DVC...am I ridiculous for thinking that this is do-able for us?

[Crystal_27]

At that time we were not saving for a home yet or a wedding. Looking back we could have bought in and paid it off in a few years before we bought a house, got married and had kids. I say if you can do it, do it now and try to pay it off as quick as you can. When I was 23 (DH is older) we had some money to blow and we did, which I had put it to better use like DVC, because we go every year and really LOVE the nicer accomodations. Good luck with your decision!!!

I could have written this post - LOL. DH and I married when I was 18 (he was 21) and we both had good paying jobs. Until I was 24, we were renting an apartment and had no thoughts of having kids and we blew our money on cars, electronics, and other stuff, all of which are just a distant memory now. Had we instead put our money towards DVC we would have actually had something to show for it (now) 13 years later plus we would have had years of memories of great vacations. With that said, DH and I never over-extended ourselves and have always made building up our credit as a top priority (and we do have perfect credit). If you can honestly afford DVC then go for it, but make sure to allow for a good cushion in case of a funds emergency. Good luck!

 

[texhanddoc]

With that being said, I have found historically (not pertaining to anyone in this thread) there are a lot of long term owners who are retired, etc on the DIS and will always advice not to finance. Its like asking your grandparents about financing, they will always tell you no, don't do it, if you can't afford it with cash you shouldn't buy it.

Well, I hate to be a wet noodle, but I am not retired and my personal opinion as someone who is somewhat financially savvy is that if you have to finance for 10 years, DVC becomes less attractive. I have done the numbers and most peoples break even point for DVC is about 8 to 10 years WITHOUT financing.

The interest rates for DVC range from 10.75% to almost 15% I believe. So... if you did a 10 year loan at 10.75% on an initial principal of $20,000, you will end up paying a total of $32,721.16. That will basically move your "break even point" back to about 12 to 15 years or so depending on how you vacation. At that point its up to you. Mousesavers.com recommends that DVC is probably not the best option for you if you have to heavily finance your buy-in.

 

[BoardwalkSuzy]

If you love Disney, and plan to go every year, or even every other year, go for it, but only in your own name. Your BF's poor credit score will only qualify for the highest interest rate, making the deal not worth it. Even though I'm married, with kids, I'm the one who had the real estate when got married, so when I buy and sell the properties, new properties go into only my name - since never know. I always plan for the worst, that way never have to be surprised.

DVC ownership is a hedge against inflation, since room rates rise each year, but your points are already purchased so can't be raised. However, since points get redistributed on the use chart every year for each resort (although the total points stays the same for the resort), you need to round up what you think you may need later. Pick your favorite resort, because DVC has to option to take away the opportunity of switching between resorts at any time. The DVC contract is subject to change at any given time. The only things that are fixed are the points, the home resort, the use year and term, and the 15% cap on increases to annual maintenance charges. Everything else is subject to change. So keep that in mind, and buy at your favorite resort.

Say you like AKV. Look at the weekly rate, minus one of the weekend nights of points for a nice 6 night vacation, and see what that totals for the season you like to travel to Disney. Say you like to go every year in May, then a studio at AK would be 119-22 = 97. Round up to 100, as those points get reallocated and you may need the extra points later. So buy 100 resale points (try to get year of banked points to go with it for a bonus trip). If can live with trip every other year, then buy 50 points resale, bank a year of points for a total of 100 every other year - an economical alternative. Pick your 4 least favorite months to go to Disney, then pick a USE month following them as your use year. If your credit is good, I think I saw the interest offered was 10.5% - better than department store interest at least, but double that of a regular home mortgage these days.

Currently, the cost of a studio at AK for 6 nights in May would be $3300 rack rate, only to increase over the years. DVC members get their pricing locked in at the time they purchase the contract (pre-paid vacation), but the maintenance fee can increase slightly each year (usually about 3% a year). Remember, non-DVC members also pay 14% resort tax, $10/day internet, and don't get free laundry machines - all nice perks to have, but again some perks come and go. Don't think resort tax could ever apply for DVC owners though - and that is substantial. But the minus is that DVC owners don't get maid service, just delivery of towels and pick up of trash on 4th day. We never liked the excessive maid service anyway - I make my own bed.

