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Curious on cost
- Thread starter TXDisney
- Start date
Phonedave
Well-Known Member
You are making me leery when you make this statement.
Some facts about DVC.
There are two "classes" of points at DVC - points you buy directly from Disney, and points you buy through the resale market.
When staying at WDW, points bought on resale can only be used for DVC rooms.
Direct from Disney points can be used for DVC or they can be "traded" in for nights at any other resort on property. However, YOU DO NOT WANT TO DO SO.The trand in rate is horrible. You would be far better off financially renting your points out and paying cash for a non-DVC room.
I bought direct, but if I had to do it over again, I would go resale (live and learn)
There are no value or moderate DVC rooms. DVC properties are all considered deluxe. Some are more expensive that others, but they are all considered deluxe. Below is the annual maintenance cost per point. How many points you need is up to you. 160 is the minimum you can buy direct. As you can see, some resorts cost more in maintenance than others.
Animal Kingdom Villas $5.9748
Aulani Hawaii (Pre July 27, 2011) $4.8380
Aulani Hawaii (Post July 27, 2011) $6.4378
Bay Lake Tower $4.7846
Beach Club Villas $5.7904
Boardwalk Villas $6.0067
Grand Californian $4.9366
Grand Floridian $5.4140
Hilton Head $6.2837
Old Key West $5.5411
Saratoga Springs $4.9148
Vero Beach $7.7531
Wilderness Lodge $5.9265
The advantage of owning at a particular resort is you can book rooms at 11 months out. You can book at all other DVC resorts at 7 months out. So if there is a popular resort you want to stay at during a busy time, you might want to think about owning that one. If where you stay does not make much of a difference to you, then choose based on price.
-dave
DVC is only a part of the deluxe resorts.
But a resale at let's say bay lake tower/ beach club villas or boardwalk villas at the rates you have above plus the actual purchase of the resale and maintenance fee with a loan over the course of 10yrs... Would still equal out to between 300-400 monthly it looks like. Which is within my budget. Am I correct with those figures?
GoofGoof
Premium Member
- 160 BLT points @$95 resale = $15,700 (after $500 closing costs). Financed over 10 years at 12% = $225 per month. Maintenance fees = $765 or $64 per month. Total monthly payment = $289 per month.
- 160 BCV points @$90 resale = $14,900 (after $500 closing costs). Financed over 10 years at 12% = $214 per month. Maintenance fees = $927 or $77 per month. Total monthly payment = $291 per month.
- 160 BWV points @$80 resale = $13,300 (after $500 closing costs). Financed over 10 years at 12% = $191 per month. Maintenance fees = $960 or $80 per month. Total monthly payment = $269 per month.
- 160 SSR points @$75 resale = $12,500 (after $500 closing costs). Financed over 10 years at 12% = $179 per month. Maintenance fees = $786 or $66 per month. Total monthly payment = $245 per month.
- BLT has a contract that expires in 2060 while BCV and BWV expire in 2042. I think SSR is 2057.
- I'm not sure if you can definitely finance 100% of the cost. I think the direct from Disney loans require a minimum of 10% down. Not sure about the companies lending money for resale purchases. The numbers above assume financing 100% so if you put some money down the monthly payment will actually come down some but you will need some cash upfront. When you buy resale you can ask the seller to pay all of your closing costs to save a little upfront money. It's all negotiable like any real estate transaction.
- Another thing is that maintenance fees go up. On average about 3.5% per year. Assuming a 3.5% increase in 10 years BLT fees on 160 points will go up from $765 to about $1,074 which would increase your payment in 2024 by about $25 a month over the 2014 payment. Keep in mind that Disney hotel rates will go up too and at a much higher total dollar amount.
- Another thing to consider is renting points from a DVC owner instead of buying. At $14 per point it would cost you $2,240 to rent 160 points from a current DVC owner. That's about $187 per month for a year. It might save you about $100 per month over the next 10 years. With buying you pay more, but after 10 years of payments you own the points for just the maintenance fees. With renting you just get to enjoy the 10 years of vacations with no future benefit. Renting is also more "work" since you are always dealing with a contract with a stranger. As an owner you just call or go online and book a room with your points.
One more thing to consider. If you bought at 160 points at BLT for $95, put 10% down ($1,500) and had the seller pay the closing costs you could finance for 5 years at 10% for $290 per month. Including maintenance fees that's $354 per month. If you can swing the slightly higher payments you can pay it off in 5 years and pay less interest over the life of the loan. Just a thought since these are high interest loans so you want to pay them off as soon as possible.
