I am so stressed out over buying into dvc or not.

[starbox]

I was just curious how you got to $2,500/year for your annual cost. So I was wondering how many points you were looking at in total, sounds like 150. So the dues on that would be approx $600/year in 2006. And I was curious what the other $1,900 was for. Maybe it was paying some money down and financing the remainder of the DVC purchase via a loan? So that $1,900 is your monthly payments for xx number of years to pay off the loan? Plus the $600 in dues.

2,500 is about what 150 points costs with Disney financing. Assuming that the dues stay about the same - it would be 2,500 a year for the next ten year. Vacations would get "cheap" after that - but children will also likely be grown - so if the main allure of DVC is to use it for family vacations, you won't see significant savings until the kids are older.

Also - with financing - the first year costs closer to 4,500 because of the down payment. So - one year of 4,500 and 9 years at 2,500.

I do love the DVC - but it is absolutely not a money "saver" for us the way we use it. I suppose I could go every other year and stay in a larger unit for a shorter amount of time and cook meals in the unit - then it might save money. I think a non-Disney timeshare that was just at a beach with the option of Disney might save money if I did not feel the call of the wild Pixie Dust.

As it is, we are now taking four 5 day Disney vacations a year - plus a little bonus 3 day. We've bought annual passes. We get the dining plan for each trip. I'm planning some 'special" things, like getting portraits made, lunch with an imagineer, etc. Did I mention that we'd like to add-on?

The piece of magic that I own seems to be growing.

 

[Disney Doll]

College and your 401k should come first.

Unless you can pay cash up front DVC is not that good of a deal. Financing eats up much of the savings. Also with a family of 6 you'll need to get a 2 bedroom due to occupancy rules.
-Yo

I agree with your first statement.

I disagree with your second statement about financing eating up most of the savings. After you're done paying it off, you still have a lot of years to enjoy it beyond what yuo financed. I think if you extrapolate it out, financing does not eat up as much of the savings as you think, if oyu remember to extrapolate out what the cost of acoomodations would be with inflation etc. over the life of the contract.

I agree that it doesn't sound like the right choice for the OP at this time in her life...too many variables.

 

[rahrah]

What you say makes alot of sense. Our situation is we have two older teenagers who both have jobs and are willing to help out financially with payments and we have two younger girls. We tend to use our tax return for big vacations every other year or so.

Two things that you said would keep me from buying a DVC.

The first it that your older teenagers are willing to help out. While that is really admirable, I as a parent would only accept their help for this years vacation. In the near future, their financial situations are going to under go some extreme changes. After I graduated from college, I remember eating tuna noodle cassarole at the end of the month because that is all that I could afford. I was better off than my brother who was eating Kraft Macaroni and Cheese made with water instead of milk (ugh...). Living at home with our parents was not an option as they lived 300 miles away from any cities with jobs in our career specialties.

The other is that you previously mentioned that you are financing your purchase. Most peoples calculations show that purchasing a DVC makes financial sense if you do not finance it.

Also, your kids will soon be college age. That may change your financial situation. Our son will be going to college in 3 years and we have a significant amount of money saved (ok, about $8,000 less than we had a few months ago ;-) )

Instead of sinking $2500 a year into DVC lodging, stay at the other resorts (A room at the Dolphin is about $1400 for 7 days), take the remaining $1100 and save it. Then in 5 to 10 years look at how much you have saved and think about it again.

 

[t-beri]

Not to mention if you are moving to Orlando and usually stay in value resorts- you can get a value resort for $84 with FL. Residents discount much of the year. and if you have annual passes I know a few ppl who recently stayed at the wilderness lodge for 115 an night w/ a passholder discount (although your timing must be impeccable for deals like that!) I'm not sure how you came up with 2500.00 either. we did the math here and with the current SSR promotion we came up with right around $800 a year including the maintenance but not interest. We stayed in a standard room at coronado springs in June for 2 nights(star wasrs weekends you know) w/ fl res disc. $119 a night x2 nights =$238 + tax closing in on $300. We stayed in a standard room (csr again) for 3 nights this Oct. (MNSSHP) for 3 nights over $400. that's almost our DVC payment for 5 days at WDW. if I had DVC I would have been (asuming I always use the lowest point valued time of year-I am a FL. res after all and wouldn't go during those peak tourist times if you made me!) I could stay at SSR in a studio (of course not with a family your size) for 13 nights and carry 7 points over to the next year.

