40 years at any time share resort?

[sconstantz]

I was just reading another post about what Disney will do when 2042 comes around (around 2054). Interesting thoughts.

It was interesting to me, because DH and I were talking about this right before the State of Union Address came on.

We are planning another trip to WDW, possibly in May or this summer. I looked at DH and said, that's it, I think it's time to go ahead and purchase DVC. We go every year, we pay a fortune, we love it, it's an easy vacation, and even if we vacation elsewhere, we usually plan a trip to disney. Everyone gets to do a little of what they want.

He said it bothers him that the time share reverts back to disney in 40 odd years. He went on to say that he would like to leave it to our Son.

My thinking is that a) son will get to use it for 40 years. 20 years with us
(DS is 6 and we are 50 and 43); and probably 20 on DS's own.

AND, I'm wondering what any resort would look like after 40 years? I mean, I know Disney is going to take care of the properties (and maint. fee's do as well), and I know Marriott will take care of their properties. BUT, 40 years is 40 years. Wear and tear. Technology changes. I don't know that our son would want a time share resort property that is that old. Whether Disney or Marriott or Starwood, etc.

I can only think of a few places that I want to visit that were built in the 60's or before...

Do ya'll have any thoughts on this? I know a poster (Dean?) stated that he felt the disney would bulldoze OKW, for instance, and put up a new resort. And the reason being, that it will be an old resort......

So, if my thinking is correct, it doesn't matter which time share you buy into, deeded or not, because at some time it will could become... well, old. Now, when we are old we might like that, but to buy it to leave to our child. I'm not sure he would really want it.

Shelly

 

[Montana Disney Fan]

We are also considering DVC. We rent the 2 bedroom DVC rooms anyway, so why not purchase. We would have our money back in 5 1/2 years then the next 35 are free!

You can use your points for new properties as they are built. Our package that we just got today is talking about Saratoga Springs (sp?). But, we can stay at any of the others including any new ones that get built over the next 40 years.

I think it's a no brainer. It's bothered me that we pay so much to rent and I know we can save buy purchasing.

 

[tjkraz]

Originally posted by sconstantz
We are planning another trip to WDW, possibly in May or this summer. I looked at DH and said, that's it, I think it's time to go ahead and purchase DVC. We go every year, we pay a fortune, we love it, it's an easy vacation, and even if we vacation elsewhere, we usually plan a trip to disney. Everyone gets to do a little of what they want.

He said it bothers him that the time share reverts back to disney in 40 odd years. He went on to say that he would like to leave it to our Son.

If you don't mind my saying so, I think your husband is missing the point. DVC isn't an investment. It isn't a drawer full of gold coins that will appreciate and someday pay for your grandchildrens' education.

DVC is a prepaid vacation. Period.

If you're spending hundreds (thousands?) per year on accommodations at Disney, and staying in a resort room somewhere north of the $59 All Star resort, you really should look into DVC.

I won't tell you that it doesn't have its drawbacks (expensive weekends stays, long planning windows, etc.), but if you are currently spending Big Bucks to stay at WDW resorts, you will probably save quite a bit with DVC. We figured that we will have paid for the initial DVC investment in about 11-12 years. From that point forward, we will be getting our hotel stays for a fraction of the cost (annual dues only).

Forget what happens in Year 39 (or 51), and figure out how much you will save in the first 4-5 decades.

 

[Lisa P.]

If the land beneath the DVC resorts were not expected to be very, very valuable, Disney would not want it back. Obviously, they expect to value it quite highly in 38-50 years. A timeshare resort which is deeded to real estate doesn't have the stumbling block of RTU expiration and may sell at an even higher price. Disney opted not to do that, in order to retain control and ownership of the land.

People who buy deeded timeshares don't always expect to vacation there in 50 years either. But a timeshare resort property can be sold in the future and the proceeds divided among the deeded owners. If the location is prime, there is value to a deed.

Whether a timeshare property is deeded to real estate or not, it's probably best not to consider it an investment. There are too many variables and unknowns. If you would break even within a reasonable number of years, compared with what you would have spent on an acceptable, alternative plan for vacation accommodations, then consider it a prepaid vacation plan and simply enjoy it. JMHO.

