DVC? Yay or nay?

[Dimples1973ca]

We just got back from WDW. DH and I attended a meeting regarding a DVC purchase. We were ready to sign on the dotted line but wanted to talk it over more. I wanted to make sure it was not an emotional purchase.

I am curious to what fellow Canadian Disers think. Who owns one? is it worth it? Is there alot of hassle or red tape buying in the US?

Thanks in advance!

 

[SmilingGrump]

We just bought in. There's no hassles or red tape to owning DVC, it's not "real" property since it has an expiration date therefore isn't subject to the same rules as if you owned a home (which still isn't complicated, btw).

You have to really think about how you plan on travelling. DVC makes sense only if you're going to WDW or DL at least every 2-3 years. You can use your points for cruises, but (as you'll find when you start reading about DVC) it's more economical to rent your DVC points out and pay cash for cruises. Also, if you're planning on trading your DVC points to stay at other non-Disney properties, there's cheaper timeshares you can buy that have similar trading values.

Personally, we plan on hitting WDW or DL every 2-3 years. Our plan is to Bank points from Year 1, Travel there Year 2, and borrow points from Year 3. Year 4 we'll bank, Year 5 we go, Year 6 we borrow from. etc Since we frequently travel with relatives, that will allow us to be able to get 2 - 2BR units whenever we go with the possibility of getting a studio as well depending on time of year. Eventually, we'd like to add on but will likely do that by purchasing Resale points.

Speaking of which, if I'd have known more about Resale Points before we bought, we'd likely have gone that route instead. The savings are dramatic and the restrictions are not really important to us (not being able to use our Resale Points to stay at a regular Disney hotel is not important since we'd always want to stay at a DVC resort anyways ... that's why we bought in!)

Hope this helps. I'd highly suggest reading up on the DVC sections, lots of great information there! If I can help with anything else, let me know

 

[ccudmore]

Before you sign the dotted line you may want to look into the resale market to see if you can save some dollars buying from an existing member who is selling.

 

[tgropp]

I found out that if you go every 2 years (minimum 3) that it is worth it. Buying resale is the way to go, even with the few new restrictions that were imposed last March. You can find these on previous posts. Make sure that you purchase at the resort that you want to spend most of your time at, especially if it is in a timeframe (Christmas etc.) where the 11 month window is important. If you buy resale a smaller contract (100 points)is easier to resell than a larger one (200 + points). Only you will know if it is worth it. I never regret buying as it has saved me A LOT of money.

 

[sean-1966]

We've owned since 2004 and love it. We just got a great deal on some Vero Beach points on the resale market. If you visit every year you won't regret it.

 

[SmilingGrump]

One other note, if you're adding on points make sure they have the same Use Year or it gets more complicated to bank points. It's okay if you're only travelling every couple of years, but if you travel multiple times in a year you can run into problems.

 

[minnie mum]

I would love to go DVC, but the only thing holding us back is (at least for us) the rather high annual fees on top of the actual purchase cost. Since we usually stay at a mod (we go every 12- 18 months), I'm having a hard time figuring out how DVC would actually save us any money?

Any DVC owners that can help me out with this question? (Hope I'm not hijacking the thread)

 

[disneychic2]

I would love to go DVC, but the only thing holding us back is (at least for us) the rather high annual fees on top of the actual purchase cost. Since we usually stay at a mod (we go every 12- 18 months), I'm having a hard time figuring out how DVC would actually save us any money?

Any DVC owners that can help me out with this question? (Hope I'm not hijacking the thread)

I was wondering the same thing actually. Hope someone can shed some light.

 

[b-1]

we almost always stayed at mods and we have bought 2 resale contracts at BWV since november 2010.

I figured that my points cost me just under $8 each to purchase and pay the maintenance fees. ( that includes initial purchase and closing fees)

my 12 night trip this xmas dec 28-jan 9 is 179 points so $1432 or $119 per night. we are staying at the Boardwalk Villas in a studio standard view. The FQ for the same dates with an AP discount on the nights that are available is aprox $2200

now the difference in price becomes smaller during low season because there is usually discounts available for room only reservations but my DVC calculations still come out ahead.

remember though that the accomdation cost is only one part of a disney trip. unfortunately, DVC doesnt make the trip "free"

I would def look at resale, as you can save thousands (!!!)

