Larger Contract than you intended

[rojen]

Originally Posted by ELMC

Two thing that I would consider going forward. The first is how you will be able to afford this contract and the associated trip costs without the benefit of any future windfalls. Maintenance fees on 300 points are in the neighborhood of $1,500 and going up every year. Transportation, tickets, food, etc. will likely cost twice that at least. If these numbers doesn't bother you, then you should go ahead with your plan of owning 300 points. As for whether or not you should buy it all now or wait, look to Excel for the answer. Numbers don't lie.

The second is your likelihood of future Disney vacations. I get very nervous when people say that they are going to buy DVC based on predicted vacation patterns. You have a much higher chance of a successful ownership if your decision is made on a combination of a track record of visiting Disney and staying in Deluxes combined with a predicted future vacation pattern. If you feel this describes you, it's another plus for ownership.

That's the thing, we can easily afford to rent points and pay for tickets once or twice a year into the foreseeable future. Just not sure if we'll have twenty grand sitting around with nothing demanding it be spent again.

The math definitely works out, it's just the idea of writing a check or wire transfer for that much is kinda scary.

[ELMC]

Originally Posted by rojen

That's the thing, we can easily afford to rent points and pay for tickets once or twice a year into the foreseeable future. Just not sure if we'll have twenty grand sitting around with nothing demanding it be spent again.

The math definitely works out, it's just the idea of writing a check or wire transfer for that much is kinda scary.

Well if you can afford the point rental prices then you can definitely afford the maintenance fees. I understand about the sticker shock, but you'll get over it. The one thing to think of is whether or not you'd be more comfortable having the $20,000 sitting an an account with no demands on it...just in case.

[Deb & Bill]

Originally Posted by zavandor

If you buy 3 contracts for 100 points each, you'll be able to gift one each to your daugthers, if you'll want in the future. So you could buy one now and buy the others when you'll find them.

Not a good thing to even consider. By the time your three, all under four, daughters are old enough to pay DVC dues on their own, the dues will be horrible. Don't even consider buying to leave to your prodigy at this point.

Buy for yourself and your family. And go from there if you want to buy. But don't saddle your babies with future DVC dues when they haven't even started kindergarten.

[staceymay00]

I would start with around 150 points and add on later if you want more points down the road. We bought 150 points at OKW a few years ago. We thought we'd start out staying in 1BRs (three kids as well), but decided on a 2BR for our first trip and never looked back. We really need 50-100 more points to stay in a 2BR for 5-7 nights at the times we travel, but I can't bring myself to buy more points. No regrets at all that we bought, but it is amazing how quickly school/activity schedules and expenses for three kids can change. We may end up taking shorter trips every year, or a week long trip every 1.5-2 years. I don't want to be in the position of taking trips just to use our points, or renting points, so for now we will continue to be creative in stretching our points for an annual trip (like staying offsite once every few years, adding a couple of cash nights at a favorite non-DVC resort if we can get a good rate, etc.). If you do decide to buy 300 pts now, you might want to buy two contracts anyway in case down the road you decide you don't need as many points. You can then sell one contract. It will cost you a little more buying resale this way, but you'll still save quite a lot over buying direct.

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[Sammie]

Originally Posted by rojen

That's the thing, we can easily afford to rent points and pay for tickets once or twice a year into the foreseeable future. Just not sure if we'll have twenty grand sitting around with nothing demanding it be spent again.

The math definitely works out, it's just the idea of writing a check or wire transfer for that much is kinda scary.

Is college taken care of for the kids? I agree with the others, I would go with 150 and see how it fits.

[Dean]

Originally Posted by zavandor

If you buy 3 contracts for 100 points each, you'll be able to gift one each to your daugthers, if you'll want in the future. So you could buy one now and buy the others when you'll find them.

While I agree with the basic idea, that approach has an added cost of around $2.5-3.5K additional ignoring other factors. IMO the option alone is not worth the cost. Of course there may be other benefits like waiting to buy for part of the points and/or different home resorts which could make the option more reasonable.

[bom_noite]

Originally Posted by zavandor

If you buy 3 contracts for 100 points each, you'll be able to gift one each to your daugthers, if you'll want in the future. So you could buy one now and buy the others when you'll find them.

For the Original Poster, I think the point made above is a very Key Consideration! A friend of mine's mother has a 450 Pt contract and 3 kids. One of the Kid's is a problem child and never seems to agree with the other two.

When the Mom passes: Two of the kid's are doing well financially, the problem child is not and may want to sell. Well, then the other two have to either buy out the 3rd's interest - or compensate in some other way.

Three contracts: You each get one - do as you may. No problems, no disagreements, etc.

[DizBub]

Originally Posted by zavandor

If you buy 3 contracts for 100 points each, you'll be able to gift one each to your daugthers, if you'll want in the future. So you could buy one now and buy the others when you'll find them.

I find this a good strategy (I have 3 DDs but they are all adults and they WANT our contracts) I think it's good because you can buy them 1 at a time. Spread the purchases out over several years and if your needs change or your kids don't want them they will be much easier to sell. If you could get several 50 pointers it would be even better.

[disbound09]

Originally Posted by DizBub

I find this a good strategy (I have 3 DDs but they are all adults and they WANT our contracts) I think it's good because you can buy them 1 at a time. Spread the purchases out over several years and if your needs change or your kids don't want them they will be much easier to sell. If you could get several 50 pointers it would be even better.

