Investment at DVC

[DrTomorrow]

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.

Hopefully they've imported some of those folks from Las Vegas. They only take an hour or so to squeeze out a $25,000 purchase from Edna and Lou from Idaho - and they give two FastPasses as a perk!

 

[shantay1008]

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

Oh, it probably is a big thing here. I'm home with the kids now, so I'm completely out of the loop.

 

[First Wave]

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?

You may want to check on California law. When I purchased my first DVC (in Florida) I was told by my guide that it is illegal in the state of Florida to even "imply" that buying into the vacation club is an investment.

The truth is, it's turned out that way for me. I've used it for years and can sell it for a lot more than I paid for it but...who knows what the future holds. I'd almost recommend asking to speak with her Sales Manager and have someone put that in writing. My bet is that that will never happen.

Sometimes the salespeople get a little over enthusiatic. Buy it to vacation with. You'll save a ton of money. There's no question about that. But don't buy it for the purpose or selling it down the road for more money.

Historically, it HAS gone up in value every year. But for a licensed real estate salesperson to actually say that - I believe she's stepped over the legal line.

No matter what, buy it! You'll love it! But don't buy it for the wrong reason.

First Wave

 

[castello1955]

I did find it a tad off that she seemed very anxious to get me to buy. It appeared to me that she would say what ever I wanted to hear to get me to but this. She had even offered to check the dinseyland reservations system to tell me if they had rooms available when I wanted to stay at disneyland.

She said she would check the system herself since she used to work for the travel company. This seemed a bit odd to me. She almost seemed like she needed some money. Reminded me of an old time share presentation in Vegas a few years back with my wife and brother in law. Kindy shady I thought.

 

[CALNEVA DISNEYFANS]

I vote, no investment.

 

[castleri]

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

I'm with you Chuck - it has been an "investment" in terms of family not in terms of money - We have so many memories since 1997 that would never have happened without DVC. We would probably not have vacationed as often and as frequently as a family ( children currently range in age 38-19 grandchilren 19-6 months with another on the way). To have the type of accomodations we have stayed in would never have been possible if we had to pay cash. We make all kinds of investments (monetary, time, love etc.) in our lifetimes and some have a good payback and some don't. To buy DVC as a monetary investment may not be the right choice and for a sales person to say that is misleading. You really need to decide based on what your expectations are for the years ahead. DVC is not for everyone as one poster has said. Her expectations are such (based on another thread) that there may never be a place that meets them. My experiences have been just the opposite and I will only sell my contracts if money is needed for a real disaster. If you only want to use your points at DL or some place other than WDW DVC it may not be such a good "investment". While all my contracts will currently sell for more than I paid for them the bottom line is the salesperson was wrong to imply that people should buy as a monetary investment in the true sense of that term. It is a big purchase so think carefully and make your decision based on what is best for you and not on what the "guide" or those of us who love all things DVC say.

 

[disney junky]

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.

just curious where you got this info? is this part of some demographic?

 

[Disney Doll]

And she meant "investment" in the actual sense of the word?? Like, "buy this and you'll make money"???

It is an investment in future vacations. It is an investment in future enjoyment. It is not an investment which you should purchase with the thought that you will rent your points out at twice their value and reap lots of money back, because chances are, that won't happen.

However, realistically, one can assume that Disney will be around awhile. And one can assume that their level of service/quality will remain reasonably high. So one can therefore assume that if you bought DVC now and in 10 years had to sell it that it would hold it's value pretty well. In other words, something you paid $80/point for probably isn't going to be reselling for $5/point in the future.

It is an investment insofar as you have invested money into it. It is not an investment like a 401K or retirement savings or whatever.

ETA: If the guide was actually trying to pass it off as a money-making investment, I almost think I'd report it to a supervisor. It has been my undertsanding that one of the things the DVC prides itself on is the very "soft" sell, not the real "hard" sell.

 

[uwate]

I spent nearly a lifetime in pool rooms and all those years have given me a good sense when I am getting conned. Any timeshare salesperson calling DVC an investment and my con game radar starts going off.

That said, my own experience with DVC has been quite good. I have three properties (VWL/BCV/BWV), 590 points total and for the last three years now I have rented out half the points and paid the dues with the rent money. It leaves me with about 250-300 to use for my own family. My wife is not the Disney fan I am and it has gotten to the point that I may even rent out more than half my points and just bank the cash every year.

