Trying SO hard to wait on Resale

[Raven01]

I’m expecting to be able to pay cash for my DVC in early 2020, at least 50% of it if not more. I want a contract with banked points to rent to off set the price, and that would get me to 75% of the purchase price.

I also see the signs of the market slowing down, and I want to see how that plays out in the coming months.

But I see AKV contracts for 160-200 points that work well for me, and I’m dying to make an offer.

Someone please tell me I’m not crazy to wait! Part of the problem is this is my “happy place” in a very stressful time, but financially I know I should wait.

 

[DaveNan]

There are differing opinions on this. Do whatever you feel comfortable with. At 10% interest, for every 1000 extra you borrow, you are paying 100 interest over the next year. So if you carried to principal for 6 months, you would be paying $50 per 1000, or 5% of the loan amount. I would think about it like you were paying 5% extra for the points. So instead of $100 per point, if you had the loan for 6 months, you would have paid $105 per point. Given you are seeing prices drop, you just have to decide if the "happy place" now is worth that price. Going in with eyes open and understanding the costs, you decide what is best for you based on the cost/risk/reward.

Good luck.

 

[CraigInPA]

It is difficult to wait once you have made a decision to buy something. The only reason you might consider abandoning your plan is if you feel the price of those resale contracts will rise by the time you have the money to buy in early 2020 to the point that it would erase the cost of six months of financing for the funds you haven't saved yet.

 

[tnicks]

Unfortunately, I would say you already know the answer to what you should do. While Disney may be your happy place in time of stress, how effective will it be if it puts you into financial distress? For me, DVC is about trying to make visiting Disney more economical. If the numbers break down in comparison to booking packages or other deals, then it wasn't a good choice in my mind.

 

[ELMC]

It would be a shame if you rushed into this and the stress of this transaction did anything to ruin the fact that WDW is your "happy place". The downside of holding off is much less than the downside of rushing in. Good luck with your decision!

 

[foreUT]

IMO, waiting is the best scenario. The number of AKV contracts will always be significant bc it is such a large resort. Your plan to have the majority of the initial cost paid via your savings and rental of points sounds like an excellent plan. Best of luck, whatever your choice.

 

[Doberge]

I'd look now and make offers on what you feel are good deals below market. If you are accepted and it's taken ROFR, you can try again and still be ahead of timeline. If offee is accepted and below market you could end up "ahead" of where you'd be if waiting till spring and paying market rate.

 

[anomamatt]

Unless you have a very expensive trip that you'll replace with DVC usage in the interim, everything you wrote points to waiting. So you should wait.

 

[Raven01]

All signs point to waiting, at least until the first of the year. But I have already made my decision, so it kills me every time I see a good contract pass by.

Adulting is hard, folks.

 

[eMoneyBug]

I like what Doberge said...follow all the DVC relisting sights, get on their email/text lists for new listings and make a few really low market offer of where you think the price is at. Maybe your dream contract and price per point will get accepted AND make it past ROFR. I've seen some say look into the Disney CC for 6months interest free and you get points. Me personally, I looked into lightstream for 3 year 6% financing, I believe in "cash is king" as well.

 

[Sandisw]

I think it is a personal preference and one must way the pros/cons of waiting. When I bought in 2009, we were going yearly as a family of 5. That wasn't going to change anytime soon. So, I looked into what it would cost to buy into DVC, including financing, and compared it to what it might cost me to still go on those yearly vacations (since we had been doing that since 1994...so 15 straight years).

While many think cash is the only way to go, my feeling was that any DVC costs, including monthly payments and MFs would be part of the vacation fund and if what I was spending to own was no more than what I would spend in cash for yearly vacations, then it wasn't costing me in the long run (not necessarily the way some look at it).

When it came down to it, we started small, used our Disney Visa to pay and got 6 months with no interest for buying direct...ended up not needing to finance with this option. But, had we had to, I had decided it was well worth it.

Within a few years, of course we added on and went more often, so my budget went up!! But for the first few years, we felt it was worth and were glad we didn't want until.

Good luck!!

 

[EYL]

One of the benefits of waiting is that you can see if next year's point charts are the same. If they increase, you can look for a larger contract, if needed. The disadvantage is, who the heck knows what additional restrictions DVC will implement next that you won't be grandfathered in...

 

[Raven01]

I’m really not opposed to financing - if I was, I’d never own anything! But I’m looking at 160-200 point AKV contract, and those seem pretty common. So I am have not a hard time justifying financing now the whole price when I don’t have to.

 

[Sandisw]

I’m really not opposed to financing - if I was, I’d never own anything! But I’m looking at 160-200 point AKV contract, and those seem pretty common. So I am have not a hard time justifying financing now the whole price when I don’t have to.

Well, I can tell you that I was considering adding on an AKV contract last March. At the time, most were running around $100 - $110 in terms of the listings. I was looking around the 100 to 150 ish range for points. In 6 months, they have gone up from there in terms of asking prices. So, by next year, who knows the increase so take that into consideration as well!

 

[MBTigger]

Kind of in the same situation here. We are returning to WDW for the first time in about 9 years and staying on a DVC property for the first time. We want to visit more often, and things are changing in our household that may make WDW trips more frequent. To this end there is discussion of buying into DVC if we come back from our trip planning the next, or planning a visit to Aulani (Considering we live on the west coast of the USA, this is a distinct possibility).

In the meantime I am educating myself on DVC. Direct vs Resale, appropriate costs, etc. This has me looking at listings, what contracts pass ROFR, etc. It is so hard to do all this research for a product and NOT buy! but I want to be ready, and know what to look for if I decide to buy.

 

[Raven01]

I'm months into the research phase - but I could not pull the trigger without paying off consumer debt. I've had a good work year and the debt is getting paid, but then I need to build the savings back up.

Like I said, adulting is hard!!

I swore I would never want to visit Disney more than every other year, but I have a DD2 who loved our last trip, so I want to make it our annual family vacation. I realized that if we did a week at the beach, I would pay a ton of money for a beach hotel, plus activities, and likely have a bored child. WDW is far enough away to call it a vacation, close enough to travel regularly, and there is so much to do there (unlike in the 80s when I first went as a child) that going every year makes sense. Plus, we never have time for pools, shopping, and just relaxing, so I'm excited about that. I've rented Boardwalk points for 2020 from an awesome DISer who is booking at the 11 month mark, so I'm trying to get my points for a 2021 trip (and beyond).

I posted on another thread about financing versus going in with family, and I think I'm going to do it on my own. My parents and I are close, but I have a brother who likes Disney as well, and buying them on my own gives me my vacations with no family drama. Because it's my timeshare and I don't have to share if I don't want to LOL!

 

[emilymad]

No real advice, just sympathy. We want to add on to our existing contract. We just bought a new house so it is going to have to wait for at least a year before I can justify adding on. Who knows if prices will go up or down by then.

Over our last 8 years of being DVC members we debated about adding on. We had decided not to during this period and we just pay for cash visits when we are short points. Maybe not the best for the short term financials but it has worked for us. Owning DVC is a liability and not an asset so we have been cautious especially in terms of the DVC latest changes.