When should we join??? Advice needed.

[nickandlarisa]

So my husband and I have gone to 2 DVC info meetings over the past 3 years and DEFINITELY plan to join .... eventually. We've crunched the numbers, weighed the pros and cons, and the only thing left to figure out is when we should join.

We are still relatively newlyweds and currently rent, don't own our house. On one hand, we see the price going up and up, and we see the thousands of dollars we have already spent on WDW vacations past and near future. On the other hand, we are very responsible financially, and think buying into DVC before we buy our first house is completely crazy. I should mention too, we don't have any immediate plans to buy a house because we aren't completely sure where we want to settle. We will definitely stay somewhere in our surrounding area, but we don't want to be stuck just for the sake of owning a home. Does that make sense? Anyway, so a house may be several years down the road, regardless of DVC.

We would only buy into DVC with at least a significant amount down. We would prefer to pay in full but that may take us a little longer to save. Also, our current trend is WDW every other year, but this is also partly due to just being married and having wedding expenses, etc. We would love after this year to go every year. We are also thinking about starting a family in the not so distant future. So many variables! Anyway, just wanted to get some advice, see if there is anyone else out there who bought DVC BEFORE you bought a house?!?!

Also, any pros or cons to taking the plunge while you are at WDW vs over the phone? Are the incentives the same? When we went to an info meeting on the DCL last year, they made it out like booking while on the cruise had the BEST possible incentives and perks?? Thoughts??

Thanks for listening and for any advice!!!

Larisa

 

[adminjedi]

Boy, have you opened a can of worms with that question...
Hope you survive the onslaught!

 

[nickandlarisa]

Uh oh, I'm scared now.

 

[disneynutz]

Since you don't have money to burn, it's critical that your spend several weeks reading all of the DVC posts here on the boards. If you are going to go into debt, make sure that you understand the product and get the biggest bang for your buck.

Bill

 

[quirty30]

You have to decide what's best for you, and to a certain extent, I think you already have misgivings about buying DVC before buying a house. Sometimes we already know the right answer. Some people might tell you otherwise, but I think you're dead on. I'd definitely wait until I was in a home before buying my second one. I didn't buy DVC until I was 45 and it was so worth the wait. Sounds to me like you are determined and on the right track; it might not take you quite so long!

 

[lmshaggard]

I think you brought up several key points in what you question. We were in a very similar position when we got married. We had moved to Cincinnati/ N KY where my husband was from, but I am from San Diego - so we had no idea where we were going to settle. We decided to live in my husband's grandparents 100 yr old home - that hadn't been updated in 50-60 years. We updated it at our cost and will reap the benefit of the before/after worth price when we go to sell. Fast forward 7 years and 2 kids and still in the old home, we had purchased a timeshare in Mexico (which we love) and had looked at Disney 3 times - just wanted to make sure it was right for us - we didn't want a timeshare collection . We realized after spending several weeks a year at Disney - it was the right decision for us. We have purchased 2 contracts direct - BLT and GC at great prices! We also just purchased a new home as school districts are now becoming a factor. Our only regret was not doing it sooner (I should have done it while I was a store mgr with Disney stores when my hubby and I got engaged) - though BLT would have been our first choice. Good luck! If you can afford it and still save, I would definitely look closely at doing it - prices are only continuing to go up.

 

[bumbershoot]

we see the thousands of dollars we have already spent on WDW vacations past and near future.

... think buying into DVC before we buy our first house is completely crazy.

What does one have to do with the other?

It doesn't seem like you're going to stop vacationing and spending lots of money at WDW, right? If DVC would actually save you money on lodging, then isn't that what matters?

I don't see DVC as being a second house. It's a nice hotel room, basically, that we're prepaying.

Would I get a summer house while renting? Hmm. Probably not while living here in WA. But if I lived in NYC where renting for decades is actually quite common, I could totally see getting a summer house! Though I have no plans to live in NYC; I barely want to visit there!

But really, one has nothing to do with each other.

Now, the money might have to do with each other...if you still have wedding expenses (yikes, after a year?) and you want to save for several things all at once, that could be an issue.

But the simple fact of having a timeshare while renting a house? Total non-issue. Unless you were going to entirely forgo vacations until you have child and house...but it doesn't sound like you're going to do that. So the expenses for lodging during vacation-time are still going to happen...could very well make sense TO buy into DVC, if your vacation plans and habits make it make sense.

