DVC or ??? long, sorry!

[readytogotodisney]

I was recently gifted a substantial amount of money, $10k, and I'm thinking about buying into DVC. We don't have any debt except our home and my DH's student loan (less then two years left on the payments and they're very low payments).

My parents currently have DVC and I've stayed with them at nearly all locations (except Poly) and LOVE IT! With them, we go yearly in Jan/Feb but my family of four have been going on DCL every year as well.
With the cruises we usually start/end every trip with a stay at Disney. Sometimes we do the parks, sometimes not.

I also have been able to do solo trips the past two years. My kids (6 and 2.5) love going to Disney, my DH not so much. He is never guilt tripped into going with my parents, but he ends up going every year. He does love our land/sea vacations though.

With that all that, should I buy into DVC myself? Just a smallish resale contract, ~100 points at SSR probably. DH says it's my money I can do whatever I want with it.

Would you buy your own contract or keep the money in a savings account and use it toward future vacations to DCL, DW/DL or wherever else?

 

[crisi]

I'd keep the money. You are describing $10k as substantial. That sort of means that dues, tickets, airfare, etc for your family of four are going to be substantial in your budget, but with DVC those will be every year (or every other year).

 

[kniquy]

Buying resale will not get you the DCL portion of your vacations but might help with the cost of the "land" portion of your trip. It sounds like you go often enough that DVC would make sense.

I was in a similar situation as you with being given a lump sump of money and I decided that i wanted to use it towards pre-paying our Disney trips for the future. That is essentially what you do with DVC. The contract will pay for itself with a few trips and once we break even in 5-6 years then the MF costs will probably still be less than what we would spend renting a 1 or 2 BR every other year. If you don't need the money for a savings cushion then I don't see anything wrong with making a purchase. It sounds like with cruising every year you do have the money to spend. I know those are not cheap! Just keep in mind that you will have to factor into your budget the yearly increasing maintenance fees.

I am sure that your parents can/or have filled you in on the benefits or draw backs of membership.

 

[readytogotodisney]

I'd keep the money. You are describing $10k as substantial. That sort of means that dues, tickets, airfare, etc for your family of four are going to be substantial in your budget, but with DVC those will be every year (or every other year).

I guess generous is a better word to use. I meant more substantial for a gift.

 

[readytogotodisney]

Buying resale will not get you the DCL portion of your vacations but might help with the cost of the "land" portion of your trip. It sounds like you go often enough that DVC would make sense.

I was in a similar situation as you with being given a lump sump of money and I decided that i wanted to use it towards pre-paying our Disney trips for the future. That is essentially what you do with DVC. The contract will pay for itself with a few trips and once we break even in 5-6 years then the MF costs will probably still be less than what we would spend renting a 1 or 2 BR every other year. If you don't need the money for a savings cushion then I don't see anything wrong with making a purchase. It sounds like with cruising every year you do have the money to spend. I know those are not cheap! Just keep in mind that you will have to factor into your budget the yearly increasing maintenance fees.

I am sure that your parents can/or have filled you in on the benefits or draw backs of membership.

The DVC purchase has been really great for my parents. They've definitely got their money out of their purchase. That's what makes it so appealing to me.

 

[_auroraborealis_]

Resale has restrictions, but in general buy DVC to stay DVC -- not for any other point use, which is usually inefficient/not a good value for points, and subject to change at any time.

Are you able to carry the other costs of the contract -- annual dues, travel costs, food on trips, etc.?

 

[readytogotodisney]

Resale has restrictions, but in general buy DVC to stay DVC -- not for any other point use, which is usually inefficient/not a good value for points, and subject to change at any time.

Are you able to carry the other costs of the contract -- annual dues, travel costs, food on trips, etc.?

We already pay for the airfare down, and food while there. The only difference would be the annual dues, which would easily be paid for by the cost of a Disney hotel room for the two nights that we usually stay before our cruises. Then the room for my solo trips trips in the fall would be "free".

But I'm afraid I'm just rationalizing.

 

[KAT4DISNEY]

When you go with your own family where do you like to stay? Since you already go every year and as long as you don't like to stay at the values when you go with your own family then it very possible it makes sense to buy. Have you looked at the point charts to make certain the small contract is enough? And, if you will SSR be good for you if by chance you can't trade to another resort?

 

[kniquy]

no one is saying either that you have to spend the entire 10K. you could look for a resale of about 100 points or a little less and still have 1K left over which would be nice for you to spend on your future trip. Hopefully 100 points is enough for you to use for the times of the year that you will be going. we only bought 120 but only intend on going every 2-3 years.

If you really are considering resale then you absolutely need to view the ROFR thread this will give you a good idea on what to offer on SSR contracts.

 

[pmaurer74]

remember that you have to pay closing costs too. I received a small inheritance I used to recently purchase a DVC and I love it and love being able to carry on my loved one's legacy by taking my family members on trips for years to come and by giving my girls honeymoons someday. It would have been smarter to pay off the student loans but I have wanted a DVC for years.