Sound advice I would do three as well. We purchased 320 and never thought about dividing up for our 3 boys. If I had to do it again it would be a no brainer 3 contracts 3 resorts. Three times the choices for accommodations.

[rojen]

We're only thirty, so we're planning on still being alive in 2054 when SSR expires. Hopefully. I suppose 3 100 point contracts would only be about $1000 in extra costs up front. I wonder if the utility of having smaller contracts makes that cost worth it. Also need to find contracts with the same use year to keep it simple.

We originally planned on selling when the girls were too old to enjoy yearly trips. But I've thought about it, and if my parents owned DVC they'd definitely go down themselves at least semi annually, so we're gonna keep this til the bitter end. Do you think they'll extend past 2054 like they've done to OKW? Not sure I want an interest in 50+ year old property anyways.

I just can't justify the extra per point cost to own at multiple resorts. I'd love to be able to book a value at BLT 11 months out, but the extra ~$40 per point, even spread out for 30+ years, doesn't seem like a smart buy to me. Like I said in my OP, SSR is beautiful, and I'd consider myself lucky to be 'stuck' there.

Getting a little discouraged though, I've inquired on a few contracts that were posted, and they've already been sold. Wish they would update their listings more frequently.

[Dean]

Originally Posted by rojen

We're only thirty, so we're planning on still being alive in 2054 when SSR expires. Hopefully. I suppose 3 100 point contracts would only be about $1000 in extra costs up front. I wonder if the utility of having smaller contracts makes that cost worth it. Also need to find contracts with the same use year to keep it simple.

We originally planned on selling when the girls were too old to enjoy yearly trips. But I've thought about it, and if my parents owned DVC they'd definitely go down themselves at least semi annually, so we're gonna keep this til the bitter end. Do you think they'll extend past 2054 like they've done to OKW? Not sure I want an interest in 50+ year old property anyways.

I just can't justify the extra per point cost to own at multiple resorts. I'd love to be able to book a value at BLT 11 months out, but the extra ~$40 per point, even spread out for 30+ years, doesn't seem like a smart buy to me. Like I said in my OP, SSR is beautiful, and I'd consider myself lucky to be 'stuck' there.

Getting a little discouraged though, I've inquired on a few contracts that were posted, and they've already been sold. Wish they would update their listings more frequently.

I think the part you're missing is that the smaller contracts also go for more per point. That's where my gestimate of $2.5-3.5K came in on 300 points. I assumed an extra $1000 or just under for the 2 extra contracts and an extra $5-10 pp more in the contract costs. IF you can find a single seller who is selling multiple contracts in this size range, you may be able to do better and save some of the closing costs as well. It's also more difficult to find that size contract than the 150-200 I mentioned before. I remain convinced that the extra costs, simply for the possible option of legacy, is unreasonable. IF I were going to do multiple contracts for future options, I wouldn't go for 300 needing 100 and I would definitely look at multiple home resorts to have additional options. I realize the extra cost for BLT are significant but $40 a point difference may be a little high, maybe $30 a point difference is more realistic but the same principles hold. You'd recoup some of the extra costs from the lower dues, not all but part. There are also other possible home resorts that might not be that much more than SSR, like AKV or BWV.

[rojen]

How do you calculate the value in the extended time of the interest? If I buy SSR, I get it for 12 more years than BWV. Assuming I can buy them for the same price, which is a stretch. I know it's also 12 more years of MFs too.

[Dean]

Originally Posted by rojen

How do you calculate the value in the extended time of the interest? If I buy SSR, I get it for 12 more years than BWV. Assuming I can buy them for the same price, which is a stretch. I know it's also 12 more years of MFs too.

To a degree value is subjective. From a dollar standpoint the fact you can get the standard view at a cheaper cost adds value. Certainly if you don't value the resort enough to want to stay there periodically, SSR is a better option from strictly a long term cost standpoint. These are ultimately decisions you'll have to make and to decide what's best for you and your family. My personal opinion based on the info you've provided is you should start with a single contract in the 150 or just over range and see how it goes. You can always add more later resulting in a similar situation. You've said yourself you don't plan to leave it to anyone anyway because there's a good chance you'll live to the end of the RTU.

[rojen]

Thanks everyone for your input. Thinking about offering on a contract today. There's about a half dozen between 150-200 points I'm looking at. Hopefully someone is able to make a deal

[Jasonkat]

Originally Posted by rojen

Just not sure if we'll have twenty grand sitting around with nothing demanding it be spent again.

You have $20,000 and you just feel like you HAVE to spend it? Who are you, Barack Obama?

You "could" buy 100-200 DVC points now and put the rest of the money in a separate savings account for the express purpose of buying more DVC points in the future. There is no reason to go from owning 0 points to 300 pts overnight. Buy a smaller amount and then if it works for you buy more later.

I have 2 kids age 3 and 1 and my family expects two trips per year in 1 bedrooms. We will need about 400-450 points to do this. However I just closed on a 200 point contract. I figure I'll buy half what I need now and then try out DVC for a little bit before committing so much money.

The price difference of 300 pts vs 150 points will probably be $10,000 up front and $800 annually. That's a lot of money and you are better off buying half what you need and then expanding later.

And if prices crash you will get a better deal in the future and feel happy you waited. And if prices rise you will feel like you got a good deal now and be happy you bought when you did. Either way you are a winner.