 

[Lil' Grumpy]

the good thing , it sounds like you know what you want &

have some realistic plans. wdw isn't going anywhere so i
think, the best course of action is for you start a saving
plan with dvc in mind. we [ my wife & me ], started from scratched &
build our fortunes together. today, too many couples want everything
without putting the required time in. [ for us, some of our best
memories have come from working toward our goals ]. also i adopted
a philosophy of , "when one is unsure on what to do, then the best
action is to remain neutral until the right path become clearer."

psst, i tell you the real best kept secret...some of the best things
we have experienced thru the years, have been the surprises. &
just this year, i realized maturity gives one appreciation for all the
good things in life we got to shared.


ps, iam not a dvc expert but we have done disney vacations since
the 80's.

 

[nickandlarisa]

Thanks for all of the response so far!

Now, the money might have to do with each other...if you still have wedding expenses (yikes, after a year?) and you want to save for several things all at once, that could be an issue..

I guess I didn't phrase this right, we don't have wedding debt, my parents graciously hosted our wedding, we just did a mega trip for our honeymoon (12 Disney days including the cruise, so we didn't do a vacation the year before, and this summer has been a series of mini-trips, non including WDW unfortunately, but not because we have debt.

I really do appreciate everyone's feedback. Honestly, we aren't doing anything until at least or next trip in May, just wanted to get some honest opinions from everyone, thanks again!

 

[DenLo]

There's nothing wrong with your plan of paying off your bills and any credit cards. Congratulations on thinking with a clear head.

When you vacation at WDW, where do you stay? How many days?

If you stay at a Disney value resort then you are getting the best price. If you are staying a Disney moderate and going to WDW every other year, then a small resale contract might help you save some money on a villa.

If you stay a deluxe Disney resort on your vacation every other year then buying a small resale contract would save you some money on your hotel room, but not now, in the future after you have taken several vacations as a Disney Vacation Club owner.

The problem with buying into any timeshare is that you will be vacationing and spending money. Travel expenses, food, drinks, tickets at WDW, souvenirs. So even if you buy into the DVC you still have the above expenses, the annual dues and if you finance the cost of buying in then the monthly payment.

If no matter what, you will take a vacation to WDW every other year and stay at a Disney moderate or a deluxe resort then buying a small resale DVC contract might be the way to go.

However, if you know that when you buy your house or have a family, the WDW vacations will have to stop for awhile, because you won't be able to afford the other expenses, transportation to WDW, food, tickets, souvenirs, drinks, snacks etc, then why spend the big bucks it takes to buy into the DVC? You'll be stuck with annual dues you might not be able to afford and if you finance monthly payments as well might be too much.

Here's a good website that provides some information about the DVC on the DVCNews.com website, http://www.dvcnews.com/index.php/dvc-program/dvc-for-beginners

Read everything you can here on the DisBoards and every where else you can before you decide.

Good luck and best wishes to you and your DH.

 

[AirGoofy]

So my husband and I have gone to 2 DVC info meetings over the past 3 years and DEFINITELY plan to join .... eventually. We've crunched the numbers, weighed the pros and cons, and the only thing left to figure out is when we should join.

Uh oh, I'm scared now.

No need to be scared. DW and I honeymooned in Disney 10 years ago this September. We did not find out about DVC until we returned to vacation there in 2005 with dds then 3, 1. We ended up purchasing in 2008. We purchased a resale SSR contract for the low cost. We did a add-on contract this year.

Now, we are really happy with our home - 15 year fixed interest loan and no credit card debt. But, that also meant 5 years without any Disney vacations.

So, read all the information as others have suggested, and then make your decision. It sounds like you are thinking with the home ownership - waiting until you are settled. So, with DVC, why not the same thing. You have several months now - what resort do you want, how many points (how many days, what size room), and add enough for annual dues, tickets, food, etc. Then, with that amount in mind, start saving for what you need. If you think you can afford $500 a month, then save $500 a month for 6 months and see how hard that is on your family budget.

Then, start with a small 50 point contract, resale or if Disney still offers them, and purchase it outright (or finance a small part). Then, you can use the banking, borrowing rules to make it work. Good luck with your decision and congratulations on your wedding. Best wishes.

 

[Crystal_27]

It sounds like you have a lot of expenses that you are either paying for (wedding, etc.) or that are coming up in the near future (house, kids, etc.) so you really do need to crunch the numbers and make sure that you can afford it. With that said, when DH and I got married, we didn't buy a house for 6 years and didn't have a child for 7 years, and both of us made good money - we probably could have easily bought into DVC then just as easily as we bought into it now. Only you truly know your situation. BUT, the great thing about DVC is that it will be around when you are ready to buy, both direct from Disney and via the resale market. Good luck!

