DVC Before or After Kids

[wonka27]

Hi folks.

Last year, my new wife and I honeymooned at WDW. At that point and time, we actually signed up to buy into DVC. When we came home and thought about it more, a kitchen remodel in our house seemed more important.

The kitchen is done now and I am once again starting to think about DVC again. My wife loves WDW and I am growing fonder everyday. I've contemplated some scenarios, and feel that we can afford to finance right now without "overextending" ourselves.

My question is, if we are interested is now the best time? We may start trying to have a baby in the next few months. Something in me is saying to jump on it now, or I never will once a child comes.

 

[okwmeister]

We joined in December of 92 when our first child was 4. The following October we had our second child. Since joining we have spent the past 15 years visiting Disney World, taking cruises and ski trips. I can't imagine how I would have even thought of taking any of these vacations if it wasn't for DVC. My 13 year old son has spent over 14 months of his life at Disney world.

I would say.... if you are in a position to manage the purchase prior to having children, you will certainly have many years of great Disney memories ahead of you.

Okwmeister

 

[tjkraz]

If you're going to be starting a family that quickly ("next few months"), I would wait. If you finance you're going to be making payments for a looooong time, and all of those baby expenses will still need to be taken care of.

The two of you may also decide that you want to spent more time at home with the child, which could reduce your household income. Along with the added cost of diapers and formula, you may find yourselves with less money coming in. Either that or you'll be paying for day care.

DVC will always be here. Worst case if you buy now and have to sell in a couple of years, you'll lose a few thousand dollars between the moderate drop in value from developer to secondary market plus broker commission. If you finance, the amount you get selling in 2 years may not even cover the full principal remaining on the loan.

 

[BroganMc]

My question is, if we are interested is now the best time? We may start trying to have a baby in the next few months. Something in me is saying to jump on it now, or I never will once a child comes.

That's a question entirely dependent on your financial situation. My brother has 4 young children and his wife is a SAH mom, yet they've managed to buy into two timeshares (on a lower cost EOY financed basis). It gives them the ability to take week long trips to Williamsburg, Orlando and other places in ways they couldn't if they just rented hotel rooms. They make use of the kitchen a lot and bring a whole bunch of food from CostCo to make their meals instead of blowing the budget on restaurants.

But as pointed out, babies are very expensive. Even if you go to daycare and both work, you'll be paying just as much as if you were just a one income family. You have to factor in the costs in an exponential way.

Only one thing is certain about DVC: now is the cheapest cost you will ever find to buy in. Disney raises their prices fairly regularly. So while you may be able to swing it now, in 2-3 years it might be priced out of your range.

 

[Snookies]

...My 13 year old son has spent over 14 months of his life at Disney world...

lol (because it is so familiar), my 9 year old daughter has spend over 4 months of her life at Walt Disney World and Disneyland.

I am a true believer in Disney magic and the genius of Walt Disney, but I agree with the view that waiting may make sense given your current situation. If you decide to have a child in the near future, you'll not only have the direct expenses, but you may also decide to remodel a room for a nursery (and then remodel it several more times if your child is a daughter as she gets older, lol). In addition, my advice to anyone is start planning for the expense of sending those little ones to college before they arrive. While I strongly endorse DVC for those for whom it makes sense in terms of planning ability, vacation habits, and financial standing, I am personally glad we waited before making our first purchase. In the absence of unexpected events, those original DVC properities will still be there until 2042.

BTW, you may also be forgetting the expense of addonitis. After swearing up and down in more ways that one that we would never add on after an initial substantial point purchase, the first add-on was about 18 months later.

 

[casper]

I don't know if you have to consider DVC as an "all or nothing" vernture right now. You could possible decide to buy a small 50 pt. contract (through resale) that is easier on the wallet both in initial costs and maint. fees. That way, you could stay at a DVC once every two years (or three) for a week. As you determine your budget a little better when the little one arrives, you might decide you can afford more points. If not, well, you still have Disney to look forward to with those 50 points every few years. Mait. fees each month for 50 pts is less than the price of cable tv for a month!