Add up the numbers and see if the interest you pay, plus the principle, plus the maintenance add up to less than you would pay at rack rate. If it does, DVC is for you. I calculated that my purchase would pay for itself after 5 years, and then would continue to be a hedge against inflation as rates at rooms will only increase with time. Plus it forces you to plan your trips way in advance too, to have something to look forward to.

Of course, the terms end in 2042 - 2060 depending on resort, so keep in mind the longer term contracts are worth more, both for resale value, and possibly for any grand children you may have way in future! I'm a commercial real estate appraiser, landlord, property manager, and we even know CPA's that own Disney DVC's - they know the numbers make sense. My friend's accountant bought OKW at $42/pt years ago - so could resell today at a profit. I consider DVC more of an asset than a liability. Plus you can rent the points out for $10-$13/point, if don't want to travel one year. If WDW were wiped out from a hurricane, you would get a nice insurance settlement as I learned Disney carries premium insurance policies that even cover natural disasters.

The downside is that with global warming, scientists predict much of Flordia may be under water by end of the century, and WDW may become regularly flooded as well. On the upside, maybe WDW won't be flooded, and they may offer all owners first right of refusal to extend their contracts - they did at OKW, and bet they will at other resorts too. Just be prepared for the worst, and then there's no surprises. Overall, think DVC is worth it for Disney lovers. Most people I talk to just wish they had bought earlier. Try to find a negative posting about DVC, other than the perks that keep coming or going, and points getting reallocated, not enough mousekeeping service, and that's about it - there really are no real negatives that I could find.

Go with your hunch - if it feels right. That's how I buy real estate, and it has always worked for me. One time, my husband talked me into buying a property that didn't feel right, and I regretted it. Start small, and you can always add on more points later. Go with the 3 golden rules of residential Real Estate purchases (even though this is really a pre-paid vacation you are buying):
#1 Would I live there? - YES
#2 Can I rent it out if can't use one year and still break even? - Yes (calculate to make sure - Yes for my purchase)
#3 Can I easily resell without a major loss - Yes

Those are the criteria that I look for whenever buying a property.

Ask seller to pay closing costs to save some money. Make sure before you make any offer, to have the agent provide the last 2 months of ROFR's and passed contracts - consider an offer between the highest ROFR'd and the lowest passed contracts. Two agents consistently are recommended: The Timeshare Store and Grandma Jaki's Garden Realty. Good luck!

 

[Deb & Bill]

...DVC members get their pricing fixed for life of the contract. ...

Not quite. Your annual membership fees will continue to go up each year. They may start out low, but can increase (and usually do increase). There is a limit to the annual increase (I think it is 15%), but you will see an increase yearly (only a few times in the history of OKW where it went down, but back up the next year). As the years go by, that 15% limit increases. For the life of your contract, your dues will be more expensive than the initial buy-in price.

 

[skeleton_pirate]

There's lots of great advice here- I can tell you that what led my wife and I to buy at a similar age was our vacation habits. Even though we were just starting out after grad school, and were hard at work paying off a new car, student loans, and credit cards, we were going to Disney World twice a year. Ultimately, I recognize that even though it's wildly irresponsible, we would rather eat pasta for every meal and live in a tiny apartment than miss out on those disney trips. We put down the minimum, and kept up with payments, and the monthly costs added up annually to what the hotel costs would have been had we paid out of pocket, but a few years down the road, we'll only have to worry about the dues. So now, when we buy a home and start a family a few years down the road, we've got guaranteed vacations well into our golden years.

I echo others who say, if you can swing it, go for it. Best of luck!

 

[TisBit]

Well, I hate to be a wet noodle, but I am not retired and my personal opinion as someone who is somewhat financially savvy is that if you have to finance for 10 years, DVC becomes less attractive. I have done the numbers and most peoples break even point for DVC is about 8 to 10 years WITHOUT financing.