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Awesome that was the info I was looking for GoofGoof. Looking definitely into resale rather than through disney. I'm sure I'll still have to put 10% down, Not a big deal though. I think I definitely want to own rather than rent though. I'll have to sit down with my wife and see if the financing over 5yrs rather than 10yrs is in our budget. Obviously long term paying it off faster is better, so if we can swing it which I think we could if we wanted it would be a nice benefit.
GoofGoof
Premium Member
You could always take a 10 year loan and make extra payments each month to pay it off faster. There shouldn't be a prepayment penalty on this type of loan so it wouldn't cost you anything to do it that way.
squidward
Well-Known Member
Not to deter OP, but buying resale can be a lengthy process. Disney has ROFR, so that can slow things down. They have been acting on it more as of late so they can purchase contracts and put them back into their inventory. Plus, Disney is sneaky. Buying resale, I believe they can make any changes they want at any time. At least that was part of their sales pitch to me.
So if done through Disney rather than resale, you have to put a minimum of 10% down and I'd have to pay closing costs bc there is no seller. I'd put 10% down regardkess so that's not an issue. But is their any guarantee Disney can't change things as well as a resale? Bc the way I've read it is anything can change regardkess from how u purchase it. Whether it be perks or pricing. If that's the case then there's no difference really between purchasing through Disney or resale except the price cheaper through a resale. Am I correct?
dreamfinder
Well-Known Member
I do believe they need to act on ROFR within 30 days from the sale being submitted to them. After that it takes a few weeks for the deed to be properly recorded etc. Time frame before that to complete the sale depends on you, the seller, and your real estate agents. You could potentially close in a day or two if everyone is properly motivated, but it could take a few weeks if people hem and haw over things.
Changes cannot be made to the contract you receive. Changes could be made to the perks that DVC offers, (which is what they did when they removed resale from the group that could trade for ABD, Cruises, etc) but you should be grandfathered in based upon the terms presented to you when you purchased as Disney signed off on them when the deed changes hands.
The amount being paid as a down payment can vary based upon your lender, just like buying a house (albeit with a much higher interest rate). Most lenders are leery of any timeshare, even one that holds its value as well as DVC does. Closing costs are usually negotiable. Some sellers on the secondary will pay the costs just to be rid of the contract, others will look for you to pick it up, or perhaps split it. Once again, just like buying a house. While Disney doesn't like people buying on the secondary, they don't want to totally kill it off as having a strong secondary market helps sales overall, as people know they have a potential out if needed.
Buying from resale does mean that you cannot use it everywhere someone who buys it direct can. Currently the Concierge Collection, Disney Collection, or Adventurer Collection are all off limits. You can stay at any DVC resort, or do RCI trades. Most people feel that trading out to the ABD or cruises are a bad point value, so for them that isn't an issue.
mammaminnie
Well-Known Member
We own 166 at SSR and 124 at VGF. Our maintenance fees total for both are $122 per month. For our VGF points we got 8.9% direct thru Disney and our payment is $188 a month (SSR points are fully paid for) so between all that we pay $310 a month.
mammaminnie
Well-Known Member
I should mention that we have bought direct thru Disney both times. First time was because we were already planning to use them for a cruise and you can't use resale for a cruise. Second time we bought direct because we were on a Disney Cruise and got a great deal!
GoofGoof
Premium Member
Direct from Disney prices are substantially more than resale prices. For example you can generally find BLT resale for $90 to $100 per point while direct is $165. If you are buying 160 points that's over $10,000 more upfront. Once you own points the cost for maintenance fees is exactly the same for resale vs direct from Disney. All ownership requirements and benefits are the same with the exception of the restriction on trading in resale points for Cruises or Disney hotel rooms.
Current prices direct from Disney:
NEW MEMBER PURCHASE
ANIMAL KINGDOM VILLAS***
$155 per point; 100-point minimum purchase
AULANI (HAWAII)*****
$160 per point; 100+ points
Incentive: 15 free points for every 100 points purchased. Buy 200, get 30 free. Buy 300, get 45 free. Incentive points are available every year for the life of the contract.
BAY LAKE TOWER AT DISNEY'S CONTEMPORARY VILLAS****
$165 per point; 100-point minimum purchase
BEACH CLUB VILLAS*
$130 base price; 100-point minimum purchase
BOARDWALK VILLAS*
$130 base price; 100-point minimum purchase
HILTON HEAD ISLAND*
$115 base price; 100-point minimum purchase
OLD KEY WEST***
$130 base price; 100-point minimum purchase
SARATOGA SPRINGS**
$130 base price; 100-point minimum purchase
VERO BEACH*
$115 base price; 100-point minimum purchase
VILLAS AT DISNEY'S GRAND CALIFORNIAN HOTEL****
$165 base price; 100-point minimum purchase
VILLAS AT DISNEY'S GRAND FLORIDIAN RESORT & SPA******
$165 base price; 100-point minimum purchase
VILLAS AT WILDERNESS LODGE*
$130 base price; 100-point minimum purchase
GoofGoof
Premium Member
The terms of the contract can't change once you buy in whether it's resale or direct from Disney. You will be entitled to your points which can be used at any DVC resort at 11 months for your home resort or 7 months for another resort. This is set in stone and cannot change.
