give me your opinions, i just did the math

[dalt01]

and for us 17yrs is the breakeven point based on 230 points needed to go twice each year in studio, just 3 of us and we go twice each year now. that breakeven is based on renting points(which is what we now do) versus buying, we can rent a studio twice each year for 17 years till we reach the price of buying and estimated annual dues. problem is i am 53 years old. what would you guys do?

 

[Slakk]

and for us 17yrs is the breakeven point based on 230 points needed to go twice each year in studio, just 3 of us and we go twice each year now. that breakeven is based on renting points(which is what we now do) versus buying, we can rent a studio twice each year for 17 years till we reach the price of buying and estimated annual dues. problem is i am 53 years old. what would you guys do?

Are you flexible on your dates/resorts? If so then maybe you are better off renting but if you like a certain resort and during busy DVC times then it may be better to buy.

Also when you did the math did you take into account that point rentals will go up? I think as more new owners come into ownership who have paid 80+ a point will be reluctant to rent at 10. Even now I am seeing more 11-12 a point posts so they will be increasing.

Good luck with your decision!

 

[lizziepooh]

I've seen the math done so many ways but it seems like most people think buying pays off before 17 years. With increased dues, the cost of renting will most likely increase. The main reason I enjoy owning is that I have control of the points and can make or change reservations as needed. Even tho most people seem to have good luck with renting, you are still sending money to a complete stranger and there is some risk. I just like owning my own points for the control issue. If you are happy renting and it works for you, I would probably continue.

 

[dalt01]

the reason i figured 17 yrs is i would be financing the amount for 10 years and the interest would add another 10 grand on, if i had it to just pay i would be way ahead of the game

 

[YesYourMajesty]

We never did any break even math, we just knew we would break even at some point. Just out of curiosity, what is the formula to use?

 

[Dean]

and for us 17yrs is the breakeven point based on 230 points needed to go twice each year in studio, just 3 of us and we go twice each year now. that breakeven is based on renting points(which is what we now do) versus buying, we can rent a studio twice each year for 17 years till we reach the price of buying and estimated annual dues. problem is i am 53 years old. what would you guys do?

Given your stated goal of twice a year in a studio, I might take an in between approach. Buy a smaller contract and look for points for transfer when needed.

 

[dalt01]

dean, please explain that procedure (transfer), i am not aware of it.

 

[dalt01]

to yesyourmajesty, take your total cost(monthly payment times term plus any downpayment) add your annual fees(estimated) over time. and on the other side you have the cost of either renting points or resort lodgeing costs(estimated) over a period. somewhere down the road you will reach a point where you will have spent the same amount. after that you only have the annual fees to worry about. thats what i did, if anyone sees a flaw in that please set me straight.

 

[Dean]

dean, please explain that procedure (transfer), i am not aware of it.

You would essentially be renting points but have them transferred to your account rather than having the other party make a reservation or you. Only current use year (not banked or borrowed) points can be transferred and most people require payment up front.

 

[dvc_john]

If you are using interest paid in your calculations, then you should probably also include the fact the interest paid and real estate taxes are usually tax deductible.
Also, at the end of your '17 year' break-even point you will still have something of value if you decide to sell. I could sell the OKW points I bought in 1993 for considerably more than I paid for them.

 

[CPTJAK]

http://www.bywindkal.com/HVC.htm


This site has a good calculation in regards to ownership.

 

[byoung]

I rented a few times, decided that if I was still going to go as much. I would be better off owning, so I got 200 BWV points which is where I want to stay the most.

 

[JimMIA]

and for us 17yrs is the breakeven point based on 230 points needed to go twice each year in studio, just 3 of us and we go twice each year now. that breakeven is based on renting points(which is what we now do) versus buying, we can rent a studio twice each year for 17 years till we reach the price of buying and estimated annual dues. problem is i am 53 years old. what would you guys do?

This is a very interesting question, because you are doing a comparison none of us use -- not between buying and booking through CRO, but between buying and renting points. It is a very valid comparison to do, especially in your situation where you are already doing this (It's not a hypothetical.).

Assuming your math is correct, I say you should continue to rent. Surely you can find something that will give you a better return than breaking even in 17 years!

The trick in your calculations, however, is that you have to assume some % increase in both points rental costs, and DVC maintenance fees. Any significant deviation between what you assume and what actually happens will, of course, radically affect the accuracy of your projections.

