Conflicted in joining DVC - UPDATED 6/14

[sumessefui]

DVC is not a good deal for everyone. I know many people who only care about how little they can spend when on vacation, and if they are happy in an off site motel room or an AS room good for them. I feel that my vacations are very precious to me and I want luxury when I'm on vacation. We are not wealthy, but loved Disney World and deluxe rooms. So every 3 years we would send Disney a nice chunk of our savings to spend 7-9 days at the Poly or GF. What did we have? A hotel room! Granted a nice hotel room but still no privacy. Now we get a 2BR for 9-12 days, for 3 of us, and go every year. In our case we did not crunch numbers, we just feel we deserve a nice vacation after working in an ever inceasingly stressful workplace.

 

[CK1]

Like the original poster, I too have a fam of 5. And that is why we love the dvc rooms -- I just can't call cosleeping in a cramped hotel room a true vacation. With 3 kids, restaurants can be great, but they can also be eXhAuStInG for parents trying to keep a crew in control! I love being able to serve a simple, relaxed meal in our 2 br villa. We are 2br people all the way.

As far as math is concerned, I am NOT saving money, that is a FACT. DVC costs a pretty penny to join, and even tho' we're all paid off for our contract, there's always the dues/fees. Yes, you can find cheaper places, or you could simply rent DVC points from someone instead, and avoid the eternal commitment. I really don't see anything that isn't permanent as being an "investment", per se, and this carriage ride becomes a pumpkin @ 2042. As for concierge collection, even it doesn't truly pay off for a fam of 5 wherein 3 are kids. I can't see myself taking the kids to most of the very posh resorts listed -- we would do better to go to a Homewood Suites. Perhaps it's a boon when you're an empty nester, but not for us right now.

So why then did we buy? IN our case, there was one prime factor that made it attractive: we HAVE to use it. Normally, all our vacation time is sucked up visiting family. Don't get me wrong, I love my family and ILs, but they can't accommodate our fam of 5 well either, and it just starts to feel like you're doing the World Tour For Peace, definitely NOT a vacation! By buying DVC, we were PROMISING ourselves and our 3 kids that we would take a vacation. A Vacation Commitment! Originally, we bought points to afford about a 5 day stay every year... but the whole family agreed we would RATHER have a big 11-day stay every other year! Our extended families would never ever allow us to pay for a hotel room -- oh my no. THey simply woudn't go. Yet for some insane reason, if we offer DVC, they jump at the chance. SO we still get to see family (and fulfill our family ambassadorship, if you will...) BUT we get to do it somewhere FUN! (And with enough beds for all, and to all a good-night!)

I too have a small fund set up for our first add-on. If I work overtime on a project or get an unexpected bonus, the extra $$ goes into the account. I think it's a very prudent way to go -- if we don't buy an add-on, we will surely use it on our next big spree to WDW.

Cindy

 

[jodifla]

These opinions are all quite fascinating.

To me, if you're crunching the numbers really hard, you're missing the point. I'm a Florida girl (OK, maybe older than that now) who has been going to the parks since they opened, and I can say with absolute confidence that going to Disney and staying off site and going to Disney and staying on site are two completely different vacations.

We bought at Old Key West in '96 not for an investment, although it's doing OK so far that way, but as a commitment to recreation. We've not regretted that decision for an instant. With the principal paid off, I pay about $40 a month in dues and get to stay in Orlando or Vero about 10 nights a year, in beautiful accommodations I'd never feel right about paying cash for.

We're having friends join us the week of May 5. We already have our Florida season resident park passes and we'll eat most of our food in so we'll have very little costs while we're there. But we'll have a top-flight vacation -- and get to treat friends at the same time.

Not only is DVC a long way from the many Days Inn on 192 I've stayed in, it's even a long way from the All-Star resorts, or even the Polynesian (great place, but no kitchen, washer or dryer!)

If it's only a money thing to you, than it's probably not the right decision. But you should at least check out the 2 bedroom accommodations before you pass.

jodifla

 

[SlyHubby]

Originally posted by disneyberry
IMHO, i don't think DVC will necessarily save you money. (this might not be popular opinion) you will probably vacation a lot more, and thus end up spending more money on other things like food and tickets.
in the end, i see it as more of a breakeven, not a financial savings.

it is not opinion, it is a fact that if you are staying on Disney property in comparable accommodations, then DVC will pay for itself in a few years.

we stayed at the Beach Club about 8 or 9 years ago in the simple standard one bedroom. at the time, I think the cost of our package was $2000 or $2500 for the week. last month we stayed at the Beach Club Villas as DVC members, the room was nicer/bigger and only cost us 70 points for Sunday through Friday. No comparison whatsoever - we saved lots of money. What's that room going for today, 8 years later - $400 a night - just for the room?

if we stay at the Beach Club, we can afford 10 nights a year on our 150 point contract. normally we stay at Old Key West and can get 15 nights a year. again, paying cash rates for those accommodations, our DVC membership has already paid for itself in just a few short years.