The initial investment in DVC has also appreciated considerably in just four years. Even with the most recent addition of VWL at $85 a point, I still have an avg price per point of just under $79 a point and the three properties I own at all seem to be going for 85+ a point.

I think in order to even have a chance at making out good with DVC as an investment you have to have the cash flow to buy points outright, you have to buy resale, you have to pick your properties well (lets face it, renting VWL points is a whole heck of alot easier than HH or VB) and you have to have the temperment and entreprenurial desire to rent your points.

 

[rinkwide]

Be nice if these resale prices would just tank so we could settle this once-and-for-all.

 

[MAGICFOR2]

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?

I know we should all be practical - but I have to say, when you are raising children on a middle income, paying for sports, etc. Waiting until you can afford to vacation - guess what? The kids grow up and you didn't take time to make the memories! If you can find a way to make the magic happen while you can, I say go for it!

 

[douggod]

I got that info from a reseller, confirmed it with my guide.

 

[jade1]

Be nice if these resale prices would just tank so we could settle this once-and-for-all.

I know, as soon as it looks like its crashing-boom-it goes over $100 a point. Dang that gets annoying.

 

[Boston5602]

Well at the end of DVC for BWV , I am totally guessing a 1 bedroom villa for one week will cost cash $ 4900.00 ( i'm pulling that out of my b***) so if I rent out my points for half of that in the last year I'll pay $2450 less that one I paid for for 35 years worth of vacatons instead of 36 years . So I start off and its on sale already. WOW I like that





Thanks just my take on my own thoughts

 

[caspersmom83]

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.

I love that Saturday night live scit you have a picture of on your reply.

 

[itsmyhappyplace]

I have been to Disney 15 times or more in less years, and spend an average of $2,000 on lodging even with great discounts such as Annual Pass, renting from members, specials, and even AAA when desperate. I am in the process of trying to buy now because with my track record I will continue to go to Disney after the kids are gone. We did so before the kids too. I see this as just a way to get a better long term rate on deluxe lodging arrangements. We are big Beach Club fans and stay there for part of our stay every trip we make.

I am putting away money for my retirement, college savings, and whatever else as I can, but you can not stop living life until all of those goals are met. What if you dropped dead tomorrow?

 

[hopare]

I know we should all be practical - but I have to say, when you are raising children on a middle income, paying for sports, etc. Waiting until you can afford to vacation - guess what? The kids grow up and you didn't take time to make the memories! If you can find a way to make the magic happen while you can, I say go for it!

I completely agree! We save for retirement and have 529 plans for the kids college. Could we do more-probably. However, there is nothing wrong with just HELPING kids go to college. They can certainly contribute also. I want them to also have good childhood memories of family. Not just memories of Dad at work 13 hours a day. The kids grow too fast and once these precious times ar gone you can't get them back!
I am working on my DH to join DVC. And I think we will go for it within the next few months.

 

[castello1955]

Did someone forget that I was misled by my guide? She actually called me the other days offering me a new incentive. She siad that I should by anywhere between 300-400 points for my family of three. But anyhow, I think I just need a new guide. One that is not so pushy.

 

[sajetto]

Did someone forget that I was misled by my guide? She actually called me the other days offering me a new incentive. She siad that I should by anywhere between 300-400 points for my family of three. But anyhow, I think I just need a new guide. One that is not so pushy.

I would definitely run, not walk from this guide. She sounds like she is trying to get you to buy more points than you need and giving you information that is completely misleading

She is employing the marketing techniques that Disney wants to avoid. I wonder how long she will last as a DVC rep

 

[itsmyhappyplace]

Did someone forget that I was misled by my guide? She actually called me the other days offering me a new incentive. She siad that I should by anywhere between 300-400 points for my family of three. But anyhow, I think I just need a new guide. One that is not so pushy.

300-400 points are a hefty sum per year, unless of course you plan on a couple weeks per year during peak times. This person is definitely a professional timeshare salesperson. I hope this is not a new trend for them. Although the fact that the square footage of the rooms has gotten smaller with each new vacation club and the price has gone up leads me to believe that Disney wants to increase the profit margins here. I hope that they keep the level of professionalism and service at the higher standard. There are so many timeshare horror stories out there.

Even if you decide this is a good idea for you, you should ask for another rep. or even a manager to work with you.