Wanted to make sure I Have this right

[Tiggerfaninaz]

Hey Guys!

Loving this place. Been a lurker so far for the most part cause I'm finding my way around and such. I had started a post about a trip I'd hoped to make in 09. Due to financial fun, it might have gotten pushed to 2010. I was planning to tour DVC at that point and ask questions then. I just had one basic question now and if I need to call the number, I'm happy to but I just wanted to make sure I understand how it works.

I get a contract for x (for my calculations Im going to say 150 since I read that's the current buy in at the new Contemp. DVC.) points. Say it's good until 2060 (again using round numbers for calculation sake.) Every year until then, I have x number of points to use and in addition to paying off the cost of the DVC I only have to pay Xper point for maintnance yearly? I had looked on the resale board and didn't realize until just now that the costs for buying in are probably significantly higher new, but say new is 30K. If I pay that off in 3-5 years or whatever, is it true that until the share period is up, the only fees I have to pay are the maint?

Thanks!
Karen

 

[PrincessNewsie]

Hey Guys!
I get a contract for x (for my calculations Im going to say 150 since I read that's the current buy in at the new Contemp. DVC.) points. Say it's good until 2060 (again using round numbers for calculation sake.) Every year until then, I have x number of points to use and in addition to paying off the cost of the DVC I only have to pay Xper point for maintnance yearly? I had looked on the resale board and didn't realize until just now that the costs for buying in are probably significantly higher new, but say new is 30K. If I pay that off in 3-5 years or whatever, is it true that until the share period is up, the only fees I have to pay are the maint?

Thanks!
Karen

The minimum buy in currently is 160 points. That is going to go up to 200 points sometime in January for a new buyer. It's good until January of 2060 only if you purchase at BLT. To buy from Disney, it costs 112 dollars less a 5 dollar promotion per point. this is 17,120 dollars. Maintenance fees don't start until the resorts open this september of 2009, and that will be about 3.67 a point. If you pay off the cost to buy in + closing costs (about 320 dollars) the only fees you pay for the next 50 years are maintenance fees.

Everyone around here will tell you, buy where you want to stay... If you love bay lake towers, buy there. If you love some of the other resorts, take a look at resales. Also, buying into DVC makes more sense for those who are already going (or planning trips) for a MINIMUM of every other year and going to use their points at DVC properties.

Everyone around here has a wealth of more information than I can share with you, but welcome to the boards and I hope you find what you're looking for!

 

[RobDoc]

...

I get a contract for x (for my calculations Im going to say 150 since I read that's the current buy in at the new Contemp. DVC.) points. Say it's good until 2060 (again using round numbers for calculation sake.) Every year until then, I have x number of points to use and in addition to paying off the cost of the DVC I only have to pay Xper point for maintnance yearly? I had looked on the resale board and didn't realize until just now that the costs for buying in are probably significantly higher new, but say new is 30K. If I pay that off in 3-5 years or whatever, is it true that until the share period is up, the only fees I have to pay are the maint?

Thanks!
Karen

You are correct. The number of points you purchase will be renewed each year until the contract expires. For BLT that expiration date is January 31, 2060. After the initial purchase price, the only other fees for DVC will be the annual maintenance fees. Those are different for each resort (BLT will be $3.67 per point for 2009) and they typically increase 3-5% per year. These fees will cover the operating expenses and taxes for the resort.

Admission tickets, food and transportation are not included in DVC fees.

On January 15, 2009 the purchase price for AKV (and only AKV) will increase to the same level as BLT ($112 per point). For new purchases, the minimum number of points will still be 160 points and BLT is offering a $5 incentive discount lowering the purchase cost to $107 per point. There is an $8 per point incentive for AKV purchases. For existing members purchasing an add-on at BLT, the minimum purchase will be 100 points (BLT only) and will still be a 25 point minimum at the other resorts including AKV.

If you have any other questions, please ask!

 

[Tiggerfaninaz]

Ty everyone for the answers. I'm a bit shocked and confused at the same time. I mean I understand the responses, I guess I just don't see how Disney makes money on these deals. I assumed the resale prices I saw were less than buying new which is why I elevated the price in my scenario. Granted, I'm single right now, so I'm just figuring costs for myself, but I wouldn't buy unless I could pay a good chunk off within a few years. After that, the fees will be less than $1000 a year. If I went to Disney and stayed somewhere comperable to BLT, I'd easily pay 1500-2000 for the week. Granted, that doesn't include food and souv. but this just seems too good to be true. I'm not meaning to sound skeptical, I am happy just thinking I'm missing something. I wish I didn't have to wait until I buy my home in June but I'm sure something will still be available then.

Karen

 

[lockedoutlogic]

Ty everyone for the answers. I'm a bit shocked and confused at the same time. I mean I understand the responses, I guess I just don't see how Disney makes money on these deals. I assumed the resale prices I saw were less than buying new which is why I elevated the price in my scenario. Granted, I'm single right now, so I'm just figuring costs for myself, but I wouldn't buy unless I could pay a good chunk off within a few years. After that, the fees will be less than $1000 a year. If I went to Disney and stayed somewhere comperable to BLT, I'd easily pay 1500-2000 for the week. Granted, that doesn't include food and souv. but this just seems too good to be true. I'm not meaning to sound skeptical, I am happy just thinking I'm missing something. I wish I didn't have to wait until I buy my home in June but I'm sure something will still be available then.

