Investment at DVC

[castello1955]

I toured in California a few weeks ago and my guide (I am not saying her name). Told me that DVC could be used as an investment. She told me I should buy immediately since the price was going up soon. I spoke to a few people and they told me this is not an investment. Who's telling the truth?

The guide told me when I toured that I had to buy in California but I remembered the gal at the little kisok tell us we could buy from home? I'k kinda confused.

The guide seemed a little too nice which led me to think she was just trying to BS me. Any thoughts?

 

[Pa@okw95]

It is an expense, these guides that have been selling DVC as some kink of savings or worse an investment should be locked up. It is a very big expense.

 

[1000th happy haunt]

This much is true--the price IS going up soon.

 

[Anewman]

I purchased at Disneyland, Melida was a great guide.

Anyways I dont think this is a "truth" or lie type of thing. They are both opinions.

In my opinion timeshares even DVC should not be looked at as investments, but more as a good value for years of vacations. Investments are something you put money into with the expectations of gaining a profit. While those that purchased DVC 10 years ago could easily sell today for a nice profit(not counting trips/dues), there is no garantee.

 

[rinkwide]

It's about time. Looks like Disney's finally found their cojones and brought in real timeshare salespeople. Now that they've got some pro closers we can sit back and watch unwitting park-goers get tossed into the high-pressure meat-grinder. Somebody make me some popcorn.

 

[Dean]

If you were told the price was going up soon, that's true. If you were told the value would go up in the sense that an investment would, I'd say that's about as close to a lie as one can get. Unfortunately it's been a common ploy with timeshare sales people and I hope DVC isn't going that direction. I'd think any guide that uses those tactics will either be corrected fairly quickly or not be around long.

 

[Chuck S]

Well, it could be an investment in you family's happiness. And it will save money in the long term over Deluxe accomodations.

 

[rinkwide]

You might want to go easy on that pixie-dust there Chuck.

 

[Cruelladeville]

DVC IS an investment, but investments go up AND down! I like that you can go on vacations and make some cash from it, too. That way, if you had difficulty one year, you could still get the cash together for the dues. That is no reason to buy, however. You buy DVC because you want to invest in family time at WDW. In that respect, it will be worth every cent you invest.

 

[Doctor P]

It is very possible that you may not be able to purchase from home, depending on where you live. Also, some of the terms of purchase that are offered do have a limited time period that is generally not extended after so many days.

 

[JimMIA]

People often use the word "investment" when the amount of the outlay is too large to rationalize as an expense. Or sometimes, they just use it because the word sounds "softer" than the word expense. I don't think you will find any sensible person recommending that you buy DVC as a vehicle to increase your wealth. If you do, run -- don't walk -- away from them.

DVC is an expense, pure and simple. Whether it will save you any money at all depends on your vacation habits, and how DVC meshs with those.

If you visit at least once a year and stay in deluxe on-site, Disney accommodations, DVC will probably save you significant money.

If you visit less than once a year, and/or stay in moderate Disney or lesser accommodations, you might eventually break even...you might not.

In fact, many DVC owners report DVC COSTS them money, meaning they spend more now than they did before DVC -- because they visit more often, stay longer, take a much less hurried approach to Disney visits, and spend more money on things other than lodging than they used to spend.

When we bought DVC, we considered it a method of locking in much of the lodging portion of our Disney vacation expenses, thereby allowing us to go more often and enjoy the experience more. We thought that was a sound purchase for us (with discretionary money, not grocery money), so we did it.

Price going up? Yep, that's right.

Buy from home? Maybe yes, maybe no...depends on where you live. If DVC is licensed to sell timeshares where you live, you can buy direct from DVC from home. If not, you will have to buy resale...which, in itself, might save you money.

 

[CPTJAK]

First do not buy unless you already have saved for retirement, college for kids, several months expenses and than buy something that will make your life more enjoyable like DVC, Hot Tub ...

If it's a investment you are looking for search morningstar for mutal funds...

Also,
It does create a vacation opprotunity that many people would not take. I know in the world of 2 working parents a break is something everyone should take and Disney is certainly a nice place to visit.


This is for RinkWide....

"That song needs a little more cow bell....SNL"

 

[Anewman]

First do not buy unless you already have saved for retirement, college for kids, several months expenses and than buy something that will make your life more enjoyable like DVC, Hot Tub ...

Very valid point but it takes 15 years(like us 2 kids concurrent) to get build that college fund and even longer for that retirement(I will never finish), do you advise going on vaction during that time?

 

[CPTJAK]

Very valid point but it takes 15 years(like us 2 kids concurrent) to get build that college fund and even longer for that retirement(I will never finish), do you advise going on vaction during that time?

