Interested in DVC but need HELP!

[GinaDice]

Hi
I have been reading the posts with interest, but still not sure I really understand all that the DVC can offer.

It is just my husband and I - we have been doing a Disney vacation at least once a year for the past 5 or 6 years...parks and cruise line.

We are looking at becoming part of DVC but I am not sure what point value would be best.......any opinions would be appreciated.

Also can you tell me what makes being members such a value?

Thanks very much.

 

[Dean]

As you can tell, this is the place people love DVC. IMO, DVC is great to own if you're staying at the DVC resorts but not reasonable to use routinely for DCL and other options or for weekends most. As to how many points, you must tell us more. Length of stay and time of year. With just the 2 of you, you would be looking at studios and/or 1 BR units and for a full week, 150 points would likely take care of your needs. 150 would get you a studio every year at all WDW DVC resorts for at least 7 nights except for maybe Xmas/Easter where it would still get you at least 6 nights if you avoided a Fri or Sat night. It would also get you a 1 BR for 5 nights avoiding the weekend for all but Xmas/Easter. If you want the holidays times, larger units or longer stay, you'd need more points. With banking and borrowing you would have more flexibility. You'd need to pay cash for the cruise, which is better IMO anyway since you can plan it that way up front.

You can always buy points now and add on later but just remember that the add on might have to be another resort or even another use year in some situations. Don't forget about resale where you can get OKW which has lower points requirements and lower fees but is a little more out of the way. Another caveat is that Boardwalk has about 20% standard view rooms which are about the same points are OKW but must be booked usually at 11 months out. If you have a specific resort in mind, buy there. If you just want to get into the system and try out all of the resorts, I'd suggest OKW or maybe BW resale. Or you could just rent from a member or WDW directly and try it out. Good luck.

 

[Maistre Gracey]

Originally posted by GinaDice
Also can you tell me what makes being members such a value?

Okay, here goes...
Many members will value their points at $10/pt, because that is a reasonable price that they could rent them for. This is fine if you are trying to compare whether to use points for a cruise, or rent the points then pay cash.

On the other hand, if you do not yet own DVC, and you are trying to figure if it is a good value for you, there is a different formula:

Points cost $80/point, and have a life of 39 years. This equates to roughly $2.05 per point, per year. The annual dues for The Beach Club Villas is currently $3.77 per point.

This means the total current cost of a point is approx $5.82. If a DVC 1br 'costs' 28 points (VWL, BCV, BWV in Dream Season), then we can say that the dollar equivalent assigned to it would be $162.96 ($5.82 multiplied 28 pts).

Bottom line- If you can not consistantly get a cash rate better than $162.96/night TAX INCLUDED, for a 1br during Dream Season, than DVC is a good value.

If you have any questions, please ask
Good Luck!

 

[DaveH]

MG my $.02. I had to take a mortagge and when it was explained to me on the tour they user a low percentage rate for increase n dues over 40 years. Using those numbers it was closer to $10 a point.

 

[erikthewise]

Where have you been staying? And where would you like to stay?

DVC is not cheaper than staying in value or moderate resorts. Nor is it necessarily cheaper than staying in suites or vacation homes offsite. But it does give you (for a significant initial investment) the best of onsite accommodations at a reasonable price. You will generally save money compared to staying at deluxe resorts. And it is far superior to paying for suites at deluxe Disney resorts, which have very high rates. In the long run, it is quite possible that your membership will pay for itself.

If you uncertain about making a big commitment, don't feel bad about making a minimum purchase of 150 points. You can add more points later, though perhaps under less advantageous circumstances.

The number of points to buy depends on a lot of factors and you should spend some time with the point tables. Just as a starting point, 200 points will get you a full week in a one-bedroom suite in Adventure season (lowest rates).

 

[Maistre Gracey]

Originally posted by DaveH
MG my $.02. I had to take a mortagge and when it was explained to me on the tour they user a low percentage rate for increase n dues over 40 years. Using those numbers it was closer to $10 a point.

Dave, that is true; that is why I found it easier to compare current cost. Every year you would have to adjust the cost due to inflation of annual fees. The rack rates that you compare it to will also be adjisted by inflation. Of course, purchase price stays the same...since the point can be reused 39 times, we can divide the $80 by 39 years for the $2.05 (my case $65 by 40 years).

