DVC annual dues come to over $18,000!

[rock_doctor]

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

As others have said, it is not an investment and it has to be a purchase that does not stretch your finances. It should be a fairly easy purchase. If it isn't then it may not yet be time to buy in. We were value people also and figured over 40yrs DVC will cost us about half as much in dues. Ignoring price increases of course, our first stay at Pop cost us $59 a night over peak time... So we have not regretted the purchase at any point (although not real happy with the reservation process).

 

[Sandisw]

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

DVC is a big financial commitment, no doubt! It does require you to be in it for the long haul and when you run all the figures, it can be overwhelming.

However, as someone else said, you do have to look at the cost of the value room and compare that to what you are spending because its not like DVC dues will cost you $18,000 and a value will be free.

Even if you can stay in a value for $500/yr, over that same 40 year span, it will cost you $20,000.

The only difference, of course, is that if you don't own DVC, you can more easily skip a year or stop going. So, if you are concerned that you won't want to still be doing WDW trip in 10 years from now, then opting out of DVC is a good choice.

 

[E2ME2]

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

Crude and simple calculation (Not actuary-based)
But in my personal example we bought at about $25K, and YM is about $900
If you bump that to $1000/year - in 20 years we spent $45K total, in 30 Years we spent $55K, and in 40 years about $65K. At the 20 year mark that averages $2,250/yr, at 30 yrs avg. is $1,833/yr, at 40yrs avg.$1,625/yr.
Can you get a 2-BR villa at Aulani,(or BLT, or BWV) for a week, for $1,625 ??
(That's ~$232/Night) Last time I had a nice hotel room in Oahu, it was $450/Night.....I'm just saying........

 

[bakenatj]

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.

You miss understood my point. I did not say you should not make good financial decisions when buying a home. I highlighted in red one of your statements. First, I would NEVER purchase a home on a interest only loan or a fluctuating interest rate. If you can't afford a fix mortgage, you can't afford the home. That is why so many people are losing their homes, they can't afford them when the rate doubles or triples.

Everyone of our lives could change next week. Does that mean I should worry that something horrible might happen and never make a major purchase like a home? Absolutely not. Problem is not everyone makes smart decisions, they make decisions based on want and feelings versus if they can afford the purchase. Oh, or they make major purchases to keep up with the Jones's too, which is the worst reason of all.

 

[dianeschlicht]

Here's how I look at it. Twenty eight years ago we stayed off site and visited WDW on the cheap. Then we wanted to stay on-site, so we stayed in the moderates a couple times. We coveted a stay in a deluxe, and once we started staying in those, we couldn't go back to those earlier digs. So....We purchased DVC to have what we consider to be BETTER than deluxe stays and more and longer trips per year. Back 16 years ago when we were staying in Deluxes, we were spending $2000-3000 a trip just for a deluxe hotel room with two beds (or in some cases a bed and bunk beds) for 5 nights. Now we spend about $2400 a year on our DVC dues, and we stay for about 20 nights a year in full sized villas. That just looks like a no brainer to me. I'm going to choose $2400 for 20 nights in a villa over $2500 for 5 nights in a "room" every time.

 

[bakenatj]

Here's how I look at it. Twenty eight years ago we stayed off site and visited WDW on the cheap. Then we wanted to stay on-site, so we stayed in the moderates a couple times. We coveted a stay in a deluxe, and once we started staying in those, we couldn't go back to those earlier digs. So....We purchased DVC to have what we consider to be BETTER than deluxe stays and more and longer trips per year. Back 16 years ago when we were staying in Deluxes, we were spending $2000-3000 a trip just for a deluxe hotel room with two beds (or in some cases a bed and bunk beds) for 5 nights. Now we spend about $2400 a year on our DVC dues, and we stay for about 20 nights a year in full sized villas. That just looks like a no brainer to me. I'm going to choose $2400 for 20 nights in a villa over $2500 for 5 nights in a "room" every time.

Hit the nail right on the head, this is exactly how you have to look at it.

 

[eliza61]

\
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.