 

[disneynutz]

What ever you decide do not buy with only you on the deed. If something should happen to you your estate gets the DVC. Better to add your husband even though he doesn't get involved today.

Bill

 

[readytogotodisney]

Thanks for all the opinions! You've given me a lot to think about.
Bc of maintenance fee and length of contract I picked SSR to look at. I'd in all honesty, try to move reservations to another resort at 7 months out, but if we were "stuck" at SSR, I'd be okay with that. I like the resort. The pool is great and walking to DS is a big plus for us.

I was thinking today about how I'd love to go back to DL soon. Bc of other trips already planned and vacation time for my DH, I don't see that happening until March 2017. I've tried to use points at DL before and at 7 months it didn't work out at all.
So really I don't see use being about to use any DVC points until fall of 2017. I might look at a stripped contract, or just hold off in purchasing DVC until next fall.

 

[Dean]

Thanks for all the opinions! You've given me a lot to think about.
Bc of maintenance fee and length of contract I picked SSR to look at. I'd in all honesty, try to move reservations to another resort at 7 months out, but if we were "stuck" at SSR, I'd be okay with that. I like the resort. The pool is great and walking to DS is a big plus for us.

I was thinking today about how I'd love to go back to DL soon. Bc of other trips already planned and vacation time for my DH, I don't see that happening until March 2017. I've tried to use points at DL before and at 7 months it didn't work out at all.
So really I don't see use being about to use any DVC points until fall of 2017. I might look at a stripped contract, or just hold off in purchasing DVC until next fall.

Personally I'd look at more like 150-170, I would not buy at this time rather than buying a smaller contract. If that's not in the budget, I wouldn't buy. The resale restrictions are a good think because it forces you to realize the other options are not a reasonable option to buy in to use points for (NEVER).

 

[DVCjj]

I also received $10,000 that was not needed for daily expenses and purchased a DVC in 2014. I had been talking about it for years and was always scared of timeshares.

I am conservative (except when it comes to Disney trips) and have been in our home for 50 years (good investment purchased when we were 20). The money was from my mother and DH said I could do whatever I wanted with it. (I insisted he be on the papers also).
My daughters were absolutely flabbergasted & thrilled when I announcement my 'big purchase' (very unlike me) at a special dinner (yes, sillly, I know).

Suffice it to say that it was a wonderful decision and I'm proud of myself. I love being a DVC member and did end up purchasing a 2nd contract so each daughter could have one if they so desired.

I do not think you will regret your decision to use your $10,000 for a DVC purchase. And if you do, down the line, you simply sell it.

 

[mab2012]

I do not think you will regret your decision to use your $10,000 for a DVC purchase. And if you do, down the line, you simply sell it.

This.

Also, I just have to say: my husband and I are both relatively high earning professionals, with considerable assets and no debt. I still consider 10K to be "substantial". If I didn't, I doubt that we'd be in the financial position we currently enjoy.

I'm not one to encourage irresponsible spending, but it sounds like OP is a pretty good fit for DVC. They already travel to Disney twice annually, they are familiar with the product and (presumably) understand its use, and they have young kids who will likely continue to enjoy Disney for awhile yet. Plus the very fact that the OP does describe 10K as substantial and is questioning whether this is a good use of money tells me that she's not making the decision lightly or irresponsibly.

Only OP knows her financial position well enough to say for sure, but it sounds to me like DVC is a reasonable choice.

 

[ziravan]

Don't buy a stripped contract. The savings isn't worth the loss of points.

Buy a loaded contract and bank the points so that you start off with more flexibility.

There is simply not enough discount on stripped points in the market to consider that a value in saving on purchase price.

A stripped contract will sell for 3-5 dollars less a point. If you bought and rented those points, it'd be worth 6-9 dollars/pt on the rental market (12-15 rental price minus the 6/point you wouldn't pay in MF for those points). For a 100 point contract, that's several hundred dollars left on the table.

Buying stripped isn't worth the money you'll save.

 

[Dean]

Don't buy a stripped contract. The savings isn't worth the loss of points.

Buy a loaded contract and bank the points so that you start off with more flexibility.

There is simply not enough discount on stripped points in the market to consider that a value in saving on purchase price.

A stripped contract will sell for 3-5 dollars less a point. If you bought and rented those points, it'd be worth 6-9 dollars/pt on the rental market (12-15 rental price minus the 6/point you wouldn't pay in MF for those points). For a 100 point contract, that's several hundred dollars left on the table.

Buying stripped isn't worth the money you'll save.

I'll agree but point out that it's because of the current different values between the 2, not the point it's stripped. The savings is often less than the value of the lost points. As a rule a fully loaded contract is the best value because the extra points are often not a large consideration on the pricing and one often doesn't have to pay additional dues on the extra points. I'll point out the almost all resale buyers overpay on the dues portion due to the fact that dues are calculated by calendar year, not the actual points themselves for the UY.