Thinking (Seriously!) about Buying a DVC Resale...

[CarolynFH]

Obviously, I am getting so many more stays for what is costing me, but in no way am I saving money anymore since my habits completely changed!

So how much would all these many more stays cost you without DVC? No savings on accommodations at all?

 

[Sandisw]

So how much would all these many more stays cost you without DVC? No savings on accommodations at all?

Of course saves tons! But before DVC I spent about $4k to $5k a year to go WDW with my family of 5. That was everything. Now my MFs alone are almost that so my yearly trips now cost me over $10k a year and I’m not always going with 5.

So since DVC, I spend double for vacation than before,

 

[cometdad2010]

The points retain their home resort status and only the VGF points could be used at 11 months to book VGF. One could use banking and borrowing with a smaller contract to have a longer length of stay but the SSR points could not be used for booking at VGF until the 7 month window even if they were transferred points.

Thanks for the explanation! I had it completely wrong.

 

[cometdad2010]

Hi all! First post. This comment caught my attention and I would love to hear feedback on it. I'm looking at DVC as a way to make Disney World (and possibly Disneyland) vacations more affordable, so I'm curious about the reasoning behind Bill's comment and if that is a general consensus from the DVC community or a Your Mileage May Vary kind of a thing.

Thanks for the great info!

I can answer this, and we haven’t bought DVC yet. But I think that because you have prepaid accommodations, you feel more obligated to use those points and, for example, take a weekend trip to use them up that you may not have otherwise taken. To us, that’s a huge advantage to DVC — the ability to visit WDW more often! Keep in mind, though, that if this isn’t an option for you, you can also rent out your points... so at least you get some value for them, rather than letting them expire. There’s also banking to consider, if you do it in time.

 

[jodistrock]

Thanks! Yeah, I’m a little bummed with the Jan 2019 restrictions on future resorts, but not enough to dissuade me from resale. I figure I could always get a small contract direct if it ever became that much of an issue. Also, with the refurbishments continuing at the classic 14, it’s not like they’re falling into disrepair — the dues make sure of that!

I think you have great advice in this post for you to make a decision. For us, it took 12 years to buy-in (and a granddaughter).
However, when those restrictions came through (Jan. 2019), I felt panicked that I needed to make a decision then. I was not going to be pushed into it though (I had never really looked at the loan info). We missed the cut-off by 13 days because once I got into seriously looking at resale, I wanted it even more. I have no regrets now!
Plus, you might be out some money if you turn around & sell (but not as much as $6000!), so it's a win-win I am sure!
Also, we always drive as we have family in FL as well as I like to be in better control of where I'm going & time.
Good luck to you!

 

[cometdad2010]

I think you have great advice in this post for you to make a decision. For us, it took 12 years to buy-in (and a granddaughter).
However, when those restrictions came through (Jan. 2019), I felt panicked that I needed to make a decision then. I was not going to be pushed into it though (I had never really looked at the loan info). We missed the cut-off by 13 days because once I got into seriously looking at resale, I wanted it even more. I have no regrets now!
Plus, you might be out some money if you turn around & sell (but not as much as $6000!), so it's a win-win I am sure!
Also, we always drive as we have family in FL as well as I like to be in better control of where I'm going & time.
Good luck to you!

You know, Jodistrock, that's an excellent point -- we're going to WDW in Oct 2021 regardless. Rather than throw away money renting points, we can take that money and buy DVC. If it doesn't work out or we run into trouble we can always sell down the road, assuming they hold their value. I know not to expect a quick sale, but it's nice knowing that option is available.

Thanks!

 

[_auroraborealis_]

You know, Jodistrock, that's an excellent point -- we're going to WDW in Oct 2021 regardless. Rather than throw away money renting points, we can take that money and buy DVC. If it doesn't work out or we run into trouble we can always sell down the road, assuming they hold their value. I know not to expect a quick sale, but it's nice knowing that option is available.

Thanks!

Renting something (anything) is rarely "throwing money away." Ownership is not for everyone. I rent boats, I don't want to own one. Property ownership isn't always a good choice for people due to mobility issues or etc. With a timeshare, intent to use repeatedly, and the ongoing expenses, are relevant.

Depending on the resort purchased and at what price, it's hard to say it holds value similar to historical trend. At direct pricing, any sale of any resort is going to take a bath at this point. Direct prices are bananas.

 

[jodistrock]

Renting something (anything) is rarely "throwing money away." Ownership is not for everyone. I rent boats, I don't want to own one. Property ownership isn't always a good choice for people due to mobility issues or etc. With a timeshare, intent to use repeatedly, and the ongoing expenses, are relevant.

