DVC experiation

[skr8pn]

Hi all, new to the board but not to time share and getting more Disney familiar. Since I got engauged down there in Sept and we made a crazy 3 day trip down in Jan we've been thinking more and more about DVC. Everything sounds good, I've crunched the number to see basically when it pays for itself but I can't get over the thing expiering in 30 years. My parents can leave me there time share they both own and I can keep it until I pass on WAY on down the road. But feasibly if I buy DVC when I hit 60, I could lose it. Anybody have an good arguments for or against this?

Side note, plan on going back in Dec, looking at renting some points to really check this stuff out down the line.

 

[browniemtb]

SSR goes until 2054, 48 more years.....the rest of the resorts expire 2042 so roughly 36 years. We just bought into BWV......we figure payoff to be about year 5 or the 5th trip. SSR, with the extra years will give you a mathmatical pay off that comes quicker......
Brownie

 

[DVCLiz]

Here's the way I look at it. I bought HH and BCV in 2004, and I'll have roughly 35 more years to enjoy them with my family. My children will be about 48 and 53 then (they are 12 and 17 now), about the age I am now (48, noy 53 yet!). If they have their families just a little earlier than I did, or even if they have them at the same time, we'll have been able to enjoy DVC vacations for all of their growing up years, all of my "in-between" time alone (planning many solo trips then!), and then many of the years they have children growing up. After that, we may be so tired of Disney that we'd NEVER want to go back!!!! Or, another DVC property may have been built with a later date. And finally, I feel the opposite way about leaving it to my children. I'd never want to leave them something like a timeshare - they may not be in a financial position to pay increasing maintenance costs, it may not fit their idea of vacation at that stage in life, or they may be saddled with something that has lost its appeal to the market and is a financial burden to them.

I'm perfectly happy knowing that we can enjoy DVC for many years to come, but that eventually it will disappear like a puff of smoke, and we'll be free from any responsibility. Then, if they choose, they can purchase whatever is available that makes the most sense for their circumstances.

 

[holcomb-mania]

I had the same doubts, but I started thinking about it from a usage standpoint. My daughter was born when I was 27. If she does the same, and her daughter has a child at 27 also, there would still be 5 yrs of usage before our DVC expires. Not bad.

 

[sleepydog25]

But feasibly if I buy DVC when I hit 60, I could lose it.

That's why most people on this board will tell you that we aren't buying into DVC in light of an investment--rarely a good idea--but as a way of prepaying a large portion of our vacation costs in return for quality accomodations for X number of years. For my family, it's the freedom of knowing we will have excellent lodging, or trips, or cruises for a few decades. When I buy a car, I know that it likely won't last more than ten years before it's time to get a new one. DVC lasts much longer and in our case doesn't cost much more than a quality vehicle. Yes, cars are a necessity and DVC isn't. . .but that's kind of the point, isn't it? DVC is a treat, a reward, a special gift to ourselves so that we can renew the magic in our lives every so often. There really isn't a way to put a price tag on that feeling. So, yes, in theory you will lose the DVC property at some point down the road, but keep in mind it's the journey which is important, not just the end point. For what it's worth. . .

 

[skr8pn]

Well, I suppose everybody has good points. But maybe I should re-word some of that or include some more info.

The first time I went to Disney was 16 years ago on a time share my parent bought for I think $2500 and we stayed at West Gate in Kissimme. Since that 1990 we have litterally been in every state east of the Mississippi for a vacation. Now they have since bought bigger better time share with Fairfield that offers more flexibility that trades on a point system also.

I'm just trying to figure weather to buy DVC or another time share. I could see myself going to WDW once a year for a few days at least. Staying the park the last time was pretty nice even if it was at Pop Century. But I always want to go a week somewhere different every year and it doesn't seem (to me) that DVC has the flexiblity (yet) to really go anywhere. I mean, for the buy in vs. another time share I could just get the pop century again and again for small trips and be content. I'm mostly just thinking outloud now.

 

[Caskbill]

Nothing wrong with thinking outloud.

You could go resale and purchase a smaller number of points. That way by banking and borrowing, you could only go every 3rd year and have triple points to use. (3-years worth of points rolled into the same year) thus a 50 point contrat would give you 150 points to use every 3 years.

