Thinking about DVC... need a nudge!

[ddbowdoin]

Basically, been attracted to and interested in DVC for a while now and now feel that purchasing is a logical decision. My fiance and I became engaged at the Beach Club this past March, it is certainly a special place for us. We are planning a honeymoon for next July (late July / early August 2012). This will be an epic trip and we're thinking a minimum of 12 days at the world. Now, I ask this question to all the members because the reality for my fiance and I is not will we spend 15,000 USD at Disney but when? This honeymoon trip will run almost 4 grand to begin with, so I feel like if I paid cash for this out of pocket and THEN joined DVC in a few years I feel like I wasted that 4 grand.

I have strong credit, but definitely do not have the money to purchase up front. How do you feel about financing? Also, do you think my reasoning is valid in terms of taking the DVC plunge considering the honeymoon investment?

 

[MaxsDad]

I don't know, but ....

I often wish I had joined in 1999 when I first went back there. I certainly would have went more from 2000-2006.

You should consider your overall financial position, of course. Can you easily make the loan payments and dues? 4000 off of a 15000 loan is a good chunk right off the bat, that I agree with. Homeowner?

12 night at Beach Club that time of year would be as low as 224 points. So you could get 150, and borrow 75 from the next year. Your siganature indicates that you go to WDW from time to time. Do you want to go yearly, or at least every other year?

 

[bmarkelon]

Basically, been attracted to and interested in DVC for a while now and now feel that purchasing is a logical decision. My fiance and I became engaged at the Beach Club this past March, it is certainly a special place for us. We are planning a honeymoon for next July (late July / early August 2012). This will be an epic trip and we're thinking a minimum of 12 days at the world. Now, I ask this question to all the members because the reality for my fiance and I is not will we spend 15,000 USD at Disney but when? This honeymoon trip will run almost 4 grand to begin with, so I feel like if I paid cash for this out of pocket and THEN joined DVC in a few years I feel like I wasted that 4 grand.

I have strong credit, but definitely do not have the money to purchase up front. How do you feel about financing? Also, do you think my reasoning is valid in terms of taking the DVC plunge considering the honeymoon investment?

Absolutely! Your first paragraph was pretty much our exact thoughts that lead us to purchasing. Plus, my mother in law has been a member for 10 plus years so we have seen first hand that it is worth it. She now uses her points every couple years for one of her children's family's to go on a WDW trip and in between she uses them all over, (Arizona, Hilton Head, Vero Beach, etc.)
We financed ours and I don't think there is anything wrong with that at all! We plan on paying it off before the 10 years but it's just a great option to get the purchase done!
I've heard you mention this before on these boards so I know it's been on your mind, we discussed this for a few years before we took the plunge. I say go for it!! :sohappy:

 

[wdwmap.com]

DO IT! We bought 100 points on the resale market earlier this year at Animal Kingdom Lodge. We have 3 reservations already in, Staying for 2 nights at Aulani the week they open and then a total of 8 days in January at Animal Kingdom Lodge Villas and Bay Lake Tower. I used a Credit Card check with 0% interest for 16 months, once that time is up if they aren't paid off I will transfer them somewhere else. I looked at it the same way you did, we were going to be going in January regardless, and i'd rather the money go to DVC.

 

[ddbowdoin]

I often wish I had joined in 1999 when I first went back there. I certainly would have went more from 2000-2006.

You should consider your overall financial position, of course. Can you easily make the loan payments and dues? 4000 off of a 15000 loan is a good chunk right off the bat, that I agree with. Homeowner?

12 night at Beach Club that time of year would be as low as 224 points. So you could get 150, and borrow 75 from the next year. Your siganature indicates that you go to WDW from time to time. Do you want to go yearly, or at least every other year?

After speaking with the DVC rep I was told if I purchase by the fall I would have 2 years worth of points and have plenty for the 12 night trip. I would be buying roughly 135 points or something. I forget the exact number he listed. My signature shows a significant gap is trips... I went as a kid (I am 26 now) but it was when I met my fiance that our mutual love of disney sparked our obsession. I would DEF be going once a year if I had a DVC. We are also planning on having children in roughly 4-5 years so thats really the only speedbump, not sure if we would bring a 1 year old to the world.

Absolutely! Your first paragraph was pretty much our exact thoughts that lead us to purchasing. Plus, my mother in law has been a member for 10 plus years so we have seen first hand that it is worth it. She now uses her points every couple years for one of her children's family's to go on a WDW trip and in between she uses them all over, (Arizona, Hilton Head, Vero Beach, etc.)
We financed ours and I don't think there is anything wrong with that at all! We plan on paying it off before the 10 years but it's just a great option to get the purchase done!
I've heard you mention this before on these boards so I know it's been on your mind, we discussed this for a few years before we took the plunge. I say go for it!! :sohappy:

I just think the fact is that my future wife and I will absolutely spend 15 grand at Disney, thats just a fact. So 15K for 50 years... it sounds like a good deal

 

[bmarkelon]

We got the 2 years worth of points deal too, hard to pass up! It's definitley great having your resort covered each trip!

