Very interested in buying DVC, but I have questions

[disneydenisel]

Hi everyone,

I've been reading the DVC boards for awhile and trying to learn all about DVC. We rented points this year at BCV and were just there over Thanksgiving. We had a GREAT time, and my DD6 wants to go back again, "soon," she says. This was our first trip there with the kids, DD6 and DS3. I'm thinking about going once a year or once every other year for about, let's say, 10 years. How do I figure out whether it is better to buy or rent? Is there a calculator out there that can help me figure it out? In 10 years, will my resale price go down or up? I'm trying to decide if we will lose money, break even, or make a few dollars.

Our villa needs would be:

minimum 2 bedroom, non-smoking
usually during school breaks, like Presidents' week, Spring Break, Thanksgiving, or Christmas
close to parks and walking distance in some cases, like BCV, BWV or VWL

I assume that I will need to buy points at the resort I am most likely to want, given that I will probably need to book at 11 months out to get a holiday week. How hard IS it to get holiday weeks if you book 11 months out?

What are the rules about buying resale? Try and buy one with banked points? What is the strategy about which use months are good to buy? Any? Would I be better off renting points for 10 years, or will that cost me more than buying, paying maintenance fees, and then selling in 10 years? Is there any advantage to buying at SSR?

I hope I am not asking too many questions. We already own a timeshare on Maui and simple love it. Maybe now it's time to think about Disney!

Thanks for any help!

 

[crisi]

It shouldn't be too hard eleven months out to get a two bedroom during holiday weeks. Grand Villas (3 bedrooms) are only available at BWVs (for the resorts you mentioned) and are very expensive point wise. Those you'll want to book day by day.

You have the resale strategy right. Try and find something with banked points. And buy where you want to stay.

The only catch is that DVC currently does NOT guarentee non-smoking. If that is going to be a deal breaker for you, you risk being very unhappy. There have been a few cases in the past several months where DISers have not gotten medically necessary non-smoking requests filled. The risk is pretty small (we are 50/50 on our non-smoking request, but lots of people have had much better luck), but it is there.

Edited to add:

When we bought five years ago, break even was six years (or, since we are bi-annual like you - it was actually six trips - twelve years). But we bought our points at $63. And we could sell them today for $85. Ten years from now, no guarentee on where the resale market will be - we could hit the downhill by then. And with only five trips planned between now and the time you want to sell and a purchase price of $85, I think you are looking at needing to break even on reselling your contract. I'd guess you would, but I wouldn't guarentee it.

 

[Happy Birthday Cat]

You have the resale strategy right. Try and find something with banked points. And buy where you want to stay.

I agree if you can do it but the fact is that at a couple of the resorts, the pickings are very slim and the prices are high. It might be best to get a contract if it is available at the right price (one that will pass ROFR and get you a good price). At other resorts where the number of contracts for sale are numerous, I would be more inclined to look for something with banked points.

HBC

 

[disneydenisel]

Thanks for the advice. I guess I will do some math and call up a reseller and see what is available. Maybe renting is easier, maybe not. We might go to Disneyland in the years that we don't go to WDW. I'm wondering if we're better off renting there too, so I have to figure that out. Such a lot of things to consider. I wish I had a lot of money, then it wouldn't matter!

 

[doubletrouble_vb]

You might want to do a little more skimming through this part of the board before making your decision. Use the search feature. There are people out there who feel that purchasing doesn't make sense right now with rentals so low. What with your thinking every other year and having a timeshare in Maui...maybe renting is a better option for you.

IMHO factoring resale value on a timeshare purchase is a bad idea because it assumes the purchase has investment value when in fact timeshares are much more vulnerable to being de-valued than other types of property. Calculating break-even versus your most probable accomodations is a better one. If you think you will rent most of the time then make a guess on rental costs. If you think you would rent from Disney...use those costs to figure break even.

Holidays are probably easier to get than you think because Disney has rigged the point system so that it hurts the most to use them during school holiday seasons. And speaking of points if you are going every other year (give or take) you don't need to buy the exact number of points to get a two bedroom..somewhere between 1/2 and 2/3rds will work just fine.

Buying where you want to stay only matters if you are sure you will consistently book more than 7 months in advance. And it also matters with respect to purchasing at Hilton Head and Vero Beach since of all the properties those are the ones most likely to be spun off.

 

[dcal]

We just went through the same mental gymnastics. How many points? When to go?