 

[CarolMN]

DVC is more than the cost of accomodations - it's transportation, food, park tickets and souvenirs. Do you anticipate that you will have the discretionary income after the baby to commit to vacations on a regular basis?

My advice is to wait to buy DVC. In the meantime, renting DVC accomodations from a member may be a viable option for you. You can continue to research while you enjoy DVC accomodations. But you won't have a long term commitment.

DVC will always be there (IMHO). It may cost more later, but your financial situation (income) will likely also improve.

 

[mom2rb]

I would wait. DH and I thought about buying on our honeymoon, I am so glad we didn't. When I got pregnant a year later it was with twins. I had a high risk pregnancy and had to quit my job. The diapers and formula bills ran $400 a month, eight years ago. There is no way we could have kept up with the payments. We waited until the boys were five to buy DVC. It has worked out so much better for us.

 

[Disney Doll]

We went to WDW on our honeymoon in 1991 and I wanted to buy DVC then. DH felt we should buy a house first, so we waited on the DVC and saved for a house.

Between 1193 & 1999, we tried to have a baby, to no avail.

In 1997, we were finally ready to buy DVC. Of course, in the 6 years between 1991 & 1997, what we spent on vacations to WDW would have paid for the DVC.

If you have the income to do it now, do it now. Make it part of your budget. When the baby comes, you have it in your budget and you budget around it.

Part of what we did was to finance it for 10 years because that had the lowest minimum payment & I think a lower interest rate (but I could be wrong about that part...it's been a while now!), but every month we paid more and had it paid off in about 3.5-4 years.

Worst case sceanrio you can always sell it down the road if it becomes an expense you cannot handle. So far, they seem to be holding their value fairly well.

DH & I regret not buying in 1991. It cost more in 1997, and plus, if we had bought in 1991, we would have gotten free APs until the year 2000 for taking the chance with DVC. It was a mistake on our part. Live and learn...

 

[tjkraz]

Only one thing is certain about DVC: now is the cheapest cost you will ever find to buy in.

Not necessarily. Promotional deals impact the final price and there have been many occasions where lower prices came along after people bought. Right now, the discounts offered are pretty run-of-the-mill.

Disney raises their prices fairly regularly. So while you may be able to swing it now, in 2-3 years it might be priced out of your range.

Over 2-3 years, it's very unlikely that prices will rise more than 10%. If we assume OP's payments would be about $150 per month today, I certainly hope that an extra $15 / month is not a deal breaker.

Waiting will PROBABLY result in a higher price paid down the road, but unless annual Disney trips are of greater importance than starting a family, I would still wait.

 

[mikesmom]

Over 2-3 years, it's very unlikely that prices will rise more than 10%

I wouldn't count on that. We purchased in 2000. Our cost was $67/point. Fast forward to 2006. $98/point? (now in 2007 it's $100 something). My math isn't perfect, but that looks to me more like 50% in 6 years, or an average of 25% in 3 years.

I'm not trying to encourage anyone to make a purchase they cannot afford, but like many others I wish I had bought sooner. The vacation costs between the time I first heard about DVC and when we finally bought in would have paid for most of it.

 

[bumbershoot]

Well, I'll chime in saying that I don't feel kids are that expensive. Quite a bit of the expense is based on parenting style and decisions...we used cloth diapers, and spent a fraction of what my friends, buying high-end disposables, did, AND we still have them for any future children. Not everyone needs to figure in formula, and the only gear we bought for DS was a carseat (though he grew so long so fast that he was into a convertible seat before he was 4 months, so THAT was unexpected, but only $200) and a little seat thing that we could have done without.

Then again, there was my baby sling addiction.


What I'm saying is...you don't have to go with the prevailing thought that kids are automatically expensive. We have more "play" money now that I'm at home and we have a kid than when we were both working. And now that we found out about DVC, we're planning on doing it (though with a small contract via resale, rather than jumping in directly through DVC with a 160 point purchase), even though we have our boy and hope for more. Actually, we had BETTER do it now, b/c otherwise we'll start freaking out about how much FOOD he eats (he's like a teenager sometimes, I swear! and that's on top of the nursing he still does!) and we won't want to do it!