 

[bgraham34]

You also have the option to buy resale at a lower price. Granted you are limited to Just DVC resorts, but it is still a great option.

 

[ddbowdoin]

We got the 2 years worth of points deal too, hard to pass up! It's definitley great having your resort covered each trip!

so how much are the dues a year?

 

[MaxsDad]

After speaking with the DVC rep I was told if I purchase by the fall I would have 2 years worth of points and have plenty for the 12 night trip. I would be buying roughly 135 points or something. I forget the exact number he listed. My signature shows a significant gap is trips... I went as a kid (I am 26 now) but it was when I met my fiance that our mutual love of disney sparked our obsession. I would DEF be going once a year if I had a DVC. We are also planning on having children in roughly 4-5 years so thats really the only speedbump, not sure if we would bring a 1 year old to the world.




I just think the fact is that my future wife and I will absolutely spend 15 grand at Disney, thats just a fact. So 15K for 50 years... it sounds like a good deal

My biggest gap is from 1973 to 1999. A lot happened between those years!

Sounds like a good plan then. If you have saved up 4000 for a honeymoon yourself already, paying the loan/dues wouldn't seem to be a hardship. Advice: buy where you want to stay. Make your home resort a place that if you have to "settle" for it, you won't be dissappointed.

 

[MaxsDad]

so how much are the dues a year?

Between 4.50 and 6.50 per point per year. Varies by resort. Changes a small amount each year. Is based on actual expenses of Home resort, and can not be raised arbitrarially (?) just to make more profit.

 

[bmarkelon]

Between 4.50 and 6.50 per point per year. Varies by resort. Changes a small amount each year. Is based on actual expenses of Home resort, and can not be raised arbitrarially (?) just to make more profit.

I was just trying to figure this one out. We just bought in October so it's still all new to me but we paid about 900 for our BLT annual dues in one payment. Not too bad, it will be nice when that's all we're paying once the loan is paid off!

 

[Pioneer Hall]

I'm around your age, and I made my purchase last year. I purchased AKV resale without financing. I want to clarify some of what I see here and also give you my opinion...

First off, if you purchase through Disney by the fall you ARE NOT getting any extra points. You are simply getting points that you are entitled to because of the use year. Disney makes the words sound nice to make it seem like you are getting a great incentive, but you are only getting exactly what you are entitled to. For example, if you were to purchase points with an October use year today you are entitled to your 2011 use year worth of points since the October deadline hasn't come yet. If you try to purchase an April use year now, they will first push you very hard to something later in the year and then tell you that they can't give you the points. The only thing that Disney sometimes does here is extend your banking deadline. Since those October points had to be banked by May 31st Disney can be nice and still allow you to bank them so you have more time to use them. So just be careful that you aren't getting lost in the sales wording because Disney is just giving you exactly what you are entitled to.

Now...on to purchasing. As I said earlier, I bought 200 pts resale and paid in cash. I probably wouldn't have done it if I had to finance, but that is just my opinion. I highly recommend looking at the resale market, unless you absolutely want the ability to transfer your points for cruises and the like. These exchanges are usually a bad use of points, but some people still like having the ability. You can really save a ton of money by purchasing resale over direct, and probably get more points. With just a quick glimpse over at the timeshare store, points at AKV are going in the low 70's and Saratoga can be had in the low 60's per point. This is opposed to over 110 a point with Disney's best incentives and comes out to a considerable amount of money.

Your other financial consideration is going to be your dues. These will vary depending on your resort and usually increase a little bit each year (but usually less than resort rooms). This year my dues were 5.01 a point at AKV, and with a quick search you can see what they were at all the resorts. You get an itemized budget report each year though to see where your dues are going and how much in each area. You will be paying these every year for as long as you hold the contract.

 

[ddbowdoin]

I'm around your age, and I made my purchase last year. I purchased AKV resale without financing. I want to clarify some of what I see here and also give you my opinion...

First off, if you purchase through Disney by the fall you ARE NOT getting any extra points. You are simply getting points that you are entitled to because of the use year. Disney makes the words sound nice to make it seem like you are getting a great incentive, but you are only getting exactly what you are entitled to. For example, if you were to purchase points with an October use year today you are entitled to your 2011 use year worth of points since the October deadline hasn't come yet. If you try to purchase an April use year now, they will first push you very hard to something later in the year and then tell you that they can't give you the points. The only thing that Disney sometimes does here is extend your banking deadline. Since those October points had to be banked by May 31st Disney can be nice and still allow you to bank them so you have more time to use them. So just be careful that you aren't getting lost in the sales wording because Disney is just giving you exactly what you are entitled to.

