ELMC
DIS Veteran
- Joined
- Jul 4, 2011
- Messages
- 2,932
I'm sure they were just trying to be helpful.![]()
Hahaha. I'm sure that was the case.

I'm sure they were just trying to be helpful.![]()
Great point. I've always said that the "opportunity cost" argument does not apply to DVC purchases because if one doesn't buy DVC they will most likely spend that money on something else. However, if you are treating it as a pure investment, you do need to consider this in order to have a viable comparison.
I recently purchased a resale of 190 points of SSR at $50 net for $9500 out of pocket. It came with 190 banked and 190 current use year. I rented the 190 banked for $2200 which now dropped my cost from $9500 to $7300. In June I'm staying 9 days at Aulani in a 1 Br which has a cash value of $12500. So in essence I have not only recouped my initial investment but I'm up $5200 in less then 5 months.
Just my 2 cents
I don't think the originator of this thread is thinking of using DVC as a pure investment. I think he just used "the I word", and that almost always provokes the response we've seen here.
Have you read the thread? In no less than three separate posts the OP stated that it was indeed an investment.
In my opinion this is a weak comparison unless you were actually planning on spending $12,500 for that room. Quite frankly, I don't know why you would as you could rent points from an owner and get that same room for about $4,000.
Have you read the thread? In no less than three separate posts the OP stated that it was indeed an investment.
If the OP is proposing to over-buy beyond what they would use for personal vacations, and rent the "extra" out routinely, those "extra" points are absolutely an investment.
My point is that there are much better investments out there---even just limiting yourself to the timeshare rental market.
I don't think the originator of this thread is thinking of using DVC as a pure investment. I think he just used "the I word", and that almost always provokes the response we've seen here.
Have you read the thread? In no less than three separate posts the OP stated that it was indeed an investment.
I don't think the originator of this thread is thinking of using DVC as a pure investment. I think he just used "the I word", and that almost always provokes the response we've seen here.
Yes, I understood you the first time. And again I ask, have you read the thread?
There is no way you are going to get a 1br pool view for 8 nights for $4000 cash. Maybe a studio but not a 750sq 1br
I've never had much use for "break even" analysis where DVC is concerned (or any other timeshare purchase). To me DVC is a way of pre-paying some vacation costs for those people who will only be happy staying in moderate or better accommodations onsite at WDW.
Whenever I see one of these threads, I always find a bunch of comments from people who bent assumptions and monkeyed with the costs/benefits to come up with a financial rationalization for what they wanted to do in the first place.
To me, a much more important analysis would be the following:
If the answers to those questions are positive, I'm in. If not, I'm out.
- How much is this going to cost?
- What are the benefits?
- Can I afford it?
- Do the benefits warrant the expenditure?
If I have to construct a financial rationalization to purchase, I'm out.
You absolutely can if you rent points from a DVC owner and book a stay that way. Here's the breakdown for a 8 night stay in a 1BR unit at Aulani for June 1-23 this year:
Standard View: 296 points
Island View: 352 points
Pool View: 368 points
Ocean View: 400 points
So assuming a rental rate of $11 per point (very doable) the costs for the week are:
Standard View: $3,256
Island View: $3,872
Pool View: $4,048
Ocean View: $4,400
As you can see, this is significantly less than the $12,500 figure that the poster used to analyze their benefit from DVC. If they would have actually paid that much then it is a valid comparison. But my point is that given how easy it is to pay significantly less, to pay $12,500 for that stay is insane.
I've never had much use for "break even" analysis where DVC is concerned (or any other timeshare purchase). To me DVC is a way of pre-paying some vacation costs for those people who will only be happy staying in moderate or better accommodations onsite at WDW.
Whenever I see one of these threads, I always find a bunch of comments from people who bent assumptions and monkeyed with the costs/benefits to come up with a financial rationalization for what they wanted to do in the first place.
To me, a much more important analysis would be the following:
If the answers to those questions are positive, I'm in. If not, I'm out.
- How much is this going to cost?
- What are the benefits?
- Can I afford it?
- Do the benefits warrant the expenditure?
If I have to construct a financial rationalization to purchase, I'm out.
The POS wording you refer to isn't a restriction but a statement of expectations. They're basically saying you're foolish if you buy it as an investment, not that you can't. This is wording required by FL statute based on the timeshare legacy of selling touting resale and rental profits.Yes. Actually I've probably read dozens of threads on this topic and they play out in a similar fashion. I am a little disappointed that nobody has dropped by to helpfully point out that DVC specifically indicates that it shouldn't be viewed as an investment. Maybe I missed it, or just need to wait a few more pages...
I think you're leaving out 2 issues, one is risk (lots, several types) and the other that your assumptions that the spread will remain proportional is overly optimistic.I'm going to assume that over a long period of time the cost difference between maintenance fees and what you can get by renting your points will be about the same as today. So I expect that gap to average around $7 per point...which means maintenance fees are 60% cheaper than renting. So the real question is...is it worth to front $13,000 today...recoup that $13,000 via rental points over the next 7-9 years... to save 60% on my trips for the next 30 years? I think that's a smart financial move. My hesitation isn't the money...it's the time required to list and sell the points should I choose to do so. Thanks to everyone for all the comments. I really like to hear all te opinions.
And that's how it should be viewed. If you have a history of paying extra to stay on property and plan to cont that trend long term DVC MIGHT save you money on paper. In reality I think it rarely does because many just spend the money elsewhere but I guess that's another thread.Also, I view DVC as an investment because I see it as a vehicle to save money on my trips. To me, spending $500 on something that would otherwise cost me $1000 is the same as me buying a stock for $500 and selling it at $1000.
I wasn't talking about anyone in particular. I don't bother to read any of these "analyses" anymore, and I haven't read any of the scenarios in this thread for more than a few seconds. My eyes glaze over.I think you need to be careful not to lump everyone who has performed an analysis of the options into one group of people who have "bent assumptions and monkeyed with the costs/benefits".
The POS wording you refer to isn't a restriction but a statement of expectations. They're basically saying you're foolish if you buy it as an investment, not that you can't. This is wording required by FL statute based on the timeshare legacy of selling touting resale and rental profits.