NOT that I am in favor of your purchasing DVC. I agree that your circumstances may not be favorable since it seems there are a lot of changing variable for you at this time. But I am too in turmoil over purchasing DVC right now. We know we want to and KNOW we'd spend that much at WDW anyway and feel quite certain there is little to lose since we can resell if need be but were not looking to purchase until after the new year but with the current SSR promotion it is a little more enticing. I can't quite talk myself out of it, we'll take a tour next sunday and see how that makes us feel.

Good luck in your future endevors...and just a word about moving to FL. I don't know if you know that we are getting screwed left right and center by the ins. companies but the news report last night said that 1 out of every 3 floridians will have to seriously alter their lifestyle or sell their home because of insurance hikes.
...t.

 

[4mygrls]

Not to mention if you are moving to Orlando and usually stay in value resorts- you can get a value resort for $84 with FL. Residents discount much of the year. and if you have annual passes I know a few ppl who recently stayed at the wilderness lodge for 115 an night w/ a passholder discount (although your timing must be impeccable for deals like that!) I'm not sure how you came up with 2500.00 either. we did the math here and with the current SSR promotion we came up with right around $800 a year including the maintenance but not interest. We stayed in a standard room at coronado springs in June for 2 nights(star wasrs weekends you know) w/ fl res disc. $119 a night x2 nights =$238 + tax closing in on $300. We stayed in a standard room (csr again) for 3 nights this Oct. (MNSSHP) for 3 nights over $400. that's almost our DVC payment for 5 days at WDW. if I had DVC I would have been (asuming I always use the lowest point valued time of year-I am a FL. res after all and wouldn't go during those peak tourist times if you made me!) I could stay at SSR in a studio (of course not with a family your size) for 13 nights and carry 7 points over to the next year.

NOT that I am in favor of your purchasing DVC. I agree that your circumstances may not be favorable since it seems there are a lot of changing variable for you at this time. But I am too in turmoil over purchasing DVC right now. We know we want to and KNOW we'd spend that much at WDW anyway and feel quite certain there is little to lose since we can resell if need be but were not looking to purchase until after the new year but with the current SSR promotion it is a little more enticing. I can't quite talk myself out of it, we'll take a tour next sunday and see how that makes us feel.

Good luck in your future endevors...and just a word about moving to FL. I don't know if you know that we are getting screwed left right and center by the ins. companies but the news report last night said that 1 out of every 3 floridians will have to seriously alter their lifestyle or sell their home because of insurance hikes.
...t.

Seriously though, we lived in Miami before. During huricane andrew. I have family out there too. I have two brothers, one in Miami and one in Clearwater. They lived in Port Charlotte during all those huricanes last summer. Right now i'm so tired and can't think of the names or exactly when they were except I do remember there were 5 of them. They, my bros, owned rentals there and lived there too. Well, one lived there. The insurance has me concerned. I know it's high and they have told me horror stories too. But, we were down there a couple times this past summer and our kids got to spend time with their cousins for the first time in a very long time. It was wonderful to see them all together. We would be moving to Ocala. It's not a done deal though, we may not be able to. That's a couple years away.As far as the amounts go, I used 150pts for calculation. Actually, I also used figures given to us by the tour guide at SSR when we did our tour. I was calculating financing at 9.95 for ten years. It was including maintenance dues. It's alot to think about.

 

[CarolMN]

Respectfully, from what you have said about your financial situation, DVC (or any timeshare) is not a wise purchase for you right now.

My advice is to begin paying yourself the $2500/year plus the amount you'll need for tickets, transportation & food while you are there. Divide the total by 12 and put the money in a savings account each month and see how well you can manage doing without those funds in your monthly spending budget. If you find after a year or two that it isn't a problem and you still want to commit that much of your income to a vacation every year, then go for it. If you find that money gets used for something else or that it is a hardship to continue - well, you'll have your answer.

If you buy now and have to sell in the next few years you will lose money. Even though it is possible to sell DVC, it takes several weeks under the best circumstances.