As far as expiration, IMHO, some of the other timeshares that are owned 'forever' could eventually become a liability. Maintenance and upkeep, not to mention special assessments, on an older timeshare could be a financial drain.

If you want to compare with Fairfield, just look at how many points they want to stay at their Bonnet Creek facility, right next to Disney property.

Don't forget, with DVC, as a member you would also receive other perks. First you get all the regular resort guest perks such as EE, transportation, etc. But with DVC there are additional perks, discounts on Annual Passes, discounts for the water parks, Pleasure Island, WDW restaurant discounts, and some merchandise discounts. Discounts on Disney tours, the race track, water boat rentals, and such.

Now, obviously, don't purchase for the discounts, but be aware they are there.

 

[littlestar]

My brother bought a Mexico timeshare because he didn't want to own a timeshare forever. Mexico timeshares are also RTU (right to use). He likes that his resort has an expiration, as he does not want his kids to be saddled with an aging building that needs to be rebuilt or has no appeal anymore because it's old. So not everybody feels that RTU is a bad thing.

 

[mydogdrew]

SSR goes until 2054, 48 more years.....the rest of the resorts expire 2042 so roughly 36 years. We just bought into BWV......we figure payoff to be about year 5 or the 5th trip. SSR, with the extra years will give you a mathmatical pay off that comes quicker......
Brownie

Sorry - that's just not the case. Benefit begins in 36 years. You can argue that the eroding value of DVC with the passage of time will eventually help SSR owners resale value vs. DVCI owners. In fact, I'd argue BWV breakeven is earlier than SSR due to the smaller contract size needed for the same rooms (assuming you can and will use std view). This is a common problem - prospective owners tend to value future points the same as current points.

 

[fletcher1964]

This is a great thread. We've been members since 01/92, the beginning. We've never regretted the purchases and have compared DVC to other timeshares. Other than Marriott's, we never heard of any other timeshare that members have loved for a length of time. We've known dozens of couples that have bought in Florida, Cancun, and other Mexico cities. None have kept their timeshares for more than a few years. I do think that most people get tired of going to the same place. You have to think long term and convience. You will consistantly hear on this board that DVC is best if used at Disney. Trading out works great and has many choices of top notch places. My suggestion is plan out what vacations you're looking to take. If they don't include Disney, Marriott may be worth considering. The other point is that if you stayed at Pop Century, and would want to continue to stay there, you don't need to upgrade to DVC.

 

[Stuart D]

We are completing just now on a DVC resale so maybe some of the documentation and warnings are fresher in my mind, but one of the statements that stuck out was that when you buy a DVC you should think of it as a liability and not an asset. Passing it on in your inheritance means that your kids, or grandkids will be stuck with an annual liability for a holiday they may or may not want. They might not thank you for that.

From looking at the DVC resale market and the resale timeshare market, I reckon that I am more likely to get more value from the DVC and should we decide to sell it again we will be more likely to lose less with DVC than we would have done with timeshare.

 

[skr8pn]

Well, I've been thinking and thinking about it and the banking at smaller amount of time does sound like a pretty cool idea that way I don't get over saturated with going so much. Then another thing that occured to me is, duh, I could sale it down the road if I wanted to. I'm guessing the current average re-sale for 150 points at boardwalk vs. what they bought them new for is pretty close in price. It may even be a money maker for whoever I would be buying them from.

Concerning the Fairfield at Bonnet Creek, I had an oportunity to buy at construction prices some year back but couldn't swing it at the time. When we went down in Sept we stayed at Fairfield at Cyrpus Palms (very nice), it took mabe 10 minuntes every morning to drive to the park, about the same time it took us to ride the bus from PC, but we didn't have to pay to park every day with PC. I've also stayed at Fairfield Oceanwalk at Daytona (the nicest place I've ever been).

I'm just in a analitical kind of mood since I'm refinancing my house today and doing a wedding budget. Do you get a discount of the hotels if you are a DVC owner but don't choose to use your points for that trip? Also, why isn't the Cont or the Pol listed as being available to trade into? My buddy pulled up his members only page and bam, there it is.

