. You also have to be concerned about whether the resale contract is "stripped" (without any available points for the current year or possibly the upcoming year - in other words those points have already been used by the seller and you may not have any points to use for a year or two)

What perks do you get when you purchase a DVC (discount on AP's ect)?

Dining discounts at numerous places, $100-125 discounts on APs & PAPs, some shopping discounts, etc. All the perks can change at any time but the AP/PAP discount is probably one of the most significant.

Are the annual fees really $1200-$1500 a year for the length of your contract (if your contract is up in 2057 you would pay $60K-$75K in annual/maintenance fees)?

The annual dues vary by resort and are calculated based on the number of points you own on your contracts. Right now they average around $5/point so if you had a 200 point contract your yearly dues would run around $1000. They also go up approximately 4% a year so they will increase over time. However, this is in line with or even less than the yearly increases in the cash/rack rates. The annual dues over the life of your contract (assuming you carry it until expiration) will far exceed your initial buy-in costs. However, once your initial buy-in costs are paid you are getting deluxe accomodations for much less than comparable cash rates. For example, you can get a 1BR unit for a week most times of the year with those 200 points. The cash rate for that same unit would run around $500/night. DVC cost - $1000 in annual dues vs. cash stay cost - $3500. Assuming the cash rate never increases (and we all know it does) those same weekly stays in a 1BR over 50 years paying cash would cost you $175,000! A big difference over the $60-75,000 in lifetime dues.

 

[Lynne M]

1. Resales are generally cheaper than buying through Disney, but you need to provide your own financing. If you want to purchase a small contract (less than Disney's required minimum), you'll need to go through resale.

2. The current perks include a $100 discount on APs, and some small discounts at a handful of restaurants, tours, golf, etc. None of the perks are guaranteed in the contract, and they change frequently, so don't consider perks when making your purchase decision.

3. The maintenance fees depend on how many points you buy. They're calculated on a per-point basis, I think most are in the $4-5 a point range now. They generally go up every year, but are capped at no more than a 15% increase per year.

 

[gray52]

Having just closed on our first DVC (100pts at OKW), my biggest suggestion would be to buy resale for a smaller contract.
1. There is no difference weather you buy through Disney or resale. The day you close, you're the same and equals.
2. Resale is much cheaper to buy, in both cost per point and minimum points to buy. You won't get to buy in at a brand new resort BLT. However, once you are a DVC'er you can do add-ons at any new resort.
3. If you buy a smaller point contract, you can see if DVC is for you. If it is, just simply buy "add-ons" for more points. If it's not for you, you can sell your contract on the resale market. It is MUCH easier to sell a contract with less points. Just look at the listings at The Timeshare Store. 25 -50 point contracts sell much faster than 160pts and up.

Just my opinion.

 

[tamclan]

Some resorts are sold you and therefore DVC doesn't have any points to sell to you. The DVC guides will steer towards their current inventory. Sometimes they can get you sold out resorts but they may not be able to and you go on a waitlists.

 

[PrincessSuzanne]

I am currently in the same position, I am trying to decide if DVC is for us. I believe it is. We have been going to WDW 3 times a year and I have spent alot more than the $1000-$1500 on accommodations this year alone. For our December trip alone, I have spent almost $5,000 for 7 people (1 under 3).

The discount on AP's is a big incentive for me, because we are almost at the end of our first year of being AP members and we love the freedom it gives us.

I believe DVC will give me even more freedom.

Suzanne

 

[5forDiz]

Some resorts are sold you and therefore DVC doesn't have any points to sell to you. The DVC guides will steer towards their current inventory. Sometimes they can get you sold out resorts but they may not be able to and you go on a waitlists.

Not sometimes, Disney can always get you points at 'sold out' resorts and if one of those resorts is where you want to purchase you need to firmly convey to your guide that one of the earlier DVC resorts is where you have made your decision to buy. There may be a short wait for the points at earlier DVC's(usually no more than couple weeks) but you often can find those resorts on the resale market at better price than through Disney. And DVC members can purchase add-on contract(s) through Disney at any DVC resort too,again there may be bit of a wait.

 

[Lynne M]

The discount on AP's is a big incentive for me, because we are almost at the end of our first year of being AP members and we love the freedom it gives us.

Just to emphasize, that AP discount could go away the day after you purchase. None of the perks are specified in the contract, and anything that's not in the contract is subject to change. We've only had the AP discount for a few years, and I have no reason to believe it will go away soon, but it's Disney's call. If they want to change the amount of the discount, or take it away altogether, they can.

 

[jimmacmn]

The perks that DW and I use the most are the AP and the Golf Membership. The last golf membership we purchased probably saved us and our guests somewhere in the neighborhood of $2,000. We got 32 rounds in several trips off of that membership. Truly a great perk for the golfers. I'll buy a new membership in Feb '09 and will use it for 16 rounds on that trip and probably again for a trip sometime in the October-December time frame.

 

[Coach81]

I think I might have my husband talked into purchasing a DVC.
I have a few questions
1. What is the difference of purchasing from Disney or a ReSale?

Resale- might save a little money, but the wait will be a killer (we bought resale btw)
Disney- Happens almost immediately, cost a bit more.
2. What perks do you get when you purchase a DVC (discount on AP's ect)?

APs, Discounts on certain stores, etc..
3. Are the annual fees really $1200-$1500 a year for the length of your contract (if your contract is up in 2057 you would pay $60K-$75K in annual/maintenance fees)?

Our annual fees are about $400 per year (SSR).

Thanks!!

Good luck with your decision!

 

[PrincessSuzanne]

Just to emphasize, that AP discount could go away the day after you purchase. None of the perks are specified in the contract, and anything that's not in the contract is subject to change. We've only had the AP discount for a few years, and I have no reason to believe it will go away soon, but it's Disney's call. If they want to change the amount of the discount, or take it away altogether, they can.

I'm willing to take my chances. I can get a small discount at the AAA office in our area if they do away with this one, if we buy in.

Suzanne