DVC An Investment? A simple case study

[vacationman]

Back in late 2000, we bought into DVC with 300 points at the Boardwalk Villas (using magical beginnings for 150 points). We just sold those points (DVD exercised ROFR). The difference between the purchase price and our net from the sale (after closing costs, real estate commissions, etc.) is a negative $660. Adding in the maintenance fees and taxes for all of the time we owned, brings our cost to approximately $5,970 (not factoring in any cost of funds).

What we got for that $5,970 was 62 nights of lodging as follows: 34 studio nights at BWV; 11 one-bedroom nights at BWV; 5 two-bedroom nights at BWV; 5 two-bedroom nights at OKW; 4 two-bedroom nights at VWL; and 3 one-bedroom nights at VB.

Was this a good deal? Over the four year period, considering the accomodations we enjoyed, it was for us.

 

[bjakmom]

That's less than $100 per night - sounds pretty good to me !!!

Thanks for the breakdown, makes me feel even better about my 'investment' in BWV !!

 

[GrimGhost]

Just out of curiousity, why did you sell?

 

[DrTomorrow]

Thanks for sharing that "real-world" example.

Of course, "Past performance is not indicative of future results."

 

[y2khardtop]

When I bought back in 95 (ish), I did a study comparing actual cost (including 6% inflation on dues) over the life of the program. Assuming you plan on visiting Disney regularly, and stay on property, it is definitely a good investment. We actually stayed in a GV our third trip, and that alone was worth a large chunk of our buy-in. When you also take into account that we had free park tickets for several years, the pot got even sweeter.

All in all, I can visit every year and stay in style, or I can rent out half of my point and re-coupe my dues and still visit in a smaller accomidation. Since I got my initial investment back within the first few years, I feel that I'm saving money on vacations every year that I travel to Orlando!

 

[vacationman]

To GrimGhost

The main reason I sold is as follows: Due to planning a trip/cruise to Hawaii in June 2005, I looked into the HGVC since they have the Hilton Hawaiian Village Resort on Oahu. The resale cost for the Hawaiian timeshares was high (more than I wanted to spend), but I found a resale from the Seaworld HGVC for a very reasonable price. With that resale, I got Christmas week at their new property in Orlando - on Internation Drive - for this year. I also got the June week I wanted in Hawaii in a two bedroom premier unit. Each of these non-home reservations were no problem and I was able to use HGVC's on-line booking. I also booked the HGVC in Las Vegas under their "open season" plan where they sell off unused rooms at very discounted prices when you make reservations within 30 days of the date you want to go. The "open season" option and on-line booking are great benefits I wish DVC had.

My good experiences with HGVC were a factor as was the lower maintenance fees (about half of DVC). Also a main factor was the fact that DVC members get no real break on park ticket prices. This had led us to visit other Orlando attractions much more frequently lately while minimizing our time in the Disney parks. As we did that, staying on property became less critical. This seems to be the one fact that Disney does not realize and it bugs me.

I never purchased the HGVC with the intention of selling DVC. But, now I want more HGVC and selling DVC to get it makes sense.

I enjoyed my years in DVC and believe it is a great value. That's why I gave my example - so folks could see that ownership, even over a short period (with no free park tickets like the early 90's folks) works out well. Heck, I may buy back in some day.

 

[pplasky]

Originally posted by vacationman
To GrimGhost

Also a main factor was the fact that DVC members get no real break on park ticket prices. This had led us to visit other Orlando attractions much more frequently lately while minimizing our time in the Disney parks. As we did that, staying on property became less critical. This seems to be the one fact that Disney does not realize and it bugs me.

I agree. We are planning on getting APs and visiting WDW 3-4 times in that year. We will then visit other Orlando attratctions for at least a year(or maybe trade out). Then, after 1-2 years, do the AP thing again.

 

[crisi]

You also posted in your original post about selling that your family dynamics have changed - your kids aren't interested in WDW every year - even with ticket discounts - and you have more interest in visiting other vacation destinations. Its a mantra on this board that DVC is a good deal if you vacation at Disney - it isn't a good deal if you intend to stay mostly outside Disney (or VB or HH).

 

[Mickmse2002]

If you don't mind my asking, what were the particulars of the contract Disney ROFR'd on? I have 200 BWV points were are contemplating selling.