The interest rates for DVC range from 10.75% to almost 15% I believe. So... if you did a 10 year loan at 10.75% on an initial principal of $20,000, you will end up paying a total of $32,721.16. That will basically move your "break even point" back to about 12 to 15 years or so depending on how you vacation. At that point its up to you. Mousesavers.com recommends that DVC is probably not the best option for you if you have to heavily finance your buy-in.

Never said you or anyone else fit that profile and even specifically said so. Yes, DVC is 10.75 for people with ok credit high for lower credit. Yes, break even pushes back, etc etc. But, if you are still going to Disney and paying full price for accomodations there is a financial benefit to paying into your DVC and paying the interest too. Similar to renting an apartment to save up enough money to buy a house outright.....the money you save at the apartment doesn't make up for the money you are putting out with nothing to show for it. Unfortunately I don't have the link to the thread where someone much smarter than me actually broke it down into numbers to explain this.

Now, if you are not going to WDW or are ok doing Values, that could be different. There is no one answer for anyone about financing vs not financing.....but it is very easy for other people that can afford to plop that money down to say you should never finance....I am merely pointing out the other side of that coin.

 

[brandip22]

My Dh and I went on our HM to Disney. I WISH we had bought then!!! That was 10 years ago, though. Since, we have bought 2 houses, had 2 kids and just started back going to Disney in 2005, because of our DVC purchase. We are paying off in 5 years (2 months left!!!). Once you do have kids, mortgage, etc, it may be harder to buy into DVC. It's may be relatively easy to save up for the trips, though. THere are so many ways to go cheaply if you are DVC, so I don't really understand the issue there. Also, as far as a wedding and all- my Dad paid for that and I even wish we would have taken the money as he suggested and saved it to go towards DVC or a hosue- something we could have to show for it more than pictures. So, I may be in the minority, but I say go for it. And, for what it's worth, I was a banker for 15 years- doing loans and financial planning. Sure, it'd be nice to pay cash for everything. But, only you know your situation and I say to look at the big picture and your future plans and go from there. Good luck!

 

[crisi]

Never said you or anyone else fit that profile and even specifically said so. Yes, DVC is 10.75 for people with ok credit high for lower credit. Yes, break even pushes back, etc etc. But, if you are still going to Disney and paying full price for accomodations there is a financial benefit to paying into your DVC and paying the interest too. Similar to renting an apartment to save up enough money to buy a house outright.....the money you save at the apartment doesn't make up for the money you are putting out with nothing to show for it. Unfortunately I don't have the link to the thread where someone much smarter than me actually broke it down into numbers to explain this.

Now, if you are not going to WDW or are ok doing Values, that could be different. There is no one answer for anyone about financing vs not financing.....but it is very easy for other people that can afford to plop that money down to say you should never finance....I am merely pointing out the other side of that coin.

But who now is going to Disney regularly and paying full price? Since we've joined (in 2002), there have been plenty of specials and deals. For us, DVC has been worthwhile because with kids we like having the kids sleep in a different room, but that's terribly luxurious for most couples starting out.

 

[TisBit]

But who now is going to Disney regularly and paying full price? Since we've joined (in 2002), there have been plenty of specials and deals. For us, DVC has been worthwhile because with kids we like having the kids sleep in a different room, but that's terribly luxurious for most couples starting out.

Well here is a thread (not the one I was originally thinking) that even shows that with the discounts, you will still break even. The whole point I was making is, if you are going to Disney anyway, might as well start early with DVC, yes with interest your break even will be pushed out a couple years, but if you don't buy now, you will just be using that money anyway with nothing to show for it. This thread is good because it even shows comparisons with moderates/values, etc.

http://www.disboards.com/showthread.php?t=2137102

 

[zmanandshan]

OK, here are my opinions:

First off, I dont think CRISI was off-base. After all the question was asked, and she provided her opinion that maybe other priorities should be looked at before getting involved. I didnt think it was preachy.

In my personal opinion, (and I'm sure I'll get flamed for it), is that you shouldnt buy in unless you have the cash on hand. At your age, I'm sure its not hard to over-extend yourself with debt. Add monthly dues, or a one-time payment in Jan, and its another bill to pay.

