Total Cost

[Josh125]

Hello all, first post on DIS!

My wife and I were as WDW this past Jan and went on the DVC SSR tour. We really think this (DVC) might be something for us, but to be honest SSR just wasn't. It was nice no question, however just didn't have a themed look like we would like at a WDW resort. I hope that makes sense. Now with the opening of AKV we are looking again.

I am trying to capture a total cost of ownership to see if we can do it, or rather not impact our lifestyle dramatically

I remember the cost for points alone was ~ 15K for 160 points, which should work fine for us. The maint. fees were ~ 4 PP, so 650 per year. It looks like there are now closing cost, so figure another 200 dollars.

What else are we missing? Property taxes? No clue on that. We are heading back down in Jan 08 and would like to potentially buy before then to stay at AKV during the trip....

Thanks!

 

[disneynutz]

Take some time and read the boards. Consider resales. You can click on the Timeshare Store banner above for more info.

 

[hellerjw]

Right now you can only buy AKV directly through Disney. That may change over time as some resales go on the market.

Assuming you will be going through Disney and they are still having the $8/pt discount at AKV then the per point cost is $96 ($104 - $8 incentive) with a minimum buy in of 160 pts.

If financing it they require a 10% down payment ($1664). With the down payment and $8/pt credit the financed amount would be $13696.

If you were financing it and got the "preferred" rate of 10.75% and financed for 10 years the monthly payment would be $186.73. If you chose to pay your annual dues monthly you would add another $61.58 to that (roughly $738.98/year at current $4.618/pt), for a total of $248.31/month. The annual dues include the property taxes so you wouldn't be paying for those separately. Figure about a 4%/year increase in the annual dues going forward.

The closing costs for a financed contract through Disney are $320 + change. It's around $210 for a cash purchase.

 

[Josh125]

Thanks, the plan was/is the put the balance on a rewards credit card. I have family in the banking who I would work with to get a pretty good rate, although anything is better than nearly 11% WOW

I read about incentives vs. builder points but I never saw a dollar figure for AKV. That helps.

disneynutz : I have been reading, just trying to pull it all together to get the bosses OK, the boss being the wife.

 

[hellerjw]

I think the 2 main reasons people stick with Disney for financing (vs. a rewards card, etc) are:

1) It doesn't show up on your credit report
2) It is setup like a mortgage, so there is some portion of the annual dues that can be deducted from your taxes each year, in most cases.

I assume you could pay for it with a home equity line and still get the tax benefits but have never checked to be sure. The "tax deductible feature" goes away when you put it on a credit card or other financing.

 

[Anthony1971]

You can deduct the interest as this is considered a vacation home -second home- assuming you do not have one already also the property taxes are deductable as well you will get a statement at the end of the year... This does assume you take an itemized deduction and are not paying AMT. That said you may or may not do better if you get a Home equity loan this is for the most part tax deductable if it is a different loan it would need to be lower than the 30% of the interest you will get back on your taxes each year from the Disney loan.

 

[DVC Grammy]

If you and your "boss" decide that AKV is for you, speaking with a guide will give you the info you want regarding developer points vs. discount being offered. If the one you speak with isn't helpful, ask for another.

If you're considering another DVC home, then you have the choice to buy through Disney or through a re-seller. Keep asking questions, whether on these boards or of a guide until you get all the answers you need.

All of us DVCers were once at the beginning, just like you, but some of us weren't as smart/lucky as you to know about the Disboards!

 

[disneynutz]

Thanks, the plan was/is the put the balance on a rewards credit card. I have family in the banking who I would work with to get a pretty good rate, although anything is better than nearly 11% WOW

I read about incentives vs. builder points but I never saw a dollar figure for AKV. That helps.

disneynutz : I have been reading, just trying to pull it all together to get the bosses OK, the boss being the wife.

I would consider other resorts in addition to AKV. We bought resale at BCV then added on AKV. Buying resale can save you some money and gets you established as a member. After that you can buy other resorts below the 160 min points. I also suggest that you maybe rent points for your next couple of trips. It gives you a chance to get a feel for the resorts before you throw down your hard earned money. If your boss is like mine, now we go to WDW twice per year.

 

[SuzanneSLO]

I would consider other resorts in addition to AKV. We bought resale at BCV then added on AKV. Buying resale can save you some money and gets you established as a member.

Disney also directly sells the other resorts such as BCV, BWV, BWL and OKW. Although a new member must buy at least 160 points, you should compare the price thru Disney with the price of any resale you might consider. Unlike most timeshares, buying DVC from the developer does not automatically guarantee that you will be overpaying.

We bought BWV 2 years ago direct from Disney. My DH has recovered from all the injuries caused by all the arm twisting and now agrees it is one of the best things we ever did.

Best of luck -- Suzanne