Help me understand the BENEFIT....

[smkiya]

I've been considering DVC for some time. I keep going back and forth about the benefit of having it, as opposed to paying cash for rooms. So say I buy 200 points at HHI. Benefit, I could reserve 11 months out. But, I'd still be paying at least $800 in maintenance fees per year at $4.XX per point. But, you have to buy the points first. So an initial investment of say $100 per point so $100 x 200pts = $20,000. $20,000 over 50 years is $400/year on top of the $800 in fees per year. So I'd be paying $1200 for a 5-6 night stay in a one or two bedroom with a 50 year commitment. That's what I'm paying now though, when I pay cash. So what is the benefit? Am I figuring this all wrong?

Help me see the light!

 

[tammymacb]

First off. If you buy HHI, you won't have the 11 month benefit of booking anyplace except HHI. If you are wanting to stay at WDW, you will have a 7 month window for reservations. That is usually fine, except for the busiest times of year. You will, however, be limited with getting into the smaller, harder to get room/resorts.

Also, you're off on the MFs. They are well over $5.00 per point, and I believe only Vero owners pay a higher MF than HHI owners do.

Now, saying that. I've sold all my BWV points, own at HHI and am waiting on ROFR for another HHI add on. I will use my points 90% HHI with "maybe" a trip here or there to WDW being booked at the 7 month window.

If you want lower MFs, and guarentee of booking WDW, you need to be looking at a SSR or OKW resale.

 

[smkiya]

First off. If you buy HHI, you won't have the 11 month benefit of booking anyplace except HHI. If you are wanting to stay at WDW, you will have a 7 month window for reservations. That is usually fine, except for the busiest times of year. You will, however, be limited with getting into the smaller, harder to get room/resorts.

Also, you're off on the MFs. They are well over $5.00 per point, and I believe only Vero owners pay a higher MF than HHI owners do.

Now, saying that. I've sold all my BWV points, own at HHI and am waiting on ROFR for another HHI add on. I will use my points 90% HHI with "maybe" a trip here or there to WDW being booked at the 7 month window.

If you want lower MFs, and guarentee of booking WDW, you need to be looking at a SSR or OKW resale.

You're right. I looked and the MF'S are $5.57 pp. So we're up to $1114 per year on 200 points. I would mostly stay at HHI, with a WDW trip scattered in Oct/Nov, so off-season.

 

[disneyrunningnut]

There are lots of things to consider but I will throw a couple of them at you.

1. The amount of money spent on points isn't gone. You can sell your points. For example, I bought 50 points at HH. I have paid including purchase price, closing cost and 2 years of MF's about $4500. So far I have stayed 2 nights at BWV in a Studio, 5 nights at BCV in a studio, 3 nights at OKW in a studio, and 3 nights at OKW in a 2-BR. I could sell my points right now and get somewhere between $2500-$3000. It would have cost me WAY more to rent those rooms through Disney.

2. I really don't like paying occupancy tax on hotel rooms. With DVC you don't. The money really adds up.

 

[smkiya]

There are lots of things to consider but I will throw a couple of them at you.

1. The amount of money spent on points isn't gone. You can sell your points. For example, I bought 50 points at HH. I have paid including purchase price, closing cost and 2 years of MF's about $4500. So far I have stayed 2 nights at BWV in a Studio, 5 nights at BCV in a studio, 3 nights at OKW in a studio, and 3 nights at OKW in a 2-BR. I could sell my points right now and get somewhere between $2500-$3000. It would have cost me WAY more to rent those rooms through Disney.

2. I really don't like paying occupancy tax on hotel rooms. With DVC you don't. The money really adds up.

Wow. So you did all of that with only 50 points, or do you own additional points at other resorts? Would it be better to buy 200 points at a resort with the lowest fees, if I expect to take most trips to HHI off-season so the 7 month window would be good enough?

 

[hellerjw]

The main benefit of DVC is really only realized when staying at one of the WDW resorts. You are basically pre-paying for discounted deluxe WDW resort accomodations for the next several decades. There will always be cheaper ways to stay off-site and even on-site at WDW if you don't want what Disney considers deluxe accomodations. It usually takes 5-7 trips to break even on the initial costs but after that you are getting a deluxe villa on Disney property for just the cost of dues. For example, a 2BR villa could easily run $600-$900/night at Disney's rack rates but you could get it for a whole week for $800-$1000 in annual dues.

 

[tammymacb]

Wow. So you did all of that with only 50 points, or do you own additional points at other resorts? Would it be better to buy 200 points at a resort with the lowest fees, if I expect to take most trips to HHI off-season so the 7 month window would be good enough?

If you are going to stay primarily at HHI, that's another story. HHI with ( I think 104 rooms ) can be extremely difficult to get into at 7 months. I have reservations for June I made at 11 months. I tried to get a studio for my parents for the same dates, but had to do a cash ressie due to no availability. The rate ( DVC member ) was over $1000 for 4 nights in a studio. So, since we go every year, this add on is a no brainer.

Also, "off season" is different for HHI. The entire summer is full, as is much of the spring and fall. Low time is cold weather, but still busy during the holidays. So, there isn't much "off season" at HHI.

