Does Owning a Small DVC Contract Make Sense?

[have2getaway]

I have been looking at DVC Resale for a while, and both my husband and I have been on the fence about it. We always seem to find reasonable deals at the deluxe resorts, which is why we have been reluctant, but have not enjoyed the limited amount of space for our party size (2 adults & 3 kids, who are currently 8). We like the idea of extra space, laundry facilities, possibly kitchen access, and discounted annual passes. The one downside of the DVC resorts, though, is that some of the studios don’t offer enough beds for everyone. That said, I am curious if there are others out there who simply buy a small contract (25-50 points) and rent the remaining points needed for their trip? Have you always been able to get the resort you want doing this? For instance, if you bought a small contract at Saratoga or OKW, were you still able to rent enough points at Polynesian or BLT? If our main interest is staying at BLT, should we try to buy a small contract there or would be still struggle with being able to secure a reservation since we would have to rent additional points? Our travel dates are flexible, as we recognize they would have to be. Also, If we buy a small contract through resale, are we still eligible for discounted annual passes and other perks?

 

[got4boys]

Buying DVC on the resale market is usually the best choice depending on what resort you want. I would recommend in buying the most amount of points that you are comfortable with and can afford. Paying cash is always the best option. Please note that there are annual maintenance fees also on these points and they do go up every year.

Small contracts are difficult to find on the resale market and go for high dollars.

There are few resorts that can sleep 5, but it is tight. Bay Lake studios only sleep 4, so with 5 of you, you would need a 1 bedroom at Bay Lake.

I would recommend looking at point charts and the type of units you want to stay at. Different seasons are different points. You can maximize a small contract by banking (moving the points to the next year) and borrowing from a future year. This means that you would go every three years.

To get the discounted annual passes and other perks, you would have to buy directly from DVC. You can always buy resale, then add on at full price - 25 point contract through them. You can rent from Disney up to 25 points at $17 per point.

Yes, you can buy at Saratoga and try to get into another resort at 7 months (when the booking window opens up for all resorts). I would recommend buying where you want to stay. If you want to stay at Bay Lake, buy at Bay Lake. You get home priority between 7 and 11 months. For holidays - Christmas/New Years - your would need home priority to get a continuous stay (in one resort) and book at 11 months.

 

[lovin'fl]

We bought DVC in 2006 because we wanted more space with our three kids and a master bedroom for us parents (so 1BR). The added bonus of the washer and dryer was nice too. You will be most comfortable in a 1BR...no washer/dryer or real kitchen in studios. Some 1BR have a sleeper chair and a sleeper sofa...AKV, OKW, BLT and VGF. BLT studios are the smallest studios and really only good for a couple or a couple with one child maybe or two really young children. They are cruise cabin small. A 1BR at BLT is best with five.

You can buy small contract now and use banking and borrowing go get what you need pointwise. Getting other resorts at the 7 month window, which you would have to do if you buy SSR and want to book BLT, even if you rent additional BLT points they cannot be used with SSR until 7 month window.....anyway getting stuff at seven months is not always possible. Standard view BLT is tough since it saves points. We got a lake view there in the seven month window for Oct.

To get the perks, like DVC annual pass deals, you need to buy direct.

 

[supersnoop]

One of the main benefits of DVC is the larger rooms; not larger studios, but one and two bedrooms. With three growing children, I don’t think buying to stay in studios is the right way to think about it. Buy to stay in larger rooms.

I also don’t see any point in buying a small contract and renting additional points for each trip. Why wouldn’t you just rent points to begin with? If that works for you, there’s no reason to buy in.

And I worry when you say “our travel dates are flexible” and would have to be.” DVC is not particularly flexible. You need to plan a year in advance for high-demand rooms and about 8 months out for anything else.

 

[kniquy]

Sounds like you would like BLT - for a 1 Bedroom for 1 week at the cheapest points season it would cost:
Standard 200
Lake View 231
Magic 277

This would mean that the smallest contract that you could get to go every other year would be 100 points. It is advised not to buy if you only intend on going every 3 years. a 100 point BLT resale could run around $12,000 on the resale market - maybe a little more because it is a smaller contract.

To do a combination of your own points and renting points would just add another element of complication to the whole vacation. When you are an owner you have full control over your reservation, when you rent you have to go through the owner. If this is the scenario you are looking at doing i would just rent for the entire trip.

