Convince me DVC isn't a money pit

[Mommydar]

We love Disney, and we are heavily considering buying 150 points or so resale. However, as I look at point increases between 2009-2010, I grow wary that I might find myself having to buy another 10-20 a year just to do a 5 night stay at AKV. When you buy 10-20, you are paying premium at $90 + a point, or another 900 - 1800 a year. I am concerned that with the maintenance fees, I might be better off just renting when a special comes up every year. What do you guys think. Do you think if we just traveled with the specials we'd do okay?

 

[whitfamily]

We love Disney, and we are heavily considering buying 150 points or so resale. However, as I look at point increases between 2009-2010, I grow wary that I might find myself having to buy another 10-20 a year just to do a 5 night stay at AKV. When you buy 10-20, you are paying premium at $90 + a point, or another 900 - 1800 a year. I am concerned that with the maintenance fees, I might be better off just renting when a special comes up every year. What do you guys think. Do you think if we just traveled with the specials we'd do okay?

If you're going every year or two and foresee it being permanent AND like staying at moderate/deluxe resorts than buy. No guarantee you'll see the type of specials we are seeing now and in fact I'd bet they cut them down once global economy picks up and people come at regular rates.

As for point increase- I believe its only the second point shift ever. And the overall points did not increase, they were just reallocated to higher peak times from lower peak times. So, figure out when you normally would go, what size room you would want and average duration of stay. Purchase the appropriate amount of points and you should generally be ok.

 

[Chuck S]

Considering that is the first point reallocation since 1996, I would guess it wouldn't happen again for at least 5 years, possibly 10.

Who knows what the future will bring...will the economy tank and Disney be forced into continuing to offer discounts, or will the economy gain, and those cash room specials evaporate?

Currently, the specials for Moderates and Deluxe resorts still don't beat the savings of DVC. Value resort really don't compare to DVC, but with specials they are a better "deal" if you are comfortable for a long term visit in those rooms.

You have to weigh your options and go with what feel is best for you.

 

[Mommydar]

That's good to know. Even if we stayed moderate every time, I think we are still a bit ahead, but I just hope the points don't increase too rapidly. As is, I am content buying 150 or so for a yearly S-Th stay at AKV during the dream season. I am hoping these will be enough for the next 5-7 years or so. This will be when we'd want to go yearly as our daughters are still young and BIG into princesses.
Thanks for the insight. Honestly, I was playing more devil's advocate, because I know my husband will weigh every possible factor before we make the final decision. It's really me that wants to buy this. I told him I'd rather have DVC points than a diamond for our ten year anniversary, but I know he is always super skeptical of every purchase so I want to make sure I weigh all the pros and cons in order to contest any doubt he might have.
Thanks again.

 

[fkj2]

DVC has shifted some of the point values around but my understanding is that, essentially, the total number of points per year remains unchanged. Friday and Saturday were particularly high point nights; those nights now require fewer points and the Sunday through Thursday night stays slightly more. How many points you need will depend on your length of stay, size of accommodation, and season of travel. It will also depend on how creatively you learn to use your points. If I arrive late, I check into a studio and then move the next day to a one-bedroom. Or, you might alternate by staying in a lower point DVC every now and then, or stay off-site the first/last night.

It's hard to say how rental expenses will be going forward. If the economy recovers and people travel more, the expense may increase, esp. at the smaller DVC. The same will be true for resale values. If, however, the economy remains soft or further deteriorates, costs may come down even more.

I'll be attending a conference (near AKV) in January that will be held at the Gaylord. I imagine it would cost me at least $250 a night to stay at the Gaylord, considering the room + tax, for a total of $1250 (minimum) for five nights. I'll be at the AKV for less than $550. Yes, I'll have a car rental to pay for but I figure I'll be still be ahead by about $550 utilizing DVC. Plus, I'll have laundry facilities, an in-room hot tub, and kitchen. Regular hotel rooms now are tough to take.

 

[shonnons]

We love Disney, and we are heavily considering buying 150 points or so resale. However, as I look at point increases between 2009-2010, I grow wary that I might find myself having to buy another 10-20 a year just to do a 5 night stay at AKV. When you buy 10-20, you are paying premium at $90 + a point, or another 900 - 1800 a year. I am concerned that with the maintenance fees, I might be better off just renting when a special comes up every year. What do you guys think. Do you think if we just traveled with the specials we'd do okay?

