Cant pull the trigger - Advice please!!!

[grumpydawg]

OK, so here's the deal. I've been toying with DVC for several years. I have a 25 yo son who just got engaged (at WDW) this past weekend, and 12-yo B/G twins. I love taking trips to orlando (at least 1-2 annually). Does DVC ownership REALLY make sense financially, with all of the annual maintainance fees, or is it cheaper to stay at resorts each trip?

Please answer with your pocketbooks and not your heart. Thanks!!!

 

[DrTomorrow]

Here's the short answer. If you make regular trips to WDW and plan to in the future, and you stay on-site at Deluxe resorts or need multiple rooms at Moderate resorts, DVC will give you higher quality accomodations at a similar or slightly lower cost than you pay now.

 

[5infam]

Like was just said, it makes sense if you stay in deluxe resorts, or if you are getting 2 rooms or a suite. Financially, this is why we bought in. Another big cost savings for us is that we use the kitchen to make breakfast every morning, and on non-park days, we may eat lunch there as well, with maybe 1 or 2 dinners per week long trip. I know many hat to cook on vacation and will not use the kitchen, but we saved a ton of money this way and it just means we have more money for other fun things. If I were you, I would look at the 2 trips you took in 2004, weigh out the cost, and see if it makes sense. Don't forget to factor in on inflation for annual dues (about 2% per year) as well as what the cost of hotel rooms will increase to over time.

 

[sjdisneywedding]

theres probably not a completely clear cut answer to the question.

Theres alot of factors involved. what times of year do you normally travel and what size room will you need will determine how many points you will need to purchase

from there, you can estimate if those points and yearly dues will be less or more expensive than non dvc stays based on the types of resorts you normally stay in and your frequency of travel.

 

[Deb & Bill]

You will not save money. You will wind up spending more money because you will want to go more often. DVC is not a cost saving means, just a prepaid vacation. You will probably need a two bedroom so your twins don't have to sleep together in the same bed. In the second bedroom they will have either two queens or a queen and one double sleeper sofa.

They debit our dues from our checking account monthly, so it's just another bill. When we check out of the resort, we don't have any lodging bills because they are prepaid. So only the food and souveniers show up. Not as much heartburn like our very first trip that ran $5K at the Polynesian.

 

[carlos1117]

Buying DVC should not be a finanicial decision. If it is, you're buying for the wrong reason.

Mike

 

[wisbucky]

We look at it as we bought in and paid for future quaility vacations and deluxe accomodations. DH and I love Disney and plan on making a habit of going 3-4 times a year. It is NOT a finanicial investment.

 

[sjdisneywedding]

I tend to have a bit of a different belief from the last few posters.

I think DVC is definately a financial decision, a rather big one at that. One must determine if their vacationing lifestyle fits in with the costs of the points and fees. If it doesnt, then you dont buy it, you cant buy in just because you want to go to Disney alot

and I believe it actually is a financial investment as well. Its a financial investment in your future, spend now save later.

 

[Disney Doll]

It is a financial decision, but not an investment per se.

Basically, DH & I were going to WDW 2x/year, for a total of 12-20 days, staying in at least a moderate hotel.

We bought DVC because we like the ability to "spread out" a bit in our unit...even the studios are bigger than a regular hotel room, and have the little kitchenette. If you go to a 1 or 2BR unit, it's like a condo. Once we paid off the original loan, it began to make greater financial sense.

1. You don't have to come up with a fairly large "chunk" of money for your accomodations each trip. In our case, our dues are debited right out of our checking account each month. For some reason, that is less "painful".

2. You end up getting a superior accomodation, IMHO.

3. You do have the ability to cook in your room. We do breakfast and snacks, but there are many folks who also throw together simple dinners a few times while they are there, at a significant savings.

4. If you are in a 1 or 2BR unit, you have a washer/dryer, which makes packing easier.

For us, DVC has been worth every penny we have paid for it. We have enjoyed it with family and friends, and have many wondereful memories. It is willable as well.

It is a purchase we have never, not even for one moment, regretted.

Truthfully, I would give up a lot of other things in my life before I'd give up my DVC!

 

[OneMoreTry]

My opinion:

If money is the only issue, then don't buy DVC. You would do better to invest they money in a balanced portfolio and stay in moderate resorts with an occasional splurge at a deluxe. And with discount codes the deluxe rates may even beat the DVC benefits. You don't NEED a condo with 2 kids.

If you doubt this answer go over the figures with a good accountant or financial advisor.

BUT if you want CONDO accomodations at WDW to stay with extended family
and you want to own a piece of "the happiest place on earth"
and you plan on going TO WDW every year or every other year (you can bank and borrow points and skip years)
then BUY DVC.

Then it's definitely worthwhile.

