DVC - Is it worth it?

[MiaSRN62]

I KNOW I wouldn't want OKW which appears to be the least expensive, so I would have to spend more money on more points for a better resort.

"Better" resort ????? Hey Jovidan, maybe "different" but I wouldn't consider the other DVC resorts to be better than OKW----just something different in way of what they offer EACH resort has it's pros and cons. Different resorts fit different people's needs and wants.
OKW is least expensive because it was the first DVC---the originator. Disney saw they could make more $$ after seeing how popular OKW and Membership was, thus they increased the points per night for the other DVC successors. Just had to validate there

 

[lllovell]

I can tell you that Disney requires at least 10% down (I think the current incentive for SSR - which is the only resort they have available without going on a waitlist is $87 a point). So your 300 points would cost you 26,100. I think the financing they offer is for 10 years, but there are no closing costs and no penalities for paying it off early. A quick run through a mortgage calculator and its about $307 a month.

I didn't pay cash. I also don't expect my payments to last through the whole 10 years or I will have paid more interest than I wanted to. So, when I can scrip or save a little, putting more money against the mortgage is my plan.

Have you called Disney and gotten a copy of the sales package? They wont hassle you at all and it has all the point structures in it for the next two years. They are set up so that different "seasons" cost different different points (the lowest being Dec, Jan and Sept - highest is summer months and holiday times). Also, the total points at a resort can NEVER change. They can rearrange the number of points a night, but the overall total always has to remain the same. This is what sold me. I KNOW that rates will continue to go up on hotel rooms and I want to vacation every year as many times as possible.

Also, there are several members here that only use their points for studios by preference. Its not unheard of and not a bad investment, but our point about comparing POP to a DVC hotel is that you are not just paying for the hotel and this is where I think for now, you might be better off just staying with a value (but over time, it will bite you as the hotel rates keep going up - because DVC buy ins are going up as well).

 

[beattyfamily]

I(I think the current incentive for SSR - which is the only resort they have available without going on a waitlist is $87 a point).

fyi...you can get DVC through resale too for probably a good $10 less a point or more.

 

[DVCconvert]

MAJOR math error now corrected!

I'm wondering if the difference between renting points (member or not) vs. being a member; the contract acquisition costs/yearly Maintainance fees per point might be confusing here for you?

To follow on beattyfamily's scenario;

265 points purchased at OKW on resale market ( assuming $ 70 per point and closing costs of $500) would cost you to "buy" into DVC $ 19,050.00.
The contract renews your 265 points every year until 2042 (37 years to come).

Each year DVC assessess 'dues' on a per point basis with varing costs by resort, at OKW I think the rate is $ 3.68 per point x 265 = $ 975.20

If used in the 20 night scenario, dues divided by annual fees = $ 25.74 per night, no tax.

If you follow the same logic appling the inital purchase price of $ 19050 over
12 days x 37 years = 740 days in the contract life, divided into purchase cost = $25.74 per night over 37 years.

Current fees per night 25.74 + 42.91 per night for purchase = $ 68.65 per night's stay.

**As to point useage okw/any other dvc resort - they all vary somewhat, especially by size of room and time of year you wish to stay - even if you had to buy an extra 50 points to allow you to stay somewhere other than okw the overall costs on the extra points (at okw) would still only run you the $ 68.65.

Of course, there's a boat load of other things - DVC is inflation proof (or at least resistent) so that over the 37 years while "value" rates go up per night, your purchase price is set. DVC cannot assign more point usage 'cost' to members than whats declared (they can only slightly adjust to high point usage/cost due to the calendar & holiday schedule.

The biggest thing is this. Don't buy anything, anywhere, anytime if you don't like it! no matter what it is. If you like somewhere else - pop-as etc, you should simply do that - even if in 20 years when the values "deals" are $150 per night that shouldn't matter, as you'd be paying for and getting what makes you the happiest! It is vacation remember!?

HTH

 

[MiaSRN62]

I guess I should have said more expensive resort. Sorry - My bad.

It's al'right Jovidan...all is forgiven
And actually, on the resale market, I've seen OKW and BWV go for very similar price per point (with sometimes BWV costing less than OKW).......it's actually the amount of points it costs you to stay per night in said unit that makes it more point costly.
Check out : http://www.***********.com/ and http://www.atimeshare.com/cgi-local/listd.cgi?disy and http://www.dvc-resales.com/dvclisting.cfm

EDITED to add : Hmmmm.....looks like that first site I posted has been censored by DIS. YOu can email me if you'd like it Jovidan.