You can look at davids dvc rental calculator to see the various points requirements for various resorts that would accommodate your family of 5, then you can figure out how many points you would need to go at least every other year if you want to buy in on a smaller contract to start. Like PP mentioned to get the discounts you would need a small 25 point direct contract.


It sounds when you mention OKW and SSR that you would buy cheaper points with hopes of staying at BLT - This may work if you are talking about the lower demand DVC seasons - Mainly mid jan to august. anything around a holiday you should book around the 11 month mark, anything between September and Early Jan - must be booked at your home resort at 11 months. This is why you will always here the motto - buy where you want to stay, or where you don't mind staying". This is why we bought AKV for our family of 5 -- points per night and resale contracts were reasonable and the resort is very unique. We stayed at SSR prior to buying and although it is a nice resort it wasn't for us. We would rather be stuck at AKV.

Read up a lot on these boards under membership use, purchasing resale and everything else in between. There is a lot to learn and it is a big purchase, but with a family of 5 you would all probably appreciate the amenities of the 1 and 2 bedrooms.

 

[CraigInPA]

I don't think the strategy you outlined is going to be successful. You're describing a situation where you ideally want a 2 bedroom. I just made a reservation for a week in October for BLT in a 2 bedroom. It was about 320 points. While there are studios which sleep 5, they're smaller than the regular hotel rooms because they include the kitchen space. The only studios with 2 queen beds (like a hotel room) are at OKW. Since you said you want to go to BLT, you're really looking at a 2 bedroom (which is actually 3 rooms: bedroom with king, bedroom with 2 beds, living room with kitchen and laundry, and 3 bathrooms), so I'll use this in my examples below.

To get the discounted annual passes, which is not a permanently guaranteed benefit, you need to purchase direct. I believe the smallest direct contract at BLT is 50 points, which would run you, in round numbers $9500. If you banked and borrowed, you'd have 150 points every three years, which is still not even half of what you need for a 2 bedroom for a week. To get to the 2 bedroom level, you'd have to have at least 100-125 points per year, and then go every third year.

You could probably buy 300 points resale, but it'll take a while to either assemble smaller contracts (there were a lot of 150's to 175's sold) in the same use year, or wait for a contract around 300 points to come available and then buy that. You're looking around $40k-50k (lower end with one big contract, higher end with multiple smaller contracts). Once you have one contract, you can can buy a BLT direct 25 point add-on, which would run you about $5k to get the direct benefits. This would give you a 2 bedroom each year.

Alternatively, you could buy a 150-160 point contract in the resale market, which would cost you around $22k, and then add a 25 point direct for $5k. This would give you a 2 bedroom every other year.

Or, you can go to the rental market and try to rent a 2 bedroom each year. In today's market, the price for that would be about $5500. The price per rental point is surely headed up, as demand current out-strips supply and that's not likely to change. I don't know how successful you'd be, long term, trying to rent half of the points you need for your vacation.

Buying DVC solely to get annual pass discounts is not something I'd suggest, as the benefit is not guaranteed. It could literally go away tomorrow.

 

[CraigInPA]

Sounds like you would like BLT - for a 1 Bedroom for 1 week at the cheapest points season it would cost:
Standard 200
Lake View 231
Magic 277

There are only sleeping accommodations for 4 in a 1 bedroom, and the OP has a family of 5.

 

[have2getaway]

One of the main benefits of DVC is the larger rooms; not larger studios, but one and two bedrooms. With three growing children, I don’t think buying to stay in studios is the right way to think about it. Buy to stay in larger rooms.

I also don’t see any point in buying a small contract and renting additional points for each trip. Why wouldn’t you just rent points to begin with? If that works for you, there’s no reason to buy in.

And I worry when you say “our travel dates are flexible” and would have to be.” DVC is not particularly flexible. You need to plan a year in advance for high-demand rooms and about 8 months out for anything else.

I misspoke when I said “some of the studios” What I meant is that some of the studios, 1 bedrooms, and even 2 bedroom units do not have beds for everyone in the travel party.

If we stay at BLT, we are aware we would need a 1 bedroom. If we stayed at Poly, we would try to get 2 adjoining suites. What I meant by our travel dates being flexible is that I’m aware we might not get the top priority weeks since we would not have enough points on our own to secure the reservation.