 

[bongo59]

DVC is a lifestyle choice...........if you want excellent accomodations and you visit WDW yearly or multiple times it is a no brainer...........for us it was a lifestyle choice..........but having been memebers so long we actually had our accountant see if we saved money and he told me i have saved about 100K doing this...........because i spent alot of money at WDW prior to joining DVC going 2-3 times ayr wit my young kids

 

[doubletrouble_vb]

I like the lifestyle choice answer. The rates to stay on site are only just now exceeding my maintenance fee to even begin offsetting my DVC purchase...and I purchased in May 2001. I look at moderates versus maintenance because without DVC I would either stay in a moderate or offsite. DVC was an opportunity to stay in resorts I wouldn't expend the money to stay in otherwise, have the ability to snack healthy food in the room and just plain slow down a bit visiting the parks.

If you are staying in moderates twice a year then I'd say give DVC a look see.

 

[WDW LOVR]

For us the decision to buy in was finally made when we were finacially able to do it without financing the purchace. If you finance through Disney the interest rate can be as much as 11%. Over 10 years that comes close to doubling the cost of the points, not including the MF.

At that cost, I figured I could invest the money we'd be spending and at the end of 10 years we'd be ahead of the game. Paying cash or paying it off in a year or so makes it much more cost effective.

Now I hope some accountant/investment type doesn't flame me, but when I did the rough calculation and compared it to the cost of the Cabins at Ft Wilderness (which are quite a bit larger than a studio and sleeps six) that we stayed at most trips, it was going to take 20 some years to break even. I figured investing the same money for 20 years would have us in a better position.

What hooked us was getting a great AP rate at BWI and discovering the deluxe resorts. Once we stayed there and got into a position in life that allowed us to afford not financing the purchace it was a no brainer. Staying at a deluxe resort for the cost of a moderate sealed the deal, which we haven't regretted. We're even going to add on in the next year or so.

 

[rinkwide]

...I have a 25 yo son who just got engaged (at WDW) this past weekend, and 12-yo B/G twins. I love taking trips to orlando (at least 1-2 annually)...

Sounds like you definitely fit the demographic.

 

[bcvillastwo]

There's a lot of good advice in each and every one of the previous posts. Culling through the advice I totally agree with two recurring points. First, that buying into Disney's Vacation Club is a lifestyle decision and second that buying into the "Club" is a financial decision. If you don't feel a strong need or desire to visit WDW at least once a year (or maybe once every two years) then it may not make sense to buy into the "Club". That's the lifestyle part of the equation. On the financial side (whether you purchase outright, or finance the points) there are all kinds of things to consider but the bottom line is "can you really afford" to make the commitment. No one can evaluate either side of this equation for you (lifestyle and finances) because no one knows your situation. But, I've found that the people on these boards have a wealth of information that can help you with your analysis.

No one can know the future but there is one thing that I think it's important to remember. If you already have a pattern of visiting Disney regularly then look down the road prospectively and consider what it's likely to cost you for accomodations in 5 years, 10 years etc. If the price increases of the past are indicators then I think most would assume that the prices are likely to increase over your cost of points and the annual dues cost.

Good luck with your decision.

 

[spiceycat]

I brought the majority of my points at $52 a point.

then it definitely make financial sense - plus we got free tickets until 12/31/1999 - that basically paid for the annual fee.

Now - I would definitely have to redo the numbers. It is very expensive to buy now.

I stay in a studio at OKW for 5 nights in Sept - 40points for the annual fee per point - which I though I had.....I will get back to you!

 

[Tigger031266]

All the posters did a great job on this thread. It is a financial decision and a lifestyle decision.

If you love WDW and more importantly love Disney property hotels and are planning on visiting WDW annually, it really worth it. Maybe you will not save much money but you will have better rooms. DVC brings some special joys that may not mean much to everyone but to some people, we love it. Just a few of the advantages:

1. Great discount on Park Passes
2. The feeling of owning WDW
3. A "welcome home" when you vist
4. The ability to plan vacations at a resonable price for multiple families/members
5. Community halls
6. The joy of planning trips using a point system
7. You will wind up taking more trips because of annual passes and resonable trip costs
8. The feeling of knowing you will be back because its your home

I know much of this is "touchy-feely" but it is quite an emotional high when you first buy in.

The downsides:
1. The initial cost layout
2. Risk that something happens to your finances
3. That nasty property tax bill that comes in Jan

I guess so much depends on your financial stability and Love of WDW

 

[elfbo]

3. That nasty property tax bill that comes in Jan

?!? What property tax bill? New owner here, so I havent seen this one yet.

 

[RobDoc]

There is no separate Property Tax bill- it was included in your dues statement. Owners do not directly pay the property taxes and we have to do our own computation for the taxes if we want to deduct them. Just mulitply the number of points owned at each resort by the breakdown amount for the property taxes paid in 2004 and let your tax preparer figure out if it's deductible in your personal situation.

Enjoy!

 

[elfbo]

Thanks for the fast reply. I thought it was included in the MF, but wasnt sure.