Perhaps you could consider renting points to stay at a DVC resort for your next WDW vacation - you can get larger accomodations for way less than rack and have no commitment beyond one trip.

 

[littlestar]

With you being a one-income family and having a large family to boot, I would do some research on other timeshares. Especially if you're trying to stick to a tight budget. I would check out the tugbbs boards. We bought a Marriott (silver week) every other year lock off timeshare for under $1,600 with closing and when I lock the week off I get a week every year out of that ownership. This purchase allowed us to join Interval International (exchange company). We trade back into Orlando with our week through II (Interval International) and usually stay at Marriott Horizons or Marriott Cypress Harbour (2 bedrooms). We also now have access to Interval's cash Getaway weeks for extra vacations (very cheap if you can go off season). So we can vacation for about $500 a week in a two bedroom when I include my maintenence fees and II membership fee.

We also own DVC points (although we have recently downsized a little because of our Marriott purchase and absolutely adoring our stays at Marriott Horizons).

I would just do research and take your time shopping around. You might decide that just renting and looking for last minute deals is the best option for a big family. Or maybe rent DVC points Sunday through Thursday in a 2 bedroom for an occasional splurge -

I guess I'm giving you some of the same advice that (#14) BWVbound gave.

 

[ilovepooh]

Just do it. You'll be glad you did! Family vacations are priceless!

 

[Disney-Kim]

Your $2500 per year is pretty accurate if you are financing 150 points. We pay $200 per month with dues included for financing on 150 pts....thats about $2500 yr. So you are correct there. (well that was for pricing 3.5 yrs ago...so maybe it would be more for you)

don't forget....once the 10 yrs of pymts are over...its a only dues and you have 1st class lodgings to stay in for like 40 more years.

but once your kids are grown...will you still go?

we don't have kids and knew that we would visit until we are too old to get there.
we won't go every year...but we will bank those points for a cruise !!

I would like to say...there isn't always a "good" financial time in some people's lives. Sometimes you just do what you have to do and life is short and you never know what tomorrow will bring. and time spent with your loved ones is what counts. the wonderful memories that you create while staying at DVC are priceless. We live for today as you never know what tomorrow will bring.
ps...yes we save and save for retirement etc....but you get my general feeling.

 

[4mygrls]

Respectfully, from what you have said about your financial situation, DVC (or any timeshare) is not a wise purchase for you right now.

My advice is to begin paying yourself the $2500/year plus the amount you'll need for tickets, transportation & food while you are there. Divide the total by 12 and put the money in a savings account each month and see how well you can manage doing without those funds in your monthly spending budget. If you find after a year or two that it isn't a problem and you still want to commit that much of your income to a vacation every year, then go for it. If you find that money gets used for something else or that it is a hardship to continue - well, you'll have your answer.

If you buy now and have to sell in the next few years you will lose money. Even though it is possible to sell DVC, it takes several weeks under the best circumstances.

Perhaps you could consider renting points to stay at a DVC resort for your next WDW vacation - you can get larger accomodations for way less than rack and have no commitment beyond one trip.

something similar to that too. He said maybe we should put the money aside that we would be paying for dvc and after a year if we still feel the same then go ahead and purchase. If not, then just use the money for a vacation.

 

[manning]

1. Never buy on emotions

2. Never consider timeshare as an investment.

3. As a family of six and one income you should have at least 6 months cash reserve in the bank. Emergencies tend to be unexpected.

4. Living on credit is easy.

5. Getting out of debt is not easy. Filing for bankruptcy under the new law is very, very hard. (not saying this will happen.)

6. Compounding under a 401-k and or Roth IRA ...... Now that's Magic !!!!!

 

[goldilocks_63]

My father's best business advice, and he was a great businessman,

If your not sure, don't do anything....

My vote is NOT to buy. This should be icing on the cake, not stress.

Goldi

 

[cthomas25]

My family and I go to Disney 3 to 4 times a year including cruises. I would never have been able to experience the quality vacations that we do without the DVC. To us it's the best money we have ever spent. We started out with just the minimum points you can buy and now own 4x that amount. Start small and go from there. Weigh the pro's and con's and do what's best for your family for us it was definetly a no brainer and it has been well worth it!