DVC Future

[WDWorld2003]

We are waiting to see if a BWV resale will go through.... sent in our down payment on 5/21.

During this long wait, I've had toooo much time to think about the future of DVC.

On another thread someone stated that there are more properties listed for resale. Is this because of Disney's ROFR raising the price per point? If I were thinking about selling a DVC I would put in on the market now..... looks like a year ago the price per point on resale was far less....

What will happen when Disney stops building DVC's and stops exercising its' right to ROFR? Will the resale market hold or will it become like other timeshares worth only a fraction of the original price (especially since it expires in 2042?)

Will maintenance costs go up 15% each year because the buildings will be older and need more maintenance?

We are excited and hoping our resale will go through but of course, the longer we wait the more we think about it..... I guess there are advantages to Magical Beginnings - it's done quickly!!!! No time to contemplate However, these are questions we ponder and wonder what the thoughts of others are on this board. Thanks!

 

[Candlelady]

I expect it depends on why one bought in to DVC. We bought in because we like the accomodations and we love Disney. I plan on using DVC right up to the magical end It's a prepaid vacation for us, not a monetary investment, so we never asked ourselves those questions. Even if DVC becomes worth a fraction of the original price, it will continue to be a magical place for our family and money well spent.

 

[ryoung]

I'm going through the same thing you are. I submitted about 10 days ago and am waiting with the same second thoughts you are having. Isn't human nature funny. I still know it is a smart thing to do, though. Good luck.

Randy

 

[DebbieB]

I think most people sell because of divorces, financial problems, job changes. I don't think too many people selling are doing it because this might be a good time to sell to get the highest price. I bought in September 99 at $65 pp ($59 if you count magical beginnings) and have had 7 stays. I figure I already got my money's worth out of it even if I had to sell now at a low price. I wouldn't sell it just because this is the time to get the best price and throw away future trips. I'm paying about $1,000 a year in dues (250 points) and get about 11 or 12 nights in a 1 bedroom for that. Less than $100 per night in dues. Even if I have to sell it in 10 or 20 years at a much lower price it would still be worth it.

 

[icydog]

If you bought DVc as an investment you should recind your offer.. No timeshare is a good investment IMHO. We bought in 1992 with many, many add ons. Most of our property is now worth more than we bought it for, but I don't care. I bought DVC for prepaid vacations and nice accomodations. I don't forsee that changing. Sure DVC will be worthless in 40 years as an investment but who cares we had all those years to vacation and then our children will too. Most TS are worth only a fraction of their initial value right out of the box but DVC seems to be one of the exceptions to the rule. Please don't buy for investment purposes or you'll be disappointed. It says that in every time share advertisement I have ever seen and it is true.

Hope your contract closes soon. That's why we buy through Disney , we just can't wait.
Marylyn

 

[TheRustyScupper]

It is a safe assumption the value will decrease eventually. Points have increased since 1999, but eventually, the resale value MUST begin to decrease. DVC resale is artificially held high right now by ROFR.

. . . the years of use will start to dwindle.
. . . resale points, therefore, have less value.
. . . ROFR will have less value, as DVC can't resell at ROFR price.
. . . when ROFR is slowed, there is no artificial point inflation.

(Just as an example - assuming some inflation: Would you pay $15,000+ for a week with less than 10-years use? With maintenance fees, that is over an average of $2000 per week's use.)

 

[Hilary]

(Just as an example - assuming some inflation: Would you pay $15,000+ for a week with less than 10-years use? With maintenance fees, that is over an average of $2000 per week's use.)

'With less than 10-years use' implies sometime around 2032 for the current DVC life-span. How much will a week in a regular WDW resort room cost then? Maybe the rack rate will be more than $2,000 and DVC will still represent great value!

 

[Snowgod]

You are buying a vacation. I hope you are doing it because you want to stay at WDW for the next 40 years. While it is possible that you purchase will increase in value, you should'nt look at it that way. Most of us here are nuts about staying at WDW and spend most of our time planning our next trip or trips.

 

[DVCPAT]

The long term future is impossible to predict. I looked at the break even point which will vary depending on your vacation habits.

I think the long term future resale price will reflect the WDW resort rates. If in the year 2020, the Allstars are renting at $400.00 per night, A 10 day vacation would cost $4000.00 .

I think a DVC contract that expires in 2042 will be worth more than some people think. If they stop building DVC resorts on-site, that will only increase the value.

