DVC annual dues come to over $18,000!

[KelseyLaPerle]

I have been considering buying into DVC for awhile now and was almost ready to make the decision. When chatting about it with DH tonight, we came to the realization that while $4.73/point every year doesn't sound like much, it adds up to over $18,000 throughout the life of the timeshare. That was the deciding factor for us. I guess we'll always be a value resort family

 

[DisDad07]

Sorry, it didn't work out for you. You could buy resale and maybe save some money. But dues seem to go up every year, and it does add up. The prices of the Value resorts will most likely go up also. Good luck deciding.

 

[OKW Lover]

Everybody needs to make their own financial decisions. Obviously what works for some, won't work for others.

But just playing with the math, 18,000/40 years = $450/year or 4-5 days a year at a value. Is that how long you usually visit?

 

[jlewisinsyr]

Dues will exceed the purchase price over the life of a point (especially after you factor in increases in the annual rates) without a doubt, but how much will room rates increase in comparison?

 

[XGrumpy1]

I read the title of your post and thought "she must have 3,000 - 4,000 points"!

Ha ha on me!

 

[Lynne M]

I think if you add up any of your annual expenses over 40 years, it's going to be an impressive number. Heck, over 40 years, my cable bill will be $48,000. My rent would be $660,000. My DVC maintenance fees don't look too bad compared to all that.

When considering the cost of owning DVC, I prefer to look at it as one figure. Purchase cost, plus maintenance fees. Divide that up annually, and see how it compares to my non-DVC lodging costs at WDW per year.

 

[mousefan1972]

I read the title of your post and thought "she must have 3,000 - 4,000 points"!

Ha ha on me!

I thought the same thing!

OP, many people who usually stay at the values can't justify the cost of DVC. Many DVC members would otherwise be staying in a deluxe resort. The numbers work much more in DVC's favor if that is the case.

 

[dbs1228]

All I know is that we spent over 35000.00 in 10 years on accommodations alone at WDW. We now stay in a 2 bedroom every Feb for 10 nights vs. cabins at Ft Wilderness which is 1 bedroom 1 bath!

 

[luckyman_apd]

I think if you add up any of your annual expenses over 40 years, it's going to be an impressive number. Heck, over 40 years, my cable bill will be $48,000. My rent would be $660,000. My DVC maintenance fees don't look too bad compared to all that.

When considering the cost of owning DVC, I prefer to look at it as one figure. Purchase cost, plus maintenance fees. Divide that up annually, and see how it compares to my non-DVC lodging costs at WDW per year.

Exactly. You can't look at how much you will spend TOTAL over the life. The real question is will you keep going to Disney every year or every other year at Values? If so, what is the price you are paying to stay there? Add that up over the same time as the DVC contract. Will you save money? I'm guessing you will, or at least be competitive, and no doubt your accomodations/resorts will be better at a DVC resort than a Value resort. That is why we bought.

Our per point cost for 2012 will be $6.18 per point. If I stayed using 128 points (1 week in a LV studio in NOV) it would be a 2012 cost to me of $791.04. (I am using 2013 points chart BTW) That same week in Nov at an ALL-STAR resort costs $785. So, for the price difference you are getting a room at an awesome location with monorail access. BLT Studio's are smaller than other DVC studio's, so if you compare to a different DVC resort, I still say you are getting a much better resort for about the same price. The only major difference is a studio has a bed and sleeper sofa, instead of 2 beds.

If you are fine with the All Star resorts, by all means, continue. I'm not putting them down. They just are for us. We enjoy the DVC resorts more. DVC also comes with a locked in contract, as where if you decide not to go to WDW anymore staying in Values everytime, well so be it. Since my wife and I typically stay in moderates, our price staying at DVC actually saves us money. DVC is so unique and customizable, but not a one size fits all. If you don't think it will work for you, then so be it, and don't buy. Each person needs something different.

 

[Mtnman44]

Just to repeat previous comments, Why don't you also add up that value cost over the next 40 years to make a straight comparison. Don't forget the taxes on that value room.