I'd say table your decision for 6 months. And if you feel as strongly about buying in as you do know, and you've considered your finances, then give it a shot.

I agree that buying in a small contract would be best, and resale may be the best option to do that at a lower price. Even though I'm a finance guy by trade, I do avoid the spreadsheet-driven thought of breakeven points, etc. At work, its one thing, but if it truly makes you happy to know that you bought into a piece of the Mouse for future vacations, then so be it. I know a lot of folks have spent a lot of time and effort in analyzing it, so I'm not faulting their efforts. But in the end, every person is different, and have different travel habits, future plans, personalities, etc.

Just my $.02

 

[disfam_2]

My wife and I purchased DVC when we were on our honeymoon in July 2009. I was 23 at the time and she was 22. We love it, we purchased BLT. We have a house being built right now so it really depends on your situation and if you are going to get good value out of the deal. Good Luck!

 

[Ln42]

Well, I hate to be a wet noodle, but I am not retired and my personal opinion as someone who is somewhat financially savvy is that if you have to finance for 10 years, DVC becomes less attractive. I have done the numbers and most peoples break even point for DVC is about 8 to 10 years WITHOUT financing.

The interest rates for DVC range from 10.75% to almost 15% I believe. So... if you did a 10 year loan at 10.75% on an initial principal of $20,000, you will end up paying a total of $32,721.16. That will basically move your "break even point" back to about 12 to 15 years or so depending on how you vacation. At that point its up to you. Mousesavers.com recommends that DVC is probably not the best option for you if you have to heavily finance your buy-in.

This is exactly what I would have said. IMHO, the best option is to save aggressively for it. If its your number one priority, you will almost enjoy giving other things up knowing that you are getting closer and closer to purchase. If you find its too difficult to put the money aside, then you know the timing just isn't right for now. It may take a year or two but buying it with cash will not only be much cheaper but will also cause less stress on you in the future as other expenses crop up. I know its soooo hard to restructure a dream and put it into the future for a couple of years but it could be really worth it. Good for you for posting and asking the question. It shows a lot of responsibility on your part to take in all that people have to share about the idea. Good luck to you in whatever you decide!

 

[crisi]

Well here is a thread (not the one I was originally thinking) that even shows that with the discounts, you will still break even. The whole point I was making is, if you are going to Disney anyway, might as well start early with DVC, yes with interest your break even will be pushed out a couple years, but if you don't buy now, you will just be using that money anyway with nothing to show for it. This thread is good because it even shows comparisons with moderates/values, etc.

http://www.disboards.com/showthread.php?t=2137102

I fundamentally disagree with this concept though. It ASSUMES you will travel with DVC like you will with cash - and no one can say if that is true or not (and for most of us we know it isn't). If we were cash guests, we might skip trips if money was tight, but as DVCers our "room is paid for" and we go even when money is tight. As cash guests we aren't really tempted (most of us) to invite friends or relatives - but as DVCers this seems to be a pretty normal thing. DVCers "save" points to squeeze in an extra trip over F&W or to see the Christmas decorations. Cash guests almost always stay in a studio. They can take a cheaper vacation this year by staying at Pop - or even (gasp!) offsite. DVCers don't get the flexibility to downgrade to value or offsite. And while there are DVCers who always stay in studios, it doesn't take long at all for you to "treat" yourself to a one bedroom "just for this one trip" and then add on. Its common enough for addonitis to be a standard joke.

DVC changes the way you travel. For the VAST majority of DVCers, it ends up being a very efficient (and honestly, pleasant) way for the mouse to take more money from your pocket.

There ARE people who save money with DVC. My guess is that they are the minority.

 

[exwdwcm]

I think you probably have a lot of other things at 23 that should be higher priorities than DVC. Had I bought DVC at 23....

I wouldn't have been able to afford my house.
I wouldn't have been able to afford my wedding
I wouldn't have been able to afford infertility treatments, a subsequent adoption.
I wouldn't have been able to afford daycare when my kids were little.