 

[smkiya]

The main benefit of DVC is really only realized when staying at one of the WDW resorts. You are basically pre-paying for discounted deluxe WDW resort accomodations for the next several decades. There will always be cheaper ways to stay off-site and even on-site at WDW if you don't want what Disney considers deluxe accomodations. It usually takes 5-7 trips to break even on the initial costs but after that you are getting a deluxe villa on Disney property for just the cost of dues. For example, a 2BR villa could easily run $600-$900/night at Disney's rack rates but you could get it for a whole week for $800-$1000 in annual dues.

Thank you!

 

[Ericandjenng]

You know we kept thinking the same thing (for 7+ years) and kept putting off buying. When we finally bought, I realized those resort costs during those years could have half paid for my DVC. All but one of those stays were in the moderate or value resorts!

If you travel to Disney frequently (or somewhere there is a DVC--HHI or VB & soon to be Hawaii) it is definitely worth it. As for booking, we were able to book our trip to HHI after the 7 mon window relatively easily BUT I tried to book for a friend during the summer and even right at the 7 month time, I couldn't get her a room.

Good Luck (& Welcome Home!)

 

[bxtzd3]

right now there giving a 100 point buy in with 100 points free from 2009/ no mf.

i think of it this way, i put the money down now that i would have spent on a room for a week. get my week anyway because now im in the club. next year it cost me the cost of the drive/plane for a weeks vacation minus food and tickets but we get a discount anyway, and the above plus the 1500 off the top that Disney is giving makes it worth it.

it may cost you 200 a month to pay it off with the mf, but wouldnt you be putting that away for the trip anyway?

 

[Crystal_27]

That's what I'm paying now though, when I pay cash. So what is the benefit? Am I figuring this all wrong?

Help me see the light!

You are correct that the $1,200 figure is probably close to what you are paying NOW (2010). But, you have to think of DVC as a way of "locking in" your hotel rooms at the current rates. In 5 or 10 years when HHI is going for 30% or more than what it is going for now, with DVC you're paying the same rate as you were when you bought in. With that said, though, you are going to see the most bang for your buck by using your points at Disney. When you consider that the cheapest 1 bedroom at a Deluxe hotel you can get is about $500/night, by staying your 6 days, that is $3,000.00. So, with DVC, you are already seeing a savings of $1,800 from what you would have been paying. That's the benefit. Good luck with your decision!

 

[Deb & Bill]

You say you would mostly stay at HHI. Have you seen DVC HHI? Do that first before you buy there. Lots of members love it there, others have been disappointed. If you love it, great. If you are disappointed, you won't want to stay there and won't have the 11 month benefit anywhere.

 

[sweetdana]

1) There are more discounts to be had today then say when the economy picks up. Once the economy picks up it will "save you more". You are paying for a sale price forever.

2) 200 points is alot. I suspect that is more than 5 - 6 nights in a 1 bed room. I would say if you 5 - 6 nights in a 1 bed room would be closer to 140 - 160 points. (Season makes a difference.) If you are talking 2 bedroom it is way more than 1,200$ Min from dis is 160, but you could buy resale smaller contract and even use is every other year and save.

 

[ToddyLu]

Our AKV studios (2) with SV would have cost us $7000 ($3500 each for the 9 nights we stayed last Oct/Nov. Not for us cause we belonged to DVC. Basically there is no way I would have wanted to do those type rooms paying cash. We had always done Value rooms....not anymore. We go to Disney every year for 10 days...was a great plan for us.

 

[Dean]

I've been considering DVC for some time. I keep going back and forth about the benefit of having it, as opposed to paying cash for rooms. So say I buy 200 points at HHI. Benefit, I could reserve 11 months out. But, I'd still be paying at least $800 in maintenance fees per year at $4.XX per point. But, you have to buy the points first. So an initial investment of say $100 per point so $100 x 200pts = $20,000. $20,000 over 50 years is $400/year on top of the $800 in fees per year. So I'd be paying $1200 for a 5-6 night stay in a one or two bedroom with a 50 year commitment. That's what I'm paying now though, when I pay cash. So what is the benefit? Am I figuring this all wrong?

Help me see the light!

If HH is your main alternative, you may want to look at something there in another system and then either buy just a small number of DVC points for WDW trips or cont to use cash. Depending on when you go to HH you can rent of buy something that might work out better and cheaper. Assuming your 200 points example, 200 points will not get you a 1 BR summer time for a full week. You may want to look at the Marriott's there which would not necessarily be cheaper but might return a better value for your situation or you might want to look at any number of other timeshare options that might be cheaper both up front and yearly. Just food for thought on other options.

 

[wildviper]

The main benefit of DVC is really only realized when staying at one of the WDW resorts. You are basically pre-paying for discounted deluxe WDW resort accomodations for the next several decades. There will always be cheaper ways to stay off-site and even on-site at WDW if you don't want what Disney considers deluxe accomodations. It usually takes 5-7 trips to break even on the initial costs but after that you are getting a deluxe villa on Disney property for just the cost of dues. For example, a 2BR villa could easily run $600-$900/night at Disney's rack rates but you could get it for a whole week for $800-$1000 in annual dues.

DVC is definitely on my shopping list now. We went "offsite" for a point style system but we spend so much time at WDW and very little anywhere else that it makes more sense. Besides, our "luxury" home resort is night quite up to Disney standards. Last year while on vacation our DD was able to spend the night with a school friend at OKC. We fell in love with it for the few hours we were there to drop her off. We were able to take the water transportation to Downtown Disney and back. Being from Minnesota, this was just like a late night lake cruise.