Now...on to purchasing. As I said earlier, I bought 200 pts resale and paid in cash. I probably wouldn't have done it if I had to finance, but that is just my opinion. I highly recommend looking at the resale market, unless you absolutely want the ability to transfer your points for cruises and the like. These exchanges are usually a bad use of points, but some people still like having the ability. You can really save a ton of money by purchasing resale over direct, and probably get more points. With just a quick glimpse over at the timeshare store, points at AKV are going in the low 70's and Saratoga can be had in the low 60's per point. This is opposed to over 110 a point with Disney's best incentives and comes out to a considerable amount of money.

Your other financial consideration is going to be your dues. These will vary depending on your resort and usually increase a little bit each year (but usually less than resort rooms). This year my dues were 5.01 a point at AKV, and with a quick search you can see what they were at all the resorts. You get an itemized budget report each year though to see where your dues are going and how much in each area. You will be paying these every year for as long as you hold the contract.

I knew I wasn't getting extra points, just that if I purchased by the fall I could use both years points as the whole point of our honey moon trip is a long stay of 12 days... see my point.

 

[Pioneer Hall]

I knew I wasn't getting extra points, just that if I purchased by the fall I could use both years points as the whole point of our honey moon trip is a long stay of 12 days... see my point.

OK...it's just the way it read. More often than not people believe Disney is giving them something for nothing when they definitely are not.

 

[ddbowdoin]

the annual dues are a bit of a deal breaker for me... especially since I would have to finance up front. If I had the initial investment up front it wouldn't be that bad but I could see thing being a pretty decent monthly payments over a 10 year term.

 

[Pioneer Hall]

the annual dues are a bit of a deal breaker for me... especially since I would have to finance up front. If I had the initial investment up front it wouldn't be that bad but I could see thing being a pretty decent monthly payments over a 10 year term.

It can be pretty high...Disney definitely doesn't offer the most attractive interest rates.

 

[brifraz]

Whether or not you buy from Disney or resale (we did resale and got points where we most iikely would stay, OKW) I would ighly recommend NOT financing through them. You can get much better financing deals thhrough your local bank and if you own a house, a home equity loan could help get you a tax write off. Just some thoughts.

 

[tjkraz]

the annual dues are a bit of a deal breaker for me... especially since I would have to finance up front. If I had the initial investment up front it wouldn't be that bad but I could see thing being a pretty decent monthly payments over a 10 year term.

You mentioned buying around 135 points. I don't recall seeing a Home resort named but dues on that number of points are likely to run $45-55 per month. To be blunt, if that amount of money is a budget-breaker, you shouldn't be considering DVC in the first place.

Everyone here loves to go to the Disney parks. Over the long haul DVC does net deep discounts on accommodations and many of us wish we had bought sooner.

But DVC also brings a virtual obligation to return to the parks regularly. And that is certainly not cheap. You will still need to pay for plane tickets, park tickets, food, souvenirs, the occasional round of golf or spa visit. We aren't talking about a mere $250 per month for DVC mortgage and dues...it's thousands of dollars per year--pretty much every year--for that week long vacation.

I could have bought into DVC when I was a 27-year old newlywed. Would have been tight but it was manageable.

However, doing so would have meant that we wouldn't have had the money to buy our first house at age 28. At age 31 our son was born and my wife and were able to trip back our work schedules so that outside day care was never necessary.

There's a time and a place for everything. Sure a part of me looks back and wishes I had bought 6 years earlier for less money and been able to enjoy more vacations. But doing so would have inevitably lead to sacrifices elsewhere...sacrifices that I am eternally grateful I did not have to make at the time.

Walt Disney World will always be there. DVC will always be there. I would only recommend making that commitment if you are certain that it will not derail any other short-term personal or financial goals. There are many things far more important than a Disney vacation.

 

[Monorail Lime]

The decision of which DVC resort to choose is important because rooms at your home resort will be the easiest to reserve. You should definitely consider the resale market for Beach Club if that is where you and your future wife love to stay the most!

The cost per point is also considerably cheaper than buying direct from Disney. Beach Club is currently in the $80-85/point range on a popular Resale site.

 

[DVCOwner]

Another thing to keep in mind is that you do not have to buy all the points you need at one time. If you only plan on visiting every 2 - 3 years at first you can buy just enough points to bank and borrow to give you one longer trip. We did this when I only went every two years and than added additional points as the family need more space (grand children) and we start going every year.