It isn't just the DVC - its the trips that you take in order to use the points. Disney is an expensive vacation to make a committment to.

great point. same applies for me.

getting a house was our first priority and then we had unexpected fertility treatments to pay for to have our son (over $15k). Now that all our first priorities are taken care of, we felt secure in purchasing DVC. we put down almost 20% and right now our priority is paying off the remaining balance ASAP due to the high interest rate (10.75% even with perfect credit). We would have put more down, but we were buying a car at the same time too. i would think saving up a HUGE down payment would be best for you if you really think you want to move forward.

But only you know what is truly a priority for you or not.

but i do highly support everyone else that says to ONLY get it in one person's name. I've had too many friends buy homes with their significant other, only to break up and have to fight it out over who owes what. AND........if you do that, you need to be certain you could afford this on your own (if you do it in your name).

DVC ONLY made sense for us now due to our financial situation and the fact that we want to be able to take our toddler son for years to come (and hopefully kiddo #2 if possible). Plus, in the past, we have been happy with moderate accomodations and finding great deals on those, using free dining etc. Now with a growing family and a desire to stay deluxe (after staying deluxe a few times, DH was sold on it!), DVC made more sense. He never wanted to stay anywhere but deluxe from now on.

 

[crisi]

great point. same applies for me.

getting a house was our first priority and then we had unexpected fertility treatments to pay for to have our son (over $15k). Now that all our first priorities are taken care of, we felt secure in purchasing DVC. we put down almost 20% and right now our priority is paying off the remaining balance ASAP due to the high interest rate (10.75% even with perfect credit). We would have put more down, but we were buying a car at the same time too. i would think saving up a HUGE down payment would be best for you if you really think you want to move forward.

But only you know what is truly a priority for you or not.

but i do highly support everyone else that says to ONLY get it in one person's name. I've had too many friends buy homes with their significant other, only to break up and have to fight it out over who owes what. AND........if you do that, you need to be certain you could afford this on your own (if you do it in your name).

DVC ONLY made sense for us now due to our financial situation and the fact that we want to be able to take our toddler son for years to come (and hopefully kiddo #2 if possible). Plus, in the past, we have been happy with moderate accomodations and finding great deals on those, using free dining etc. Now with a growing family and a desire to stay deluxe (after staying deluxe a few times, DH was sold on it!), DVC made more sense. He never wanted to stay anywhere but deluxe from now on.

This is just ME, but at 23 I married my first husband. We honeymooned at WDW the year they started selling OKW. We owned a home. And the future looked fairly rosy. We didn't intend to have kids for a long time. We were recent college grads with decent jobs.

Within two years he'd met his soulmate - and it wasn't me. So now I was getting divorced, trying to keep the house, trying to make ends meet.

Three years after my divorce was final I married my current (and hopefully, permanent) husband. Again, the future looked great. He'd gotten a recent promotion at work, I'd done the same. And we honeymooned at WDW.

We started trying to conceive that year because by now, I was getting older. Then came the fertility treatments, and the adoption. And a need for a bigger home that would support the family we wanted. And job switches that were good for our income, but kept vacation time minimal for years. Then "baby surprise" and two kids in the infant room at daycare at a cost of $1600 a month (ten years ago).

When our kids were 3 and 4 we purchased DVC.

Life throws most of us curves. You can prepare to be able to hit them, or you can just hope all you see is the pitch you can hit and when the curve comes, you have strikes left. Few of us, and maybe the OP is one of them, are set up to hit those curveballs in our early 20s. And few of us won't see at least a few untimely curves.

 

[staceymay00]

I don't think buying at your age is crazy if you are in good shape financially and manage your money well. If you like going to Disney every year and plan to keep going then I think DVC could be a good fit if staying at an on site deluxe resort is important to you. Honestly, though, I really can't recommend financing through Disney at 10.75% (or higher) for 10 years. The only way I think that even remotely makes sense is if you are already paying several thousand dollars every trip just for lodging. Keep in mind you also have to buy tickets and food for each visit, and if you have children one day it is even more expensive.

