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 10-14-2012, 02:07 PM #1 Goonie78 Earning My Ears   Join Date: Oct 2012 Posts: 9 DVC Total Yearly Cost? Hidden Costs? Hi, I was planning our 2nd Disney vacation in two years and stumbled across this DVC re-sales option. I'm interested in breaking down the true cost of membership over a 30 year period (at which point it will expire). Here is my example: say I buy 50 pts for \$69/pt and closing costs are \$350 so that puts me at \$3700. So: 3700/30 years = \$125/yr + 275 annual fee (at 5.5% per pt) = \$400 to be a member per year \$400/50pts = \$8/pt per year. Are there any booking fees etc? Also, when people sell their points are they allowed to sell them at a fraction or was the deed originally purchased at that small amount (say 50pts)? I see some folks selling 25/50/100 pts. If I just buy 50 pts am I still a full fledged member? Thanks in advance, hope to join the club if cost feasible and it just might be...
10-14-2012, 02:54 PM   #2
Dean
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Join Date: Aug 1999
Posts: 31,933

Quote:
 Originally Posted by Goonie78 Hi, I was planning our 2nd Disney vacation in two years and stumbled across this DVC re-sales option. I'm interested in breaking down the true cost of membership over a 30 year period (at which point it will expire). Here is my example: say I buy 50 pts for \$69/pt and closing costs are \$350 so that puts me at \$3700. So: 3700/30 years = \$125/yr + 275 annual fee (at 5.5% per pt) = \$400 to be a member per year \$400/50pts = \$8/pt per year. Are there any booking fees etc? Also, when people sell their points are they allowed to sell them at a fraction or was the deed originally purchased at that small amount (say 50pts)? I see some folks selling 25/50/100 pts. If I just buy 50 pts am I still a full fledged member? Thanks in advance, hope to join the club if cost feasible and it just might be...
Assuming your paying cash, that's about it plus any importance you put on the time value of the money paid up front. You will be responsible no matter the outcome, you know the "for better or worse" phrase. The lowest Disney has sold is 25 points but after that it could be 26, 39 or 58. For smaller contracts you'll see 25, 50, 100 & 150 fairly regularly. You'll be a member but 50 points will only get you a studio for 6-7 every other year roughly depending on the resort and season. Just realize there could be changes in just about everything including the points for when you go, maint fees even other fees could be added on likely banking/borrowing, etc. Spend some time getting acquainted before jumping into a timeshare.
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10-14-2012, 03:22 PM   #3
cz4ever
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Join Date: Jun 2012
Location: Austin, TX
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Quote:
 Originally Posted by Goonie78 Hi, I was planning our 2nd Disney vacation in two years and stumbled across this DVC re-sales option. I'm interested in breaking down the true cost of membership over a 30 year period (at which point it will expire). Here is my example: say I buy 50 pts for \$69/pt and closing costs are \$350 so that puts me at \$3700. So: 3700/30 years = \$125/yr + 275 annual fee (at 5.5% per pt) = \$400 to be a member per year \$400/50pts = \$8/pt per year. Are there any booking fees etc? Also, when people sell their points are they allowed to sell them at a fraction or was the deed originally purchased at that small amount (say 50pts)? I see some folks selling 25/50/100 pts. If I just buy 50 pts am I still a full fledged member? Thanks in advance, hope to join the club if cost feasible and it just might be...
Your numbers are a bit off, but you have the gist of it.

Buy-in cost: Using your example numbers, 50 * \$69 = \$3,450 + \$350 closing costs == \$3,800 total (you had an addition error)

Annual maintenance cost: The exact amount you pay per year varies depending on resort and how much it cost to operate and maintain in the previous year, including property taxes and the like. For the resorts on WDW property, the annual per-point maintenance fees ranged from \$4.24 to \$5.61 in 2012 (see THIS LINK). These fees increase annually as the costs to maintain and operate each resort increases. I'm not sure where you got the flat \$125 fee for renewal, on top of the maintenance fees.

So the cost per point per year is your maintenance fee (ranging from \$4.24-\$5.61 in 2012) plus whatever you value the amortized cost of your initial buy-in. If you ignore the time cost of money, you're probably talking about \$2 per point above the annual maintenance fees, so let's call it \$6.50-\$7.50 range per point.

There is no additional cost to book rooms, no per-stay fee, etc. And as you have probably noticed if you've hung out here long, there is an active market for DVC point rental where you can rent out your unused points for \$10-\$13+.

Of course, as Dean says, most DVC rules and perks are subject to change at any time. There are many reasons that DVD might choose not to change them, but they can if they decide it's in their best interest. And 50 points does not go very far.

Hope that helps!

 10-14-2012, 09:51 PM #4 Caren90 DIS Veteran   Join Date: Jan 2002 Location: Massachusetts Posts: 642 Don't forget the "hidden costs" or more accurately, additional costs: airfare, food/ beverage, park tickets, and merchandise purchases every time you visit WDW. Stephen __________________
 10-14-2012, 10:00 PM #5 DisWitt Fan of Disney 1.0 - aka Disneyland   Join Date: Aug 2010 Location: near Anaheim, CA Posts: 179 ...and be sure to note the restrictions on your reale points (because you aren't buying direct from DVC). No trading to DCL, ABD, hotels, or RCI. __________________ Aulani Owner since 7/2010
10-14-2012, 10:11 PM   #6
erionm
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Join Date: Dec 2008
Location: Longwood, FL
Posts: 13,154

Quote:
 Originally Posted by DisWitt ...and be sure to note the restrictions on your reale points (because you aren't buying direct from DVC). No trading to DCL, ABD, hotels, or RCI.
Resale purchases have access to RCI exchanges as well as Club Cordial and Club Intrawest exchanges.
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10-14-2012, 11:37 PM   #7
chalee94
I thought all sand was ground up rocks
He's used to walking n00bies

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Location: Winston-Salem, NC
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Quote:
 Originally Posted by DisWitt ...and be sure to note the restrictions on your reale points (because you aren't buying direct from DVC). No trading to DCL, ABD, hotels...
you'd pretty much be restricted from these anyway with a 50 pt contract due to the high point cost of trading out of the system...
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-Charles

 10-15-2012, 10:33 AM #8 disneynutz Earning My Ears One At A Time     Join Date: Dec 2006 Location: North Texas Posts: 18,749 Here is my 2 cents. Disney has and will in the future change rules, policies, and perks. Some may have a negative impact on ownership. You are committing to a Disney vacation every year or two until you sell. Your OOP for those vacations can be a few thousand dollars per year. Currently some owners rent their unused points but it isn't guaranteed that Disney will allow it to continue as it is today. Resale prices continue to move downward, good for buyers, bad for sellers. Expect that your contracts will be worth nothing if kept to term. DVC accommodations tend to stay booked at a 85% plus occupancy rate by owners and Disney who rents the rooms for cash so availability can sometimes be a challenge. DVC rooms show more wear than the other deluxe resorts. You have to remember that Disney pays nothing to maintain and operate DVC units, everything is paid for by the owners through their dues. Bill __________________

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