Is being a DVCmember worth it

[lovin'fl]

We bought 200 OKW points via resale in 2006 after doing 2 WDW trips...one staying off-site (which I hate to drive into WDW for the parks each day) and the other staying at POR. We lived in NC in 2006 and figured we'd go to WDW very frequently and drive...we have 3 kids. In 2007, we moved to MD and cut our WDW trips to every other year (but still would drive) and added on 75 HH points also via resale so that we could throw in some beach trips (every 3 years) that would save us the costs of park tickets and Disney's outrageous dining costs (even with TIW card it costs a lot to eat at WDW) plus it's a shorter drive. We paid cash for both contracts. We are now in the process of adding on 100 AKV points via resale (my MIL and FIL paid us for use of half of our OKW points and so we needed some more points...SIL owns at AKV and we like to do WDW trips with them so...AKV it is). We are happy with our DVC membership. We do get Disney'ed out and need a break...which is good since we live so far. We did fly the last 2 trips and that really adds to our cost (family of 5) and DH is insisting we drive next time. We just got back from a 5 night stay at BCV and we spent $1500 just on food/drinks (even with TIW card...we did 7 TS meals and 3 CS meals and lots of snacks, pastries and drinks...also includes tips)...we bought the discounted PAPs which cost us over $2000 and our airfare was about $1400 (had paid $950 but switched to a later flight at the last minute for $450 more). We are planning to do a second 5 night trip with our PAPs and will drive...so only cost will be food/drinks and the drive to/from.
So, for 10 nights the total cost will end up costing us about $7000 (yikes, now that I look at it) and that is not counting annual dues or any costs to buy our DVC points. We will go to HH next year and it will be a while before we do WDW again and I'm not sure if my kids will go anymore (they were complaining this past trip...they are all teenagers). MIL and FIL will go every other year and stay in a 1BR at OKW for 6 nights. Last year we managed to snag a resie at Vero Beach and tried that out...ended up adding 2 nights at Universal's Hard Rock hotel to do 2 days at US (to see the Harry Potter stuff)...so that added up too.

Edited to add: We like the DVC resorts for the villas with washer and dryer and separate master (kitchen doesn't really matter to us...all we use it for is to make coffee and store drinks and leftovers in the fridge...we do have some breakfast stuff as well). We can't really do a standard hotel room with the 5 of us anymore (now that our kids are all teens...DS doesn't really fit on the single airbed so well). And even with just 4 of us in a hotel room (which we do a lot since DDs play travel softball), it's a bit stressful (DDs like to stay awake later and mess on their Ipods and cellphones...I like to get up earlier which disturbs the sleeping beauties...all 4 of us sharing 1 bathroom).

[HippieChickadee]

I bought resale, no financing.

Wish I hadn't now. We much prefer the value resorts. Bigger then life objects, colors, smaller property, location, food court has better food (of course to our taste, not everyone's).

We just plain enjoy ourselves more at pop century or all star sports.

The money we pay for our dues each year would cover the resort we would rather have, lol.

However, we haven't sold yet because the one thing (the only thing) we like about it is being able to buy annual passes. We aren't Florida residents and we go more then once a year so we save 300+ dollars per person after our first trip.

Anyway, to each their own. Life would be boring if everyone were alike

[ssawka]

Originally Posted by Szlabonyi

When I bought I actually got a home equity loan with a interest rate of less that half of what Disney will try to stick u with. Look into it or a secure personal loan it will save u a lot of money

One thing about a personal loan is that it would not be tax deductible. You would need to talk to a tax professional, but a DVC loan should be tax deductible if you only own at most one house. A Home Equity loan or a HELC would also be tax deductible.

That being said, if we were to buy now, I know two things:

1. We would not buy direct! $140 PP is way to rich for my blood. We bought BLT in 2009 for $92 PP. We bought direct because I wanted BLT and the difference between the direct and the resale prices was not as large then as it is now.
2. I would not borrow against my primary home for a DVC purchase! It is just not worth risking your home over.

[Dean]

Originally Posted by ssawka

One thing about a personal loan is that it would not be tax deductible. You would need to talk to a tax professional, but a DVC loan should be tax deductible if you only own at most one house. A Home Equity loan or a HELC would also be tax deductible.