I was able to purchase both my resale contracts from home, I didn't have to be in florida in order to make the purchase.

good luck and read up on this DVC section of the boards. lots of knowledgable people with the ins and outs of purchasing DVC.

 

[shillee]

b-1: Thanks for that info.

I have been 'looking' at DVC now for YEARS! We still haven't bought in as the point price just seems too high with maintenance fees. Perhaps it is because of the deals we have gotten or the fact that on our last couple of trips we have had to stay off-site (very young kids who need their own room for quiet sleeping).

I did look at potentially 'renting' points for an upcoming stay at BW (which is our favorite resort). The points were 166/week. For $1660, we are staying off-site in a 2 bedroom place. Last year we stayed off-site in Windsor Hills in a 3-bedroom place for what one week would have cost us.

I understand the premium for convenience but haven't been able to justify that much of a cost difference yet. Perhaps when the kids are older it may be easier to justify for a studio versus being on site at a moderate for the price.

We typically go for 2 weeks at a time each year so it is a big vacation. Last year was unusual at 3 weeks.

I think DVC is the way to go if you normally want to be on-site in deluxe accommodations but don't want to pay the normal 'rack' rate?

 

[b-1]

the other perk is the flexibility of DVC.

In may a friend and I went down to shop and sit by the pool. we stayed 4 nights at AKL and it was great! We were going to go to Toronto to shop etc. but the flight was about the same to Orlando and with my DVC our hotel was about the same price as a downtown toronto hotel. so we picked AKL instead (duh) and had a marvellous time.
4 night long weekend - no problem
12 night xmas vacation - we can do that too!

PS i would never have bought DVC direct the per point price is far too high for us to make it worthwhile. I personally dont think we would use DVC for the length of the contract. so whether it has 30 years or 50 years doesn't really matter. I havn't got a clue what my kids lives w\ill be like, and whether they will be able to afford DVC member dues or whether they would even want our contracts.

 

[mtmbyck]

The other thing I recall is that DVC members cannot take advantage of free dining promotions. Is this still the case. I have rented points for as low as 6 dollars per point staying in a 2 bedroom at SSR and BCV for under 200/night. Plus, You can get a great deal off season on rates at OKW and SSR with free dining. If I could buy outright with no debt, I'd do it tomorrow!

 

[TLPL]

I love my DVC, we have 210 points, enough to go every year, and not too much our annual maintenance fee is under $1000. You get the same amount of points every year until the end of the contract. If you buy resale, you can't trade your points outside of the DVC resorts. We bought direct from Disney, so we can trade it out with RCI, we traded some of our points to stay at Blue Mountain in the past, we also traded some points to go on a Disney Cruise, and treat my family on vacation at WDW and even HKDL. So basically my annual expense is $1000 and it take care of my accommodation portion of my vacations. And we are talking about Disney's Deluxe resorts here, 3 nights in any one of those resort already cost more than $1000!! and with my 210 points, it's enough for a week in a one-bedroom in peak season, or even 3 weeks in a studio in off-season! Plus, you can save money from making meals in your villa's full kitchen! Maintenance fee will go up, but it will never go as much and as fast as hotel room rates!

 

[SmilingGrump]

I would love to go DVC, but the only thing holding us back is (at least for us) the rather high annual fees on top of the actual purchase cost. Since we usually stay at a mod (we go every 12- 18 months), I'm having a hard time figuring out how DVC would actually save us any money?

Any DVC owners that can help me out with this question? (Hope I'm not hijacking the thread)

DVC doesn't make economical sense if you're staying at moderate hotels when you go, however, it does make sense if you're staying at deluxe or above. The difference is a condo with a kitchen vs a hotel room. If you want the extra space and convenience of a kitchen AND you travel there regularly, then DVC will pay for itself in 6-10 trips. Note that the number of trips increases if you're financing, and if you're financing through Disney's high rates then it never really makes economic sense.

I love my DVC, we have 210 points, enough to go every year, and not too much our annual maintenance fee is under $1000. You get the same amount of points every year until the end of the contract. If you buy resale, you can't trade your points outside of the DVC resorts. We bought direct from Disney, so we can trade it out with RCI, we traded some of our points to stay at Blue Mountain in the past, we also traded some points to go on a Disney Cruise, and treat my family on vacation at WDW and even HKDL.