 

[Inkmahm]

the good thing , it sounds like you know what you want &

have some realistic plans. wdw isn't going anywhere so i
think, the best course of action is for you start a saving
plan with dvc in mind. we [ my wife & me ], started from scratched &
build our fortunes together. today, too many couples want everything
without putting the required time in. [ for us, some of our best
memories have come from working toward our goals ]. also i adopted
a philosophy of , "when one is unsure on what to do, then the best
action is to remain neutral until the right path become clearer."

psst, i tell you the real best kept secret...some of the best things
we have experienced thru the years, have been the surprises. &
just this year, i realized maturity gives one appreciation for all the
good things in life we got to shared.


ps, iam not a dvc expert but we have done disney vacations since
the 80's.

Excellent post, full of wisdom. I'd pay attention to this one.

 

[Sandisw]

When we decided to take the plunge, it was when they built BLT. We had been going to Disney for years, mostly every year, but a few years we did not.

We waited because we just didn't like the resorts available. Looking back, we wish we could have made the decision as we continued to spend lots of dollars at deluxe resorts.

If you know that you are planning to go to WDW, even EOY, and can afford to get in when you go in May, to be honest, I say go for it. Once you have kids, buy a house, etc, expenses only grow and before you know it, you will continue to spend on your Disney vacations without the benefit that DVC can give you.

Right now, Disney is offering new owners in at the resorts for only 100 points. Even at BLT, the more expensive one, this amounts to around $12,000 and about $400 per year in dues. If you can swing this comfortably, given all your other obligations, then it may be feasible. This would give you 200 points for your EOY trip.

If you are going in May and planning on staying on Disney property, whatever you spend on that can be used to offset DVC, and then you can use points. We did that too. We had an August 2009 trip scheduled at the CR that would have cost about $2000 for the room. Instead, we bought DVC in April, and put that $2000 toward the purchase price, and traveled on DVC points. Had I waited, while that $2000 would have gotten me another Disney trip, it would have done nothing for my ownership. The way I looked at it, that $2000 reduced my price per point (I know, not everyone would).

Good luck!!!

 

[Chuck S]

I'm not going to get into the "buy now or later" aspect. You know your finances and what you can or can not comfortably afford.

Assuming, though, that Maryland has suffered the same drop in housing prices as most of the rest of the country...I would certainly be at least looking at houses, given the current mortgage rates and low prices. But again, just because the price is low, don't buy more house than you need, or it isn't a good deal.

I just think the housing market is worth looking into now, if you think you'll be buying in the next few years.

That said, DVC direct prices will also almost surely increase, too, but resale prices may not recover as quickly, unless DVC continues to actively pursue ROFR as a price support on the older resorts. So holding of on DVC may, or may not, be to your advantage if you are looking at purchasing resale. Of course, if you want BLT or Aulani, it would probably be best to buy sooner.

 

[chandraorme]

I would probably buy the house first! It is easier to qualify for a loan for DVC if you already own a house....but harder to qualify for a mortgage if you own DVC with a loan!

 

[Sandisw]

I would probably buy the house first! It is easier to qualify for a loan for DVC if you already own a house....but harder to qualify for a mortgage if you own DVC with a loan!

Not if you finance through Disney. They do not report their loans to the credit bureaus so it doesn't show up.

 

[Deb & Bill]

DVC is a luxury. If you can afford the luxury and still manage your normal bills, buy into DVC. When the monthly member fee is deducted from your checking account, will you be concerned about paying the car payment, rent, utility, etc?

You might want to consider resale, though, instead of buying directly through Disney. Especially if you don't mind owning one of the older resorts that you can get for less via resale.

 

[ToddyLu]

Everyone here has great advice. My main concern when we joined was exactly how much is this if we do choose to finance. I can be difficult to figure this out with interest rates and all. So I will give you our cost per months. We financed direct from Disney (it sounds like you will have more upfront money to put down than we did) at the preferred rate of 10.75%. When we bought there were not many lenders out there due to the economy so we went with Disney. We purchased 210 points at AKV at $93 per point. We paid 10% down and our monthly note is about $230 with monthly MF's at about $80. We financed for 10 years, will we try to pay it off before then, absolutely. When we complete our trip to AKV this Dec. we will have in effect used $14,000 worth of Disney lodging if we had paid cash.

 

[gkrykewy]

I don't think the two decisions are necessarily related; buying a home is a much bigger commitment than DVC. Too many people rush to buy a house that stretches their finances, limiting their ability to handle other expenses or bumps in the road.

We bought DVC before buying a home, and we paid in full for our membership (we manage our expenses quite carefully, and have no debt other than student loans).. Actually, we still rent since we're not sure yet where we want to buy a home, and when we want to have a child, etc.

In contrast to that uncertainty, we *knew* we'd want to keep coming to WDW regularly and staying in deluxes, so DVC made perfect sense. One of the best decisions we ever made together.