Checkout this spreadsheet. http://www.mousesavers.com/DVCvsCash2008.xls It is how I decided to purchase a DVC membership. You can change the number to meet your needs.

 

[Deb & Bill]

They can reallocate the points annually if they want to. And they could raise one type of villa and reduce the other - so studios could go up and grand villas go down. It's just that the total number of points for that resort are static, nothing else has to be.

Dues go up pretty much every year. They can go up 15% each year as allowed by the public offering statement. The first years when they are low ($3-4) the rate increase doesn't seem like much, but as the years go by and the dues get up in the $5-6 range, the increases are more each year.

Salaries of the staff go up annually. Taxes go up. Utility costs go up. Insurance goes up. Etc.

 

[disneynutz]

If you are going to vacation at WDW every year and you would normally stay in a deluxe resort, then DVC may be the way to go.

You have to determine If you will save money buying DVC, even with the Disney CRO discounts.

If Disney continues to make cuts and shifting things around, I think that you will see more owners sell. As more sell, the resale market will continue to lose value.

Bill

 

[adminjedi]

But for a different reason.
You will love it so much you will want to buy more, and more, and more!

 

[quirty30]

I agree - it is a money pit. There is so much more to pay beyond the initial "investment." But if you visit every year and you like deluxe accomodations, it is a good way to go.

 

[toniosmom]

As is, I am content buying 150 or so for a yearly S-Th stay at AKV during the dream season. I am hoping these will be enough for the next 5-7 years or so.

Beware addonitis!!!

Once you experience your first DVC trip, you are going to sit there with the points charts and try to figure out how you can go more often or extend your trips. Soon you will discover that you "need" another 50 points.....then maybe another 50......then another (see what I mean?)

 

[bobbiwoz]

I agree - it is a money pit. There is so much more to pay beyond the initial "investment." But if you visit every year and you like deluxe accomodations, it is a good way to go.

Yes, this was my thought when I read the title. Going to WDW is expensive.

Bobbi

 

[Coach81]

If you are going to go to Disney at least once every two years.. and you like to stay at the nicer accomidations.. you should take the plunge.

 

[DeeCee735]

Most vacations involving deluxe accommodations at popular destinations are money pits.

What makes WDW vacations expensive is the desire to go so often
And that's what happens when you own! You start thinking, how many nights can I get??? Gee, lets see.....if I stay in a studio in January I can actually go back in a one bedroom in April or May, oh, wow! I can go again in October or November, maybe I'll get a two bedroom for a few nights and bring some friends!.....yeah, this is AWESOME

Not a decision we ever regretted....good luck making yours and enjoy!

 

[chalee94]

We love Disney, and we are heavily considering buying 150 points or so resale. However, as I look at point increases between 2009-2010, I grow wary that I might find myself having to buy another 10-20 a year just to do a 5 night stay at AKV.

IMO, there is a risk of another shift between weeknights and weekends in the next few years. i would recommend buying an extra 10-20 pts (i.e. 160-170 pts total instead of 150) upfront as a buffer against possible increases in weeknight costs.

(and if they don't increase the sun-thurs costs, you can bank the extra pts and book an extra friday or saturday night in a few years.)

 

[DenLo]

However, as I look at point increases between 2009-2010, I grow wary that I might find myself having to buy another 10-20 a year just to do a 5 night stay at AKV. .... I am concerned that with the maintenance fees, I might be better off just renting when a special comes up every year. What do you guys think. Do you think if we just traveled with the specials we'd do okay?

The latest reallocation of points was explained to us that so may DVC members were taking advantage of the lower points during the week and not booking weekends that many of the weekend dates went unused. However, when the weekend dates were turned over to CRO, cash customers wanted more than just weekend dates. So in the end the rooms didn't always get rented. Unused rooms mean no income for the DVC and higher MF in the end. Therefore the DVC reallocated points trying to get members to use weekends too. I think my husband checked and the points for a weeks stay really didn't change with the reallocation for most seasons at many of the resorts.

There are threads here comparing all of the discounts to buying into DVC. Your Everyday Adam has a great one. The results are always the same, after 5 to 7 stays you are ahead of the game buying into DVC.

BTW, the discounts won't always be there. The poor economy has really affected WDW (not as much as other resorts in Orlando) and Disney is actively trying to drum up business, hence the discounts. When the rooms fill back up, the discounts will disappear.

