Anyone look at DVC as a possible investment?

[dcibrando]

Just curious has anyone ever bought into DVC as a possible investment since the value (price per point) seems to be going up?

I guess it's true you can rent out your points for 1 year and pay for the maintenance fees and then some (to pay off the loan if you have one?)

 

[bpmorley]

I never thought about it. We've used our points the last couple years. But we're trying to start a family and thay may cause us to have to rent our points. I guess we'll just have to figure out if it's something we'd do every year or just when we're gonna lose the points.

 

[abner1776]

The only reason that the price keeps going up is because Disney artifically supports the price through ROFR. At some point in the not too distant future the fewer remaining years on the contracts will result in less demand for DVC and the prices will have to fall just based upon market pressure....ROFR will no longer hold up the price.

This will not be a huge decline as with other Timeshares, but it will result in resales prices either holding steady or declining slightly over a number of years. In either case I would not look at DVC as a way to increase your investment portfolio.

DVC is a prepaid vacation plan/program and just because ROFR provides some sense of support for DVC members with the value of their contracts, it should not be looked on as an investment.

 

[DisFlan]

Just curious has anyone ever bought into DVC as a possible investment since the value (price per point) seems to be going up?

I guess it's true you can rent out your points for 1 year and pay for the maintenance fees and then some (to pay off the loan if you have one?)

Nope. It's prepaid vacations (w/no loan). That's the "investment".

DisFlan

 

[greenban]

Just curious has anyone ever bought into DVC as a possible investment since the value (price per point) seems to be going up?

Nope, the DVC is not an investment for us!

I guess it's true you can rent out your points for 1 year and pay for the maintenance fees and then some (to pay off the loan if you have one?)

Yes you can, but you must also declare rental income on your taxes! So I see it as a break-even at best!

-Tony

 

[bpmorley]

-Tony

That's if you want to be an honest taxpayer. If it was cash I'd never claim it. And I'm retired from the IRS

 

[Cruelladeville]

I suppose that in a way it's an investment for us, from the standpoint that we had money in the bank that was only getting 1% interest, and stocks always seem to go DOWN as well as up, so we decided that the money could still be protected in DVC while we used it. We have contracts that we just use for us, but one that always gets rented out. The rent pays the dues, and what's left is "interest" like in the bank, and that is what is invested. Holding onto the contract protects our original investment, and gets us 5-7%. That 5-7% goes both up and down, but we don't stress out too much over that while DVC has the actual nest egg. When we get closer to retirement, or DVC starts decreasing in value, we will sell, but so far the price just goes up. The best part is that DVC doesn't report to anyone that we have a contract, so the money sort of "disappears" off anybody's radar.

 

[CarolA]

Nope, its only an investment in me.

 

[Tinky]

Nope, its only an investment in me.

Exactly! It was strictly a investment in our families vacationing pleasure.

 

[DrTomorrow]

That's if you want to be an honest taxpayer. If it was cash I'd never claim [DVC rental income]. And I'm retired from the IRS

Hmmmm.......

 

[bpmorley]

Hmmmm.......

That's it? You're usually a man of many words.

 

[lovinthemouse]

Not a financial investment at all. It is an investment in my family's vactioning now and in the future.

 

[jk8]

I was wondering this myself. We love Disney - WDW and DCL. We are not likely to take a family vacation there every year (although DS and I would love to do that).

So, if I would not use the points every year but rent them others would it be good if we have the cash?

Does anyone wish they could stay at other resorts (I know you can but it kind of wastes points doesn't it). Also does using points for a cruise waste them also?

I know Disney says you are prepaying your vacations for years to come but can't they raise the number of points it takes an then you feel like you have to get more and don't really end up being cost free?

Thanks for the info. I'm new at this.

 

[bpmorley]

I'm under the impression that points for nights won't go up.

 

[FlyingfreeWDW]

It shouldn't be viewed as an investment but it can return you money if you play your cards right. Here is my scenario: I will be adding on around 1000 points with the intention of renting those points and maybe some of my existing points. Lets assume dues of $4.50 per point and also assume I will rent for $11 per point. That is $6.50 per point profit or a return of 6.5% on my money. Factor into that, resale values increasing over time and it could be a win. Now with some setbacks and other unforseen circumstances I expect to return more in the 5% range. I'll take that for now as part of my holdings. I wouldn't put all of my eggs into this basket but it can be seen as a hobby that returns me a little money. Now where to buy those points is my biggest dilema. I'll probably either spread it around or wait for the newest offering. That is where I'm leaning now, expecting it to be CRV or VCR, whatever way they name it. We'll see how it plays out. You guys will be the first to know because you'll see me over on the rent/trade board.

 

[BWVNUT]

I'll probably either spread it around or wait for the newest offering. That is where I'm leaning now, expecting it to be CRV or VCR, whatever way they name it. We'll see how it plays out. You guys will be the first to know because you'll see me over on the rent/trade board.

FF, sorry, I'm new and haven't even gotten any books, etc. yet from DVC - can you explain further on the newest offering you're referring to? Where will it be located do you think? know for sure? any other info?? Thanks!

 

[brasey]

I'm under the impression that points for nights won't go up.

Points change by the season but the total year stays the same. They juggle point costs for resorts based on holiday schedules and school recess. If you took the whole year as a point value it stays the same but the seasonal point rates change somewhat. This is mainly the Easter, Spring Recess changes as these weeks vary sometimes by geographic area in regards to school recess. You know Christmas and the others that never change so they basically are the same year to year.

 

[brasey]

FF, sorry, I'm new and haven't even gotten any books, etc. yet from DVC - can you explain further on the newest offering you're referring to? Where will it be located do you think? know for sure? any other info?? Thanks!

They are referring to all the rumors in regards to what resort they are adding next as a DVC II property. There is work going on on several resorts so it flames the fire and the guides do not help as they seem to like to play into it a little. Probably will be the same term as SSR.

 

[bpmorley]

Points change by the season but the total year stays the same. They juggle point costs for resorts based on holiday schedules and school recess. If you took the whole year as a point value it stays the same but the seasonal point rates change somewhat. This is mainly the Easter, Spring Recess changes as these weeks vary sometimes by geographic area in regards to school recess. You know Christmas and the others that never change so they basically are the same year to year.

I wrote that without and explanation. I know how it works, but I meant that a weeknight in non-holiday season will be the same year after year.

 

[ccc002]

It shouldn't be viewed as an investment but it can return you money if you play your cards right. Here is my scenario: I will be adding on around 1000 points with the intention of renting those points and maybe some of my existing points. Lets assume dues of $4.50 per point and also assume I will rent for $11 per point. That is $6.50 per point profit or a return of 6.5% on my money...

Oops, response below.