If you can do it, go for it!

 

[eliza61]

Hi folks.

Last year, my new wife and I honeymooned at WDW. At that point and time, we actually signed up to buy into DVC. When we came home and thought about it more, a kitchen remodel in our house seemed more important.

The kitchen is done now and I am once again starting to think about DVC again. My wife loves WDW and I am growing fonder everyday. I've contemplated some scenarios, and feel that we can afford to finance right now without "overextending" ourselves.

My question is, if we are interested is now the best time? We may start trying to have a baby in the next few months. Something in me is saying to jump on it now, or I never will once a child comes.

I hate to be the bearer of bad news but once you have kids the expense is always there and the little buggers get more expensive as they get older. You think diapers are expensive, wait until you've got to throw you 13 yr old into adult sneakers. My point is every stage of life brings about something. You can wait until after you've had all your kids, then you have to pay for daycare, then it's college tuition. etc, etc

My suggestion, look at your finances right now or for the next 5 years, will you lose an income if you one of you stays home, if not will you have to pay for daycare, etc, etc.
When we purchased our dvc, we had kids, a mortgage and a car payment. We sat down looked at our finances and decided we could afford it comfortably.
Oh1 more question, when you have kids are you still planning on going to WDW?

 

[tjkraz]

I wouldn't count on that. We purchased in 2000. Our cost was $67/point. Fast forward to 2006. $98/point? (now in 2007 it's $100 something). My math isn't perfect, but that looks to me more like 50% in 6 years, or an average of 25% in 3 years.

The price points for Saratoga Springs are as follows:

8/03: $89
4/04: $95
6/05: $98
5/06: $101
3/07: $104 (also introductory price for AKV)

Those are base prices and do not include any promotional discounts.

Over the 4-year period prices have risen a total of 16% or an average of 4% per year. The single largest increase was a 6.7% bump in '04. Subsequent increases were 3.1%, 3% and 2.9%.

I use those figures because they seem to be the best indicator of what DVC is doing with prices at the present time. DVC prices rose sharply in the early-'00s, but I would not expect such patterns to be repeated again.
It would therefore seem reasonable to expect similar 6-9% increases over the next 2-3 years. Final pricing will vary depending upon discounts offered at the time of purchase.

 

[vbalacek]

In my opinion, if you are planning to vacation at Disney while your children are young, you should buy now. DVC is the best way to vacation with small children. We typically get a 1/2 bedroom, and the whole experience is tons better than a hotel room.

First, having a kitchen is wonderful. Eating out 3 meals a day is tough (at least with my kids ). At DVC you have the option of easily eating meals in your room. Plus, you can stock up on milk and juice, and always have it available. Also, a washer and dryer in the unit is a huge benefit. We really enjoy having a living room so we can relax/talk/watch a movie while the kids are sleeping. Finally, we like that, if we want to, we have the room to bring family along.

Its a great place for families.

 

[MICKEYFAN28]

If you are real fans of disney it's the way to go. My wife and I almost bought on our honeymoon in 02 but decided to wait. Once we had the house and were stable with our finances we started thinking about it again. When my wife became pregnant in 04 we flew down for a last vacation before kids and bought it! We have no regrets, we go 2 to 3 times a year and love it. Having a room w/all the amenities is great. The kitchen, washer, dryer etc is the only way to go w/kids. If it is in the budget go for it!!!! Some of our best family memories have come at disney. If you do it you won't regret it!!!

 

[tjkraz]

Upon further consideration, I'll change my response from a definite "no" to a qualified "no."

If your intention is to start a family in the very near future, figure out how that will impact your budget and determine whether you can still afford all of the Disney expenses without "overextending" yourselves. Make a list of all of the additional expenses you will incur if that baby arrives in a little over 9 months. Baby showers will probably take care of most of the one-time purchases, but consider all of the other things you'll be adding to your budget:

Health Insurance (most plans have higher "family" rates than "2-party")
Child care / reduced income if one of you stays home
Diapers, wipes, powder, shampoo, lotion, etc.
Formula / food (breast feeding is an option, but not all kids warm up to it the same)
Clothing (those buggers just never quit growing!)
Toys, videos, puzzles, games, etc.
Other incidentals (bigger bed, bigger stroller, bigger car seat, etc.)

