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bennytobunny
06-27-2002, 05:04 PM
Help!!!!!!

I don't know what to do, we are currently looking into DVC points but my husband has now thrown a villa into the table, he said for what we will end up paying disney we could buy our own home, this is if you take into the points purchase and annual due's.

The villa is only 2 miles from disney property, what are the pro's and con's for both.

Any advice would be appreciated!!!!

Cheers

WebmasterPenny
06-27-2002, 05:25 PM
Vernon is your man to answer this as he actually has both, so I'll leave it to him to explain the pros and cons of each option.

However, what I would say is this...unless you are buying a huge and I mean HUGE amount of DVC points, then buying into DVC won't come close to the purchase price of a villa (and that's not taking into account any taxes and other hidden costs you have to pay on your villa). Either that or the villa is actually just a shed painted white ;)

Off the top of my head...a total guestimate, because I haven't seriously factored in inflation on my annual dues etc...but for my 160 points (2 weeks at low season a year) for the next 40 years I figure it'll cost me in the region 25,000 tops (about $36,000) I'm not totally sure, as I'm not up to speed on the current market over there, but I'm thinking you won't get a nice villa for less than about 65,000 ($100,000) or so - maybe more - the person I knew who bought a villa for around that did it 2 years ago.

Like I say - that's all off the top of my head and it's not something I've researched to deeply so I may be well off base with the whole thing...in which case I have no doubt someone will be along to correct me, LOL.

Good luck whatever you choose :D

Penny :D

vernon
06-28-2002, 05:35 PM
I'll handle each separately then a conclusion ( of sorts) at the end.


DVC. (Disney's answer to timeshare).

Disney's use of a point's scheme makes this a really flexible option for most peoples vacation needs. There are 4 sizes of unit that sleep 4 ( in a hotel room size unit), 4 (in a one bedroom suite with full kitchen and living room. The bedroom has one Kingsize bed and a pullout sofa bed in the living room), 8 ( in a two bedroom unit, which is basically both of the above joined together) and 12 (in a 3 bedroom Villa, at least one sofabed makes up the balance of beds !!). The cost, in points, of each unit varies with the days of the week and the seasons. You can go WHENEVER you want in the year and take whatever size unit you want AS LONG AS there is availability and you have the points available to use.

You are given your certain number of points each year and have a points " use year" in which to use (or bank them). There are restrictions on banking and borrowing points but these are pretty fair/flexible so as long as your fairly organised it shouldn't prove a problem to anyone.

Cost. Minimum is 150 points which are currently $67 per point through Disney, cheaper by resale. ( 150x67= $10,050) as A ONE OFF PAYMENT and thereafter you have to pay " dues" which are about $4 per point at the moment ( these have historically averaged about 3% PA increase) so at the moment dues would be about $600 per year. What would 150 " buy you as far as accomodation goes ? Well in August that would get you a "hotel room" type unit for 11 nights ( consecutive but only using one weekend as they are MUCH more expensive). The are so many different ways to use your points I would suggest looking at the points chart on the DVC information page which is on http://www.wdwinfo.com/resort/dvcpoint.shtml and playing around to see what suits you.

What I think is so good about the points system is, when your kids are small you can get away with a " studio" and have longer stays, as they get bigger ( if they can share the pull out) and you don't want to be sharing a room you can use a one bedroom. Want to bring Grandparents? or you have more than 2 kids ? get a 2 bedroom. Fancy a family holiday with Grandparents and your brother/sister's family? Save up you points and get a 3 bedroom. Kids have all flown the coop? get a studio and have a long time there. Become grandparents, take your children and their family and get a two bedroom. It is a system that allows your family to grow and your needs ( time of the year) to change without penalising you.

IMHO between 200 and 300 points should be enough for most people's needs UNLESS you want to stay exclusively on Disney for 3 weeks EVERY YEAR in a larger unit. There are a lot of ways to make the most out of your points and I prefer to use the DVC as " a little extra treat" within a holiday not as my exclusive destination. There are many that prefer to stay on DVC ALL the time, to each their own.