If you buy resale, you can still trade out with RCI. However, you can not trade out for other (non-DVC) Disney hotels, Disney Cruiseline, or Adventures By Disney. Most people are fine with these restrictions since they'd stay at a DVC resort instead of a hotel anyways and it makes more economic sense to rent your DVC points out and pay for a cruise with cash then to use your DVC points on DCL. So the only thing you really lose is the Adventures By Disney, and, again, you could always rent out your points and pay cash.

 

[b-1]

DVC doesn't make economical sense if you're staying at moderate hotels when you go, however, it does make sense if you're staying at deluxe or above.


this is not necessarily always true. it really depends when you are travelling. using DVC at christmas time when hotel rates are high gives DVC a distinct advantage. for $119 per night i'm staying at the Boardwalk from dec 28-jan 9 where as the average nightly price at the FQ for those dates ( with an AP discount on the nights that the discount is available) is $183.

 

[SmilingGrump]

That's a good point. If you're travelling during the busiest times of the year, then your "pay off" will be sooner, perhaps sooner then the 6 trips I mentioned. For us, we prefer to travel in Oct/Nov and the payoff of 6-10 trips depends on which type of rooms we'll be getting and is based on us paying full price from Disney.

Now, if you decide Resale is for you, then you can reduce the payoff time by 1-2 trips (more if you get a great deal).

Good luck on your decision!

 

[Tiger926]

DVC doesn't make economical sense if you're staying at moderate hotels when you go, however, it does make sense if you're staying at deluxe or above.


this is not necessarily always true. it really depends when you are travelling. using DVC at christmas time when hotel rates are high gives DVC a distinct advantage. for $119 per night i'm staying at the Boardwalk from dec 28-jan 9 where as the average nightly price at the FQ for those dates ( with an AP discount on the nights that the discount is available) is $183.

Yup, not true at all. As long as you are including your buy-in plus dues for your total accommodation cost, then you can compare to the nightly cash rate.

Our price per night for accommodations, is close to the price of a moderate or a bit more, for a 1 bedroom villa. Studio is pretty much the same price, or could even be cheaper. We bought SSR 7 years ago, when exchange was 32%, so our buy-in was higher.

Now with resale prices so low, once you add up your buy-in and dues for your total accommodation cost, you would be at a very similar rate to a moderate room. Which don't forget if you are in a studio, you get a kitchenette and balcony too, and in our 1 bedroom villas, we get a full kitchen, laundry, hot tub and balcony. We are at about $180-$200/night CDN for a 1 bedroom villa. Can't beat that!

Buying direct from Disney is very high right now, so you won't get these same numbers, but if you bought resale, you would be in great shape.

Tiger

 

[stefanospops]

We love it as well. The way I looked at it was to consider my initial purchase price per point separately from the annual dues since I have no control over the annual dues. We have 395 points and that cost me just under $1500 in annual fees. I will explain this reasoning later.

I use those points for 3 trips every two years. Before I bought DVC I had stayed once at the Polynesian and once at the Contemporary, so being on the monorail was important to us. For an upcoming trip we have from January 8-14 the least expensive room I can get for my family is $1500 at Port Orleans or $1700 at All-Star Music (this excludes any park passes). If I stayed at Bay Lake Towers the cost is $4,300. So the cost for three of those trips in two years in even at the value level exceeds my annual dues cost by $750/year at the least expensive. Keep in mind those points get me a 1 bedroom at Bay Lake Tower that sleeps 5 with a Lake View in low season, which is when I go. So that is almost $13,000 if I booked through Disney for an annual dues cost of $3,000. So I save about $5,000 a year for the trips that OUR FAMILY would take. We likely wouldn't stay at the value resorts as we haven't in the past.

So based on that alone, the $5,000/year in savings pays off our cost to purchase DVC in about 8 years. This means we start saving money in year 9. However, I treat the initial cost per points separately for two reasons. Firstly, I suspect that the Canadian dollar will eventually drop to about 85% of the US dollar. Since I bought when the Canadian dollar was worth $1.05US then I stand to see the value of my initial purchase gain that 20% value as the US dollar eventually climbs against the Canadian dollar. I recognize this won't happen for years, which I am okay with because I don't intend to sell for years. But if my roughly $100/point purchase sells for $80 per point when I am ready to sell then really I broke even.