So much can change in 10 years and I would not want to deal with a DVC payment for that long. For example, I was not someone who dreamed of being a mom and staying home with kids, but when my oldest child was born I did not want to go back to work full time even if it meant losing my good salary. I have either worked part time or not at all for the past 10 years. I am so grateful to have had a choice since we did not have a lot of debt - just a mortgage and one car payment.

Ok, I am going to sound like your mom even though I am not old enough (ok, technically I am old enough but my kids are much younger than you are). Are you saving for retirement? You shouldn't even think about DVC unless you are. My dh and I are almost forty and will be surprised if we see even a fraction of the money we have paid into social security. Pensions are not what they used to be if your job even includes one as a benefit (we've never worked for companies with pension plans, just some 401k matching). It is all on us to fund our retirement. I'm not saying don't have fun today because you put every cent you can into retirement, but if you start putting a set amount into a retirement account each month in your 20's you will benefit greatly. There has to be a balance between living today and saving for the future. If you are already saving for retirement, kudos to you!

 

[rsinj]

I think buying DVC at 23 is bordering on crazy unless you are doing extremely well financially and will not finance. At 23, there are plenty of other things to be saving for - especially with the way the economy has changed. The fact that the boyfriend has poor credit is another strike against it in my mind. That you aren't married is yet another strike. Is it going in your name or joint? Even the best laid plans....

Lastly, buying DVC, again as others have said, is a big commitment. The buying is only the beginning, you are locking yourself into 30+ years of paying (rising) dues, trips to Disney when you may not have been planning or even want to go. In a few years, maybe the magic will wear off for you? As others have mentioned, there are deals for vacationing at Disney, and the fact if you really wanted to stay at a DVC resort, you could rent points and be able to stay for significantly less cost/commitment (subject to availability, etc.).

At 23, it makes no sense in my opinion, because when you're young (and I consider 23 young), you want flexibility as things can still change dramatically and quickly. For some (a very few in my mind), maybe it does make sense at that age. However, it's my belief that for a couple of kids in their early 20's, $10,000 in the bank/savings/invested is much more important than a DVC purchase which will require much more expenses yearly.

 

[dizzneebabe]

Let's see, when I was 23 (I'm 40 now), I got married and had my first child. We didn't have much money AT ALL! However, having said that...IF we did have the money I would have definitely bought then. When I think of how we'd be enjoying that membership after all these years...(sigh)...all the $$ we would have saved not staying at the hotels!!!

Bottom line? Age is so subjective--no one can say you are too young or don't have your priorities in order! I know PLENTY of 30 something and 40 something's that don't have their act together! I say, if you have the means and you both really plan on using it for years to come, why not go for it?????

My only concern is the legal aspect, since you are not married. That could get sticky if (sorry) you part ways.

 

[gray52]

You are pre-paying for your resort room. Nothing more. My wife and i waited 5 years after we first wanted to buy in to actually do so. Why? As with all luxury items, we waited until we could pay it in CASH. We needed a house. We needed diapers. We needed formula. We needed daycare... etc.

 

[BoardwalkSuzy]

I think buying DVC at 23 is bordering on crazy unless you are doing extremely well financially and will not finance. At 23, there are plenty of other things to be saving for - especially with the way the economy has changed. The fact that the boyfriend has poor credit is another strike against it in my mind. That you aren't married is yet another strike. Is it going in your name or joint? Even the best laid plans....

Lastly, buying DVC, again as others have said, is a big commitment. The buying is only the beginning, you are locking yourself into 30+ years of paying (rising) dues, trips to Disney when you may not have been planning or even want to go. .

I have to respectfully disagree with some of the points here. I'm a renovator, a commercial appraiser, and a property manager and my entire family was in the real estate business - investors, developers, property managers, brokers, and real estate attorneys. I advise you get in early on solid investments that hold their value, but investments you can enjoy and also easily liquidate if you need too. DON'T BUY IN PARTNERSHIPS, EVER - THAT INCLUDES MARRIAGE (sorry, to be a pessimist here). Other option is to get an immediate Quit Claim Deed if need to purchase together due to financing.