Edit: Found the thread by Your Everyday Adam http://www.disboards.com/showthread.php?t=2137102 He stated in another thread that you need to read the whole thread as he keeps adding information. Do check it out.

 

[Tigger031266]

But DVC is definately a money pit. We just are happy to be throwing our money into the pit (we have 425 points):

The Pits:
1. Add on's - way too many (so far for us 3 add ons - 30K down the pit)
2. Annual passes and park passes (4 of us - AP's $1500 every year in the pit)
3. Travel - 3X per year - $3000 at least in the pit
4. Meals - DDP - $1500 per year in the pit
5. Maintenence Fees - $2000 per year in the pit
6. Ect, Golf, Boat Rental, - Toys.... - $$$$$$$$$$

7. The most wonderful family vacations in the world - PRICELESS!!!

 

[mopee3]

Money pit, Money Pit,......... but you have to love the way that boat cuts the water...... Oh wait you wanted to know about DVC not the other money pit, or should I say a hole you throw money into, my boat.

DVC money pit, oh hurt me some more, but after all isn't 2012 just around the corner and then there will be no money pits of any kind.


One persons money pit is another persons "Gota have it"!

Ciao, we are off to play in the money DVC money Pit in just 2 days!!


Moe

 

[Tink-n-Belle]

I told him I'd rather have DVC points than a diamond for our ten year anniversary,
Thanks again.

DVC was my DH and I's 15 year anniversary gift (150 pt), our 16th Anniversary gift (30 more) and then our 17th (last yr 160 more at BLT)

We just celebrated our 18th and no add ons-- oh no!! (well at least not yet

The commitment to DVC is probably the biggest concern you should have, Its like buying a house, in order to get rid of it you need to sell it, but when you have it you have to continue to pay the loan & MF (house=mort & taxes). But when all is said and done, nothing beats being able to go to Disney for a week and stay in a 1 bedroom vs a regular hotel room. (unless of course a 2 bedroom or Grandvilla). It just makes each and every trip special along with the fact that you get to stay Deluxe and be close to the parks if you stay at the BW, BC or BLT. We own at the BW & BLT and its is just great to be able to stay at these great resorts without paying $5000 each trip for the room. Our MF currently are about $1400 for 340 points which could get us about 10 days in a 1 bedroom. Can you imagine what a regular deluxe room with tax will be in 2020!!

Also, Owning DVC lets you enjoy Disney outside of the parks and makes your vacation more like a REAL vacation (with relaxation). Last trip we stayed low one day, rented a DVD in our room, played Bingo & enjoyed the pool party at the pool, hanged out at the community hall, watched movies on the beach at the BC and enjoyed the camp fire. You really don't mind staying in for a few hours because you have tons of space. Also, when the kids go to bed, my DH & I can stay up and relax in bed and watch TV (since we can't go to bed as early as the kids). And if your into saving money, the kitchen will save you tons!! We get groceries delivered and have all our breakfasts and some lunches in the room as well as all our snack and nothing is better than coming home from a long day in the park and going into your refridgerator for a nice cold beverage!!! or having cookies and milk (Dh's favorite) at 11:30 right before he turns in. Also, don't forget about the Washer/dryer!! That's my favorite part, I just love being able to wash our clothes during our trips.

DVC lets us enjoy Disney so much more because we are not crammed into a little space. And that's really what its all about! So to us DVC is really priceless because the benefits of the room outweigh the cost.

GOOD LUCK with your decision!!

 

[Rangerusa1111]

DVC is very expensive. If you don't use your Vacation Club ownership in a way that you get the maximum benefit out of it over time it becomes a money pit.

You will be paying an increasing maintenance fee for the next 30 - 50 years on a property that will need more and more upkeep.

Outside of the DIS BOARDS, the majority will tell you that timeshares are the worst place in the world to spend your money.

I own both Hilton and Disney and as of lately I have been able to trade into DVC via Hilton (RCI) twice in the past 9 months. Hilton on the re-sale market is cheap compared to DVC which has also dropped in value due to the recession.

I always try and pay in advance for my vacations. I have no regrets accept when I keep seeing major companies like Disney, Comcast, Hilton, Marriot etc... court new members with outstanding promotions while they disregard their faithful loyal members who have paid the bills for years.