Depending on the resort purchased and at what price, it's hard to say it holds value similar to historical trend. At direct pricing, any sale of any resort is going to take a bath at this point. Direct prices are bananas.

I feel differently. Of all the times I rented DVC points, I could have been paying for my own membership...

AND I am talking resale, as inferred in the details of the purchase [before January 19, 2019] restrictions.

 

[cometdad2010]

Not to bring up an old thread, but just for anyone interested...

We just put in an offer (and it was accepted) on the perfect DVC resale for us! I had been watching them for the past six months. Patience pays off.

We're incredibly excited and are still planning that October 2021 trip. With this contract, we'll be borrowing from the 2022 use year to get the number of points we'll need. I noticed with the COVID situtation that Disney has restricted borrowing from the future. I've read a few articles on this, but I wanted to get some thoughts here -- is that just a short-term change, or do you think it will be permanent? My concern is that since borrowing guidelines aren't contractually guaranteed, they'll keep it capped at 50% indefinitely.

 

[CarolynFH]

Not to bring up an old thread, but just for anyone interested...

We just put in an offer (and it was accepted) on the perfect DVC resale for us! I had been watching them for the past six months. Patience pays off.

We're incredibly excited and are still planning that October 2021 trip. With this contract, we'll be borrowing from the 2022 use year to get the number of points we'll need. I noticed with the COVID situtation that Disney has restricted borrowing from the future. I've read a few articles on this, but I wanted to get some thoughts here -- is that just a short-term change, or do you think it will be permanent? My concern is that since borrowing guidelines aren't contractually guaranteed, they'll keep it capped at 50% indefinitely.

I personally believe the borrowing cap is temporary, just to relieve the overload of points created by the special banking and "unborrowing" rules implemented in response to coronavirus, not to mention by the owners who have postponed trips from 2020 to 2021 and 2022. Banking and borrowing - which not all timeshare systems allow - are a major selling point for DVC sales and actively promoted for direct sales.

 

[_auroraborealis_]

Not to bring up an old thread, but just for anyone interested...

We just put in an offer (and it was accepted) on the perfect DVC resale for us! I had been watching them for the past six months. Patience pays off.

We're incredibly excited and are still planning that October 2021 trip. With this contract, we'll be borrowing from the 2022 use year to get the number of points we'll need. I noticed with the COVID situtation that Disney has restricted borrowing from the future. I've read a few articles on this, but I wanted to get some thoughts here -- is that just a short-term change, or do you think it will be permanent? My concern is that since borrowing guidelines aren't contractually guaranteed, they'll keep it capped at 50% indefinitely.

I suspect the "short term" is at least 2 years. I would not expect it to be lifted any time in 2020 for any stays within the 2021 calendar year at 11 months.

 

[CastAStone]

Not to bring up an old thread, but just for anyone interested...

We just put in an offer (and it was accepted) on the perfect DVC resale for us! I had been watching them for the past six months. Patience pays off.

We're incredibly excited and are still planning that October 2021 trip. With this contract, we'll be borrowing from the 2022 use year to get the number of points we'll need. I noticed with the COVID situtation that Disney has restricted borrowing from the future. I've read a few articles on this, but I wanted to get some thoughts here -- is that just a short-term change, or do you think it will be permanent? My concern is that since borrowing guidelines aren't contractually guaranteed, they'll keep it capped at 50% indefinitely.

It's an interesting solve when the problem is that there are too many points currently available to use and not enough rooms. It keeps people from making it substantially worse, but it doesn't actually do anything to make it better. Unless they do something else to alleviate the build up of points from the COVID (which continues to get worse, not better, as almost every room category at WDW has a ton of availability for the next few months), they will need to leave that borrowing restriction in place for years.

A banking restriction would be much more effective at clearing the point glut as it would ultimately force a ton of unused points to expire. It would also bring out the pitchforks. I'm interested to see if they choose to go that route.

 

[MommaBerd]

@CastAStone - I agree with you that limits on banking would probably be more effective...and more upsetting. But, it definitely makes the most sense. I’m sure a very large percentage of people are banking into next year, while a large portion of the villas sit empty right now. I am with previous posters that it will be at least two, if not three, years before everything normalizes in points usage.

 

[iflyjetzzz]

I suspect the "short term" is at least 2 years. I would not expect it to be lifted any time in 2020 for any stays within the 2021 calendar year at 11 months.

At least two years is a good guess. They may even need to impose additional restrictions in the short term in order to get rid of the borrowing limitation for the long term. I would think that DVC would want to get rid of the restriction as soon as reasonably possible.

 

[RoseGold]

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