I have been considering buying into DVC for awhile now and was almost ready to make the decision. When chatting about it with DH tonight, we came to the realization that while $4.73/point every year doesn't sound like much, it adds up to over $18,000 throughout the life of the timeshare. That was the deciding factor for us. I guess we'll always be a value resort family

 

[awilliams4]

I think if you add up any of your annual expenses over 40 years, it's going to be an impressive number. Heck, over 40 years, my cable bill will be $48,000. My rent would be $660,000. My DVC maintenance fees don't look too bad compared to all that.

When considering the cost of owning DVC, I prefer to look at it as one figure. Purchase cost, plus maintenance fees. Divide that up annually, and see how it compares to my non-DVC lodging costs at WDW per year.

Excellent point(s).

 

[crisi]

I think if you add up any of your annual expenses over 40 years, it's going to be an impressive number. Heck, over 40 years, my cable bill will be $48,000. My rent would be $660,000. My DVC maintenance fees don't look too bad compared to all that.

When considering the cost of owning DVC, I prefer to look at it as one figure. Purchase cost, plus maintenance fees. Divide that up annually, and see how it compares to my non-DVC lodging costs at WDW per year.

The difference is that I can cancel my cable, or skip the trip to Disney in a value if money gets tight. There is a significant difference in accounting for obligations vs. accounting for probable spend.

 

[zeferjen]

eh, but you can rent points or sell. you are not committed for life.

 

[bakenatj]

The difference is that I can cancel my cable, or skip the trip to Disney in a value if money gets tight. There is a significant difference in accounting for obligations vs. accounting for probable spend.

If you use this thinking in all your decision in life, you won't do anything. Life is full of risks, you never know what a day may bring forth. No one goes into a house purchase thinking, well if I lose my job in two years there is no way I can make the payments. Life is full of change and adjustments.

If you can afford to buy DVC and you have every intention of going to Disney World consistently then its a decent deal for condo style accommodations on Disney property. The maintenance fees really aren't that much. If you can afford the up-front cost to get into DVC then the maintenance fees are not going to sink you.

Were a lot of people make the mistake is believing they can afford the up front cost. That's why you see so many contracts for sale a year or two after they have been purchased.

You do need to consider future accommodation cost of the value resort or any other type of accommodations to have a true comparison as stated in previous posts.

 

[mbw12]

I read the title of your post and thought "she must have 3,000 - 4,000 points"!

Ha ha on me!

I thought the same exact thing!!!!!

 

[crisi]

If you use this thinking in all your decision in life, you won't do anything. Life is full of risks, you never know what a day may bring forth. No one goes into a house purchase thinking, well if I lose my job in two years there is no way I can make the payments. Life is full of change and adjustments.

If you can afford to buy DVC and you have every intention of going to Disney World consistently then its a decent deal for condo style accommodations on Disney property. The maintenance fees really aren't that much. If you can afford the up-front cost to get into DVC then the maintenance fees are not going to sink you.

Were a lot of people make the mistake is believing they can afford the up front cost. That's why you see so many contracts for sale a year or two after they have been purchased.

You do need to consider future accommodation cost of the value resort or any other type of accommodations to have a true comparison as stated in previous posts.

I use this thinking all the time, and I own DVC. It's a risk calculation. My financial position and job are both fairly secure. Yours are probably as well. Do you know the OP's - cause I don't and it's a disservice to someone who doesn't understand finance (maybe the op does, maybe they don't) to lump probable spend and obligations into the same bucket when talking about a luxury purchase.

I think many people underestimate the ongoing costs. Not just dues, but since we've purchased we've seen airfare increase significantly, as well as park tickets, food, etc. Our kids are now teens, which meant higher ticket prices even without the inflation. They eat more food. If the ongoing costs make you stop and think, that's good

 

[bakenatj]

I use this thinking all the time, and I own DVC. It's a risk calculation. My financial position and job are both fairly secure. Yours are probably as well. Do you know the OP's - cause I don't and it's a disservice to someone who doesn't understand finance (maybe the op does, maybe they don't) to lump probable spend and obligations into the same bucket when talking about a luxury purchase.

I think many people underestimate the ongoing costs. Not just dues, but since we've purchased we've seen airfare increase significantly, as well as park tickets, food, etc. Our kids are now teens, which meant higher ticket prices even without the inflation. They eat more food. If the ongoing costs make you stop and think, that's good

I didn't mean to sound condescending or stuck up (apologize if I did). Your thinking is very sound and good, but I tend to say if I know I can afford it then I am not going to worry about the "what if's" and just deal with it if it does.....if that makes any sense at all Just my personality.