 

[SlyHubby]

Originally posted by Rebd40
The simplest financial reason that DVC comes out a NO for me is that every trip I've taken to WDW I've always been able to snag a hotel for up to a week at the cost of what the DVC annual dues are (i.e. $600-800 range) without the initial investment of $$$. I've been able to do this by either staying offsite, getting discounted rates from Disney (at value or moderate resorts) or renting DVC points. I'm sure there are a gazillion arguments to counter my logic . . .

what I've found is that since we bought our DVC membership a few years ago, "snagging" a hotel room, spending time doing lots of work to "save" money is not something I have to deal with any longer. Time is money in my mind and I've got better things to do with my time than sitting on a phone trying to make reservations or bid daily on priceline trying to get a room for a cheap price, I don't have to continually watch for "deals" to see if the price on my accommodations may have gone down a few dollars so I can call back and change my reservations. With DVC, I know what we're getting every time. I know the "cost" ahead of time. I don't have to be surprised by the accommodations when I arrive. I know that I make one phone call, knowing when we want to travel and we are going to be on Disney property.

the initial investment? for many DVC members, that initial investment has gone up in value. if sold today, those DVC members would get back not only their entire "initial investment", but more money, and whatever trips they've already taken so far would have been only for the cost of annual dues.

so, when I take all of these factors together, there is no comparison to not being a member - the cost would be significantly more. for us, DVC is the best "investment" we've made (next to our house), and like others will say over and over, "if only we had done it sooner"!

 

[jimmytammy]

Geoff M

I can see your point about the ##s just not adding up, realizing you can get rates for less right now. Bear in mind though, thats RIGHT NOW, not 10 yrs from now. No one here can guarantee that you will be paying more in 10 yrs but its a safe bet you will.
The other thing is will you go at least once a year, if so, DVC will work for you in the long run.

 

[SlyHubby]

Originally posted by rtkane
Certainly in 10 years the price for DVC will have gone up and I would bet you'd at least be able to recoup your initial investment, which would put you ahead $6,000 (which ends up giving you a cost of about $93 per night at the DVC resort for those 10 years worth of trips).

I think this is a common mistake that people make based on history.

Yes, over the past 10 years, a DVC membership has been a good investment. However, going forward you should very well expect that the price/point will come down and depending on when you bought/sold you can/will end up getting back less than your initial investment. Your membership has a fixed number of years on it and as the years go by, it will be worth less and less, ultimately being worth nothing come 2042. It may go up in value for the next couple years - maybe even the next ten, but, guaranteed the price will top out and begin to gradually go down.

 

[rtkane]

Originally posted by SlyHubby
I think this is a common mistake that people make based on history.

Yes, over the past 10 years, a DVC membership has been a good investment. However, going forward you should very well expect that the price/point will come down and depending on when you bought/sold you can/will end up getting back less than your initial investment. Your membership has a fixed number of years on it and as the years go by, it will be worth less and less, ultimately being worth nothing come 2042. It may go up in value for the next couple years - maybe even the next ten, but, guaranteed the price will top out and begin to gradually go down.

Sure there will be a point at which you'll reach diminishing returns, but at a 5% increase per year in hotel prices, how much do you think hotels will run at Disney in 20 years? DVC membership, I would argue, would maintain their value at least 20 years from now--remember, we're paying into the system now to maintain our accomodations costs down the road.

I would bet that the maintenance fees will increase at a lower rate than hotel rates and even in 20 years when I only have 19 years left in DVC, I'd be able to recoup my initial investment back with no problem whatsoever. At 5% increases, a room that costs me $1750 for a week today is going to run $4400 for that same period in 20 years.

At that time, given a 3% inflation rate, my maintenance fees will run about $2k per year vs. $1100 now. If someone paid me what I paid for DVC, they'd still recoup their investment in 10 years. ($4400 - $2000 = $2400 saved per year with DVC. $21,000 / $2400 = 8.75 years to pay off the resale price) Of course, I realize that the $21k would be in 2023 dollars which are less valuable than today's, but still.. I'd have gotten the benefit of my DVC membership for 20 years.

 

[CaptainMidnight]

Originally posted by SlyHubby
I think this is a common mistake that people make based on history.

Yes, over the past 10 years, a DVC membership has been a good investment. However, going forward you should very well expect that the price/point will come down and depending on when you bought/sold you can/will end up getting back less than your initial investment. Your membership has a fixed number of years on it and as the years go by, it will be worth less and less, ultimately being worth nothing come 2042. It may go up in value for the next couple years - maybe even the next ten, but, guaranteed the price will top out and begin to gradually go down.