What can change are the perks offered outside of your basic rights as an owner. Things like discounts on annual passes, discounts on park tickets and discounts on food and merchandise. These can come and go for both direct owners and resale owners. These perks are nice and tend to change or evolve over time, but they shouldn't be counted on since they are subject to change.
The one difference between resale and direct is the change to the trade-in policy. Several years back Disney made a change prohibiting contracts bought on the resale market from eligibility in the Disney Collection, Concierge Collection and Adventurers Collection. The Disney Collection allows you to book a Disney Cruise or Disney hotel rooms (non-DVC rooms) using your DVC points. The Adventureres Collection are a series of once in a lifetime trips like a real African Safari or a trip to the Great Wall of China. These trips tend to be an extremely large number of points. This change was not retroactive, meaning only resale purchases made after the rule change were restricted but if you already owned a resale contract you were grandfathered in. There is no guarantee that any future change would allow current resale owners to be "grandfathered" in but at the same time there is no economic incentive for Disney to "punish" current resale owners either. Disney would only make this type of restriction to try to make Direct from Disney purchases more attractive vs resale so they have no reason to be punitive towards current resale owners who have already purchased in the past. Based on reading here it seems maybe some of the DVC sales people are using the restrictions in part of their sales pitch to get you to buy.
You need to decide what you want to use the points for when you buy them. Resale contracts can be traded in through RCI which opens a large number of non-Disney destinations worldwide. It's not very likely that many people will use the Adventure Collection. Trading in for a Disney hotel room can come in handy if you visit DLR in CA or one of the international Disney resorts, but there aren't really any Deluxe resorts at WDW that don't have DVC already. The biggest thing the trade-ins are probably used for are cruises. Disney cruise line is popular these days. If you think you want to trade in for cruises regularly then it may be worth the extra cost to buy direct. If you want to take an occasional cruise probably not. Remember in my example above resale saves you $10,000. That can pay for a few cruises itself. You can also rent your DVC points out and probably get more money than what it costs for the cruise. It's a little more work that way, but saves you some money.
BigTxEars
Well-Known Member
Just to throw more into the pot....you can buy resale then add points thru Disney
We bought resale, wanted more points so talked to Disney while we were there. We ended up making a bid latter that same day on a resale contract. It was just so much cheaper than Disney ($85 per pt vs $130 per pt) that it just made sense to get more points that way.
If you ever buy and want to add more points I would advise to try and get the second contract with the same use year (i.e. month) as the original contract. It is not a mandatory thing but makes it easier to keep track of things IMO.
We bought resale, wanted more points so talked to Disney while we were there. We ended up making a bid latter that same day on a resale contract. It was just so much cheaper than Disney ($85 per pt vs $130 per pt) that it just made sense to get more points that way.
If you ever buy and want to add more points I would advise to try and get the second contract with the same use year (i.e. month) as the original contract. It is not a mandatory thing but makes it easier to keep track of things IMO.
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LSUmagic
Member
We have been DVC members for about 2 years. We bought in on our honeymoon on DCL and then again the following year. Both times, we bought at older resorts. Vero Beach the 1st and Saratoga the 2nd. Because we bought into "Old Stock" our pts were a bit cheaper. If you buy through Disney, this is def an option I would explore. We were able to get more points because it wasn't the newest most expensive resort. There are no limitations to our pts. They work the same as everyone's. We were even able to get the same number of deed years as new stock.
Also remember the maintenance fees will be higher on anything water front.
I highly recommend talking with a DVC representative before you decide anything. They are willing to go over every possibility with you and crunch the numbers.
We have not regretted our decision to join DVC for one second. In the past 2 years, we have had so many amazing memories. There are great perks (some big - tickets, some small - fireworks at BLT)
Also remember the maintenance fees will be higher on anything water front.
I highly recommend talking with a DVC representative before you decide anything. They are willing to go over every possibility with you and crunch the numbers.
We have not regretted our decision to join DVC for one second. In the past 2 years, we have had so many amazing memories. There are great perks (some big - tickets, some small - fireworks at BLT)