Request for assistance in identifying the appropriate resale contract style for my situation

[ggarriso]

Hey All

Just dipping my toes into the DVC resale market for the first time (looked a few times in the past and got overwhelmed). Looking for a home resort of Poly (Room Type: Studio) with a first trip sometime in 2022 (Fall, most likely) and then a recurring week long trip every other year until infinity and beyond.

By my calculations I would need a contract of about 80 points per year to get to a biyearly value of approx 160 to cover most week trips at Poly (Studio); I would also need a contract loaded w/ points for 2021 and 2022 to take the trip in 2022

Am I right here, missing anything?
TY

Greg

 

[Prince John Robin Hood]

Borrowing is limited to 50% right now but your strategy of banking and using 160 would work. If you always stay in the Fall selecting a use year will be easier than if you always travel at different times.

Also, getting more points isn't a bad idea in case you do want to travel during a period which requires more points.

 

[SarahWI]

Two thoughts:
1) Right now you are limited to borrowing no more than 50% for a reservation. That may go away once the current point glut clears but there is no guarantee.

2) DVC can and will adjust points. So if you need X points now to stay in say October, they may increase that season to be more points so you may want buy more than the minimum amount you think you’ll need.

 

[ggarriso]

wow! I did not know either of those things ! thank you both so much!

 

[miTnosnhoJ]

Poly is a great resort, but it only offers studios and Bungalos (which are very expensive 2 bedroom units over the water.) So if you might ever want a one bedroom or larger, be aware that Poly does not offer these.

 

[ggarriso]

Quick follow up - is "borrowing" the same as "banking" so if I bought a contract loaded for 21 and 22 could I only care 50% of the points from 21 into this planned Fall 22 trip?

 

[The Jackal]

Quick follow up - is "borrowing" the same as "banking" so if I bought a contract loaded for 21 and 22 could I only care 50% of the points from 21 into this planned Fall 22 trip?

No you can bank 100% of the points. For now borrowing is limited to 50% and probably will be for another year or two.

 

[Marionnette]

But every UY has a banking deadline. A February UY must bank their 2021 points by Sept. 30, 2021 but an August UY can wait until March 31, 2022 to bank their 2021 points. That's something to keep in mind if you're looking at resale contracts.

 

[Best Aunt]

Quick follow up - is "borrowing" the same as "banking"

No, banking and borrowing are not the same.

Banking:
Assume my contract has a Use Year which starts on February 1.
If I am not going to use this year's points before my Use Year ends on 01/31/2022, I can "bank" those points. That means I push them forward into the next Use Year. I cannot use them between the date I bank them and 02/01/2022 when my next Use Year begins. The deadline for banking is 09/30.

Borrowing:
If I want to take a trip this year and I don't have enough points in my current use year, I can borrow from my next Use Year, meaning the Use Year which starts 02/01/2022. But at the moment there is a cap on how many points I am allowed to borrow.

 

[MICKIMINI]

OP's suggestion to buy more point is spot on. 20% or more is a good plan IMO, so 100+ is probably better for you.

Definitely go for a loaded contract with as many points as possible and at least a year's MF's paid by the seller, better if you can get 2020 and 2021. I've had some success lately paying asking price but with the seller paying closing costs (about $650 or so on 100 points). This strategy requires a fair asking price to begin with so shop around all the resellers and take notes. Read the ROFR thread to get an idea of what disboard members are paying and what is being taken. Make your offer and stick by it. Move on if you don't get what you want (or close).

Since you plan on buying one contract, patience and negotiation will get you lots of banked points and a fair bottom line. Good luck!

 

[defrogger]

agree on getting a little more then 80. Plus you might have a little trouble getting exactly 80 points on the resale market and they tend to up the price for smaller amount of points as well.
Might want to shoot for 100 - 120 points if you can afford it. But if you can find an 80 point resale thats not overly priced then great.

 

[RoseGold]

Advice has been good so far. IMO you shouldn’t buy unless you can pay cash and can book ahead of time and are dead set on Disney for many years and understand how the system works. And that’s a lot of ands.

Resale is crazy high right now. I wouldn’t be in a hurry. I’d wait until the right contract comes along and pay attention.

For every other year, I’m even mathematically open to renting points instead. This is a big commitment with closing costs. It’s a lot for every other year. There’s nothing wrong with renting points.

 

[kenyoncad]

Maybe get enough points for a lakeview studio, they have better availability if you end up booking closer to the 7 month window. If you get the standard studio you would have points for an extra day or two next trip.

 

[Stargazer65]

Poly is a great resort, but it only offers studios and Bungalos (which are very expensive 2 bedroom units over the water.) So if you might ever want a one bedroom or larger, be aware that Poly does not offer these.

Agree with advice. Another thing to consider, if you ever want a full kitchen for a stay you'd have to get it elsewhere. (disregard bungalows with a small PVB contract) But, you probably could get a 1 bedroom with the kitchen at the 7 month period anyway at SSR at least.

 

[Yinn]

Hey All

Just dipping my toes into the DVC resale market for the first time (looked a few times in the past and got overwhelmed). Looking for a home resort of Poly (Room Type: Studio) with a first trip sometime in 2022 (Fall, most likely) and then a recurring week long trip every other year until infinity and beyond.

By my calculations I would need a contract of about 80 points per year to get to a biyearly value of approx 160 to cover most week trips at Poly (Studio); I would also need a contract loaded w/ points for 2021 and 2022 to take the trip in 2022

Am I right here, missing anything?
TY

Greg

That was similar to our strategy. So we started off with 75 points...I now have 480 points. I currently think 175-225 for point is the sweet spot for us. More and we're renting out, bringing friends, or booking big. Fun? Sure. But a "waste" in terms of what we have vs need/want.

That said looking back I wish I would have just bought bigger to begin with. The additional fees of closing costs for additional contracts, etc. added up to a hefty chunk. Then the time spent trying to match the contracts.

Here's something I didn't realize when I first purchased. Poly points are incredibly easy to rent out and rent out for a premium. So if you can afford it, there's nothing wrong with buying a slightly bigger contract if it also happens to be slightly lower per point and/or loaded. It's better than finding you need points and adding a smaller contract where the closing costs may be 10% of the contract.

 

[ggarriso]

Thanks all so much! doing some math now and it looks like it would be a net savings over renting of about 1k per trip at current rates - assuming 10 trips over the next 20 years, which puts me in my 60's (ouch - getting old lol)

REALLY appreciate everyones advice and thoughts, especially not to overpay