Owning a house

Obviously this is a bigger commitment and really IMHO should only be looked at IF your concidering spending A LOT OF TIME in Florida in the future. I do plan to retire there and spend AT LEAST 4-6 month each year there when I do. US immigration rules at the moment allow you to spend one day short of 6 months each year without becoming resident, more than that you have to get a green card, which isn't easy !!. As an investment, your not going to get rich on your rental earnings and IMHO if you do better than break even then your doing well. As far as property prices in the future..... Who knows, IMHO they are likely to rise as the population ages and more of that generation have the money to either have a holiday home in a warm climate or just plain go live there all year round.

Cost
A nice 3 bedroom house not too far from WDW start from about $100,000. You need to be able to come up with about 30% as a downpayment, allow $15,000 to furnish it AND leave about $5,000 for closing costs. You should get some money back from that $50,000 but I wouldn't bank on it LOL . Your mortgage on the balance is likely to be about $800-900 and your agents "costs" about the same so your earnings need to be about $1600 a month to break even. The reality of that is you need to be rented out about 23-24 days a month to break even. Or if you prefer 38-39 weeks of the year. So far my house has been a little shy of these totals and has cost me $3-4,000 each year. But I have had 5 weeks use at PRIME rental time and would certainly have picked up bookings for all those times and would expect to have earned $2,500-3,000 for that. SO had I gone at different times I would not think it would be more than $1,000 one way or the other.

Comparing the two.
Commitment !! How committed are you to Florida vacations ? and your future. Both are great ways to take a holiday.
DVC is for the next 42 years, a home is yours ( or your families for ever).

DVC gives you (MAYBE if you are REALLY miserly with your points) 25-30 nights accomodation a year, a home ???? once it is paid for the only limit is your immigration limitations.

Cost DVC is an outlay of maybe 3 holiday costs AT ONE TIME and minimal per year after that, a house is a major outlay and potentially a major on going one after that as well.

Last thought.
A house is a MAJOR commitment/investment and should not be taken on lightly, I'm happy with it because that's where I want to live eventually( certainly for 6 months of the year. I don't think I would take it on just as an investment.

DVC is a great way to prepay your vacations, particularly if you find you have a spare 10,000 fall into your pockets and ( like me) know you'll only blow it !!!.

IMHO DVC is a GREAT deal if your looking to go on holiday to Florida once every 2 years minimum and like GOOD class accomodation for at least some of the time your there. I'd happily recommend it to anyone who fits that catagory. With DVC I KNEW after the first visit and going over all the details in detail I had got an absolute bargain.
A house is a really large commitment and while there are MANY of us who would like the idea, it needs more than that and does require A LOT of thinking and planning. I spent 3 years mulling it over and two years since I took the plunge, I think I did the right thing I'm not 100% sure though.

Hilary
06-29-2002, 03:18 AM
but my husband has now thrown a villa into the table
LOL! Do you think he would like to 'throw a villa' my way? ;)
Cost. Minimum is 150 points which are currently $67 per point through Disney, cheaper by resale
The current cost through Disney is actually $80 per point (although you may be able to get an 'incentive to buy' deal to reduce that), but I have heard of resales going for around $67.

For me, the other factor would be the committment not just to WDW but to the Orlando area. I know that everyone says you only get value from DVC if you use your points at DVC resorts, but these also include Vero Beach and Hilton Head Island - not just Orlando. Add to that the possibility of trading out to other resorts all over the world and that's the attraction of DVC over a villa for us.

I just don't think we're the kind of family to want to go back to Orlando only every year ad infinitum. DVC gives us the potential to vary that every other year or so. We don't feel tied to Orlando and WDW but feel that we are 'justified' in exploring other areas as well using our points. I know that, if we owned a villa, I would find it hard to justify spending time anywhere else because it is such a huge investment (in all meanings of the word).

If I were looking to buy a villa in Orlando I would have to know that I wanted to spend a lot of time in the same accommodation in the same street in the same area in Orlando every year - that doesn't fit my remit, but only you know whether it would fit yours!