 

[Cruelladeville]

DVc isn't an investment, despite the fact that my DVC has gone up since I paid $56 per point when I bought. As was mentioned before, this is a prepaid vacation. If you have 30 years to use your DVC, and you paid $12,000 for it last year, divide that, and you get your vacation for $400 per year + dues. Can you get any room at Disney for that?? I don't think so. I admit that this is simplified, and the math-oriented people will at how simplified this is, but you can see that your vacation is very cheap indeed. If you look at DVC in that light, you won't have a panic attack over the money you paid.

By the way, my daughter sold her DVC due to her divorce. Unless you have the cash to pay off the loan AND buy out your spouse, you have no choice except to sell it. In a divorce, DVC is listed as both a debt and an asset, and must be treated as such. In other words, it's a mess to get a divorce, and still hold on to what you have. I already decided that if DH and I ever get a divorce, I pretty much have to kill him to keep DVC!

 

[InstImpres]

By the way, my daughter sold her DVC due to her divorce. Unless you have the cash to pay off the loan AND buy out your spouse, you have no choice except to sell it. In a divorce, DVC is listed as both a debt and an asset, and must be treated as such. In other words, it's a mess to get a divorce, and still hold on to what you have. I already decided that if DH and I ever get a divorce, I pretty much have to kill him to keep DVC! [/B]

Sorry to hear that. The cash out on the loan is the killer. My attorney laughed that my keeping DVC was such a sticking point, but many others understood.

Sandy

 

[sparkspeak]

"Buyer's Remorse"
http://content.realestateabc.com/homebuying/remorse.htm

o{

 

[WDWorld2003]

Thanks SparksSpeak for the Buyer's Remorse article - that describes me........

Thanks also to everyone for putting me back on track! We are not buying this as a monetary investment - it's an investment in our family We were concerned with a few things and you've helped clear them up. I hope we hear on our resale soon, it's driving me

 

[ncligs]

Originally posted by Cruelladeville
I already decided that if DH and I ever get a divorce, I pretty much have to kill him to keep DVC!

 

[anniet]

Originally posted by Cruelladeville
By the way, my daughter sold her DVC due to her divorce. Unless you have the cash to pay off the loan AND buy out your spouse, you have no choice except to sell it. In a divorce, DVC is listed as both a debt and an asset, and must be treated as such. In other words, it's a mess to get a divorce, and still hold on to what you have. I already decided that if DH and I ever get a divorce, I pretty much have to kill him to keep DVC!

Cruella, I'm single and DVC is in my name only. So if I get married and I don't add a DH on, do you think I could keep my DVC if I ever got divorced? I'd GIVE him all the money, the house AND the kids, but I'd want to keep my DVC!!!!!!

 

[CaptainMidnight]

The economy is tight, many people are having trouble with employment and finances. DVC does provide an opportunity to be sold on the resale market at a better value than most other timeshares, if you find you need the cash. Hopefully none of us will be in that position, but is is a little security knowing that it can be sold if needed.

 

[PamOKW]

Will maintenance costs go up 15% each year because the buildings will be older and need more maintenance?

Well, you can stop worrying about this one too much. One of the things DVC does very well is budget. There is a planned schedule of maintenance and the dues are budgeted to plan payment of these costs (roof, paving, furniture, etc.) The last 10 years they've done quite well and there's no reason to expect they won't continue into the future. Who knows what will happen in 2042? There is speculation that extensions may eventually be offered. In any case, I doubt they will buldoze the resorts.


As to the resale value going down, as the other posters have said this is not a cash investment. It's been a bonus that we can resell and lose little (or possibly even gain) but that is unusual. And, as you can also see by the posts, most of us say that they'll "have to pry our DVC from our cold dead hands". So, if you find in a year or two DVC isn't for you, you can still sell and get most of your money back. If you love DVC, you won't be interested in selling.

 

[jkovick]

We just sent in our contract today. I know what the OP means about over thinking the purchase. We have been debating buying for over a year. The bottom line came to this--- We love Disney. I don't think that will ever wear off. DVC gives us an opportunity to visit every year until 2042! If we didn't buy we would still try to go as often as possible, so it makes sense for us. Who knows what regular resort rates will be like 10 or 15 years from now? This way we don't have to think about it....we know we will be going.

 

[yesdisneyfool]

Originally posted by jkovick
If we didn't buy we would still try to go as often as possible, so it makes sense for us. Who knows what regular resort rates will be like 10 or 15 years from now? This way we don't have to think about it....we know we will be going.

Ditto