Help! Can I really afford it?

[Mrsgrumpy2000]

We are young parents, I think I can afford a resale. How much are yearly dues? Are there any other yearly expenses?

 

[bobbiwoz]

Annual dues for 2006
at each resort are as follows:

Saratoga Springs $3.98
Old Key West $4.24
Hilton Head Island $4.34
Beach Club Villas $4.48
Wilderness Lodge $4.61
Boardwalk Villas $4.69
Vero Beach $5.27

This is per point.

Best wishes to you as you make your decision.

Bobbi

 

[sleepydog25]

We are young parents, I think I can afford a resale. How much are yearly dues? Are there any other yearly expenses?

Dues are the only yearly expenses outside of the loan itself (assuming you finance a DVC purchase). However, there are other factors to consider which you've likely thought of: your personal vacationing habits, the college fund vs. timeshare, the amount of any home mortgage you may currently have, outlook for future income, etc. DVC can be a great deal for future vacations, but I wouldn't have considered it a necessity for me 20 years ago. Best of luck with your decision!

 

[abner1776]

The annual dues are all you pay and you can have Disney take it out of your bank account over 12 months if you like...that makes the pain a little less painful.

If you only plan to go to WDW every 3-5 years or so and stay at the value resorts, the DVC is probably not your best choice. If instead you like the deluxe resorts and want to go more often then DVC can save you money in the long run, even though it looks like a lot of money now.

Buying resale can save you money and it is also the only way to purchase less then 150 points if the initial cost of $14,000 - $16,000 is a issue.

If money is a real issue but you still want DVC, then buy a small contract via resale for say 100 points with OKW as your home and the price will most likely be less than $8,000. With banking and borrowing you could still get a 2-bedroom villa for a week at OKW every three years or a 1-bedroom every other year depending upon the season and annual maintenance fees of less than $450 per year.

Price out something like that on a cash basis and you will see how much you can save.

Keep in mind that you are making a decision on your vacation plans for the next 35-45 years and while reselling a DVC contract is certainly easier and less costly than other timeshares, there is no guarantee that you will make a profit or even breakeven on the deal.

 

[OneMoreTry]

Owning at DVC is not worth worrying about finances. If you have any concern don't buy. Invest the money. You won't be sorry. You can always go to WDW. You don't have to stay deluxe at this point.

 

[momtosydneyntodd]

If money is an issue--- go for the smaller contract -Say 75-100 pts and go to Disney every few years.

 

[lizziepooh]

Even though your accommodations will be prepaid, you still have all the other expenses like airfare/transportation, park tickets, meals, spending money etc. which can really add up. You need to be very realistic about all the other expenses that go with a Disney trip.

 

[rinkwide]

How does that saying go again? Oh yeah - If you have to ask...

 

[crisi]

Boy, this is a conservative bunch this time.....

I have no idea if you can afford it. I don't know what your budget is or your financial priorities. MINE are that before we bought DVC, we'd made sure we had no consumer debt and could pay cash. We had emergency money set aside (that we've since needed to use and are building back up). Our retirement accounts were budgeted for and we were even sticking money aside from college for our kids. We had slack in our budget each month that was completely discretionary. When all that was done, DVC became affordable to us.

lizziepooh makes an excellent point, DVC can reduce the price of your accomodations - IF you stay onsite every few years in deluxe hotels. There are cheaper ways to do Orlando and Disney World. However, even after accomodations are paid for, Disney trips can cost a few thousand dollars in park tickets, transportation and food. Many DVC members discover their Disney related expenses INCREASE after they join. It becomes so easy to move the cash flow and not have the "hotel expense" when you show up - and use that for dinner or something. And to say "we'd really like to invite Mom" and have the extra expenses of a guest.

 

[browniemtb]

Owning at DVC is not worth worrying about finances. If you have any concern don't buy. Invest the money. You won't be sorry. You can always go to WDW. You don't have to stay deluxe at this point.

