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-   -   unbelievable!! Can't afford this! Please help (http://www.disboards.com/showthread.php?t=3029711)

vinmar4 12-05-2012 01:29 PM

unbelievable!! Can't afford this! Please help
 
Hello to all,
I'm starting to beleive that we made a mistake when buying the 320points that we got at AKV. My current yearly dues are almost 1800.00!
they are increasing at the rate of almost 200.00 per year!
We are thinking of possibly selling but would like to know if you guys have any idea if we would loose a lot of money. We just got the loan from Disney about 3 years ago so this is our 3rd year paying the anual dues.
We are a couple in our late 40's and have son who is 16 and our dd 10 out other dd is 28 and lives in TX. We are thinking of either selling all or part of our points since we separated the points into 3 contracts, 110, 110, and 100. Currently the kids like going every year, we ust started going 3 years ago, but we are thinking that it is going to be less and less as we get older and by the time we are done with the loan we are going to be in our mid 50's.
Any advice would be greatly appreciated!

bakenatj 12-05-2012 01:35 PM

Well seeing how AKV is going for around $65-$75 a point on resale you are going to lose some money on the deal. I guess if you can't afford $1800 a year in maintenance fees the additional cost of going probably are an issue too. I guess if I were you I would sell at least one of your contracts. That would drop your fees by 30% right off the top.

Seeing how you have been able to use it for three years I wouldn't look at it as a loss. The amount you saved on those vacations probably offset the price difference.

jockotaco 12-05-2012 01:48 PM

Would you ever consider renting points to cover you dues. Given that you can rent points for 10-11 pp you would need to rent about 180 points or so to cover your yearly dues. Although you would need to continue making your loan payments it would allow you to travel on the remaining points. Given the resale price on the resorts you own and the fact I have no clue what you owe it might be tough to get out without needing to make some sort of lump sum payment.

joeyrose 12-05-2012 02:04 PM

dvc points...good. dvc loan...bad. could you sell most, keep a small contract and pay off the loan? then fees will be manageable and no loan payment. you need to lose the loan payment.

DizBub 12-05-2012 02:14 PM

Very smart of you to break up your points into 3 contracts. If you do need to sell some off it's much easier. Not sure about AKV resale but the smaller contracts seem to sell for higher. Unfortunately, if you still have a loan it looks like you will lose money on a resale. But at least those dues will go away.

I agree with a previous poster about renting some of your points to try to off-set your dues. If you rent all of your points 1 year, you would probably get enough to nearly pay for 2 years' dues. Alternating travel and renting every other year you may be able to strike a balance. I would keep an account with the rental $ just for the dues or to pay your loan down faster.

Good luck!!

LisaS 12-05-2012 02:55 PM

If you sell through a broker you will owe a 10% - 15% commission on the sale. Make sure you factor that in when calculating what you are likely to get from the sale of one or more of your contracts.

vinmar4 12-05-2012 03:39 PM

thank you guys!
some great ideas to consider!
I called and calculated that if we sell all of them, we would have to pay close to 5600.00 when closing, but then no more monthly payments! . we will concider maybe selling one or two but I we will still have to pay close to 2000 at closing per contract but then we could keep some points and pay a lot less in dues. I'm also thinking of taking advantage of getting the deal for the PAP now then take one vacation next year since we will get the 320 in this month for a total of about 460 pay the dues in Jan and then sell all. We can then then get some money together and buy resale and go back!
my head is starting to hurt:confused3
we need to think, think, think
I asked my kids if they really wanted to go back every year and they said maybe

bwvBound 12-05-2012 03:47 PM

If it helps, DVC allows members to pay the annual MF spread across the year using monthly draws from a US checking account. If you aren't already using that feature, it might help soften the year-end panic, a bit?

bumbershoot 12-05-2012 05:17 PM

Quote:

Originally Posted by vinmar4 (Post 46861906)
We can then then get some money together and buy resale and go back!

