What you wish you had known before purchasing DVC from the UK.

[hayleyfriend]

Hi all
I'm very seriously considering buying a small second hand contract. It appears to be good value when compared to the rack rates. It would also just make me so happy to know I can return each year.
Is there any advice you wish you had known before you purchased?
Or anything specific to the purchasing process from the UK?
Any disadvantages such as having to pay for tickets and flights separately?
Any additional costs like bank transfer fees/poor exchange rates?
Thank you so much
Hayley

 

[Ruttangel]

hi, I have 3 DVC contracts and they are awesome to own and with our OKW and AKV points we have stayed at Grand Floridian, Poly, Beach Club and others. We also own at BWV and stay there for a few nights to do Food and Wine trips.
It’s very very easy to buy from U.K., a lot more complicated to sell.
So many resale brokers so have a look around for a great deal.
Best advice is have a look at point charts and make sure you do lots of research to know what to expect when you own. Also look at the dues cost and pick a resort you would like to stay at or pick a resort that is good value as sleep anywhere points.
The exchange rate is just ok at the moment 1.3 is better than 1.1 earlier in the year but has been a lot higher in prior years. You can usually put 10% deposit when buying on a credit card, make sure it’s one with perfect exchange rate like Halifax Clarity. The balance has to be wired to the title company and so you will need to use a company like TorFX but there are loads out there and definitely source the best rate.

There is a bit of a drop in demand and prices in DVC contracts so probably a good time to buy from that perspective but could be that Disney is losing some prestige due to these political fights.
Up to you whether you see that as a long term risk or not.

Paying for flights and tickets separately will mean you miss out on offers like free dining credits or gift cards but for me I can stay in AKV for way under the price of the hotel and dining credit so it has worked well for me.

You can still add the dining plan but it’s always going to be at cost so maybe not worth it.

The downside of owning is always a risk it ends up being worthless but that’s unlikely as demand and rentals still fairly strong.

Any questions let me know and good luck if you go for it

 

[hayleyfriend]

hi, I have 3 DVC contracts and they are awesome to own and with our OKW and AKV points we have stayed at Grand Floridian, Poly, Beach Club and others. We also own at BWV and stay there for a few nights to do Food and Wine trips.
It’s very very easy to buy from U.K., a lot more complicated to sell.
So many resale brokers so have a look around for a great deal.
Best advice is have a look at point charts and make sure you do lots of research to know what to expect when you own. Also look at the dues cost and pick a resort you would like to stay at or pick a resort that is good value as sleep anywhere points.
The exchange rate is just ok at the moment 1.3 is better than 1.1 earlier in the year but has been a lot higher in prior years. You can usually put 10% deposit when buying on a credit card, make sure it’s one with perfect exchange rate like Halifax Clarity. The balance has to be wired to the title company and so you will need to use a company like TorFX but there are loads out there and definitely source the best rate.

There is a bit of a drop in demand and prices in DVC contracts so probably a good time to buy from that perspective but could be that Disney is losing some prestige due to these political fights.
Up to you whether you see that as a long term risk or not.

Paying for flights and tickets separately will mean you miss out on offers like free dining credits or gift cards but for me I can stay in AKV for way under the price of the hotel and dining credit so it has worked well for me.

You can still add the dining plan but it’s always going to be at cost so maybe not worth it.

The downside of owning is always a risk it ends up being worthless but that’s unlikely as demand and rentals still fairly strong.

Any questions let me know and good luck if you go for it

Thank you for your reply. I'm pleased that it's an easy purchase from the UK. Is it the need for a notary that makes selling more complicated?

I'm just planning to spend what I can afford at this time and I'm not viewing it as an investment in terms of resale value. Then, if the bubble bursts and the value drops, hopefully it won't be too devastating. Although, as you said, demand for DVC tends to be pretty good.

 

[Ruttangel]

to sell you need a notary but then you need to decide whether to use FIRPTA standard 15% deduction or get a specialist tax advisor to look into reducing that but their fees can be $500.
After that you need a US tax number which means sending them original identification and can take a long time to get that tax back.

 

[hayleyfriend]

to sell you need a notary but then you need to decide whether to use FIRPTA standard 15% deduction or get a specialist tax advisor to look into reducing that but their fees can be $500.
After that you need a US tax number which means sending them original identification and can take a long time to get that tax back.

US taxes hadn't even occurred to me, that's interesting, thank you.

 

[JackosinDIS]

I understand that you may also need a US tax number if you want to rent out any of your points… at least that is the case with the main Dvc rental site. So not quite as straight forward to rent points as a Uk owner unless you do it privately.

 

[Noodlez]

I understand that you may also need a US tax number if you want to rent out any of your points… at least that is the case with the main Dvc rental site. So not quite as straight forward to rent points as a Uk owner unless you do it privately.

Most people who use an agency to rent from the UK use David's instead as they don't do this (https://dvcrequest.com/). They're bigger than DVC rental store and they tend to pay better. I've used them numerous times in the past, although this year I rented through Facebook as I could get more that way. When I rent the money is paid into PayPal and I use that to buy Disney gift cards to pay annual dues.

I didn't have any issues buying from the UK, although the transfer company I used (XE) sent the money incorrectly the first time and it had to be re-done. This seems to be common with them. I haven't sold any contracts yet.

I can't think of any issues I've had since buying, other than not being allowed to go for a long time!

 

[DL1WDW2]

.

 

[spm2323]

I just wish we had purchased more at the time, SSR when first available, rate was 1.76 and I had done the maths to see what it would be like if we never used them and just sold points annually at the lowest end, we would still break even in the first third of ownership and therefore a sound investment. Other factor was I looked at all other sales years and prices were going up by 10-15 dollars per new release.
just offered on resale with same resort and use year, it’s 20 dollars higher than original purchase and only 25 years left on it.

keep making offers but look at a site that gives the comparable rate per point, it may be $90 but if no points for the year, could be more expensive than a $100 per point but full 23 points allocation.

our buy process so far is easy and all is done via the agent for a fee.

never been fussed about dining etc and use credit cards to build up air miles and reward flights to mitigate the non package deals

 

[spm2323]

Saw a YouTube clip on buy from Disney versus resale versus rack rate, interesting and certainly helped me buy resale for value alone

 

[Japy]

Hi all
I'm very seriously considering buying a small second hand contract. It appears to be good value when compared to the rack rates. It would also just make me so happy to know I can return each year.
Is there any advice you wish you had known before you purchased?
Or anything specific to the purchasing process from the UK?
Any disadvantages such as having to pay for tickets and flights separately?
Any additional costs like bank transfer fees/poor exchange rates?
Thank you so much
Hayley

I would say be aware that it can be super hard to get the exact dates and type of room you want outside of your home resort at 7 months. There is a lot of competition.

And if you buy riviera second hand resale then you can only stay in riviera. A huge disadvantage imo compared to other resorts bought second hand resale.