Should I buy?

Discussion in 'Purchasing DVC' started by historyteach15, Jul 31, 2013.

  1. historyteach15

    historyteach15 Earning My Ears

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    Hey all,

    I wanted to get your opinion on whether or not I should buy into DVC. I've been an avid Disney fan my entire life, going nearly every year with my parents. Now 26, I've been 3 times since living on my once I graduated college. I usually stay for am average of 5-6 nights a year.

    If I do purchase, I would get a somewhat large amount of points...maybe 200-220, so that my brother and parents could split the cost with me and we could all benefit from it. If I were to get this many, how much would it be? Also, is it worth it to?

    I look forward to your amazing feedback!!
     
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  3. disneynutz

    disneynutz DIS Veteran DIS Lifetime Sponsor

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    You need to spend a few days reading through this section of the DIS. After doing so, you should have enough knowledge to give you a good idea if DVC makes sense for you and your family.

    :earsboy: Bill
     
  4. DizBub

    DizBub Totally Addicted

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    You need to decide where you want to buy/own and whether you are going to buy direct from Disney or resale. Prices vary widely. You should remember there are Annual Dues.

    Only you and your family can decide if it's worth it or not.
     
  5. timandjanl

    timandjanl Mouseketeer

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    If you buy directly through disney it would be somewhere around $150-169 pp plus the annual maintenance fees. Buying resale is cheaper but takes longer. I am also considering whether to purchase. I found a lot of helpful info in the DVC resource center thread at the top of this forum. Ultimately though its going to be a highly personal decision for our family. In general I probably wouldn't buy if I had to finance the purchase though. The interest rates are high. If you have enough cash then it's time to start doing some reading to figure out if its best for you. :-)
     
  6. chalee94

    chalee94 <font color=green>I thought all sand was ground up

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    i'd think twice about this. might have issues getting everyone on the same page. also a risk if one person goes bankrupt or has financial issues - it impacts everyone.


    depends on the resort and whether you buy resale or direct.

    if you buy resale to use only for DVC resorts - and you were going to stay onsite at wdw in at least a moderate anyway - it might be worthwhile. IMO you should hang out on the boards for several months to learn more before jumping in...
     
  7. Missyrose

    Missyrose DIS Veteran

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    I'd like to disagree about resale taking longer than direct. Unless you want to buy one of resorts that Disney is actively selling (Aulani, AKV or VGF), you'll be put on a rather lengthy wait list. There are plenty of people who have been on those lists since March without getting their points, so you could have easily bought a couple of resale contracts during that time.
     
  8. jerseyduke

    jerseyduke DIS Veteran

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    I will try to sum up the million dollar question quickly.

    IF you go to, or want to go to, WDW often (at least once a year), AND stay at a deluxe resort, DVC will probably be worthwhile.

    DVC is going to do one of two things:

    1. Enable you to go at the same pace, and save money
    or
    2. Enable you to go MORE often for the same (possibly even more) money.

    (i did it for reason number 2)

    Your screen name here implies that you will be somewhat restricted as to when you can go (i.e. when school is out), and those times cost more points.

    Use the points calculator, I like the one at David's, to get an idea as to how many points is the right number.

    As for the family thing.....tricky...I understand about wanting to split the cost, but maybe you are better off buying 100 points on your own, and then adding on.

    Remember, 200 points or so is going to be over 1,000 a year in maintenance fees!

    While DVC may save you money, it is still Disney, and it is not cheap!
     
  9. timandjanl

    timandjanl Mouseketeer

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    Well yes - I agree with you there. You'd have to buy AKV, VGF or Aulani for the process to be quicker than resale.
     
  10. jerseyduke

    jerseyduke DIS Veteran

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    Plenty of info about this on these boards, but 1 thing I never see mentioned:

    You are 26. Many properties(contracts) expire in 2042. You will be 55 at that point in time, still young. If you have family plans, your contract will expire (most likely) before grandchildren arrive.

    Anything can happen. You can buy an interest and something happens that same day, and have to liquidate a bunch of assets, who knows.

    However, 20 years from now, contracts expiring in 10 years are going to be almost worthless on the resale market. That being said, I would be reluctant to buy anything expiring in 2042 Direct from Disney. 130$ pp is the going rate on most of the 2042 properties.

    If you buy VGF, you get 50 years on it, for only 20 pp more (note that VGF is more 'point expensive') but in 20 years, that contract will still have strong resale value.

    Bottom line, I know there are SOME benefits to direct points, but I would not go that route at a property expiring in 2042, unless it was a future small add on.
     