 

[PamOKW]

I don't think you need to be too concerned about the condition of the resorts in 40 years. Take a look at the Contemporary and The Poly....they have both been open about 33 years. OKW looks as good as the day it opened over 10 years ago. They are updating the resorts -- they've added Internet access and DVD players as well as new appliances. They don't just build them and just clean what's there.

 

[sconstantz]

I probably wasn't clear in what I was trying to say.

DH and I know buying a timeshare (regardless of who runs it) isn't really an investment purchase. It is an investment in ourselves and our family time together, but to buy any timeshare for it's potential upside monetarily probably isn't going to happen. Oh, I'm sure someone out there has made money, but there are other vehicles for that.

DH and I aren't concerned about how the property will be maintained. That is why we would only look into a name brand time share. Marriott, Disney, etc. We have confidence that it will be maintained.

I guess what I was trying to get my head around is what does it matter whether we purhase Disney, with an ending contract in 40 years, versus a Deeded timeshare, like Marriott.

His thinking is, if we paid for this, wouldn't it be nice to be able to hand it over to our son.

My thinking is, after 40 years, what is there to hand over? Would DS really want a deed to a resort that is 40 years old? I think not.

Did anyone else weigh the endings pro's and con's between Disney and a deeded time share like a Marriott?

Shelly

 

[PamOKW]

Originally posted by sconstantz
I guess what I was trying to get my head around is what does it matter whether we purhase Disney, with an ending contract in 40 years, versus a Deeded timeshare, like Marriott.

Well, then the question really becomes do you want a timeshare that is owned by Disney and is on Disney property or do you want a timeshare in the Orlando area (or anywhere else in the world) run by another company. I'm not that familiar with timeshares so I can't really weigh in on that. I just wanted a "home" at Disney World and that's what I got with DVC.

It's also hard to say what someone would want to inherit. I'm sure if it passes to your son before the end of the deed, the resort will be wonderful. Whether or not he would want to vacation at WDW is another story -- of course, trading options will probably still be available.

With a quality company (like Marriott), I would expect that there would be something to pass on that people would enjoy. However, some "forever" timeshares do get rundown and burnt out pretty quickly.

 

[WolfpackFan]

Originally posted by sconstantz
I guess what I was trying to get my head around is what does it matter whether we purhase Disney, with an ending contract in 40 years, versus a Deeded timeshare, like Marriott.

This is a question only you can answer. How important is it to you to stay on-site as versus staying at another timeshare that is off-site? I think we all would love it, if we had a permanently deeded DVC timeshare. But that's just not the reality of the situation. Personally, I'm planning on using our DVC for probably 20-25 more years before I'm too old to travel and then let our son and daughter use it for the remaining 15-20 years. After that if they want another timeshare, they can go out and get it on their own.

 

[VWLMember]

I also thought long and hard about DVC vs. Vistana. I ended up buying DVC at the VWL because I have more faith in Disney keeping up the property, making improvements, basically providing the best service for the dollar. Also, at the end of the contract in 2042, Disney may allow current members to purchase a new contract at a discounted rate. At least that way my DS can choose himself whether to stay with Disney or go elsewhere in Orlando or even the rest of the world.

 

[Chuck S]

Looking at some deeded properties in the area, those that have been open 10 or more years as OKW has...have they been kept up as well? In most cases I would say "no" (the "High-End" properties like Marriot being the exception). If the other companies truly did maintain their property as well as DVC their resale prices would be a lot higher, not as high as DVC with their ROFR, but higher than many sell for now.

And, given that there IS a useful life expectancy to ANY building, deed properties will at some point need to bulldoze and rebuid, so imagine what the cost would be to the owner...unless the annual maintenance fees have that cost factored in. Otherwise you'll be looking at a one time "special assessment" higher than the initial cost of purchase, given that building costs in 40 or 50 years will be higher than current levels.

The DVC resorts really were planned with the useful life of the buildings in mind.