Really? geez, I never go into buying anything with the mind set "if I lose my job"... Heck I agree with Bakentj. I'd never buying gum at that rate. That;s just me. I purchased my house, my dvc, my car, etc on what I could afford comfortably on my salary. I didn't assume I'd get a raise but I definitely didnot factor in "whether I'd get laid off" LOL Lord know if I had worried about what would have happen if we lost our jobs we wouldn't have had kids.

I think you're last line says it all. It really must be what works for the person.

Anyhoo,
OP, I also think you're last line says it best. You are happy with a value. You couldn't pay me 18k to stay in one again so for me the amount of dues over 40 years is a bargain.

As with most stuff, it truly depends on what you deem important. For us, while we did consider the cost of the dues over time it was very low on our priorities.

 

[ToddyLu]

We were value people, too. We looked at the cost and knew we would be doing WDW every year for at least 9 nights. Now we stay in a studio savanna view and watch giraffes. DH has always lived by you get what you pay for. Love the values for a value trip and DVC for the type of trip we want in our 40s having no children.

We also never thought we would need flood insurance. Thank goodness we had it for Katrina. Now we have a rider for volcano and earthquake. (we live 110miles from New Orleans and 2 miles from our beach here ). So now we have a more live and enjoy attitude...it only takes a tragedy to change your thinking about life in general, and how you spend your time with friends and family.

 

[MrRomance]

Must admit, I had the same thought...how many points do you plan on having?


Anyway... I was having the same dilemma as the OP. I am in a fortunate position to be able to buy into DVC as a cash buyer with no finance needed so no interest on a loan but I have gone back and forth on the issue of annual dues.

My conclusion is, on balance, looking at the math, DVC is a great option if you intend to go annually. If you plan on going every few years, it's probably not in your interests.

Resale buy in for 250 points = $15000 (contract I am considering)
Dues approximate $5 a point = $1250 a year.

Over 40 years (obviously dues will rise slightly) but going on current rates $1250 x 40 = $50,000 + initial purchase of $15,000 = $65,000 over 40 years
65,000/40 = $1625 a year.

Will your value accommodation cost you more than $1625 a year?

If so, DVC will work out better for you, because you will recover your costs and you will get a better standard of accommodation.

If not, you have to decide if the better standard of accommodation you will get with DVC is worth the difference.

 

[normr]

I posted this over a year ago to voice what DVC meant to me, and as I said then, it created a priceless memory that otherwise without DVC, I could not have provided.



"A little over a year ago, thanks to owning DVC, I was able to provide to 19 family members an incredible celebration of my mom's 80th birthday. We had a grand villa and 2-two bedroom units and had an incredible memorable celebration, and now my mom's health has suddenly changed. I'm so thankful that I owned DVC and was able to do this for my whole extended family.

Every morning we gathered in the GV and made breakfast for everyone and at night we made some incredible desserts and great family memories and reminiscing.

Priceless- just like the MC commercial."

 

[nunzia]

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.

Right,...it is never a good thing to figure out what something would cost long term..if we did that we'd never have any kids

 

[serenita05]

Also say you bought into DVC as an investment, you sold every other years points.The every other years you went on vacation. You will turn a profit at the end of 50 years.So you could say your vacations were free every other year.

 

[Dean]

Kelsey, it is a lot of money but I want to make sure you're making the best decision for your family and I fear you're letting the big accumulative number scare you unnecessarily. Doing rough math in comparing a value to using DVC for a studio yearly, DVC will be more. Using today's dollars and ignoring some of the fancy calculations, I'd say that DVC for 100 pts would cost you roughly $6K up front and $20K over the life of a contract. A value, depending on time of year and discounts would be maybe $28000 with tax. About break even roughly. I used SSR and 40 years for all assumptions. A little cheaper for some resorts and a little more for others. DVC will likely be a little more compared to values and does give you a long term commitment but the extra value is likely worth it if you'll use it. The mini kitchen will add a little value.

Other timeshares could be pennies on the dollar compared to DVC, let me knwo if you want to explore other options. Good luck with your vacations no matter the route you take.

 

[disneynutz]

Buying a ownership is actually the cheap part. The increasing yearly dues, cost of food, transportation, and Disney extras is what most people don't consider. We spend around $3000.00 per year for our WDW vacation as 2 adults, not counting our purchase cost. Are you truly committed to a WDW vacation every year? How many years until you get tired of the same vacation?