 

[lllovell]

fyi...you can get DVC through resale too for probably a good $10 less a point or more.

Good point...but with a resale, you have to come up with your own financing, there are closing costs and there is the ROFR to go through. I should have made it clear that I was talking about buying directly from Disney only and that there are other good options (but they work a bit differently). thanks!

 

[lllovell]

Maybe I'm doing something wrong, but it looks like to go in February when I like to go for 9 nights, and stay at a preferred room at Boardwalk, would be 11 point per night Sunday-Thursday, and 26 points per night Friday and Saturday. Then, to go in September when I like to go, it would be 9 points per night, and 11 on the weekend.

At a rate of $5.60 per point, it would average out to about $78 per night.

Does thst sound possible?

Feb - STANDARD view is 11 for weeknights and 26 for weekends (many DVCers use the standview to save points - and since you are not a room guy, I would too in your shoes) (107 a week)

Sept - 9 for weeknights and 20 for weekends (85 a week)


so nine nights Feb = 159 points (with 4 weekend nights - slide your trip to get there on Sat morning...and its only 144 points)

nine nights Sept = 125 points (or again with a Sat start to your vacation, 114 points)

Total of 284 points X $5.60 = 1590.40 / 18 nights = 88.36

Go Sat - following Monday and its 258 X $5.60 = $1444.80 / 18 nights = 80.26

 

[TammyAlphabet]

Okay, I have to jump in here. I don't know where the 5.60 per point came from but the 78 dollars per night sounds about right. I think it depends on which resort you buy, the maintenance per point and the number of years left on the contract. But, that being said, a weeknight in a studio is less than 100 no matter how you slice it and in most cases, considerably less. The weekends cost a little more, but you are definitely figuring this right. When i first put pencil to the paper, I was astonished at how cheap it was. I guess that helped me make my decision to become a member. Good Luck with your decision, and remember, you can always buy in later if you are not sure about it now....

 

[beattyfamily]

So when you are making your initial DVC purchase, how do you buy? I mean, do you buy all your points at once, or year by year?

That's where I'm confused by the fact that I'm hearing it will cost me about $20,000 to start out with 300 points a year.

It depends on the cost per point for 300 points and if you an afford that amount. Some people buy only what they can afford at first and then bank and borrow for awhile until they can buy more. Some people buy the points they want right away and finance it.

I added on 3 years later.

You are basically pre-paying (the upfront $20,000 or whatever it is) for those points and then you will get 300 (or whatever you buy) a year every year till the conract expires. I think it's 2042 for all except SSR? I don't know a whole lot about SSR and it's price or expiring date. Resale is cheaper than through Disney and you have more choices...that is how I got BWV. It was already sold out when I bought. But with Disney you can finance though them, resale you must come up with the money through some other means (equity loan, cash, credit card etc...)

 

[DVCconvert]

That's where I'm confused by the fact that I'm hearing it will cost me about $20,000 to start out with 300 points a year.

That's about right 300 pts @ $65-75 okw, more at other dvc resale resorts.

I don't know where the 5.60 per point came from

$10 per point average charge for renting a point, less maintanence fee (At BWV of $ 4.40+/-), so it's an estimated NET cost of using the point (or conversely the possible net profit if it were your point you rented out)

 

[athenna]

It depends on the cost per point for 300 points and if you an afford that amount. Some people buy only what they can afford at first and then bank and borrow for awhile until they can buy more. Some people buy the points they want right away and finance it.

I added on 3 years later.

You are basically pre-paying (the upfront $20,000 or whatever it is) for those points and then you will get 300 (or whatever you buy) a year every year till the conract expires. I think it's 2042 for all except SSR? I don't know a whole lot about SSR and it's price or expiring date. Resale is cheaper than through Disney and you have more choices...that is how I got BWV. It was already sold out when I bought. But with Disney you can finance though them, resale you must come up with the money through some other means (equity loan, cash, credit card etc...)

SSR is $14,250.00 for 150 points direct through Disney and expires in 2054.

 

[beattyfamily]

SSR is $14,250.00 for 150 points direct through Disney and expires in 2054.

Thanks! I was wondering. I'm so out of the new DVC loop!

