DVC or a villa

[ch1975]

Was thinking of buying in a villa in Florida as a rental investment, ensuring us a couple of weeks every year, but then I've the hassle of renting it out, it should pay for itself and also my flights, or should I buy into the dvc instead, a fraction of the cost, no hassle but I'll have my flights to buy if I don't rent out points.
Any ideas anyone

 

[wayneg]

Was thinking of buying in a villa in Florida as a rental investment, ensuring us a couple of weeks every year, but then I've the hassle of renting it out, it should pay for itself and also my flights, or should I buy into the dvc instead, a fraction of the cost, no hassle but I'll have my flights to buy if I don't rent out points.
Any ideas anyone

I have known many people buy villas over the years, everyone of them sold. Management companies are not cheap, would you have the cash upfront? if not repayments/interest to cover, Insurance and legal fees to buy.
I heard a figure of 40 weeks rental per year breaks even and a lot of hard work doing it.
I am sure villas work for some but do check out all the details first, its a bit difficult to get info on here, due to the forum rules no-one can actually say they own property in Florida.

DVC also needs to be looked at closely, it works for many but not for me. I have looked at the figures and taking the lump sum into account ontop of the annual dues the figures are too high for me but I am more than happy staying at a Hilton or a Marriott for £30-40/nt.

We have considered both options over the years but find waiting for hotel deals is the best way for us.

 

[Woodview]

To Buy or Not ........ The Answer is NO .... Do not Buy a Villa

Or Invest in a DVC.


Why ........ Well if you have a $ 100,000 to spend ....... Think

of how many Vacation Trips that you can make using that money .

Trips to " Other parts of USA " trips to Europe & Australia.

Even $ 5,000 per trip you could make 20 away from home trips

AND WITHOUT the Villa Ownership "Hassell " ( Cleaning & Repairs )

Yes ... I am an overseas owner of a villa ( our 2nd Home " for 12 years )

Do we make money renting it out ..... No .

Do we enjoy owning a villa .... yes ... BUT it is getting more & more expensive to Own a Villa.

While we enjoy our trips to the Disney Area ...... not gone to Disney for

years ........ but have " Done other Parks & Things "....... it is turning into

a " Chore " while the Rest of the USA & Europe is there waiting to be explored.

 

[ch1975]

We've 3 kids all under 10, so to go every year for at least an other 10 trips would be awesome, but at close to 10k for 2 weeks at yacht club it would make more sense to invest that money into something a bit more profitable, Dvc we could buy for around £15-20k and stay somewhere like BLT every year with just annual dues and flights, would still work out cheaper than 2 weeks booked through the brochure, plus rent out points not used.
Or a villa initial outlay large, but in florida there's no off season really so potential for renting out all year round, but as you say there is maintainence costs, insurance fees etc, but in the long term plan (the next 10 trips) it could still be a cheap option.
Personally I/ we love staying on the parks, this might change as the kids get older, but our youngest is 3 so for at least 7-10 years on park would be better, but I'm looking into this with my 40 yr old head, not my 10 yr old heart. I know people who visit every year and swears by a villa, but we love the perks of being on site?

 

[wayneg]

I am assuming your 10k includes flights, you would still have those to buy anyway.
Just checked 2 weeks at Beach or Yacht std room and it was £2,583 but dates will vary the price.

You will just have to get all the figures you can find and compare the best you can

 

[Pegasus928]

We looked into buying a villa a couple of years ago - and I mean seriously looked into it, not just for fun on a quiet Sunday afternoon.
Our conclusion was that if we could buy it, and still be able to afford it if it didn't rent out, then we would. But the truth for us is that we would be relying on the rental income to pay for the villa, and the risk of it sitting empty for more weeks than not were too high for us.
Add to that the hassle and time involved and it just didn't see worth it. I know there are loads of people who make it work - and I am thankful that there are as we have only ever done villa holidays to Florida and will continue to do so.

 

[Woodview]

How on earth could have a bill of 10grand for 2 weeks ?

My villa ( 5 bed , 4 bath & pool ) would cost you £ 2000 for the 2 weeks ...... AND THAT is a hard figure to get for majority of owners

Car hire would cost say £ 700 .

Food Say ( Eat out ) $150 for dinner per family per night ( no beer )

................

Here are some of the COSTS of owning a Villa

Insurance $ 2000 a year , Property Tax $ 2000.

HOA fees ( this Varies depending on Community ) $2000 a year

Management Co & Pool clean $2000

TV is now $ 112 + Tax a month , Electricity can be $ 400 a month

Repairs , Painting , New Pool pump ,new AC unit all Cost money


WE bought new when prices were low.

 

[tinkerpea]

How on earth could have a bill of 10grand for 2 weeks ?

My villa ( 5 bed , 4 bath & pool ) would cost you £ 2000 for the 2 weeks ...... AND THAT is a hard figure to get for majority of owners

Car hire would cost say £ 700 .

Food Say ( Eat out ) $150 for dinner per family per night ( no beer )

................

