Looking into buy dvc, but not sure if direct or resale is the way

[CarolynFH]

how does the 11 month home work. does the month you buy it count as the frist month or the month after? just trying to figure out what month i would want to buy around (if i do buy after more research) if i like to do my longer trips in September and October

Sorry, got distracted and didn't finish answering your questions! When buying direct, you can pretty much choose your UY, as long as DVD has points in that UY for the resort you're buying. When buying resale, you're limited to the UY in the contract that you buy. DVD assigns UY to contracts when they sell them, and some UY are more common than others, for reasons no one outside of DVD understands.

ETA: distribution of UY as of February 2021: https://dvcnews.com/dvc-program/own...ty-of-disney-vacation-club-points-by-use-year

 

[Lumpy1106]

Hi all,

My Fiance and myself last weekend talked to dvc for about 3 hour about options. We are interested but do have concerns.

The big concern is the 35-45 years of maintenance that will increase 3-7% ever year. I used a maintenance calculator and found that in 45 years could be paying about 9000 a year for maintenance fees.
What is everyone experience with fee increase year after year.

If you think the inflation on the dues is daunting, now try to forecast what the rack rate on a room would be if you don't buy DVC. MFs are ACTUAL costs. That's the actual cost of labor, actual cost of maintenance, etc. Room rates are subject to "Disney Inflation" - we figured double what we were estimating for the MF inflation. Both have been pretty spot-on. True, you aren't committed to staying on-property like you are paying your MFs, but if you really aren't using your DVC you can and should sell - no more MFs, problem solved (same can't be said for other time shares as you know).

how does the 11 month home work. does the month you buy it count as the frist month or the month after? just trying to figure out what month i would want to buy around (if i do buy after more research) if i like to do my longer trips in September and October

What you want to watch is your banking deadline. Points are loaded for the year on your use year month, and the banking deadline is 4 months before that (for your case I'd try and find June). This is important because life happens. You book your home resort 11 months out, what happens if you need to cancel 2 months out? If you are still > 4 months from your UY you can bank the points into the next calendar year (provided those points weren't already banked into the current year). Remember once you bank or borrow points they stay in the calendar year you moved them to - they can't be moved again. If your cancel date is < 4 months from your UY month your options get a lot more limited. You can try and book a trip before your UY, try and rent (renter has same restrictions you do), or try and trade out (more of a direct thing). Banking to the next year is just a whole lot easier.

 

[RoseGold]

how does the 11 month home work. does the month you buy it count as the frist month or the month after? just trying to figure out what month i would want to buy around (if i do buy after more research) if i like to do my longer trips in September and October

It's the other way around. You need to think about when you don't want to travel. The rules make traveling in the last few months of your UY risky. If you don't like summer, Sep is a good UY, because you won't be modifying in the summer.

September has an end of April banking deadline, so hopefully that's enough notice to know about your May trip. But, if you have to cancel that May (or summer) trip, the points are in a bad spot.

 

[geargrinder]

Most people will advise selecting your UY as it relates to your time of travel. I think it's also important to consider the when you'd be cancelling in relation to your banking deadline. If there are certain events or milestones that will always be a deciding factor in your travel, make sure your banking deadline comes after that.

Knowing when you'd cancel could be as important as knowing when you travel when selecting a UY.

 

[havoc315]

Keep in mind that dues increases tend to mirror inflation.
Yes, you may be paying $9000 per year in dues in 2065. But a hotdog might be costing $30, park tickets may be $800 per day, and average income may be $250k.

So yes, dues will go up -- But so will everything else. And historically, dues increases are smaller than the increases in resort room prices.
So your annual costs are "only" going up 3-4% per year, while if you booked cash rooms, you may see your prices going up 5-10% per year.

 

[DonMacGregor]

Keep in mind that dues increases tend to mirror inflation.
Yes, you may be paying $9000 per year in dues in 2065. But a hotdog might be costing $30, park tickets may be $800 per day, and average income may be $250k.

So yes, dues will go up -- But so will everything else. And historically, dues increases are smaller than the increases in resort room prices.
So your annual costs are "only" going up 3-4% per year, while if you booked cash rooms, you may see your prices going up 5-10% per year.

People never ever seem to mention or factor in increases in average income.

 

[redboat45]

People never ever seem to mention or factor in increases in average income.

except that currently income is going backwards.

 

[DonMacGregor]

except that currently income is going backwards.

Not for everyone.