How high do you think the price per point will eventually go before declining? $100? 110? 125? It does seem like it has to top out and head down at some point.

 

[ncligs]

Originally posted by CaptainMidnight
How high do you think the price per point will eventually go before declining? $100? 110? 125? It does seem like it has to top out and head down at some point.

Thats an excellent question that only the market can answer.I would guess to say around the $100 -$110 range before it starts to decline.

 

[Geoff_M]

Well, after a long discussion at Artist's Point, my wife and I decided to join DVC. Yesterday we talked to the agent we met in January (and really liked... ZERO pressure!) and agreed on a 160 point contract at VWL. If anyone needs the name of a great agent that'll use no pressure with you, you can PM me and I'll give you his name. Thanks for the feedback everyone.

 

[Disney1fan2002]

Originally posted by Geoff_M
If all we needed was a studio, I think we'd sign up.... but with 5 people were staring at a 2 BR Villa vs. a single regular room at the BC. I think we'd still be OK if they'd let us in a 1 BR Villa.

Geoff, DVC does let DVC owners rent a 1 bedroom with 5 people. They don't recommend it, because I am sure you will be cramped, but our guide kept quoting how many points our vacation would cost us going by a 1 bedroom. I pointed out that the 1 bedroom quotes it only sleeps 4. She then told me Disney allows DVC members to stay in a 1 bedroom with 5. It was not a lie, because I have a reservation for a 1 bedroom in November, and I have a family of 5.

 

[Regina]

WELCOME HOME!

I didn't know that they're still selling memberships at VWL!

And, taking a deep breath, I have to confirm what Disney1fan said.

We have a 1 bedroom booked at VWL for 3 of us. (It originally was a 2 bedroom for a party of 5, different dates.)

You can imagine my surprise to have the 1 bedroom confirmation arrive with 5 guests listed.

PUH-LEESE, let's not go off on a tangent over occupancy. I wasn't going to mention it because of how these discussions usually degenerate. I'm mentioning it because it's factual.

 

[Disney1fan2002]

Can I offer another savings that a DVC ownership helps with? The cost of meals! This is a great perk for us, because with a family of 5, and staying at a regular resort, we were froced to eat out at almost every meal. Breakfast would cost us around $8-$15 depending on if we ate light (donut,bagels) or heavy ( scrambled eggs, ect) Lunch would get us at around $30 and dinner about $40. Now, this is not including any character meals ( we would do those even as DVC owners) . That adds up to at least $78 a day on meals. I know some people do not use the kitchens in the DVC resorts because they are on vacation and don't want to cook. That is fine. But when we stayed in an OKW studio just the fact that we had a kitchenette with a refridgerator saved us money in that we could store juice, milk and cold cuts in the room. We had breakfast in the room every morning, and some days we would come back between parks and have a sandwich. This was a HUGE savings to us. I am looking forward to staying in the 1 brdrm with the full kitchen, we can have all 3 meals in our room.

 

[Regina]

Ah Disneyfan, your meal prices bring back fond memories.

Just wait until the kids are ordering off of the adult menu, and can join you in something more adult than a milkshake.

 

[Geoff_M]

I didn't know that they're still selling memberships at VWL!

They are not actively selling WL anymore, but we requested it and the agent said that the points were 98% sold. We were actually leaning towards BCV in January, but decided during our stay at WL now that it's more our style. The agent was suprised when we said we were interested in WL.

Here's some other tid-bits he told us that may be old news here, but sounded noteworthy. BC is 92% sold out. WL is so close to sold out that the DVC has closed the WL model villa at the BW DVC office. They will shortly move the entire BW DVC office to another location. When they do, that space will be converted to DVC units and Board Walk will be back on the market for a short time to sell the new units.

We had a detailed discussion with the agent about the "5 Person" conundrum and here's what he said. (Note: I'm just the messenger.) He said the DVC rules were different for the space than the hotel rules. You can make a reservation for 5 via DVC, and all five people will be issued resort ID cards upon check-in. He assured us we would not be in trouble for placing our 3 kids with us in a 1 bedroom unit. dvcreg, it's nice to hear your confirmation of what we were told.

As long as our kids aren't teenagers, we'll probably go with the 1 BR option.

 

[dizkidz]

DH and I just started the process a few weeks ago but struggled with the same issues you are currently. Basically we feel that buying into DVC allows you to pay for the bulk of the vacation in advance. Also, we feel if we joined DVC it would make family vacations a priority. My DH and I have very busy work schedules and vacationing at WDW makes priceless memories. Not to mentioned having a full kitchen will save you $$ that would be hard to calculate.

 

[JOC]

WELCOME HOME GEOFF_M!!!

 

[PamOKW]

Welcome Home! I'm sure you'll be happy with your decision!

 

[Maistre Gracey]

<font face="comic sans ms">CONGRATULATIONS & WELCOME HOME! </font face>