My biggest concern with renting is that we were supposed to rent this January and backed out because, at the time, we didn’t think we would be able to go. Long story short, We were trying to coordinate around my older son schedule who has since decided he does not want to go regardless of when we go. I canceled the reservation more than 11 months in advance, but I still ended up losing about $900. I was renting for a week from 2 different private sellers. One was very generous and gave back all but 1/4 of what I paid. Another, gave back only 1/2. We rented a 2 bedroom at BLT. Anyway, I knew what the terms were in advance and made the mistake of overpaying on the deposit. I was naturally trying to get our room expense paid in advance. I regret canceling the reservation because, as it turns out, we definitely could’ve still gone, even though we wouldn’t have needed a 2 bedroom, however, it’s too late to go back now and change that decision—Lesson learned; Pay only what is required when it it’s required, and not earlier. I completely understand the renters perspective and feel they should keep something for the time they spent dealing with me and renting the points, however, I thought they were given ample time to re-rent the points and I don’t feel keeping half of what I paid (not half of what was due) when I canceled the reservation more than 11 months out is fair.

I’m well aware that could still happen with us buying a small contract, but just thought I would be more involved in the process since I would be an owner, and also more invested.

We like the idea of buying a small contract to keep our investment in DVC and annual dues low while we are seeing if it is right for us.

 

[have2getaway]

There are only sleeping accommodations for 4 in a 1 bedroom, and the OP has a family of 5.

I didn’t realize this. I just looked at the point chart and see if varies resort yo resort which 1 BR or studio will hold 5 people. Thank you!

 

[have2getaway]

I think, for now, we will continue going with deluxe rooms and just try to go to a DVC presentation and tour on our next trip. I’m not convinced ready to make the plunge just yet. I still have a lot to learn and consider.

 

[_auroraborealis_]

There are only sleeping accommodations for 4 in a 1 bedroom, and the OP has a family of 5.

This is incorrect. In a BLT 1BR, there is a king bed, double sofa sleeper and a chair bed.

In a BLT STUDIO, that sleeps 4. But the points being estimated was a 1BR, which fits 5.

To fit 5 reliably with provided bedding, you need to be able to book one of the following units (minimum; obviously, if you can book 2BRs that's swell too):

• BCV studio (requires home resort for reliable success)
• BWV studio (requires home resort for reliable success)
• VGF studio (requires home resort for reliable success)
• Poly studio (often available at 7 in low season)
• BRV studio (often available at 7 in low season)
• AKV 1BR Savannah or Standard (nearly always available at 7 months)
• BLT 1BR Any View (7 month availability pretty decent, but Standard not always)
• VGF 1BR (often available at 7 months)
• OKW 1BR (almost always available at 7 months)

The 1BR units at BCV, BWV, BRV and SSR sleep 5 if you bring a 5th bed.

Owning some points and "renting" additional results in having 2 reservations and a de facto split stay. DVC will let you buy 24 one time use points at 7 months once per year, but for what you would need for a week in most of those units, the unit would not be available at 7 months most of the year, and/or 74 points wouldn't be enough anyway.

 

[SL6827]

I am trying to buy a small 40 point contract right now and hoping to add on another 25 points direct from Disney, if all goes well. (If) This would gives us enough points to get our feet wet and see how we like DVC.

 

[have2getaway]

This is incorrect. In a BLT 1BR, there is a king bed, double sofa sleeper and a chair bed.

In a BLT STUDIO, that sleeps 4. But the points being estimated was a 1BR, which fits 5.

To fit 5 reliably with provided bedding, you need to be able to book one of the following units (minimum; obviously, if you can book 2BRs that's swell too):

• BCV studio (requires home resort for reliable success)
• BWV studio (requires home resort for reliable success)
• VGF studio (requires home resort for reliable success)
• Poly studio (often available at 7 in low season)
• BRV studio (often available at 7 in low season)
• AKV 1BR Savannah or Standard (nearly always available at 7 months)
• BLT 1BR Any View (7 month availability pretty decent, but Standard not always)
• VGF 1BR (often available at 7 months)
• OKW 1BR (almost always available at 7 months)

The 1BR units at BCV, BWV, BRV and SSR sleep 5 if you bring a 5th bed.

