reselling dvc that expires 2041

[Mflaherty]

what is the perceived point value say after 15 years of a dvc that expires in 2041? Just wondering if one of the resorts that expire in 2041 is a wise investment? Who will buy dvc with only 15 years left and how much would it be worth at that point?

 

[mlayton14]

Your question is good but I have no idea. I for one prefer a sooner expire date and it makes the commitment smaller.

 

[CarolMN]

My opinion is that the value of a DVC contract will always depend on the cost and desirability of a Disney hotel room. If the contract price plus the cost of future dues are believed to cost less than the Disney hotel rooms, there will be some who will buy the contract.

No timeshare, including DVC should ever be purchased with the idea that it can be resold. So far, DVC has held value, but there is no guarantee that it will continue to do so. If we ever sell, I will consider any $$ we get for it as gravy.

I also agree with mlayton14 - the DVC contract's expiration was a plus for us. We did not want something that continued "forever" and have no interest in leaving our heirs an obligation.

 

[Mflaherty]

once it expires the money you paid for it is gone? i like the idea of being able to sell it after using it for some time and getting back at least part initial investment money. Doesn't that make it worth investing? if you pay say 15000 and another 12000(27000 in total) in dues over 10 years and receive nothing back in a resale then did you really save anything?

 

[Mflaherty]

thanks carol. helpful info

 

[lodge]

I think this is why it is really dependent upon finding what's right for you. Your question is one that is sometimes not considered when buying DVC, and is a good point to help in the decision process.

For us, we don't look at the upfront cost as anything other than an opportunity... an opportunity for us to book what we consider to be desirable accommodations. The maintenance fees are then our cost for the room. When the timeshare is up, our opportunity will have run it's course (due to our ages then) and the money we spent on maintenance fees is what we would've spent on vacation anyway (at Disney). It's just a mindset we have about the process.

We really like where we stay. I don't know anywhere else that has the entertainment that Disney provides, and the accommodations to put us right in the middle of it. It's expensive, but we value it highly.

Glad to see you are pondering it confused thoroughly... very smart.

 

[Deb & Bill]

what is the perceived point value say after 15 years of a dvc that expires in 2041? Just wondering if one of the resorts that expire in 2041 is a wise investment? Who will buy dvc with only 15 years left and how much would it be worth at that point?

Since none of them expire in 2041, it's a moot point. Now if you mean 2042...

 

[DizBub]

once it expires the money you paid for it is gone? i like the idea of being able to sell it after using it for some time and getting back at least part initial investment money. Doesn't that make it worth investing? if you pay say 15000 and another 12000(27000 in total) in dues over 10 years and receive nothing back in a resale then did you really save anything?

Buy resale at the absolute lowest price with the longest expiration date. SSR will fit the bill nicely.

NOT an investment it terms of a return on your money. If that's what you expect then DVC probably isn't for you. For us it's an investment in our quality of life and happiness.

We are going anyway and now we enjoy it even more. Period.

 

[Tunseeker1]

If you are thinking about the money disappearing because it expires, ten you should talk to people that own traditional timeshares.
There is no market for most timeshares, and they go forever. I know people that have tried to sell for years. You have to pay to list for sale usually and most people want to be paid to take it off your hands.

DVC is a cost for going on vacations.
You get no money back when you stay in hotels.
It is the same thing.

If you are making an expensive decision based on future value then DVC might not be right for you.

 

[Illini Al]

In 2042, this would be the least of my worries....

 

[lovin'fl]

In 2042, this would be the least of my worries....

That's what DH just said...he said we'd be lucky to still be alive to worry about that. We will only be 69 though, and my inlaws are that age and still using our DVC membership.

 

[Ilyo]

I agree with previous posters..you will not be happy if you are buying DVC for it's resale value.

The way DVC makes sense is if you regular Disney resorts...then instead of paying the equivalent for cash rates, you are saving with DVC.

Example
You were to spend $3000 a year on cash rates at disney...over say the remaining contract life of 30 years...total cost would be $90,000

Take the same time at disney (but in more deluxe amenities)...pay the initial investment of say $15,000 in resale market...plus 30 years of dues (example $1000/year)..total cost is $45,000....savings of 50% over cash rates

 

[ELMC]

My opinion is that the value of a DVC contract will always depend on the cost and desirability of a Disney hotel room. If the contract price plus the cost of future dues are believed to cost less than the Disney hotel rooms, there will be some who will buy the contract.

No timeshare, including DVC should ever be purchased with the idea that it can be resold. So far, DVC has held value, but there is no guarantee that it will continue to do so. If we ever sell, I will consider any $$ we get for it as gravy.

I also agree with mlayton14 - the DVC contract's expiration was a plus for us. We did not want something that continued "forever" and have no interest in leaving our heirs an obligation.

To add to this, I think the future value will be tied to the cost of the next best alternative, which I think will be renting DVC points. So if in 15 years rental costs are less than buy in plus maintenance fees, there will be a lessened demand and prices will fall until the market settles in at a point where purchasing becomes an attractive option. IMO that is nearly impossible to predict and like others have said, should not be counted on.

 

[Dean]

what is the perceived point value say after 15 years of a dvc that expires in 2041? Just wondering if one of the resorts that expire in 2041 is a wise investment? Who will buy dvc with only 15 years left and how much would it be worth at that point?

Obviously there are many variables including maint fees, closing costs, resale limitations, desirability of the resort at that time, hotel prices and discounts, and then current sales to name a few. I'm sure there will be a market at 15 years out, not so sure at 4-5 years out. My guess is the prices will be lower than many think though.

ETA: I would not buy DVC expecting/planning to sell it later.

 

[Sandisw]

When we decided to buy, we looked at what we were paying for just a hotel room at the CR and what we could get by buying DVC. So, it wasn't so much about paying less for lodging, but rather getting bigger and better rooms for no more than we were paying. We assumed a 30% discount as our base.

What we realized that to buy BLT, it would take 10 years to break "even" on the initial cost of those points. We assumed a resale value of 0 so once we pass that threshold, anything we get will be a welcome surprise.

We also looked at worst case scenario and having to sell points prior to the 10 year mark. If that happens, then it would mean we would have spent a bit more than what we could have had we stayed cash guests. In the end, we decided that it was worth the risk and bought.

Now, in terms of us actually saving us money--nope, not a chance. We used to go once a year, in the summer, for 5 or 6 nights. In 2012, I went 4 times. However, my trips now are with lots of family and friends. We stay in 1 and 2 bedrooms and get to Disney a lot more than we did before. So, from a strictly financial standpoint, my vacation budget has not gone down at all. But, I am getting SO much more for that money--bigger rooms, and a lot more fun at WDW!!

Basically, what I am saving on lodging is allowing me to go more often and have more memories with my family....something that would just not have happened if I didn't own DVC.

And, since I just put in offer for another 100 BLT points, I'm DEFINITELY tipping the scales in it costing me more!!!!