Purchasing DVC

[Tweety1]

Hi
So we have just returned and I’m now on the ‘should we purchase DVC’ debate again! I just love the hotels so much and still had a great time and didn’t do any parks. I have done some reading (but not enough yet) and a few years ago we went on the tour but what put me off at the time was the dues and how many times we would go(which has been every year since). Now thinking longer term so what happens say after 10 years you don’t go anymore or if the unfortunate happens and the kids can’t afford the dues ect(sorry to be depressing). Are they easy to sell back and any clauses?we are looking at resale.
Any advice would be most appreciated and I know I need to do lots more research but if you could give me any pros/cons that would be great. I think I was happy renting but then I think it say 10yrs how much would a Disney hotel be and it would be nice for the kids to have the option to go if we were no longer able to. The dues cost does worry me slightly as can they just increase to what they want each yr? I wouldn’t be buying as an investment but to make sure we have nice holidays for the next few years but then you weigh up against free dining and that’s then attractive too. Arghh decisions...
Oh and any reputable resale sites that any of you have had experience with? The point price seems to have increased can you see that going bk down?
TIA

[YorkshireT]

At the moment contracts are very easy to sell and in the last 2 years have increased circa 25% in value.
Points are extremely easy to rent out and give you roughly 2x the dues or a return on a resale contract of circa 10% pa.
This is probably economy dependent.
At the moment I can only see it going up in the near term (next few years) unless US economy suffers.
You are sensible looking at resale.
Spend at least a couple of months intensive research.
There are around 6 main agents including Fidelity, DVCResalemarket, buy and sell DVC, Timeshare store.
Make you sign up to all their emails, the good contracts often go before they hit the websites in this market.

[Tweety1]

Originally Posted by YorkshireT

At the moment contracts are very easy to sell and in the last 2 years have increased circa 25% in value.
Points are extremely easy to rent out and give you roughly 2x the dues or a return on a resale contract of circa 10% pa.
This is probably economy dependent.
At the moment I can only see it going up in the near term (next few years) unless US economy suffers.
You are sensible looking at resale.
Spend at least a couple of months intensive research.
There are around 6 main agents including Fidelity, DVCResalemarket, buy and sell DVC, Timeshare store.
Make you sign up to all their emails, the good contracts often go before they hit the websites in this market.

See more...

Thank you, I read the sticky at the top what a fabulous comprehensive read! There is something I’m unsure about though it went onto say about selling but then said once there’s is only 20yrs left the points then arent worth as much. Not sure im Reading it right but does it mean the nearer you get to the end the less you get back if you sell(which does make sense) but not sure why it’s at 20yrs? 8 suppose it’s new as no one has got to the end of their contracts have they but does it just stop? I just wish I had bought 2yrs ago as I remember them being $76pp.
Is there a set fee for buying that all the agents charge(dont want to be overcharged!). I’m not very good at contracts as I do read them thoroughly but then analyse the wording forever and need it explaining so the agent will work for their money ha ha. The short term I’m not too worried about it’s the long term as say you sell when there is 10 yrs left what happens? Will the older contracts but worth like $50 a point ect what is your understanding? You obviously know loads as I’ve read your responses on other posts. Is there a best time to buy? Does the process take long and how do you know you have the right deal? What about the dues can they shoot up in price? See I told you I like to know the ins and outs

[YorkshireT]

Price as contracts near the end is bound to decrease. However at the moment even some with 24 years left are still going up.
If you are looking at resale I'd recommend probably avoiding the ones ending 24 years now.
I'm not sure where the 20 years came from because no-one knows what the market will be like.
I doubt somewhere like Beach Club will start reducing in price until it gets well under 20 years, but all we can do is speculate.
If you buy one like SSR, AKL, BLT etc resale, you'll likely have had a lot of value out of it by the time it ends (2054+).
The average time of ownership is around 15 years.
Dues are pegged I believe, can't remember the amount, may be 10%. They have gone up around 5% historically. That is compound though so has quite an effect long term if inflation remains low.
Go to DVCinfo and read all their articles. Very informative, everything you need to know there. Also includes a dues history chart I think.
Also a good starter is Disneytouristblog - they have a very informative simple article on buying DVC.
Also the dis boards have lots of knowledgeable contributors in their DVC forum. I mention it simply because it's American so has lots more contributors than the Dibb (there's very knowledgeable people on here on DVC but just not nearly as many people contribute).
Best time to buy resale was around Xmas/ New Year (people need the cash and dues become due), but prices did not really depress this year.
Good luck.

[Tweety1]

Originally Posted by YorkshireT

Value as contracts near the end is bound to decrease. However at the moment even some with 24 years left are still going up.
If you are looking at resale I'd recommend probably avoiding the ones ending 24 years now.
I'm not sure where the 20 years came from because no-one knows what the market will be like.
I doubt somewhere like Beach Club will start reducing in price until it gets well under 20 years, but all we can do is speculate.
If you buy one like SSR, AKL, BLT etc resale, you'll likely have had a lot of value out of it by the time it ends (2054+).
The average time of ownership is around 15 years.

See more...

It may have been 20 something years as I think the gist was it may depreciate which I do get.
I have had a look at the websites and when you put in a req for one it states price per point so are these negotiable? And things like who pays closing costs ect. I would want to be realistic but don’t want to pay over the odds. Any advice here?

[Mr Tom Morrow]

OP. I bought resale from DVCMagic. I put a bid in on 2 contracts.
The first was withdrawn within hours as the 'seller' was in my view a time waster.

I went back in with another contract and bid $3 a point under what they were asking which was low anyhow. I must have just scraped through ROFR with Disney.

I had to pay the following in addition to the Points cost:-
Closing/Settlement fee $215
Owners title Insurance $100
Florida title Insurance $3
Deed to the Circuit Court $48
Deed State Tax $59
Assignment fee $50

[YorkshireT]

Interesting Tom, I got no breakdown of the closing costs so it's useful to see where the money goes.
Yes OP they are negotiable, but it's a seller's market at the mo. Even so, some of the prices are a try on, so consult the ROFR thread on Disboards to see what is being accepted at the moment.

[brody-maddison]

We bought a contract direct from Disney last year and are currently in the process of purchasing a second resale.



How I looked at it is this: as the years go by so the prices for hotels and even renting points will increase. Free dining isn't a guaranteed thing especially with all the developments going on at WDW right now. There will not be a need to offer dining to get people to book onsite. Once Star Wars opens, I honestly believe we might see the end of free dining for the forseeable future.



I don't think there will be any problems selling if you decided DVC was no longer for you. You just have to look at some f the resale sites to see the amount of sold contracts, they get snapped up so easily. Even the ones with 24 years left.

[Tweety1]

Thank you all for your advice I wish i had taken the plunge 2 yrs ago when I looked arghhhhh

[Tweety1]

This is obsessive lol!
Can anyone tell me why the pp price differs so much with diff companies? As shouldn’t they be roughly the same.
Also why is SSR the cheapest for dues?
Lastly do you contact all the brokers for closing costs before you put a bid in?
I’ve seen some great ‘sale pending’ ones and I want one