This brings me to my second point. I have no desire to hold on to my DVC points until the conclusion of the term. I plan on selling my DVC points in about 15 years when my kids are grown. So even if I "saved" $5,000 per year during the time I used my membership, my final cost will be my annual dues plus whatever I lose in depreciation of my points on resale, and then factoring in the change to the Canadian dollar vs the US dollar.

So in the end, I suspect that my final cost will simply be my annual dues cost per year plus some erosion to my initial investment that I hope will be made up through an appreciation of the US Dollar versus the Canadian dollar. However, even if the end value of my DVC purchase is $0 when I am ready to sell, then I have started saving money from year 9. Win-win in my books.

 

[Tiger926]

We love it as well. The way I looked at it was to consider my initial purchase price per point separately from the annual dues since I have no control over the annual dues. We have 395 points and that cost me just under $1500 in annual fees. I will explain this reasoning later.

I use those points for 3 trips every two years. Before I bought DVC I had stayed once at the Polynesian and once at the Contemporary, so being on the monorail was important to us. For an upcoming trip we have from January 8-14 the least expensive room I can get for my family is $1500 at Port Orleans or $1700 at All-Star Music (this excludes any park passes). If I stayed at Bay Lake Towers the cost is $4,300. So the cost for three of those trips in two years in even at the value level exceeds my annual dues cost by $750/year at the least expensive. Keep in mind those points get me a 1 bedroom at Bay Lake Tower that sleeps 5 with a Lake View in low season, which is when I go. So that is almost $13,000 if I booked through Disney for an annual dues cost of $3,000. So I save about $5,000 a year for the trips that OUR FAMILY would take. We likely wouldn't stay at the value resorts as we haven't in the past.

So based on that alone, the $5,000/year in savings pays off our cost to purchase DVC in about 8 years. This means we start saving money in year 9. However, I treat the initial cost per points separately for two reasons. Firstly, I suspect that the Canadian dollar will eventually drop to about 85% of the US dollar. Since I bought when the Canadian dollar was worth $1.05US then I stand to see the value of my initial purchase gain that 20% value as the US dollar eventually climbs against the Canadian dollar. I recognize this won't happen for years, which I am okay with because I don't intend to sell for years. But if my roughly $100/point purchase sells for $80 per point when I am ready to sell then really I broke even.

This brings me to my second point. I have no desire to hold on to my DVC points until the conclusion of the term. I plan on selling my DVC points in about 15 years when my kids are grown. So even if I "saved" $5,000 per year during the time I used my membership, my final cost will be my annual dues plus whatever I lose in depreciation of my points on resale, and then factoring in the change to the Canadian dollar vs the US dollar.

So in the end, I suspect that my final cost will simply be my annual dues cost per year plus some erosion to my initial investment that I hope will be made up through an appreciation of the US Dollar versus the Canadian dollar. However, even if the end value of my DVC purchase is $0 when I am ready to sell, then I have started saving money from year 9. Win-win in my books.

I admit that math is a challenge for me at times...I'm an English teacher, for goodness sakes. But your post has made my head hurt. I am confused by your post, and I am a DVC member.

The only way to truly get your accommodation cost, is to add up your buy-in with your dues. We have 360 points, and our buy-in is $800.00/year. We then add our dues and divide by point cost in order to get a per night or per trip cost.

I will have to show hubby your post, and maybe he can explain it to me.

Glad you enjoy your DVC! Tiger

 

[stefanospops]

Sorry about that. I dislike mixing numbers and words for that reason! My assumptions are that I will sell in 15 years and that my initial buy in will still have value when I sell. So all I was trying to illustrate was that my initial buy-in is never lost unless the product becomes worthless or I use it until the term expires. Since I can recoup some of that initial investment, and I plan to, then my costs are reduced further.

I forgot to mention that the fact the rooms we book all come with a full kitchen means we save a lot of money on food too. We both got real tired of Disney food while on the dining plan the first two times so having a room to at least cook a nice dinner and have an inexpensive breakfast saved us a lot of money.