  11. RSWA2

    RSWA2 Mouseketeer

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    Where do you normally stay at? Value, Mod, Deluxe, offsite?

    A large amount of points, in my opinion, is better split among a few smaller contracts. And if you don't mind split stays, at different resorts but for ease, same UY. Although some will suggest a different UY. You will have more closing costs though (more for resale, less for direct).

    Price will depend on which resort you decide to buy and whether it's resale or direct.
     
  12. ELMC

    ELMC DIS Veteran

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    One question you have to ask yourself (and no need to share this information) is if you can truly afford a DVC purchase within the context of all of your other expenses. At your age you might be on the precipice of buying a home, having kids, etc. These things cost a ton of money. Having a monthly timeshare payment might not be the best thing. Also, if you're happy staying at Values or Mods or hunting for discount codes, then I might leave well enough alone. DVC is a HUGE commitment.

    With regards to some of the advice on this thread, I agree that I would purchase for yourself and yourself only. As a general rule the only person I will mix finances with is my spouse. Too many problems can happen when you go into partnerships on timeshares with other family members. If you want to use points to take your family on vacation, that's a completely different story. But I would own individually.

    With regards to expiration dates, I would not let that factor into your decision too much. In my opinion, none of us can even imagine what we will be doing 20 or 30 years from now. I would buy with a 10 year horizon, and make your projections about use and resale value based on that time frame. Do your reading and research, there's no rush. Good luck with your decision. :)
     
  13. ELMC

    ELMC DIS Veteran

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    I don't think that any of us can say this with any degree of certainty. Mathematically, the contracts will have a value that can easily be calculated. Whether or not one can capitalize on that value will depend on a whole host of factors that are nearly impossible to predict.
     
  14. Missyrose

    Missyrose DIS Veteran

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    Beyond the fact that we don't know when the expiration dates will start to greatly effect the market price for 2042 contracts, the bigger question is what the club will look like after 2042. No one knows what Disney will do with the older resorts. And no one knows what effect it will have on resale values of the other resorts if you can no longer trade into BCV, WVL or any of the other resorts. Basing your purchase decision on what may or may not happen 20 or 30 years from now is not a very solid way to make that choice.
     
  15. jerseyduke

    jerseyduke DIS Veteran

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    We will just have to agree to disagree on this one. I am on the resale market for BCV, VWL, and OKW. If one of those were expiring in 10 years, while the other ones were expiring in 30, I would cross that one off the list, or at best only be willing to pay A LOT LESS for it.

    Time is a factor in a cost-benefit analysis.

    Also, I am not saying it should be a purchasing factor, just that it affects the appeal of direct purchase prices in my opinion.

    That being said, anyone is welcome to pay whatever they want for anything.
     
  16. ELMC

    ELMC DIS Veteran

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    Right...but you would be willing to pay something for it. So that contradicts your assertion that those contracts will be worthless when they have 10 years left on them. That's all I'm trying to say. I think it's a good idea to assume zero value at some point before expiration in order to build safety into your analysis. But even with four years left there could be a financial benefit to purchasing for the remaining years, provided the gap between maintenance fees and rental prices/rack rates remains close to what it is now.
     
  17. jerseyduke

    jerseyduke DIS Veteran

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    Of course..."Worthless" was an exaggeration.

    My point was not about whether or not to buy, just about direct prices at 2042 resorts.

    VGF...150 per point...50 years...comes out to 3 dollars per point per year.

    The 2042 resorts are going for 130 per point direct. That's almost 4.50 per point per year!

    I am looking at BCV resale, and it seems to be in the 90's per point. That is still more per point per year than VGF direct.

    Then again, we all know it is a seller's market. Value is not everything. It is supply and demand and what people will pay.

    The mass consensus is that direct purchase isn't worth the premium. I was adding another point to support that assertion. (particularly at 2042 resorts)
     
  18. Deb & Bill

    Deb & Bill DVC-Trivia Contest, Apr-2006: Honorable Mention

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    I bought OKW in 1997 for $50 a point. 45 years to use. $1.11 per point per year.

    You paid too much.
     
  19. DougEMG

    DougEMG DIS Veteran

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    Very good deal... inflation adjusted that works out to the equivalent of only $1.61 per point per year if you were to buy the same thing today. Cummulative rate of inflation from 1997 to 2013 is 45.5%
     
  20. DizBub

    DizBub Totally Addicted

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    One more reminder that we were idiots not to have bought in during the 90's. :headache:
     
  21. jerseyduke

    jerseyduke DIS Veteran

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    Well, hopefully people will be saying that about the 2010s in the 2020s!
    (assuming I have all the points i want by then)
     

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