I agree with this statement and Rinkwide. I'm not sure of your financial pressures, but remember this is what I call a luxery item. Questions you have to ask youself being young parent. Do I buy into DVC or start a 529 college plan for my kids.....do we own our home......car payments.....etc. I'm a young parent as well......we waited to get our home squared away....with all that goes inside, furniture. Set up college savings plans for the kids and then revisited DVC. It took us 7 years to finally pull the trigger. Crunch the numbers and see how it fits into your family budget. DVC to me is disposable income...not a necessity. So make sure you have enough for the family and all that it entails.
Yearly costs depending on the contract size could be $500 to $1000 a year. That does not included airlines tickets,eating and entertainment while in Disney or if you financed your purchase.
Again crunch the number and see how it fits.....go luck
Brownie

 

[skr8pn]

Though I don't own DVC (yet) I will say simply DVC is worth it. I say this because my mom and dad bought time share 14 years ago. A nice little place and with this one little time share we've been all over the US. As a matter of fact, Disney was our first trip. Now I'm a young adult with some cash on hand and plan on buying a time share before to long. I'm squared away with my house, truck is paid for, motorcycle paid for, and as soon as I get done saving to pay for the wedding, this will be the next purchase.

Everything else you can just consider equal, it's up to you how many days you want to spend in the parks and on food and travel no matter where you stay. So take that out of the equation. For that matter, you could say DVC is cheaper because you'll have at bare minimum a small little kitchen and microwave so you could save there by not eating out.

 

[FlyingfreeWDW]

How does that saying go again? Oh yeah - If you have to ask...

.....then you can't afford it. I was thinking the same thing Rinkwide. DVC is a luxury purchase not a necessity (despite the sentiments you hear on this board). WDW trips are expensive even with the pre-paid room. Here is a scenario. Lets figure a Sunday -Thursday 5 day stay to save on points. Airfare for 2 average to Orlando $250 x 2 = $500. Park tickets 3 day MYW park hopper around $160 (I don't have the exact figures in front of me but this is close, maybe low) x 2 = $320. Food for 5 days @ $100/day = $500. Souvenirs and other miscellaneous expenses $300. Ok your 5 day DVC trip just cost you $500+$320+$500+$300= $1620. This is without even blinking an eye or over spending. This also doesn't count annual dues or the cost of your buy in. We own DVC but we are well off, it isn't a cheap option for vacation. I'd skip it unless you can pay cash and have at least 6 months living expenses set aside above and beyond the buy in. Saving for the future comes before luxury from where I sit. Good luck and I hope you think through all of the angles. You really should avoid looking at this through the rose colored glasses so many view DVC through on this board.


Disclaimer: You can do trips cheaper than this but this is simply for an example. Dining plan would knock down the food cost a little. I also didn't include a rental car which we always have so it all evens out. Airfare could also be a plus or minus. I love DVC so I'm not knocking DVC in any way. Just providing a little to think about.

 

[browniemtb]

Everything else you can just consider equal, it's up to you how many days you want to spend in the parks and on food and travel no matter where you stay. So take that out of the equation. For that matter, you could say DVC is cheaper because you'll have at bare minimum a small little kitchen and microwave so you could save there by not eating out.

What?
Take what out of the equation.....travel to get there $$, groceries.. $$ - this is only if you have 1 bd or 2 bd accomodations that gives you a kitchen so most do end up eating out, most do visit the parks with a minimun purchase I believe is a 5 or 6 day park hopper $$.
DVC saves you on accomodations..yes..deluxe accomodations only, your not saving over staying at the ALL Stars Resorts. To me this is the equation.........I also believe most DVC owners will say that they end up spending more during there stays...

 

[skr8pn]

What?
Take what out of the equation.....travel to get there $$, groceries.. $$ - this is only if you have 1 bd or 2 bd accomodations that gives you a kitchen so most do end up eating out, most do visit the parks with a minimun purchase I believe is a 5 or 6 day park hopper $$.
DVC saves you on accomodations..yes..deluxe accomodations only, your not saving over staying at the ALL Stars Resorts. To me this is the equation.........I also believe most DVC owners will say that they end up spending more during there stays...