A 3% increase on your annual maintenance of $398 (100 points at BLT) is almost NOTHING - it's only $11.94, cost of a lunch out! Don't let anyone scare you by trying to warn you about huge maintenance increases. What is going up are the rack rates. Your points are purchased and your points can no longer go up in cost. The tiny maintenance increase is really nominal - remember CM staff salaries, part of the maintenance expense, have to go up that much (wouldn't you want your 3% annual raise?). Also, you are NOT LOCKED IN! If you put your points back up for sale - priced $2 less than all the other listings, you WILL get a buyer fairly quickly, and you will sell because either Disney will ROFR buy it, or the buyer will get it. These do resale, but not as quickly as CD's and stocks, but you aren't stuck for years. It is not a liquid asset, but it will sell because it is Disney. I always remind others though, that every time you buy and sell, you lose about 10% of asset value - commission, etc, so try to buy and hold your investments.

If you want to lose a lot money, here's what you do:
a) shop for lots of things at department stores using department store credit cards
b) buy a brand new car every other year on credit
c) pay rent on an apartment that takes over 30% of your paycheck or more
d) pay rack rates at the Disney deluxe resorts and other deluxe resorts around the world
e) buy stock - I lost over 100K in my 401K plan due to both Enron and Worldcom stock collapse - all within a matter of a few months time.

Disney stock almost doubled in value this last year (up 86%), but still I will never invest in stock again - only gold and real estate. After what my father learned from the great depression, and I learned from Enron and Worldcom - If you can't feel it or touch it, don't buy it!

I buy real estate for another reason - TAX DEDUCTIONS! If you decide to rent out your DVC points one year or for a few years, then you can write off 100% of YOUR INTEREST PAID, 100% OF THE MAINTENANCE FEE, and the COMMISSION FEE (if use broker) to do this. Even if you use your own points every year, then you can still write off ALL INTEREST PAYMENTS, and the TAXES PORTION OF YOUR MAINTENANCE FEE! I checked with my accountant. Don't think I've ever paid any money to the IRS - always get full refund check, because I buy real estate. If rent out your points for reservations of 14 days or less, you can even be sheltered from tax for up to $5,000 of the rent. Quote from Kiplinger.com (tax accountants): "If you rent the place out for 14 or fewer days during the year, you can pocket the cash tax-free. Even if you're charging $5,000 a week, the IRS doesn't want to hear about it. The house is considered a personal residence, so you deduct mortgage interest and property taxes just as you do for your principal home." You can't do this for a 3rd personal home though. Disney allows for renting out your points as long as you make no more than 20 reservations within a year, then they consider it a commercial business and have right to stop.

With DVC, at least you'll have an asset you:
#1 - can enjoy and touch, smell, feel
#2 - can rent out if need to save (or even make) money for a few years
#3 - don't need to manage much
#4 - can resell for near what you paid for it, or even for a profit (if not near end of term)
#5 - enjoy TAX DEDUCTIONS and get your withholding taxes back from IRS!

All these are things are important to consider when making an investment in real estate (or in a vacation rental in this case). I would never buy a traditional timeshare, but Disney is different - it's in increasing demand by more and more people around the world, and you have much more flexibility with with it being set up with a point system, so you can do DVC cruise in Bahamas, go to Hawaii, not just WDW, etc. I've done lots of research on the DVC program, a lot on this board, and almost everyone says they wished they had purchased sooner. Keep on reading Disboard. It pays for itself in about 5-10 years, depending if cash purchase or financed, then it's like having a much more affordable vacation after that.

Start small - I'd say 75 to 100 points resale, add on later - SSR most people like, can get at $68 right now. If have to start with the finance plan at 10.75%, then just pay it off early if you can. Don't finance if interest quoted is higher than that - then maybe not worth it. Go with your own gut feel about it though, don't let others make your decision, just educate yourself to know exactly what it is you are buying, and run the numbers yourself on your calculator. Just remember, though, partnership purchases are easy to get into, but a headache to out of them. Keep your life simple, and enjoy it at same time!