Here are some of the COSTS of owning a Villa

Insurance $ 2000 a year , Property Tax $ 2000.

HOA fees ( this Varies depending on Community ) $2000 a year

Management Co & Pool clean $2000

TV is now $ 112 + Tax a month , Electricity can be $ 400 a month

Repairs , Painting , New Pool pump ,new AC unit all Cost money

WE bought new when prices were low.

Well I have a bill of just over £6500 just for the disney property side of our trip for June! 2bed at Ssr...
When you add flights at £4200 for 6 of us then car hire park tickets and a wk at Universal it comes out way over @£10,000 lol

 

[leise]

We went the Dvc route and that has worked for us. We did the sums and realised if we only ever wanted to stay onSite, and we wanted to be able to go in the summer holidays it was the only way we could afford it.
We bought enough points initially to do two weeks in a studio at OKW every other year in August , which gave us two years to save up for the flights. (100 points)
Then a few years later when the boys were too big for a studio we added on another 190 points which allows us just under three weeks every two years in a one bed at OKW in August. We have been able to go every other year now since the kids were small, they are now teenagers, and there is no way we could afford three weeks at OKW in August without it. We just have to budget for the flights and the other stuff like tickets and car hire. We do air miles flights so that cuts those costs as well. We have a us bank account to pay the dues by direct debit which means we can take advantage of exchange rates and shift money in when the are good.
It works for us and I know we couldn't have done it any other way, but that is because it met our needs completely.
The thing about DVC and villas too I suppose is that it will only work if that's exactly what you want, for the long term.

 

[wildwood]

It does depend on personal circumstances and if you can buy out rigjt or need a mortgage . We bought in 2006 and have a mortgage and I work everyday on the villa on top of working full time and we still find it hard to get the villa booked out all year , there is alot of added expenses not just the mortgage to cover like repairs , licences , general upkeep and keeping your home at a standard that attracts customer and with so many villa out there you have to have something that keeps people booking. Dont gey me wrong we have amazing holidays every year and I love walking into my home but I think deep dowm if I could turn back the clock I dont think I would buy again

 

[pickers1982]

It does depend on personal circumstances and if you can buy out rigjt or need a mortgage . We bought in 2006 and have a mortgage and I work everyday on the villa on top of working full time and we still find it hard to get the villa booked out all year , there is alot of added expenses not just the mortgage to cover like repairs , licences , general upkeep and keeping your home at a standard that attracts customer and with so many villa out there you have to have something that keeps people booking. Dont gey me wrong we have amazing holidays every year and I love walking into my home but I think deep dowm if I could turn back the clock I dont think I would buy again

How much is a typical villa out in florida now? An whats the typical rental yield net of costs.

Those that have bought in the past maybe in a different position but worth remembering that you should in theory have a nice asset one day. If your rent net of fees covers your interest then you are essentially saving the cash

I know a few people who have bought and about 50% of them sold. Seems that the ones after it is as a investment struggled and thos who primarily used it for themselves (eventually in retirement) love it.

Iif its an investment its much trickier with as people saying on here much hard work involved. Also things like the exchange rate can hugely influence costs and values.

I would love a villa for retirement and think we may one day get one but at the moment wouldnt want to give up staying onsite until my son is much older and more into universal

With regards to dvc i dont know much about it but would be interest to know how long you have it for what resale values are etc?

 

[ch1975]

How on earth could have a bill of 10grand for 2 weeks ?

My villa ( 5 bed , 4 bath & pool ) would cost you £ 2000 for the 2 weeks ...... AND THAT is a hard figure to get for majority of owners

Car hire would cost say £ 700 .

Food Say ( Eat out ) $150 for dinner per family per night ( no beer )

................

Here are some of the COSTS of owning a Villa

Insurance $ 2000 a year , Property Tax $ 2000.

HOA fees ( this Varies depending on Community ) $2000 a year

Management Co & Pool clean $2000

TV is now $ 112 + Tax a month , Electricity can be $ 400 a month

Repairs , Painting , New Pool pump ,new AC unit all Cost money


WE bought new when prices were low.

£9800 virgin holidays package for 2 weeks at yacht club standard room 30th sept to 13th October this year, that is all park tickets, car hire.. And that's during term time, it'll be half that again to go in the school holidays

 

[ch1975]

How much is a typical villa out in florida now? An whats the typical rental yield net of costs.

Those that have bought in the past maybe in a different position but worth remembering that you should in theory have a nice asset one day. If your rent net of fees covers your interest then you are essentially saving the cash

I know a few people who have bought and about 50% of them sold. Seems that the ones after it is as a investment struggled and thos who primarily used it for themselves (eventually in retirement) love it.

Iif its an investment its much trickier with as people saying on here much hard work involved. Also things like the exchange rate can hugely influence costs and values.

I would love a villa for retirement and think we may one day get one but at the moment wouldnt want to give up staying onsite until my son is much older and more into universal

With regards to dvc i dont know much about it but would be interest to know how long you have it for what resale values are etc?