The dues would be the same. How would that help?

rklives 12-05-2012 05:37 PM

Like one of the others recommended, i usually rent some points to help pay for my dues, i usually get around $10 PP.

undchefreak 12-05-2012 05:49 PM

If you can scrape together $2000 to pay off the property to sell them, why don't you just pay one of them off? This would decrease your monthly outlay and help with the big picture.

What is the benefit of selling then buying back? You would be loosing certain priveleges (not necessarily good ones, but some), you would have to pay the realtor to sell them, and then pay extra fees to buy the same points. If you want to permanently decrease your points, go for it, but I wouldn't go in with the intention of buying back in the near future, since this would not make the financial picture look any better.

If you don't want the hassle of renting on your own, there are plenty of brokers who will take a cut of the profits and rent them for you. You still need to do the booking, but the broker finds them, contracts them, and collects payment so you wouldn't need to worry about it.

CaptDadSparrow 12-05-2012 06:05 PM

Three years ago AKV direct was what 100-$110 per point? I wish I has purchased on our first tour last year. It was $120 per point. We are closing on 135 (discounted on the cruise $7 per point).

I digress...

As of Dec 19Th I think AKV is going to $150 per point.

What I would then assume is the resale and rental value would also be going up per point. If that's true, you may be surprised to see you are not in a bad position to sell or rent with out to much loss at all.

Deb & Bill 12-05-2012 06:22 PM

Quote:

Originally Posted by vinmar4 (Post 46861906)
thank you guys!
some great ideas to consider!
I called and calculated that if we sell all of them, we would have to pay close to 5600.00 when closing, but then no more monthly payments! . we will concider maybe selling one or two but I we will still have to pay close to 2000 at closing per contract but then we could keep some points and pay a lot less in dues. I'm also thinking of taking advantage of getting the deal for the PAP now then take one vacation next year since we will get the 320 in this month for a total of about 460 pay the dues in Jan and then sell all. We can then then get some money together and buy resale and go back!
my head is starting to hurt:confused3
we need to think, think, think
I asked my kids if they really wanted to go back every year and they said maybe

I may be confused, but you cannot make a reservation and sell the contract without cancelling the reservation. Are you paying your dues monthly? That's one way to keep them from seeming so much. We have 325 points and pay about $140/month in dues.

I see the Timeshare Store has AKV contracts for sale for around $63 to $66 per point. If you paid more than that, you will have to pay to close the contract (you'll pay the difference) and you'll have to pay the reseller's fee of 10% of the sale price. Resale prices do not go up when the DVC sale price goes up. Dues will still need to be paid by the end of January even if you got a buyer today. It takes about two months to close a resale.

A loaded contract sells faster than a stripped contract.

JimMIA 12-05-2012 06:32 PM

Quote:

Originally Posted by CaptDadSparrow (Post 46862999)
Three years ago AKV direct was what 100-$110 per point? I wish I has purchased on our first tour last year. It was $120 per point. We are closing on 135 (discounted on the cruise $7 per point).

I digress...

As of Dec 19Th I think AKV is going to $150 per point.

What I would then assume is the resale and rental value would also be going up per point.

What an incredibly inaccurate assumption! :crazy:

AKV is selling on the resale market for about 1/2 what you are paying with your "discounted" price.

The price has been dropping since AKV first appeared on resale. In fact, I think AKV has probably fallen faster than any other resort.

DizBub 12-05-2012 06:37 PM

Quote:

Originally Posted by CaptDadSparrow (Post 46862999)

What I would then assume is the resale and rental value would also be going up per point. If that's true, you may be surprised to see you are not in a bad position to sell or rent with out to much loss at all.

Sorry, resale value will most likely remain the same, about $60-$65 for AKV. Rentals will run between $10-$12. A broker charges $13 and the renter gets $10.

OP, for what you would end up selling for and paying all the fees to the selling agency you could be in the hole, depending on the outstanding balance of your contracts. Again, I would seriously consider renting.
If you do decide to sell don't forget that a "loaded" contract will be much more attractive to buyers than a stripped one.


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