If you can afford it (i.e. contributing to 401k, have emergency fund, save for kids college) by all means buy DVC. But if not maybe a more affordable vacation would make more sense.

Like Steve Martin on SNL "you mean if I do not have enough $ I shouldn't buy it?"

 

[douggod]

I would go with the 'its not an investment' crowd. However, the resale price history suggests that at least you will not loose on your purchase.

The fact is this - that the average DVC buyer will resale in 8 years. Remember most folks on this chat board are die hards, so the avg length of ownership is probably higher with the people looking here.

As kids get older, the typical buyer moves on. But the price trend (correct me if I am wrong) is up. We could sale what we purchased 18 months ago for about what we paid for it (SSR), and we have had two wonderful vacations.

We made our choice on:
1 - We love Disney, we went before we had kids, we will go after they hit the road.
2 - It should at least hold its value if we need to move on.
3 - I need to be committed to a vacation, otherwise I will forget it.

BTW, if you work the numbers at $10/pt. rental on resales purchases, it is not a bad investment either.

 

[sagwanamu]

First do not buy unless you already have saved for retirement, college for kids, several months expenses and than buy something that will make your life more enjoyable like DVC, Hot Tub ...

We should do a poll asking how many DVC owners have already saved for their retirements and college for kids and then bought DVC.

Let me see. Assuming you live about 20 years after retirements and you need about 70K (today's value) annually which is about 1.4 million PLUS two kids college tuition, each will probably need 20K a year (today's value) for four years, which is about 160K. Ae you saying I shouldn't buy DVC unless I am a millionaire?

 

[shantay1008]

We should do a poll asking how many DVC owners have already saved for their retirements and college for kids and then bought DVC.

Let me see. Assuming you live about 20 years after retirements and you need about 70K (today's value) annually which is about 1.1 million PLUS two kids college tuition, each will probably need 20K a year (today's value) for four years, which is about 160K. Ae you saying I shouldn't buy DVC unless I am a millionaire?

They probably are just asking if you're contributing to a (401)k or a similar vehicle, not saying that you should have ALL of your retirement money saved up already. Allegedly, more Americans are declaring bankruptcy than are graduating from college these days, so these seem to be valid concerns.

I can't help but think that if we were all feeling more at peace with our finances, then these questions about whether or not one can afford DVC wouldn't keep coming up. If we're contributing as much as possible to our retirement savings plans, if we are properly insured, if we have an emergency nest egg earning a healthy interest, if we could pay off our credit cards right now if we had to, etc., then we should be able to relax and enjoy our DVC membership.

For our family, it's a work in progress, but we're getting there. I'm investing my former weekly Starbucks/Caribou Coffee money in a mutual fund...it's amazing how these things can add up, and I'm feeling a little more empowered as a result. Maybe we can start a little club of people who give up something they don't really need (coffee, cigarettes, magazines, whatever) and invest it to help offset DVC costs.

 

[Stuart D]

We recently bought a resale DVC and I'm happy to report that everyone at DVC that we spoke to, and every timeshare resale agent we spoke to, warned us that DVC is not an investment - it IS an expense.

If you want an investment there are better and safer places to put your money. DVC is different. There is no point in buying DVC if you cannot keep up the maintainance fee's payments.

It's possible you may make money on it, but thats not the purpose of the DVC and IMO its certainly not a valid investment.

For our family, it's a work in progress, but we're getting there. I'm investing my former weekly Starbucks/Caribou Coffee money in a mutual fund...it's amazing how these things can add up, and I'm feeling a little more empowered as a result. Maybe we can start a little club of people who give up something they don't really need (coffee, cigarettes, magazines, whatever) and invest it to help offset DVC costs.

Done it. I gave up some of my free time and took on a spare time job doing MLM in the UK. The money I make from that paid for the DVC, and it's giving me a small residual income that will help provide for my future.

 

[shantay1008]

Done it. I gave up some of my free time and took on a spare time job doing MLM in the UK. The money I make from that paid for the DVC, and it's giving me a small residual income that will help provide for my future.

Brilliant. You're "winning in the margins." Although you lost me on MLM...what is that exactly?

 

[Stuart D]

Brilliant. You're "winning in the margins." Although you lost me on MLM...what is that exactly?

MLM is Multi Level Marketing which I was told was a big thing in the US.

The way I figured it though was that if I did any part time or spare time job it would give me extra money to pay for the extra's we wanted. MLM just meant that I was running my own business and I could set my own hours and work as hard or as little as I wanted to and if I created enough business that I would get a residual income then that was just another benefit.