Bill

 

[sjpvac]

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

You don't have to be but when I consider what I used to get for my points years back(free park tickets) and what I get now for $1500 a year in maintenance, I could stay in a pretty nice place for the annual vacation I take there without laying out all that upfront money.

 

[4GoofyCrew]

Buying a ownership is actually the cheap part. The increasing yearly dues, cost of food, transportation, and Disney extras is what most people don't consider. We spend around $3000.00 per year for our WDW vacation as 2 adults, not counting our purchase cost. Are you truly committed to a WDW vacation every year? How many years until you get tired of the same vacation?

Bill

That is EXACTLY what I am realizing after researching DVC! We can go stay at a value for a week + free DDP + airfare = $3000. That is no cost up front and no cost during (except gratuities and souvenirs). I am quickly realizing that staying in value resorts really isn't so bad. We are only there to sleep for the most part anyway...

 

[KelseyLaPerle]

I had no idea my post would get so many replies.

This is what our decision boils down to:

1.) We will NOT vacation at WDW every year. We will likely visit every other year or even every 3 years.

2.) Value resorts really ARE enough for us. We go to WDW to be in the parks and out exploring, not to sleep in a bigger bed or have a larger bathroom. I realize this may change over time, but as we "grow up" and pay off our house, cars, etc. we may be able to afford the occasional trip to a moderate resort.

3.) The cost of a WDW will go up over the years, but so will our income and everything else in the world.

4.) When we decide we want to go, we will simply budget the necessary amount and go from there. At this point in our lives, we just can't start spending $1000 every year for a "possible" vacation.


Thank you all for your thoughts, suggestions, agreements, disagreements, and insights. I am feeling confident now in our decision not to buy into DVC. Perhaps sometime down the road we will reconsider. At this point in our lives, it just isn't a financially wise thing to sign up for such yearly expenses.

This feed is why I love these boards. People are honest and insightful and always (almost!) respectful.

Thank you, everyone.

 

[Dean]

I had no idea my post would get so many replies.

This is what our decision boils down to:

1.) We will NOT vacation at WDW every year. We will likely visit every other year or even every 3 years.

2.) Value resorts really ARE enough for us. We go to WDW to be in the parks and out exploring, not to sleep in a bigger bed or have a larger bathroom. I realize this may change over time, but as we "grow up" and pay off our house, cars, etc. we may be able to afford the occasional trip to a moderate resort.

3.) The cost of a WDW will go up over the years, but so will our income and everything else in the world.

4.) When we decide we want to go, we will simply budget the necessary amount and go from there. At this point in our lives, we just can't start spending $1000 every year for a "possible" vacation.


Thank you all for your thoughts, suggestions, agreements, disagreements, and insights. I am feeling confident now in our decision not to buy into DVC. Perhaps sometime down the road we will reconsider. At this point in our lives, it just isn't a financially wise thing to sign up for such yearly expenses.

This feed is why I love these boards. People are honest and insightful and always (almost!) respectful.

Thank you, everyone.

Good luck with your vacations, maybe this will come around again for you.

 

[DisneyLoverUSA]

The dues are the reason I am thinking we WILL buy DVC. For a little over $5 a point we can buy a 150 point contract for around $9000 and pay around $750 a year for MF dues. So in essence we get to stay 7 nights in a room that normally costs $435 a night (OKW 1 bedroom) for the low low cost of $750 a year.

I don't count the buy in because you have to do that with any timeshare. But most timeshare and condo MF's are a lot higher than DVC MF's.

We stayed at the ASMu Family Suite in October and paid right at $2500 for 10 day stay. SO if I count 4 years of that expense and my DVC purchase would be paid off and I am NOT having to stay in a value room but I would be staying in a deluxe villa, which is WAY BETTER in my opinion.

Right now we plan on coming back this October and staying again at the ASMu Family Suite unless we buy DVC before then and are able to use it this year.

My husband is buying a Harley next month so we don't want to get that much money from the bank so soon after getting the money for the bike. So we may wait until closer to summer to buy in. I know waiting that long to buy in means we more than most likely won't be able to book anything for this year using DVC points, but we'll see.

 

[dizzneebabe]

I thought the same exact thing!!!!!

Me, too!