Karen

you've got it right....there are no other strings attached.

as far as Disney making money on the deal: it's easy

MERCHANDISING!!!!!

by selling units to customers....who will receive a bigger return on their investments as time goes on due to inflation and avoiding the rise in room rates.....disney makes a deal with you:

you keep coming as much as you want.....but you'll also keep buying, eating, and paying gate charges when you do come.

WDW is the Walt Disney Company's largest money generating individual unit......and they make probably about 80% of their profit on merchandise....

It's ridiculously cheap to make and import....it's marked way up....and it practically sells itself.

that's why you get a 'deal' on DVC....they know full well that your spending doesn't even begin to end there

 

[crisi]

It also doesn't include tickets - its room only. And its a timeshare room - you won't get daily maid service or new towels each day.

As to how Disney makes money - Time Value of Money - you are giving them money TODAY for vacations in the future. They get their physical plant paid for by the owners, get a committed guest to WDW - in down times like the ones we are entering, its DVC members and their "paid for" vacations that are going to keep the lights on in the parks, - and pay for maintenance off your dues.

However, for regular Disney guests, its still a great deal.

 

[Tiggerfaninaz]

That makes sense, thanks! I know no one can predict the future, but I'm just curious about one more thing. As I think I mentioned earlier, I have to wait until I buy my house to take any trips or to buy DVC and I can't buy my house before June 2009 due to finances and my lease. Looking at the resale, I'm sure there will be something at either Boardwalk, BCV or BLT, but can anyone tell me, do the options (or contracts, whatever the correct term is) ever sell out from DVC? If they have incentives going, I obviously want to buy from them directly but I'm worried since BLT is slated to open in Sept 09 (from what I believe I read somewhere else) that it'll be all sold out by the time I get there late 09 or sometime in 2010. Maybe I'm being overly optimistic with the economy though. I read somewhere that they sold out the first 1000 but again I have no idea how many shares they have in each property. I could wait and do the buy in in Hawaii when they start that, but I know I can get to FL easier than HI.

I should just relax and wait to see what happens in Sept, but what's the fun in that?

 

[dianeschlicht]

That makes sense, thanks! I know no one can predict the future, but I'm just curious about one more thing. As I think I mentioned earlier, I have to wait until I buy my house to take any trips or to buy DVC and I can't buy my house before June 2009 due to finances and my lease. Looking at the resale, I'm sure there will be something at either Boardwalk, BCV or BLT, but can anyone tell me, do the options (or contracts, whatever the correct term is) ever sell out from DVC? If they have incentives going, I obviously want to buy from them directly but I'm worried since BLT is slated to open in Sept 09 (from what I believe I read somewhere else) that it'll be all sold out by the time I get there late 09 or sometime in 2010. Maybe I'm being overly optimistic with the economy though. I read somewhere that they sold out the first 1000 but again I have no idea how many shares they have in each property. I could wait and do the buy in in Hawaii when they start that, but I know I can get to FL easier than HI.

I should just relax and wait to see what happens in Sept, but what's the fun in that?

With the current economy, I doubt you will have to worry about BLT not being around for sale in September. I'm sure it will take at least a year to sell out.

 

[Coach81]

Yes! Someday we'll pay ours off, but we are in no real hurry.

 

[disneykidatheart]

Keep in mind the maintenance fees don't stay the same. The fees increase around 3-5% per year.

 

[lockedoutlogic]

Yes! Someday we'll pay ours off, but we are in no real hurry.

you should be.....you're losing some of the value of the membership by letting the bill hang in space

 

[wdwnut]

Tiggerfaninaz: I bought my first contract with DVC sight unseen for BWV. You may not have to go to WDW if DVC is registered for business/sales in your state. Just another thought for you.

 

[Tiggerfaninaz]

Thanks again! Loving all this info. I don't think I mentioned in my last post, but the maid service doesn't matter to me. I don't clean daily at home so why would I need it on vacation? I don't mind working around any of that either.

I didn't realize if DVC was licensed in my state I could buy sight unseen. In this case, I may actually do that since I'm not tied to staying at the home resort, I just can't rent at others until 7 months out. Since I'll be going alone most of the time and am currently self employed, I'd think that doesn't matter all that much to me. I also remember reading in other people's TRs that they have gotten res a few months out (based on availibility.) Maybe I'll be able to buy next Aug/Sept then and go the following year. Something to think about at any rate.

The fees going up is a concern of course, but it's still going to be a fantastic deal. I just wish I could speed up time but I keep reminding myself not to wish my life away. Thanks so much for everyone being so nice and helpful!

 

[pumpkinboy]

If you do buy directly from DVC, make sure you use a current owner as your referral, since a referral bonus gets paid in many states, usually to the tune of ~$200 (for the first). Historically, I have sent the $200 to folks I have referred. Also, they new buyer sometimes gets an additional discount for being referred by a current DVC member.

Of course, buying DVC new is probably not the best deal you will get on anything but BLT or maybe AKV. If you want one fo the older resorts, or even AKV, there are lots of contracts available for resale, generally at a better price than you'd pay going directly thru DVC. A very good resale broker sponsors this board, and there are other reputable ones out there as well. YOu will have to do your own math, but I suspect that even with the great incentives they're offering, you will do somewhat better going resale. We bought new from DVC tho, because it was easier, faster and not that much more.

And if you really want BLT points, then you'll have to go directly thru DVC. If you do, just make sure that you have a referral in place, OK?

Best of luck, and we hope to offer you a hearty Welcome Home soon!