Oh I hear you, you are preaching to the choir sister. Our trip in November, not including DVC fees and such, was around $4,500.00. That was for a family of 5 for park tickets, dining plan, and airline tickets.

I guess the point I wanted to make in that spiel is to many people go in not being able to afford it in the first place and then when the drop $4,500.00 on park tickets, dining plan, and airline they get in over their head and take a big hit when they try and sell on the resale market. Make sure things line up before you take the plunge, and take off the Mickey glasses before you sign the paper work.

 

[bumbershoot]

I think if you add up any of your annual expenses over 40 years, it's going to be an impressive number. Heck, over 40 years, my cable bill will be $48,000.

DH just, again, added up the $7+tax charges for our modem rental for the years we've been with Comcast. About halfway through the time we've had it he started urging me to put money towards modem purchase, but I kept saying "no". We could have bought that modem a few times! And finally did it; it'll take about 7 months to make up for the cost of the modem we bought.

But just playing with the math, 18,000/40 years = $450/year or 4-5 days a year at a value. Is that how long you usually visit?

Such a good way to see it. IF you are *already* vacationing, what are you spending? Do you plan to keep on spending that, year after year? If so, look at the numbers!

We were already spending money at Disneyland, and knew that once we started at WDW we'd be spending good money there. For us it simply made sense.

No one goes into a house purchase thinking, well if I lose my job in two years there is no way I can make the payments.

Eek, I hope people are thinking about that! We certainly did, over the last 10 years, which is what has kept us from buying a house (b/c the loan we Could get wouldn't be one of the really good, smart ones even still). And we've watched family members and friends not think about that, and lose the houses they got horrible mortgages for. They specifically did not think about that balloon payment in 5 years, or "what IF the adjustment to the interest rate is upwards instead of downwards?". Or they bought based on two incomes instead of one, then one income was lost. etc etc etc.

People SHOULD be thinking about that sort of thing.

And people can move on and do risky/interesting things even with that being thought about. We have a mortgage on a timeshare, but don't have a mortgage on a house, which many people feel is the silliest thing in the universe to do. But it works for us.

 

[crisi]

I didn't mean to sound condescending or stuck up (apologize if I did). Your thinking is very sound and good, but I tend to say if I know I can afford it then I am not going to worry about the "what if's" and just deal with it if it does.....if that makes any sense at all Just my personality.

No problem. I think we get too many people around here trying to justify something they can't really afford, and often give them way too much support in making a less than great decision. A few of us have taken the resident curmudgeon role to balance the "best thing ever" pixie dust. This one is mine.

 

[peacelover]

DH just, again, added up the $7+tax charges for our modem rental for the years we've been with Comcast. About halfway through the time we've had it he started urging me to put money towards modem purchase, but I kept saying "no". We could have bought that modem a few times! And finally did it; it'll take about 7 months to make up for the cost of the modem we bought.



Such a good way to see it. IF you are *already* vacationing, what are you spending? Do you plan to keep on spending that, year after year? If so, look at the numbers!

We were already spending money at Disneyland, and knew that once we started at WDW we'd be spending good money there. For us it simply made sense.



Eek, I hope people are thinking about that! We certainly did, over the last 10 years, which is what has kept us from buying a house (b/c the loan we Could get wouldn't be one of the really good, smart ones even still). And we've watched family members and friends not think about that, and lose the houses they got horrible mortgages for. They specifically did not think about that balloon payment in 5 years, or "what IF the adjustment to the interest rate is upwards instead of downwards?". Or they bought based on two incomes instead of one, then one income was lost. etc etc etc.

People SHOULD be thinking about that sort of thing.

And people can move on and do risky/interesting things even with that being thought about. We have a mortgage on a timeshare, but don't have a mortgage on a house, which many people feel is the silliest thing in the universe to do. But it works for us.

Fixed mortage rates are between 2.5% -4%.... don't think you are ever going to find a much lower rate than that.

To the OP... you don't have to buy a 160pt contract to start out with... you can buy smaller contracts, just depends on your travel habits, and what you can reasonably afford.