There are ways to cut corners and save money but only you can decide which corners you are comfortable cutting.

I think it's easy to make an emotional decision to just buy into DVC. But starting a family is also very important to many people and the window to do it is not inifinite. I would hate to see you rush to buy DVC now, only to discover later that the only way to reasonably afford the price of your new family member is to sell the points at a loss.

When considering your costs, don't forget to include all of the other Disney expenses that DVC doesn't cover. Having those DVC points is great, but it also commits you to taking a trip every year (or whatever plans are appropriate for the number of points you purchase.) Whenever you go you will have to pay for travel expenses (baby needs its own seat on an airplane after age 2), park tickets (baby starting at age 3), food (can eat in the room to save money if you don't mind cooking), souvenirs (gotta get those "my first trip to WDW" t-shirts) recreation (golf, boating, etc.) and so on.

DVC is a great way to save money on accommodations. But perhaps its biggest downside is that you're locked into that vacation each year. If you're paying cash for your Disney trips, it's easy to skip a few years when your budget doesn't accommodate a trip. If you own DVC points, about the only alternative is to rent the points. But if you are financing over 10 years, your rental income will not cover your mortgage payment + annual dues.

Good luck with your decision!

 

[wonka27]

I want to thank everyone that responed (and re-responded) to this thread. I really have enjoyed your conversation, as I am a very calculated person when it comes to finances, and you have given me a great deal to think about.

First, I just wanted to let everyone know I have been looking at resale vs. direct from Disney. Just seems like it could be a little cheaper...SSR contracts are $80-$90...and I was looking at a few that were around 130 points (which seemed like would more or less accomodate a trip every year to a studio to start with.

As far as my financial situation, we are in pretty good shape as a two person family. The big ??? for me is what do the kids cost. To be honest, to try and avoid certain stresses already, my wife and I remodeled our kitchen just a couple of months ago. Between this summer and upcoming winter, we plan to do our bathroom as well. This is my way of taking care of the "big ticket items" so they are not issues when the children come around. Sure when you own a home, there is always something. But our two major projects to really update the house will be over and done with!

That is why the DVC question came up. I feel that buying now would tighten up finances a little, but I know there are ways we can make our money stretch further. And really, we may not even have to stretch...just be smart. I feel like if I have a child, I will never find the money to pay for DVC, but if we buy now, we have no choice but to find the money to pay for a kid.

Anyway, you have all given me quite a bit to think about. I will take both sides of the coin into consideration. My gut tells me to really take a good look...try to figure out where we will be in a few years...and see what I come up with. But under no circumstance will I make a decision that does not feel good financially.

 

[Glendamax]

I just bought in last month. I think that if this is something you want to do, go for it. Most likely, you'll be done paying for it in 5 years. By that time, your first child will be in school. At least in these first few years, you won't have to worry about paying for braces, adult-sized shoes and clothes, prom, etc.

I too kept going back and forth since I'm single and have to pay for everything on my own. But, I thought that the sooner I got started, the sooner I'd be finished paying for it. Also I figured that if after a year or so, if I thought I couldnt handle it, I would sell it. But I had to try! I really wanted to do this.

 

[DebIreland]

My gut tells me to really take a good look...try to figure out where we will be in a few years...and see what I come up with.

DH and I were discussing DVC the other night (we sat down and went through the figures). We really want to buy in too. Although we have 3 kids so it's not the same as your situation. But one other thing to think about, which DH and I were discussing is this..... what if we decide not to join DVC or to put it off for another few years, will we really not go to WDW or would it happen that we'd decide against joining and then still go to Disney World every 2 years (we go for longer trips) and in 8 to 10 years kick ourselves for not joining? You know what I mean. So, in short, in 10 years, how many trips will you take? Be realistic. If you think you won't be able to stay away from the place (lol!) and you end up going there 6 or 7 times paying cash, that money would have been wisely spent on DVC. Just more to think about.