When I initially looked at dvc in 2006, I'm sure the sales guy told me it was a 100 year lease that you bought, but just reading up in it some sites you only hold the lease for about 35-40 yrs, I think I've decided on the dvc, a villa would be too much hassle for us, and if I can get resale dvc for about £15k I think we get our value out of it over the next few years.

 

[Mrs Hobbes]

We purchased DVC in 2008 and for us it has been brilliant and we are so glad we've done it.

Yes we could do Disney cheaper but we like having a villa on property and being able to have enough space to take friends and family with us if we want too.

We go approximately every 18months and have 2 - 3 weeks in a 2 bed villa on our points. Our DVC has more than paid for itself but the value to us isn't just financial.

We are getting close to the stage now with our daughter getting older of wanting to visit other places beyond WDW. We are looking at Disney cruises and possibly visiting Disney Parks in Japan so we can either use our points or rent them and use the money towards our holidays elsewhere. We certainly have never once regretted our decision to buy DVC and every time we go its handwork stopping ourselves from adding on more points!

 

[Pootle]

Like Wayne and others, I've investigated buying a villa many times and put the idea 'to bed' finally when we did actually own an apartment in Germany for a few years. What with the regular bills, needing to rent out and feeling that you have to visit, it was a relief to sell, despite its having been very useful and paying its way.

Nor would I encourage people to jump into buying DVC even though we have owned for 18 years (and it has worked out exactly as I had hoped and has been great for us). We bought all of our points from Disney (I doubt there was an active resale market when we first bought) and paid around the mid $60s for most of them - without financing. I doubt I would pay Disney's current prices for any resort, but resale, is a different matter.

I took a long time to make my decision 18 years ago and played with the figures and many 'what if' scenarios, eg, what if air fares become prohibitively expensive, what if exchange rates really dive (it has happened during the 18 years ) because annual dues still have to be paid. One thing I was sure of: I would be happy spending holidays in Florida when the lure of theme parks was a thing of the past - and this has happened. In the autumn I'll be visiting with a friend, when my room rate for a studio at OKW works out at little over £40 per night in dues and in January, DH and I will spend 3 nights at BWV (before a cruise), also for £40 per night . However, if you want the space of larger villas (as DH and I do at OKW, and again when taking the family) then those holidays 'suck up' points. To us it's worth it, and more importantly, we can afford it.

The key is to do your homework and throw in a few 'what ifs ....' for yourself

 

[Tink2312]

We purchased DVC in 2008 and for us it has been brilliant and we are so glad we've done it. Yes we could do Disney cheaper but we like having a villa on property and being able to have enough space to take friends and family with us if we want too. We go approximately every 18months and have 2 - 3 weeks in a 2 bed villa on our points. Our DVC has more than paid for itself but the value to us isn't just financial. We are getting close to the stage now with our daughter getting older of wanting to visit other places beyond WDW. We are looking at Disney cruises and possibly visiting Disney Parks in Japan so we can either use our points or rent them and use the money towards our holidays elsewhere. We certainly have never once regretted our decision to buy DVC and every time we go its handwork stopping ourselves from adding on more points!

Totally agree with this. Buying DVC was one of the best things I have ever done. If I was paying the rack rate (or even discounted price) of the rooms in which I stay now, I couldn't afford to go more than every 3-4 years, whereas with DVC my points I can stay between 2-3 weeks every year.

Some people don't want to be locked in and aren't interested in staying in Disney every year, but if you are, I would recommend taking the DVC tour to investigate ownership further. I did it 3 times over the years before buying in and there was never a "hard sell". DVC also gets you additional benefits like discounted annual pass - I structure my trips so that I fit at least 2 in a 12 month period and buying the standard AP is little more then the cost of a 2 week ticket.

You could also see about staying in a DVC resort on cash or by renting if you haven't already - that way you can see if it's right for you.

Personally, I can't say enough good things about DVC - it's given me the opportunity to stay in resorts I never would have and - as I'm not spending as much on my vacation each year - the extra cash to spend on other non-Disney holidays. I know that I can - subject to any future rules change - rent my points or can save them for a big blowout holiday should I not want to go one year (which is yet to happen )

Definitely do your research and I hope all goes well whatever you decide

 

[penlanspice]

We looked into buying a villa probably around 10 years ago when you could get really good deals, the main reason we decided against it at the time was we would need to rent it out to help pay for it, we had just stayed in the same villa twice in 10 months (the villa was brand new the first time we stayed) within that 10 months the place had totally changed and needed lots of maintenance already, people don't respect what's not theirs, it would break my heart to go back to my villa and see what other people had done to it, so that was the main reason we decided against it.
Another reason we probably wouldn't consider it now is the market is saturated with villas, they are constantly building and it's going to get harder and harder for renters to get the bookings they need.

We did then go on to buy DVC but this isn't for everyone and you do have to really look into it to make sure it's the right decision for you, we bought 10 years ago and have added on twice since then.