What if we just try out DVC?

[720L]

Since we are having trouble deciding if DVC is for us, does this logic make sense? If we buy 150 points at SSR with the current promo at $86 per point and give it a try for 1 or 2 years, then if we don't like it we should then be able to sell at $101 per point, which is the current price without promo, we would then make $2250. So we would actually get paid to try DVC. Would this be possible?

 

[Sammie]

Resales hardly ever go for the current amount that Disney is selling them for. Why would they? I mean unless your price is going to be lower than Disney's, you might as well buy from Disney. Also at the time you get ready to sell, Disney might be offering another promo.

So more than likely you would have to go lower than the current price offered. You might not make anything on your sell that quickly.

 

[Kickapoo Joie Juice]

We rented points before we bought; after one trip to OKW we knew we'd enjoy it, so we bought into VWL, fairly small contract, enough for friends and family to go a few times a year.

I'd suggest renting from someone on here first; you'll get a good idea if you like it.

FWIW, they had me at the first "Welcome Home" at the guard gate

 

[CarolMN]

Since we are having trouble deciding if DVC is for us, does this logic make sense? If we buy 150 points at SSR with the current promo at $86 per point and give it a try for 1 or 2 years, then if we don't like it we should then be able to sell at $101 per point, which is the current price without promo, we would then make $2250. So we would actually get paid to try DVC. Would this be possible?

Agree with Sammie - you are not very likely to find a buyer willing to pay $101 point. Also, unless you can find a buyer all on your own, you are going to have to pay a broker commission on the sale. IMHO, you will be lucky not to lose part of the initial buy in if you sell so quickly.

Also agree with Kickapoo - rent some points if you want to try it out. Shold be easy to find someone to make you a reservation at SSR

 

[Starr W.]

We didn't know that much about DVC when I booked SSR for Thanksgiving. Went through expedia and got a package for 5 in a 2br for 3500(included plane and park tickets). We mostly vacation in N. Mich in 2br villas so the price didn't scare us.

Well we liked it so much we decided to buy. Since you want to "test drive" DVC I would have to agree renting points would give you an idea.

 

[Slakk]

Since we are having trouble deciding if DVC is for us, does this logic make sense? If we buy 150 points at SSR with the current promo at $86 per point and give it a try for 1 or 2 years, then if we don't like it we should then be able to sell at $101 per point, which is the current price without promo, we would then make $2250. So we would actually get paid to try DVC. Would this be possible?

If you buy at 86 a point more than likely in a few years you will be able to sell for about that price. Understanding the agent will want 10% commission. So if you buy at 86 (which is only for a few more days) it would look something like this:

150 points
Commission - $739
Yearly fees - $1350 (2 yrs averaging 4.50 a point for simplicity sake)

Total out of pocket - $2089

divided by 2 is $1045 each year.

That is a lot of vacation for $1045 a year.

But honestly your anguish speaks volumnes. Why not try out a DVC room then make a decision. Not sure if you feel comfortable renting or not but a DVC room can always be found through CRO.

 

[NEVERENOUGHWDW]

I would suggest you "buying" some points from a current VCM and see if you like the differences between the resort and vacation club vacationing.

 

[mbhoxsie]

I would agree with everyone here... You will eventually get a return, but not unless you hold it for a few years... (And keep in mind then that you also have to pay annual dues which will cut into your profit..)

In two years, you will have to compete with DVC when you sell... DVC, as far as I can remember, has never had closing costs or brokerage fees. If you want to resell, you or the buyer will have to deal with that as the cost of doing business. To stay competitive, your price will have to be far below DVC's.

Depending on how much DVC's premium is over your price, buyers may be willing to pay more to know they are doing business directly with Disney. See a recent thread in the DVC Operations board where a buyer is anxious about his contract.. http://www.disboards.com/showthread.php?t=1324398)

To make any kind of profit on resale, you need to 1) Use your points on a regular basis, and 2) Hold for at least several years while DVC goes through several point increases... (Though again... Keep in mind that the points you are holding will eventually depreciate as the contracts have a limited lifetime.)

 

[kimberh]

We rented first and then bought. I waited so long to buy. I really did not understand. We just bought last March. I am still learning a lot, but I have learned so much this year. We just love our purchase, we bought a resale with some banked points. If you do decide to purchase, see if there are any banked or prior years points with it. That will help you get a free vacation.

 

[byoung]

We also rented a few times. Then decided that we want to go more. Got 200 BWV points from Disney. Sure not disappointed last year stayed in a studio for 19 nights with points left, not a bad time share to me.

 

[CarolA]

Since we are having trouble deciding if DVC is for us, does this logic make sense? If we buy 150 points at SSR with the current promo at $86 per point and give it a try for 1 or 2 years, then if we don't like it we should then be able to sell at $101 per point, which is the current price without promo, we would then make $2250. So we would actually get paid to try DVC. Would this be possible?

If it worked that way, my SSR points would already be sold. Resales lag behind the DVC sales price and at best after owning SSR for a few years I MIGHT break even. (I do enjoy SSR, but I have to free up some point money for VALK LOL!)

 

[salmoneous]

150 points
Commission - $739
Yearly fees - $1350 (2 yrs averaging 4.50 a point for simplicity sake)

Total out of pocket - $2089

divided by 2 is $1045 each year.

That is a lot of vacation for $1045 a year.

Don't forget to throw in a few bucks for closing costs.