 

[Maistre Gracey]

Originally posted by erikthewise
DVC is not cheaper than staying in value or moderate resorts. Nor is it necessarily cheaper than staying in suites or vacation homes offsite.

Erik, I respectfully disagree. The off season VWL studio costs 12 pts/weeknight....That would be a cash equivalent of $69.84 TAX INCLUDED!!!

 

[Dean]

Originally posted by Maistre Gracey
Erik, I respectfully disagree. The off season VWL studio costs 12 pts/weeknight....That would be a cash equivalent of $69.84 TAX INCLUDED!!!

I don't think it's quite that simple. You can't just take the maint fees and the purchase price divided by the number of years. There's more to it than that. I too don't feel it saves money in general over the moderates but that it gives you more for about the same. I can buy a 2 BR timeshare in the area for as little as $1500-2000 with yearly fees less than $500 per year. I can usually rent Timeshares in the area, sometimes for far less than that $500. It's not that difficult to get hotels for $29-49 per night close by. Still, it's not DVC and that's worth something.

 

[Maistre Gracey]

Originally posted by Dean
I don't think it's quite that simple. You can't just take the maint fees and the purchase price divided by the number of years. There's more to it than that.

Dean, mathematically this holds true.
$80/pt. We can spread the cost of that over 39 years with 0% inflation. Every year we pay an annual per point fee. BCV is currently $3.77/pt. When we do the math, we can see the CURRENT COST per point. This is not my opinion, it is a fact. Granted, the annual fees will rise, and we will have to adjust...BUT the rack rate we compare it to will increase by a larger % because the per point buy price will never increase. I will also grant you that this is not the market value of DVC, but rather what it actually costs us.

PS: Dean, I should say that it is up to the individual if they wish to factor interest or lost interest income into the equation. Personally I do not, as I was going to blow that money on a Corvette. That would lose more money than DVC!

 

[TroyWDW]

Gina,

I would recommend between 150 and 300 points.

- Do you want to stay in a Studio or 1 Bedroom?
- Do you have any plans to take friends, family, etc.?
- How many days do you typically stay at WDW?
- Do you go during Easter, Thanksgiving, or Xmas?

If you decide to buy 300 points, I would highly recommend buying two contracts of 150 points each. I can't stress this point enough.

If you look at the resale boards, you will see that high point contracts (400 and above) sell at a discounted price relative to the low point contracts (e.g. 150 to 220). The big contracts are much more difficult to sell. The 150-point contracts don't stay on the market very long.

By having two 150-point contracts you will have much more flexibility in selling. Having the two contracts does not change how the points are used. It is equivalent to using a 300-point contract.

Please feel free to ask more questions.

Troy

 

[GinaDice]

Thanks for the responses.....you certainly have given us some things to think about.

Our Disney trips over the past years have varied from budget to Deluxe resorts....but usually have all been at a 'value' time of the year. Just to try to spead our vacation $$ to the best value we can get.


Thanks again - I am sure that as we get further into the materials that we had sent to us ---many many more questions will come up.

So you will see me back again with more ???????'s.

Gina

 

[Dean]

Originally posted by Maistre Gracey
PS: Dean, I should say that it is up to the individual if they wish to factor interest or lost interest income into the equation. Personally I do not, as I was going to blow that money on a Corvette. That would lose more money than DVC!

And I took the money out of savings and away from investments. I don't think one can look at any major outlay of cash without at least an eye to the future value of the money involved and the interest paid if one financed DVC. Every one must take their personal situation and habits into account and decide for themselves. For an entire week, WLV comes out barely ahead using your method for adventure season and probably a little behind for some of the other seasons. Then there's the savings on eating out and the fact that the rates for the hotels should go up around the same percent for DVC dues and hotel rates at WDW. Still, had I invested the $43,000 in CD's and used the interest to vacation, I'd have $1700-2500 yearly (plus almost $3000 dues) to vacation plus the principal left in 2042.

 

[Maistre Gracey]

Originally posted by Dean
Still, had I invested the $43,000 in CD's and used the interest to vacation, I'd have $1700-2500 yearly (plus almost $3000 dues) to vacation plus the principal left in 2042.

This is debatable, but that would be another subject.

I do understand your point, and I know you look at it as $10/pt. That is a good measurement in many members view, as I agree a DVC point can recoup that amount.

Anyway, it doesn't really matter as long as we are all happy with our own personal situation.