My family and I just got back from a fantastic vacation at WDW and since we stayed in a 2 bedroom villa at OKW for approx. $2,900 for a week (that was with 40% off--my brother has a connection who was able to give us a discount), I decided to do some research into owning DVC points to see if it would make sense for our family. We have 4 children, ages 3, 6, 9 and 11 and they had never been to Disney before; it would be an understatement to say that they were blown away! I was too!!!! My husband and I grew up in Orlando and of course, Disney had no attraction for us as we got older and moved away, but wow a lot has changed in the 20 years since we've last been there. It was all very familiar but a lot more amazing than what I remember... I couldn't believe Downtown Disney!
Anyway, my children have already planned that they want to go back in 2016, 2018 and 2019 (we can't go in 2017 because my husband won't have enough time off). As my older son remarked, "How could we go anywhere else?". I totally agreed with him. We all had a blast from the 3 year old on up.
So since we already know that we'd like to go back 3 more times in rapid succession, I decided to run the numbers and based on what I have, owning DVC points SORT OF makes sense. I say "sort of" because the numbers weren't bad (not a huge win for DVC but I can definitely see how it makes sense for long term usage), but it's the commitment to a Disney vacation that's the issue and I'm trying to get more clarity on that.
I compared purchasing 220 points for a 2 bedroom villa at OKW to paying cash each year for the same through renting points at David's (both the rental cost at David's and the 40% off rack rate discount that I got end up being about the same, and I can't always assume I'll get that 40% off). By year 8, we will start to see a savings over what we're paying but based on my numbers, those savings aren't huge. For instance, in year 8 of owning the DVC we will have spent $25,984 total for our DVC ownership (this is assuming a 3.5% increase in annual fees). If we pay cash and assume a 3.5% increase each year in room rates, then on our 8th visit to WDW we will have spent $27,499. In year 9 of owning our DVC we will have spent $27,588; if we paid cash as free people we would have spent $31,499. Here are my questions:
1. Is that $1,500 savings after 8 visits or $4,000 after 9 visits really a savings when it comes with the cost of inflexibility and uncertainty with where life will take you? Maybe looked at differently, for just $5,500 you can vacation wherever you want (or not at all) for the next 9 years! Is it a big savings for a vacation or a small price to pay for freedom?
2. Are there people out there who totally regret it? I'm assuming there are many of those of who do because they're the ones selling their points on the resale market I've been looking at!
3. What about selling if we decide it's not for us? I know Disney has ROFR but will they exercise that option as much as contracts get closer to the exp. date? For instance, if we purchase an OKW contract that expires in 2042 and we decide to sell in 10 years because it doesn't suit us anymore...we're selling a contract that only has 16 years left on it. Do you think there will be any buyers for that? Should we assume we're in it for the long haul after 10 years and our only option would be to recoup annual fees by renting out points? Maybe that's just a guessing game since there's no history to refer back to.
Anyway, I'm looking for opinions to help me gain some clarity. I'm so intrigued by the idea but I feel like I haven't been convinced that it's a great idea or that it's a terrible idea. I'm not looking for platitudes like "It worked for us, but it may not work for everyone." I need real opinions! Did you crunch the numbers and wonder if you were really going to love it after 10 years and it turns out you did? I'm using 10 years as my base number because by that time my youngest will be 13 and my oldest will be 21...will we still want a Disney vacation? What about people who went for it and were totally surprised at the use they got out of it? Will it be great to own to give as a gift to our adult children when they want to take their children or we take the grandchildren...should I really be thinking that far out??? I also don't agree with comparing the money we'd spend on a DVC to what we could make if we invested the money because that argument assumes that no vacations will be taken, DVC or otherwise so to me it's just not a logical argument to make. I'm basing my calculations on the fact that money will be spent each year on a family vacation...the big question is: Should it be at a DVC resort????
Anyway, my children have already planned that they want to go back in 2016, 2018 and 2019 (we can't go in 2017 because my husband won't have enough time off). As my older son remarked, "How could we go anywhere else?". I totally agreed with him. We all had a blast from the 3 year old on up.
So since we already know that we'd like to go back 3 more times in rapid succession, I decided to run the numbers and based on what I have, owning DVC points SORT OF makes sense. I say "sort of" because the numbers weren't bad (not a huge win for DVC but I can definitely see how it makes sense for long term usage), but it's the commitment to a Disney vacation that's the issue and I'm trying to get more clarity on that.
I compared purchasing 220 points for a 2 bedroom villa at OKW to paying cash each year for the same through renting points at David's (both the rental cost at David's and the 40% off rack rate discount that I got end up being about the same, and I can't always assume I'll get that 40% off). By year 8, we will start to see a savings over what we're paying but based on my numbers, those savings aren't huge. For instance, in year 8 of owning the DVC we will have spent $25,984 total for our DVC ownership (this is assuming a 3.5% increase in annual fees). If we pay cash and assume a 3.5% increase each year in room rates, then on our 8th visit to WDW we will have spent $27,499. In year 9 of owning our DVC we will have spent $27,588; if we paid cash as free people we would have spent $31,499. Here are my questions:
1. Is that $1,500 savings after 8 visits or $4,000 after 9 visits really a savings when it comes with the cost of inflexibility and uncertainty with where life will take you? Maybe looked at differently, for just $5,500 you can vacation wherever you want (or not at all) for the next 9 years! Is it a big savings for a vacation or a small price to pay for freedom?
2. Are there people out there who totally regret it? I'm assuming there are many of those of who do because they're the ones selling their points on the resale market I've been looking at!
3. What about selling if we decide it's not for us? I know Disney has ROFR but will they exercise that option as much as contracts get closer to the exp. date? For instance, if we purchase an OKW contract that expires in 2042 and we decide to sell in 10 years because it doesn't suit us anymore...we're selling a contract that only has 16 years left on it. Do you think there will be any buyers for that? Should we assume we're in it for the long haul after 10 years and our only option would be to recoup annual fees by renting out points? Maybe that's just a guessing game since there's no history to refer back to.
Anyway, I'm looking for opinions to help me gain some clarity. I'm so intrigued by the idea but I feel like I haven't been convinced that it's a great idea or that it's a terrible idea. I'm not looking for platitudes like "It worked for us, but it may not work for everyone." I need real opinions! Did you crunch the numbers and wonder if you were really going to love it after 10 years and it turns out you did? I'm using 10 years as my base number because by that time my youngest will be 13 and my oldest will be 21...will we still want a Disney vacation? What about people who went for it and were totally surprised at the use they got out of it? Will it be great to own to give as a gift to our adult children when they want to take their children or we take the grandchildren...should I really be thinking that far out??? I also don't agree with comparing the money we'd spend on a DVC to what we could make if we invested the money because that argument assumes that no vacations will be taken, DVC or otherwise so to me it's just not a logical argument to make. I'm basing my calculations on the fact that money will be spent each year on a family vacation...the big question is: Should it be at a DVC resort????