 

[Carneymom]

We are in the process of purchasing 110 point contract at resale for $80.00 per point. and, of course have asked all of the same questions. I figured out that I will be 93 years old in 2054. I think I will have gotten my $8800.00 worth out of it by then. BTW, looking into resale for a smaller contract is a great idea. We did it because we could not afford 150 points right now. 110 is just right for us. we can take one or two nice trips a year and if we get board of WDW (I know, hard to imagine, but some years we prefer the beach ), We can go to HHI or VB for a change.

 

[skr8pn]

My local source of info hear has brought up the point of do you have to have 150 points min to be a full fledged member with all the perks? Or could I buy a smaller amount like mentioned and be content. I'm guessing the contract term on the points is from when the resort points were first sold. So if I bought BW then it's term would not be 48 year from that day but 48 years from the day those points were intially sold to the orginal owner? My head's going to explode before I make it to my refi this evening....

 

[holcomb-mania]

Buying the small points contract can be risky in that Disney has right of first refusal and can swoop in and get the contract to parcel out to other current DVC owners looking to add on.

IIRC, all DVC properties revert back to Disney in 2042, except for SSR, which does in 2054.

 

[CALNEVA DISNEYFANS]

Buying the small points contract can be risky in that Disney has right of first refusal and can swoop in and get the contract to parcel out to other current DVC owners looking to add on.

IIRC, all DVC properties revert back to Disney in 2042, except for SSR, which does in 2054.

A twenty-five point contract (resale) has all of the benefits of a 150 point contract. Disney does not discreminate.

How can anyone say that buying resale is risky? There is no risk. If Disney exercised its ROFF you get all of your money back. What risk? Find another resale and try again. My first DVC experience was resale. I would do it again in a heartbeat!

 

[Caskbill]

My local source of info hear has brought up the point of do you have to have 150 points min to be a full fledged member with all the perks? Or could I buy a smaller amount like mentioned and be content. I'm guessing the contract term on the points is from when the resort points were first sold. So if I bought BW then it's term would not be 48 year from that day but 48 years from the day those points were intially sold to the orginal owner? My head's going to explode before I make it to my refi this evening....

As mentioned, any size contract geta you full member benefits.

How many years a contract has left has nothing to do with when it was sold. They are all 50 year contracts from the date of the specific phase being first sold. Phase 1 began in 1992 so all phase I contracts expire 50 years from that date. They all expire in 2042

Phase I resorts are : OKW, VB, HH, BWV, BCV, VWL

Phase II began in 2004, so all phase II contracts exire 50 years from that date. So they all expire in 2054

The only phase II resort (so far) is SSR.

People state how many years are left because the expiration date is the same for everyone, either 2042 or 2054, depending on resort.

To put it simple, if someone purchased an OKW contract in 1992 they had 50 years 'left'. If someone else bought in 1994, they had 48 years 'left'. If you were to purchase either one of those same contracts resale, today, they both would have 36 years 'left' (2042 minus 2006).

Hope that helps.

 

[skr8pn]

Actually, all this helps quite a bit. I just get tight with my money if it's over $100. I want to be sure I'm getting what I expect that I'm getting. Maybe I will start small. I've been looking at maybe a 3-4 day trip in the off season and how many points it will run. I just might head in that direction at first. I'll try not to ask too many questions but so far, I'm very happy with everyone's quick and honest response without flaming somebody to death.

 

[browniemtb]

Sorry - that's just not the case. Benefit begins in 36 years. You can argue that the eroding value of DVC with the passage of time will eventually help SSR owners resale value vs. DVCI owners. In fact, I'd argue BWV breakeven is earlier than SSR due to the smaller contract size needed for the same rooms (assuming you can and will use std view). This is a common problem - prospective owners tend to value future points the same as current points.

I don't follow you....what do you mean benefits begin in 36 years. DVC resale value will erode over time no matter where you own especially when new DVC resorts pop up.. Also as stated I said SSR breakeven would be quicker not BWV as misquoted. I would be curious to see your math...the only thing not really correct with any bodies math would be anticipating dues. Most will figure the number as they are now.......give or take. Future points will be the same...the only thing that will change is the cost of a room if you need to pay for it. Hence, more benefits to owning...
Brownie