Sorry, wasn't thinking to much when I was typing. What I mean is no matter where you're at, you have to eat, if you go to the park you're going to buy tickets, you have to get there somehow so that I would consider equal. And yes it does cost more over the all star. But, like you say if you cosider instead the little bit nicer ones it's tit for tat and you save, in the long run, by the price not going up and pretty much always having a nicer place than a hotel.

 

[browniemtb]

Sorry, wasn't thinking to much when I was typing. What I mean is no matter where you're at, you have to eat, if you go to the park you're going to buy tickets, you have to get there somehow so that I would consider equal. And yes it does cost more over the all star. But, like you say if you cosider instead the little bit nicer ones it's tit for tat and you save, in the long run, by the price not going up and pretty much always having a nicer place than a hotel.

I see now!!!! I agree ......if your going to vacation at WDW this would be an expense carried anyway. Is this what you are trying to say?? DVC will save you and will save you even more as room rates rise.....

 

[skr8pn]

I see now!!!! I agree ......if your going to vacation at WDW this would be an expense carried anyway. Is this what you are trying to say?? DVC will save you and will save you even more as room rates rise.....

correct, I think we agree, it just took a while to get there.

IMO, I think DVC (or reputable timeshare in general) is a good idea if you buy at a younger age, it allows it to pay for itself.

 

[crisi]

correct, I think we agree, it just took a while to get there.

IMO, I think DVC (or reputable timeshare in general) is a good idea if you buy at a younger age, it allows it to pay for itself.

This has been bugging me since I first read it.

Age doesn't really factor - until you are so old that you won't get ROI (Return on Investment) before you die. If you are 25 and DVC pays for itself in six years, or you are 35 and it pays for itself in six years, its still a six year ROI.

IMO, for most younger people, a major luxury purchase like DVC probably isn't a good idea. There are some younger people who are fortunate enough to have assets, but many younger folks struggle. And the priorities for a young person can be so demanding...there are often college loans, getting your first apartment/home set up, saving for a downpayment on your own home/townhome/condo, funding your 401k, making sure you have emergency savings, paying for weddings, and the costs involved in young children as you either pay for daycare or go to one income. Younger workers often have less job stability than middle age workers (who have better job stability than older workers frequently). Obviously, all this won't apply in all circumstances, but there are a lot of places for money to go when you are 25 that are better investments in your future or are more pressing needs than a timeshare. And sometimes there is just more money coming in ten years later (not always).

And while DVC can save you money over staying in a moderate or deluxe, there are NICE places offsite for less money. And purchasing a timeshare representing a committment that renting a timeshare doesn't.

 

[doubletrouble_vb]

Any timeshare purchase is a purchase that I'd only consider after I'd satisfied my basic needs looking a few years into the future. Basic needs = a decent place that I can afford (renting or buying), low debt, reliable transportation, a career I can rely on if I needed to change jobs, steady savings with discretionary income above and beyond what I'm using to save.

If I were buying now I wouldn't buy DVC under my current circumstances. Instead I'd get a resale in a region that is desirable yet not overbuilt and use that to trade into Orlando...but not necessarily DVC. Actually I wouldn't buy anything because my basic needs aren't currently fulfilled.

 

[Paging Tom Morrow]

I'm 31, married with no kids. We decided to purchase a 50 point contract...

We have a house and owe less than 70% of the appraised value with a mortgage rate of 5.5%.

We carry no credit card debit.

We both have pensions and still contribute to a 401K.

We could pay cash for the purchase.

If any of the above circumstances were not true, I wouldn't have considered it. You need to be finiancially responsible to yourself and your family more than you need to be "vacationally responsible".

Good luck.

We

 

[shantay1008]

There is a ton of terrific advice here. The only thing that I would add is that sometimes you can do things financially that you didn't think possible with a little prioritizing. What I mean is, if you're driving a fancy new car, then maybe you decide to buy less impressive used cars in the future and instead use those funds for DVC.

I'm being overly simplistic, I know, but sometimes there's a lot of fat in our budgets that we don't realize is there and with a little nip and tuck here and there, we can come up with funds to do what we want without sacrificing the important things that have been listed here, like emergency funds, 529s, retirement funds, etc.

Good luck with your decision!
Shannon