It's really not all that confusing once you understand the concept of DVC. It's a great investment in our future deluxe resort vacations!

 

[DVCconvert]

I think I'll stick to booking my vacations as they come along.

Every individual needs to decide these things for themselves.

Vacations shouldn't be this confusing.

I know dvc can be, but once you 'get it', it gets alot easier to understand.

Basically you're buying a fraction of the building at your choice of one of the dvc resorts. As with houses or pizzas, they're priced differently. Boardwalk/Beach club are very desireable (and newer) - therefore they seem expense.

When you buy your part of a building, that gives you the right to use upto a set about of time in that location, or other dvc resorts - depending on the number of points you buy. At your home resort (the building you own) you can make ressies 4 months in advance of any other dvc'er - this is a real advantage in getting what you want, when you want it. 7 months ahead of a desire vaca, you can use your points (depending on avaliability) at any of the other dvc resorts.

Since you're a part owner of a building, you have to pay annual taxes and upkeep - your charged that based on your ownership (points).


HTH

 

[athenna]

Does that mean 300 points would be over $28,000?????????

Technically yes, however, I personally would do what others have suggested-I bought 150 points, for me, for now, that is fine. I know I am going to want an add on at some point, maybe even next year. IMHO, unless you know you need 300 points, try smaller and do an add-on when you are able to afford it.

 

[lllovell]

I recommend you call Disney. Get the packet. Call them back when you have time to hear the sales pitch, think it over and come back to this place where you might get less glitz and more facts. (not that I felt mislead at ALL with my purchase).

It seems confusing. Heck - deciding where to spend my points is making me crazy when do we want to go, where to stay, inviting guest or not, how long, stretch it and take a Feb vacation next year before my March use year starts again and I get points once again or not???? The list goes on and on.

What I did (and probably many others here) is write it all down. I used spreadsheets until I was sick of looking at it. Then I could find some real basis for comparing cash rooms to DVC rooms.

If you can get rooms now for $80 a night (DVC) at a better appointed resort and POP is averaging out at $71.00 a night for you, do you see how quickly it would go the other way? Hotel rooms rise at the rate of 3-5% per year. IT wont take long for that POP room to cost you more than your DVC room AND if you were to join DVC now, you would be putting your money towards equity - something that can be sold to someone else down the road. Granted, as we get closer to the "return" date, the value will go down, but all its done for the last 10+ years is go up up up. Just ask those people that paid in the $60 range per point a while back. People that could most certainly sell for much more than that now.

*smile* so much work about the finances involved when for most DVCers its not even 50% or more about the money. Take your time. Digest it slowly. I was confused as heck for a long time.

 

[wtpclc]

Yes, 300 points would be roughly $28,500 depending on current incentives.

300 points x 50 years = 15,000 points

15,000 points / $28,500 is $0.53 per point. $0.53 per point plus annual maintence $5.07 (can't remember exactly) and possibly finance charges, but I don't think I figured those into my calc's, is $5.60 per point.

A week at BWV is 85 points (adventure). I could not resist a week at BWV, where you can walk to Epcot and I had my honeymoon), for $476. It still paid off if we were staying in mods, but it was an even bigger bonus that we'd be in a deluxe. Plus, we'll be able to go way more than every 3 to 4 years as we had before!

 

[wtpclc]

One thing I forgot - Did you include tax for your stays at Pop. Hotel taxes are astronomical! No tax on DVC point stays!

 

[DisneyBill]

I just posted this reply in another thread, but it works here too...

Odd how this thread came up, because we're leaving for a 6 nite stay at BWV in a Boardwalk View room in early April. As a matter of curiousity (and to make myself feel better, of course) I looked up the current rack rate for a 2 bedroom unit. It is $6348. and you can never even get a Boardwalk View room with cash. The point value was 275 points. So, I'm happy.

 

[lllovell]

A quick pop in an inflation calculator (at just 3%) and in 2050 - your $80 room will cost you $278. That is $200 more a night.

My Saratoga Springs purchase has me locked in on the number of points until 2054 (with rises expected in maintenance fees - but nothing like an extra $200 a night).

 

[athenna]

I don't see this happening.

With all due respect - Think about it - What would Disney do with all those resorts then? Noone would stay there.

I don't know about that. People could've said the same thing ago 30 years ago when WDW was in it's infancy, and plenty of people still go, obviously.
It's Disney, people will always go.