That being said, if we were to buy now, I know two things:

1. We would not buy direct! $140 PP is way to rich for my blood. We bought BLT in 2009 for $92 PP. We bought direct because I wanted BLT and the difference between the direct and the resale prices was not as large then as it is now.
2. I would not borrow against my primary home for a DVC purchase! It is just not worth risking your home over.

Timeshare Transfers, the one company I know of that will finance DVC, Marriott, Hilton and the like, writes their loans as a mortgage and are thus deductible within the applicable rules. IMO the amount of savings with the deduction is a pittance and not worth adding to any consideration. I do agree that IF one is gong to finance, risking a home is not a good idea.

[ELMC]

Originally Posted by HippieChickadee

I bought resale, no financing.

Wish I hadn't now. We much prefer the value resorts. Bigger then life objects, colors, smaller property, location, food court has better food (of course to our taste, not everyone's).

We just plain enjoy ourselves more at pop century or all star sports.

The money we pay for our dues each year would cover the resort we would rather have, lol.

However, we haven't sold yet because the one thing (the only thing) we like about it is being able to buy annual passes. We aren't Florida residents and we go more then once a year so we save 300+ dollars per person after our first trip.

Anyway, to each their own. Life would be boring if everyone were alike

Great point. I've read on here a bunch of times that if you're happy staying at the Values, then DVC is probably not for you. This is a perfect example.

I would ask, have you considered renting out your points? That way you get the benefits of being a member but you still get to stay in the hotels that you like. Renting points through a broker (like Daddio or The Timeshare Store) is easy!

[Sigmaraz]

I joined the DVC in 2008 after my husband had died to make sure that I can take myself and my kids on vacation every year. I purchased through disney and have been extremely happy. I have used the points to take the kids to Colorado at Keystone, San Diego, and allowed other family members use my points. I can honestly say that I am really happy that I did this, I think it is one of the best things that I did. I did buy 300 points, which is quite a few, but I think it was worth it. I think that it is worth it and in comparison with my friends who have purchased through RCI and other time shares the cost and finances are pretty much the same.

[HippieChickadee]

Originally Posted by ELMC

Great point. I've read on here a bunch of times that if you're happy staying at the Values, then DVC is probably not for you. This is a perfect example.

I would ask, have you considered renting out your points? That way you get the benefits of being a member but you still get to stay in the hotels that you like. Renting points through a broker (like Daddio or The Timeshare Store) is easy!

You know, I've never thought of that...

What an awesome idea!!!!!!!!

i'm going to look into that tonight! Thank you!

[ssawka]

Originally Posted by Dean

Timeshare Transfers, the one company I know of that will finance DVC, Marriott, Hilton and the like, writes their loans as a mortgage and are thus deductible within the applicable rules. IMO the amount of savings with the deduction is a pittance and not worth adding to any consideration. I do agree that IF one is gong to finance, risking a home is not a good idea.

I was comparing the tax deductibility of a loan through Disney vs. a personal loan. In that case, it is likely that the effective rate of Disney's loan will be cheaper than a personal loan.

Also, I am not one to say that you absolutely should not finance because in some cases financing makes sense. For example, we financed through Disney and paid it off in one year because we didn't have the cash to pay for it when we bought. I knew we'd get it paid off quickly, so we financed. Well, I am glad we did because the price jumped up 22% that year. If we had waited, we probably wouldn't have been able to afford our home resort (BLT). Now, obviously this would not work for everyone and I agree that taking out a loan for a timeshare and keeping the loan for the full term is not a financially sound decision.

[Dean]

Originally Posted by ssawka

I was comparing the tax deductibility of a loan through Disney vs. a personal loan. In that case, it is likely that the effective rate of Disney's loan will be cheaper than a personal loan.

Also, I am not one to say that you absolutely should not finance because in some cases financing makes sense. For example, we financed through Disney and paid it off in one year because we didn't have the cash to pay for it when we bought. I knew we'd get it paid off quickly, so we financed. Well, I am glad we did because the price jumped up 22% that year. If we had waited, we probably wouldn't have been able to afford our home resort (BLT). Now, obviously this would not work for everyone and I agree that taking out a loan for a timeshare and keeping the loan for the full term is not a financially sound decision.

I do agree there are very limited exceptions and have addressed these issues in the past. I think the circumstances where you have the money coming guaranteed, truly know what you want and are able to avoid known price increases is about the only one I can think of. Better to be priced out due to increases than to get stuck or over extend yourself when life happens. You took on a certain amount of risk and it worked out for you but it didn't for others, esp the last few years.