The times you mention are the most point consuming times. Christmas is Premier...BWV is 462 PTS for the week or if you can get a standard (maybe) for 426 PTS. President's Day and Spring Break for the kids is usually Magic requiring 350 and 306 to obtain a 2BR villa. I'm going the weekend of Palm Sunday plus Monday, Tuesday...that's five days fro 228 PTS. The points add up fast!

If you go just Sunday -Thursday Premier or Magic it's much less. The weekend days (fri-Sat) are either 75 or 106 PTS each day. There's a catch. If you fly there it tends to be more $$ if you do not stay over Fri/Sat.

My question would be...How many days do you plan to spend on each vacation and how many vacations will you plan per year? Yep, if you buy resale, you may be able to purchase a property with residual points. Keep in mind that the resales other than SSR have 12 years less usage. SSR also has a significant 15% discount until January. DVC will also back date your use month giving you residual points too. In my case it was nearly 5K in savings plus 290 points banked. For that much coin, I'll take my chances at the 7 mos window or stay at SSR Let's face it, all the DVC properties are excellent and many members are able to switch to WLV or Boardwalk during holidays.

My advice is to work out the times when you can and will get away, then buy enough points to do so. Don't overlook SSR and the incredible bargain 'cause you are focused on one or two resorts.

Good Luck

 

[byoung]

If you can afford it, you will not be disappointed.

 

[bcvillastwo]

I'm basing my remarks on my understanding of the thrust of the OP's question which seems to me, goes something like this, "Is it cost effective for us to buy into DVC if we plan to go once a year or every other year for the next 10 years during one of the holiday weeks?"

To answer this question the OP needs to calculate how much they expect to spend if they don't become members (room cost plus tax for each trip plus a conservative estimate of inflation over the 10 year period). Then, figure the cost of buying into DVC (room cost, annual dues cost, including a reasonable estimate dues increases over 10 years). Next, back out a reasonable estimate of your DVC sales price when you sell it after 10 years. This will give the OP the bottom line DVC cost. Then, subtract the rental cost from the DVC cost and the anwer will be pretty clear.

My quess is that buying into into DVC and selling after 10 years will prove to be a better deal financially than renting over that same period of time.

 

[InstImpres]

Also, if you are looking for a Sold Out resort, you might have/want to settle for the "not ideal" contract (not enough points). If it works for you to get by for a little bit, once you are an owner you can waitlist for points on SO resorts through DVC. Wait times vary but can be short.

 

[disneydenisel]

My question would be...How many days do you plan to spend on each vacation and how many vacations will you plan per year? Yep, if you buy resale, you may be able to purchase a property with residual points. Keep in mind that the resales other than SSR have 12 years less usage. SSR also has a significant 15% discount until January. DVC will also back date your use month giving you residual points too. In my case it was nearly 5K in savings plus 290 points banked. For that much coin, I'll take my chances at the 7 mos window or stay at SSR Let's face it, all the DVC properties are excellent and many members are able to switch to WLV or Boardwalk during holidays.

My advice is to work out the times when you can and will get away, then buy enough points to do so. Don't overlook SSR and the incredible bargain 'cause you are focused on one or two resorts.

Good Luck

Good questions. We spent 6 nights this Thanksgiving week, and it didn't seem long enough. I would guess that we would spend at least 7 nights, more if we went over the Christmas break. However, since most of our holiday weeks are only 7 nights, then I guess I should plan on 7 nights. We would probably go to Florida every other year, just because of the long flight. We would probably go to Disneyland during the other years that we don't go to WDW.

Someone was telling me to buy, say, 150 points and then borrow 150 from the year that we aren't planning to go. Does it cost to borrow them or bank them? I know that if we needed any additional points, I could probably find someone to rent/transfer some to me.

What are the current SSR prices and incentives?

 

[JimMIA]

Someone was telling me to buy, say, 150 points and then borrow 150 from the year that we aren't planning to go. Does it cost to borrow them or bank them?

No, there is no charge for either banking or borrowing. There are "certain provisos..." etc. with both, and you need to understand them, but no fee.

I know that if we needed any additional points, I could probably find someone to rent/transfer some to me.

Yep. Shouldn't be difficult at all.

 

[Sarahsal]

IMHO factoring resale value on a timeshare purchase is a bad idea because it assumes the purchase has investment value when in fact timeshares are much more vulnerable to being de-valued than other types of property.

When we purchased, we thought of it the same way you would if you bought an expensive car (although we never buy fancy cars.) We could afford it, we would really enjoy it, and when we are done with it, it may be worth nothing, and we're ok with that.