Good luck with whatever you decide :)

bennytobunny
06-29-2002, 12:42 PM
Thanks for your help. I see the plus and negatives with both we love Florida and usually spend 6-8 weeks plus over there a year, we do usually stay in or around Disney for some of it and move around alittle for the rest, we have seen most of Florida but obviously the mouse has the magnet back, I am a big Disney fan and have been since my childhood days which is a fair while.

We have looked into villas before but not quite so seriously, we have just been looking at the villas in Oak Island cove which is only about 3 miles from Disney, it is alittle more expencive than we were first looking for but it is new, we was originally looking at re-sales, but have been told the closer to disney the more rentals you can scrape in, we are not really doing it to make money although if it did that would be nice, as long as we can more or less cut even that's fine.

The other side is the flexibility of the Disney points, you can move around and stay at other resorts etc, but working on the rooms etc we usually stay in at Disney we would need about 350/450 points for two weeks in Disney or the cruise etc.

I will pour it over some more but I hope when I look into our finances we could possible go for both, although it would be a bit of a sqeeze.

Thanks once again.

vernon
06-30-2002, 04:45 AM
With the amount of time you plan to spend in Orlando per year, then either you will need a massive amount of DVC points, or use the DVC, as I have done, as a "special treat" at the start/end of a holiday. I've done ( for a 3 week holiday) spending the first 5 nights using DVC on WDW, then 10 nights in a villa to cover the rest of Orlando, followed by 3 or four nights at either Vero (or HH if you prefer) as a beach break. I've found this was an economical way to make the most of DVC while not costing too much on points etc. Obviously this works best by making sure your DVC stays are Sunday to Thursday. If leacing the UK on a Saturday I'd check into a cheap motel for the night as by the time you arrive all I'm ready for is a snack and bed. Next day go straight to DVC, precheck in ( collecting any park tickets) and head off for the parks.

The financial aspects, whether a house will work out financially, will be very much effected by the time of year you go. If you plan to spend 6-8 weeks in Orlando during school holiday times then it will badly effect your potential rentals as they are "banker"times that you can guarantee you will recieve rentals. If you would be likely to go in say Feb, May,June or November away from school breaks then you wouldn't be costing yourself anywhere near the lost income and it's likely to work out to be a much better deal.

bennytobunny
06-30-2002, 06:50 AM
Thanx once again. We do usually go out of high season either Nov/Dec and possibly March April which is the beginning and end of our business season, all be it it will now be alittle more difficult given my son is just starting school, but we will lose out over chrismas as we have decided we will go out for three weeks then, and proberly Feb for another two's, but we are unable to go June, July and Aug anyway so I hope if we do go ahead with it we will be basically be able to cut even.

I have been trying to find out about the funiture packages, how do I get a list of whats included and is it cheaper to do it myself, we are looking at a new home and will be able when it is just finished to go over for 6 weeks to funish it ourselves, just wondered what the best thing is to do. I know this isn't really the place to ask but you seem to have a good handle on things.

Many Thanks

vernon
06-30-2002, 09:35 AM
Because the rental companies who do most of the furnishing of properties have good knowledge of the local discount shops and are also able to bulk buy a lot of things I think it's unlikely that you will save much/anything by furnishing it yourself. Given that each rental company has different specs of what it's MINIMUM requirements are I think it's going to be really quite tough to approach it that way. It's also potentially quite time consuming. Unless you wanted to book a hotel for the first couple of weeks (expensive) or wanted to sleep on concrete floors in sleeping bags and sit on orange crates ( not much of a holiday) how would you organise picking out your furniature and the delivery for your arrival? While I expect the US to be a great deal more organised on delivery times than we are, I doubt there are many places that you can go and order the goods for immediate delivery. If you need to get the stuff in a matter of days I think there is a good chance it would cost you a lot more than getting a company to do it on your behalf.

While I understand the attraction of making the house "your own" by selecting all the furnishings yourself, I think it's a lot of hard work to do so in an area you don't know the best places to shop, it will eat into your holiday time and (to me the most important), don't forget that for a large amount of time this will be rented and used by other people. If the chair/bed/table you spent days choosing and waiting to be delivered etc etc gets broken/damaged you're going to feel it much more than if it was just part of a package organised for you , but to your tastes.