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View Full Version : DVC vs Timeshare


WDWguruDH
02-09-2003, 06:03 PM
I had an interesting thought, figured I would post and see what others thought.

One of things that originally bugged us about DVC, and is often discussed here, was the expiration in 2042 - no true ownership. We crunched the numbers and it still made sense, so we purchased with the concept of pre-paid vacations for the next 40 years. But, wouldn't it be better if we owned it past 2042 and it would continue to be a better deal?

Now the thought: As has been discussed here, the cost of rising dues, etc will continue to create quite a committment. Now, god forbid, if Disney were to lose the appeal as a destination in the next 40 years, then the value of DVC would drop. It could even drop to less than the cost of annual dues, thus you would be up-side-down in the committment. Now, I don't state this to insite fear, but merely as a possibility - Disney has done well and will continue to do so. But, this would be a genuine concern for other timeshare locations, non-DVC. If I had purchased another timeshare that included a non-expiration ownership, this appears to have an advantage over DVC - goes on forever, can be passed on to childern, etc. But with that ownership comes the obligation. If another timeshare were to experience what I mentioned above, the children would actually inherit an up-side-down property - debt.

Now, to me, the expiration appears to be a good deal, I don't have to take the risk on the property, Disney does. I just get to take cheap, pre-paid vacations with better accomodations for the next 40 years, then I am free and clear.

FredS
02-09-2003, 06:13 PM
For most timeshares I would probably consider it a plus, because I would be more seriously concerned about what the distant future would bring and I could picture certain timeshare companies slacking off to the point that you didn't want to vacation at the timeshare resort, couldn't rent/sell, and you were stuck with dues which exceeded the value of your time for the year.

For Disney, in one way ending these contracts in 2042 IS a minus, because I believe Disney will maintain an adequate level of amenities and quality to keep the value, so I would prefer permanent ownership. However, there is some consolation in the thought that, even though this ownership is set to end in 2042, I also believe that Disney will have other timeshares which will extend beyond that. My thought is that Disney will keep up these properties and not gouge the owners on maintenance fees because that would kill one of their golden geese. If previous owners are not happy it will be hard to sell to new owners.

Like you, though, we knew it would be a wise financial investment for us even having it available until 2042. More time would just be gravy.

CarolynFH
02-09-2003, 06:16 PM
We would second that!

My parents own three weeks in Hawaii at 2 different resorts and a week in an Orlando Marriott. We stayed with them in Hawaii over Christmas and New Year's, and their oldest resort is starting to show some wear and tear. We actually had to move into a different unit the day after we arrived because of multiple problems with the first one. And this is not an inexpensive timeshare, it's a first class one that actually trades through II as well as RCI and can be accessed via DVC points. My parents were extremely distressed because they have never had even one of the problems in their units before, and for us to have several in one unit was just too much! :mad:

Anyway, it got us to thinking, what about when these timeshare buildings deteriorate (nothing lasts forever) and the time comes to tear them down? Who pays for demolition? Since I will be one of the heirs of my parents' timeshares, I hope I won't have to be involved in that issue. But we do wonder, will we end up actually paying to unload a distressed property?

When we bought DVC, we figured that in 2042 we won't care what happens with that ownership (we'll be 92, or dead). And before then we will have enjoyed many first class vacations with prepaid accommodations. And we won't have to worry about leaving our kids a liability instead of an asset.

cher8754
02-09-2003, 07:19 PM
I bought my first resort in 1987 long before it was the "in" thing to do. I now own at 4 different resorts: Old Key West, Hilton Hawaiian Village, and two resorts in Mexico. I have had many problems with other units when trading, and what I have learned and decided, is that I will only purchase at "name brand resorts" such as Disney, Marriot, etc. If you watch the sales on E-Bay or anywhere else, they are the only resorts to maintain their value. I think my children will be quite happy to inherit the Hawaii property. I personally will never worry about Disney maintenance of the properties - that is one of the reasons I purchased there and that is another reason I will only buy "name brands". However, most of us did not purchase with the idea that one day we might rent these units, but that option is always there. I look forward to purchasing more points from Disney in the future, regardless of the economy or politics. In 2042, I will also be 92 or dead. Hopefully, my kids won't get to inherit the Disney property!

Dean
02-09-2003, 07:23 PM
First, DVC is a timeshare. There are many Right to Use timeshares out there. I don't see the RTU as a big deal and in spite of being at WDW, I can't think of much I care about owning that's 50 years old, esp if you don't own the land under it. I own both types of timeshares and it really doesn't bother me either way, esp with almost 40 years left.