Owning some points and "renting" additional results in having 2 reservations and a de facto split stay. DVC will let you buy 24 one time use points at 7 months once per year, but for what you would need for a week in most of those units, the unit would not be available at 7 months most of the year, and/or 74 points wouldn't be enough anyway.

Thank you. This is very helpful. What is considered "low season" for DVC?

 

[bumbershoot]

I think, for now, we will continue going with deluxe rooms and just try to go to a DVC presentation and tour on our next trip. I’m not convinced ready to make the plunge just yet. I still have a lot to learn and consider.

Dvc presentation will give you no info that you aren’t getting here. And what you’re getting hereis way more than a presentation will give. A tour, as far as I know, will only show you the currently-on-sale units.

I don’t see what benefit either will give you.

We are crazy and we bought bay lake direct (with a loan), without ever having been to Orlando as a family.

Most would suggest staying at a few Dvc places befor deciding to buy and where to buy. Doing that would be more beneficial than going to a presentation or tour by a salesperson. IMO.

 

[supersnoop]

There are only sleeping accommodations for 4 in a 1 bedroom, and the OP has a family of 5.

BLT sleeps 5 in a one bedroom. There's a sleeper couch and a sleeper chair.

 

[Littlelulu01]

I’d recommend reading up about Dvc ownership- there’s tons of information with a google search. Once you have a good grasp on how the system works you’ll be better equipped to make a decision. Sounds like you want to save some $, stay deluxe, larger units, don’t want to plunk down a large amount of cash to try out the system, but want to have control over your reservation and flexibility should you want to reschedule (something renting points doesn’t allow for).

One way to try it out would be to purchase a 50 - 75 point direct contact. 75 is the minimum you can purchase direct at CCV. I think it’s 50 at other resorts. You’ll get 2017 points forward with any direct purchase right now. AKV is $165/per point and CCV is $176/point. Okw and ssr are $145/point. If you need additional points you can always take a transfer in from another member once per use year. Transfer is about the same cost as renting but it allows you to control the reservation. If you decide Dvc is working for you then you can always add on additional points as able.

I started out this way. The savings in the first year on the ap’s for our family was a big plus. Granted they can go away at any time but for 2018 they remain, so worth factoring in for initial purchase on a small direct contract right now. I squeezed my points by booking Sunday-Thursday at Dvc and then started the vacation off or ended with a Friday/Saturday cash reservation. We had great fun trying out different resorts the first couple years and ended up adding on.

Start looking at the points charts. If you want a one bedroom or two studio rooms, okw or AKV are good options. Both readily available direct. Ccv studios and one bedroom only sleep 4. Poly is a lot of points per night so small contracts not as practical.

Resale over direct on small contracts are not much if any savings, especially factoring the loss of direct benefits, hassle factor and that the resale contracts often are missing current uy points. Once educated on the system and you have your home Resort picked out then you can just call Dvc and do the purchase over the phone. They’re going to try and sell you a bigger contract and points at either ccv or Aulani but if you tell them you really want okw or AKV and only 50 they will get you those resorts. The process can take as little as a 10 min phone call vs a couple months resale and a couple hundred savings at best on a small contract.

 

[_auroraborealis_]

Thank you. This is very helpful. What is considered "low season" for DVC?

Low season is late January through August, with holiday weekends and runDisney events as exceptions.

In fall, 7 month bookings are hard, especially for studios that sleep 5.

 

[_auroraborealis_]

75 is the minimum you can purchase direct at CCV.

CCV would be a terrible choice for OP. Smallest unit that sleeps 5 there is the 2BR. Even the 1BR is hard limit 4.

Buying direct and getting no real, valuable home resort advantage is not a good move.

 

[Littlelulu01]

CCV would be a terrible choice for OP. Smallest unit that sleeps 5 there is the 2BR. Even the 1BR is hard limit 4.

Buying direct and getting no real, valuable home resort advantage is not a good move.

I certainly did not advocate for direct CCV purchase. I was simply stating the pricing per point and minimum buy in at CCV of 75 vs 50 at other resorts for a new owner.

 

[John-DVC]

Sounds like you have a few to many concerns to jump in at the moment. I think renting for a few trips and waiting it out a bit is prudent. The resale market is pretty high right now and will always be here anyways.

Renting points in many ways is just as good financially imo.