DVC Membership pro/con?

[hmerritt]

We are contemplating buying a resale and I would love to hear others take on the value. When I calculate out 35 years (okw resale), at the historical rate of due's increase, it is showing that with the purchase price included, I will have paid 79000 not including financing. So in 2042, I will pay 3000 dues on 240 points? Does this sound accurate and can I get anyones take on this? I would love to hear from people whose children are out of the house and still use their DVC every year..... Our youngest is 5 and our oldest 8- does anyone have teenagers who still love to go to Disney?

thanks!
Heather

 

[White_Sox_Fan]

I too am considering a purchase at OKW. I actually figure 34 years since it ends in Jan of 2042, but based on the current dues cost of $4.40/pt and a 4% increase /yr (maybe a bit too much but may as well be realistic) you would pay a total of just over $73,700.00 over the total 34 years, the last year would be $ 3,852.00.

I have a pretty detailed spreadsheet I made to consider the purchase.

 

[ransom]

The aggregate does make it look pretty expensive, but in considering my future purchase of DVC, I made the assumption that we would use it every year, and compared the cost versus the cost of "renting" a room every year versus "leasing" (DVC) every year, and the savings were quite substantial in our case.

The worst down-side we could see would be if something terrible happened to us and we had to sell it within the first few years. The resale commission would mean we'd lose money on the deal, in that case. But if that happens, we'll probably have much bigger problems to worry about.

 

[tjkraz]

So in 2042, I will pay 3000 dues on 240 points? Does this sound accurate and can I get anyones take on this?

And what do your numbers show regarding the rack rates of Disney resorts 35 years from now?

I've been watching Disney's rates since buying into DVC and can confidently say that they have risen 3-5% every year since 2003. Every year Disney has to absorb higher prices for employee wages, employee health insurance, P&C insurance on the resorts themselves, fuel prices for theme park busses, electricity, water...and just about every other expense involved with running a resort hotel. There is no way to avoid passing those costs on to customers.

 

[shellbelle1971]

Our youngest is 5 and our oldest 8- does anyone have teenagers who still love to go to Disney?

I can't answer your financial questions. I know it made a lot of financial sense for our family, but each person's situation is different.

I can answer your teenager question...I have a 14 year old son who still whoops with joy over going to "the world." He especially loves Disney Quest and the waterparks, but there's plenty at Epcot, Disney Studios, and even the Magic Kingdom to keep him happy for days at a time.

HTH!
Michelle

 

[White_Sox_Fan]

And what do your numbers show regarding the rack rates of Disney resorts 35 years from now?

I've been watching Disney's rates since buying into DVC and can confidently say that they have risen 3-5% every year since 2003. Every year Disney has to absorb higher prices for employee wages, employee health insurance, P&C insurance on the resorts themselves, fuel prices for theme park busses, electricity, water...and just about every other expense involved with running a resort hotel. There is no way to avoid passing those costs on to customers.

I've read that you can expect hotel increases in the neighborhood of 6% per year. Based on 6% compunded annually in 34 year the rates will be 7.25 times what they are now. Certainly it makes the DVC even a better deal. No doubt when you look at the numbers that to stay in comparable accommodations the DVC will pay off huge in the long run. Of course you have to get the right amount of points such that you will use them all while vacationing at DVC resorts to get the maximum benefit.

 

[Caskbill]

When comparing anything over that length of time, it must be done so by comparing everything using the same inflation numbers.

I remember when candy bars were a nickel. Back then I made $4/week delivering newspapers. Knowing that in the future that same candy bar might be a dollar would seem very intimidating. But, by the time the candy bar was a dollar, I was making more than $4/week.

The point is your income will surely increase over the years also. If someone were making $50,000 today, and got a 3% raise every year, then after 35 years they'd be makeing $140,000/year. And that's if raises just match inflation and don't exceed it.

So in 35 years, you'd be paying $3000 in dues. Note that $3000 is a little over 2% of $140,000.

If dues today are $4.40 on 240 points, you're looking at $1056/year. Which is just over 2% of $50,000.

While the dollar amounts have gone up, the total impact on your budget is unchanged. That's the important part. It remained at 2%.

 

[DVCLiz]

My daughters are 13 and 18, and they still look forward to our WDW trips - and we've been going regularly for the last 7 years.

I've noticed over the last 2 years that our habits are changing slightly. My daughters no longer have the same schedule with one away at college, so DD13 and I have taken 2 trips without DD18. And, DD18 brought along 2 high school friends on a trip last summer. I see all sorts of trips in our future, including bringing along boyfriends, husbands and grandchildren someday. But I think overall the DVC membership will still be something I will be glad I did. I'm also going to use it to trade occasionally, if I can get some place I think I'd enjoy going, when my daughters are both out of the house. I can see putting in a trade and getting on a plane to enjoy a week in some exotic location by myself!!!

 

[sabina720]

I was also interested in buying about 130-150 points but my question is, if a studio is worth 104 points now, how many points will you need to stay in one 10 years from now. Does anyone know if the point values change over the years? That will make a big difference in considering how many points to purchase.

 

[DMKEDM]

I've been taking my DS to Disney since he was an infant...at the beginning, I could only afford every third year (w/an occasional business trip thrown in)...then it "grew" to every other year, then to annually...finally, last year, we went twice in one year--DS is now 19 (almost 20)...he's the one who "lobbied" me into buying DVC (said he'd promise to go w/me at least every year for T-giving)...we're taking our third DVC trip (since buying last June) next month...our fourth is over Labor Day and our fifth is T-giving 2007...five trips in 17 months...for a single mom "starved" for time w/her away-at-college DS, DVC was the best money I ever spent!!!

As for points: part of the DVC contract is the overall point "charges" in a calendar year cannot change...DVC can "reallocate"--i.e., change point "charges" per date to accommodate moving holidays (like T-giving or Easter)...but if they "up" one point charge, they have to lower another to keep the same overall "balance." So, mostly, points to stay at a given villa in a given week cannot change over the life of the contract...

 

[IndianaMouseLover]

I was also interested in buying about 130-150 points but my question is, if a studio is worth 104 points now, how many points will you need to stay in one 10 years from now. Does anyone know if the point values change over the years? That will make a big difference in considering how many points to purchase.

Let me give this a shot in answering your question. I know the answer but explaining it to be understood can be a different story. The points for resorts never change. However the prime season, adveturer season, value season etc. can be moved according to to demand. For example we are going this coming July and staying 9 nights for 149 points (July 1-9). That is the choice season. In ten years those dates may not be in the choice season. But they move the choice season to another time of year. No matter where they move the choice season I would be able to say for the same length of stay for the same amount of points. I hope this makes sense. maye some else will be able to give a better example to support what I am saying.

 

[sabina720]

That makes perfect sense! Thanks so much for explaining, that is good news!