Your calculations also assume (I guess) that you will continue to go to WDW twice a year and stay in studios. My opinion is that if you do that, and continue to enjoy it enough to want to do it twice a year, you have so much magic you don't need to own a piece!

 

[Pa@okw95]

and for us 17yrs is the breakeven point based on 230 points needed to go twice each year in studio, just 3 of us and we go twice each year now. that breakeven is based on renting points(which is what we now do) versus buying, we can rent a studio twice each year for 17 years till we reach the price of buying and estimated annual dues. problem is i am 53 years old. what would you guys do?

I would not buy into DVC. Your values may change in the near future as to what you want to do on a vacation. Another thing is there is rarely a break even point, it always is much more expensive than one figures for many reasons. At any rate your age is a big factor. Remember WDW has been changing into a thrill ride park for years now.

 

[dalt01]

i dont think my habits will change much as i age, we have been going on a regular basis for the last ten years and still have a 13 year old at home. i have always started everything later than most, children, home ownership, career choices and can easily see myself looking forward to our trips well into my 70's. also i am thinking it will be something my 3 DD's can use after i am either gone or unable to travel. that is also a consideration as they share my love of amusement parks, we cant pass by one anywhere without stopping.

 

[Slakk]

i dont think my habits will change much as i age, we have been going on a regular basis for the last ten years and still have a 13 year old at home. i have always started everything later than most, children, home ownership, career choices and can easily see myself looking forward to our trips well into my 70's. also i am thinking it will be something my 3 DD's can use after i am either gone or unable to travel. that is also a consideration as they share my love of amusement parks, we cant pass by one anywhere without stopping.

Now you are talking emotion which is the main reason we all bought...if it was not for the emotion we would all be staying offsite for 40 bucks a night. If you want to buy to have points for a great vacation and be able to give your DDs something to remember you then THAT would tilt the scale.

 

[Caskbill]

I would not buy into DVC. Your values may change in the near future as to what you want to do on a vacation. Another thing is there is rarely a break even point, it always is much more expensive than one figures for many reasons. At any rate your age is a big factor. Remember WDW has been changing into a thrill ride park for years now.

I don't agree. I personally am in my 60's and still enjoy the 'thrill' rides at WDW. Things like ToT, RRC, MS, TT are all good rides. Haven't ridden EE yet but will on the next trip.

There's a big difference between the thrill rides at Disney and those for example at Universal's IoA.

If one's not into thrill rides, there's still plenty to do. Disney has some of the best 'shows' you can see, including the new Stunt Show at the Studios.

 

[abner1776]

Opinions...we all got 'em..including yours truly. I weighted the options between renting, going cash or buying into DVC. Everytime I ran the numbers I could always make the answer come out to whatever I wanted it to which was never the same. When you are projecting out 10, 20 or 30 years there are just too many variables and uncertainties to make the comparisons valid. I'm 56...what happens if I die tomorrow or live to be 90 ?
Renting, cash or buying simply has to be a gut decision based upon what you expect your vacation habits will be be. The only factor that I took into consideration was whether I could afford the purchase without any financing. If buying into DVC would mean putting yourself further in debt, then I would not advise buying into DVC or any timeshare for that matter. I only considered buying if I had the funds available. Net present values; internal rate of return...lost interest value, etc, etc, are terms that we accountants love to throwaround to show how smart we are and why our calculations are better than yours...if it make sense for you, then do it...but not if you have to finance it.

 

[dalt01]

that is funny, my boss in a former life was an accountant and has not fallen far from that tree and he will drive around the block three times and spend 30 cents in gas to find a parking meter with time on it to save 25 cents, he will have our accounts recievable person spend all day at 12 dollars an hour to find 10 or 15 dollars that cannot be accounted for, i would just write it off and move on, i call it stepping over a dollar to pick up a penny, so it does not suprise me that your advise is not to buy if you have to finance. dont get me wrong i appreciate the advise its just interesting how there are different types of people with different takes on things. mary waring agrees with you by the way.

 

[abner1776]

Well...as I have told my daughters on many occasions, if everyone in the world was as frugal(cheap) as their parents, this world would not be a fun place to live in. Some people see debt as part of their lifestyle and would not blink an eye in signing up for another 14k to finance DVC. I would not be able to sleep at night, but then again...if everyone paid cash for their vacations and timeshares, this board would not exist...cause DVC would not exist...cause WDW would not exist.