Help me do the "math"...

[r3ngels]

I am considering buying DVC within the next year... I want BWV, 150 pts. Right now there is one for $12,600 on The Timeshare Store website. I know it will be high the longer I wait but I am just not ready yet. But I need help to know if DVC is right for us.

Is the math as simple as divide one week at BWV (approx $4150 for a 1 bed) into the 12,600? Or is it more complicated than that?

Any help or advise would be a huge help...

 

[abner1776]

It's a lot more complicated than that, cause by buying into DVC you are buying in for at least 36 years and maybe 48. Plus you have annual maint fees of around $650. Look at the top of this posting board and click on the FAQ to understand how DVC works and whether or not it would work for you. It can get a bit confusing ( my wife simply gave up trying to understand how it works), but if you take the time and think things through, it is not too difficult to understand.

 

[sagwanamu]

I am considering buying DVC within the next year... I want BWV, 150 pts. Right now there is one for $12,600 on The Timeshare Store website. I know it will be high the longer I wait but I am just not ready yet. But I need help to know if DVC is right for us.

Is the math as simple as divide one week at BWV (approx $4150 for a 1 bed) into the 12,600? Or is it more complicated than that?

Any help or advise would be a huge help...

There is no formulated math. But when you do the calculation, make sure to include the maintenance cost and reasonable increase of maintenance cost, not to mention your initial cost and interest payment, if any. Then substract it from what you would have paid for similar accomodation (again, make sure to increase the accomodation cost with annual inflation rate).

But I recommend you not doing any calculation. Buy if you are in love with Disney and you plan to visit disney annually. No matter how you calculate, DVC is not an inexpensive purchase (it is a luxury item). With 200 points of SSR, maintenance alone will come to be over 85K over 48 years (assuming 3.5% annual increase).

Good luck...

 

[r3ngels]

I know how vacationing with DVC works (my parents are owners and we go with them everyother year) but I am not sure how you decide if you will save money with it...

I am hoping not to finance anything that is why I am not jumping on some of the resale at Timeshare...

As for the love of Disney... that is what my gut is telling me... more than financial it is the guarentee that we will go every year but my DH needs the facts and I don't know how to give him that it seems that there are so many what ifs...

BTW... we are a family of 5 ( it was cheaper when the youngest was in a crib )

Thanks so much for helping me work this out.

 

[byoung]

Don't think you can go wrong in buying.

 

[Slakk]

Don't think you can go wrong in buying.

I think if you can purchase resale it is the way to go right now if you are interested in BWV, SSR or OKW. Right now a smaller BCV (and in some cases VWL) are cheaper in cost to buy from DVC then resale (when adding in closing costs).

With SSR now at 101 the resales will go up in price too. TSS seems to have the most realistic prices of all of the resellers - prices that will pass ROFR.

 

[CPTJAK]

You do the math a hundred ways and make it come out for and against. It's all assumptions etc..

There are tons of threads on this one. But here is how I would do it

150 point minimum x 101=$15150

minus incentive of 1200 (8 per point)= $13950

Now you will have this for 48 years so 13950/48=$291 cost per year

Maint Fee = 4x150= $600

Total cost 1st year $891 plus lost interest on the 13950

Assume 5% interest: 13950 x 0.05= $697.50

So $891 (maint fee + initial investment) + 697.50 (estimated lost interest) =

$1588 cost of 150 points per year in today's dollars:

I am not an accountant and therefore these numbers are just what I came up with and may not be the most accurate.

I think in the end it is going to come out very close to even compared to renting from a member and maybe a bit cheaper to buy compared to renting from disney/expedia etc..

 

[MrShiny]

Basically, you need to price out what you would have spent going forward versus the cost of DVC. I think most people find that 8-10 trips the DVC pays for itself. Don't forget that after you break even, you still have years of trips or at least a membership with value that you can sell (perhaps even for more than you paid).