Investment??

[Lasrnw]

I've read posts, that I agreed with, insisting that DVC is a pre-paid vacation rather than an investment...but I'm starting to change my opinion with the new price increase. I think we bought at a great time and price and feel like I could get my "investment" back if I wanted too.

 

[Dean]

I've read posts, that I agreed with, insisting that DVC is a pre-paid vacation rather than an investment...but I'm starting to change my opinion with the new price increase. I think we bought at a great time and price and feel like I could get my "investment" back if I wanted too.

DVC has been a good deal for many but when we discuss this, it's usually in terms of someone possibly buying now. While our experiences in the past are helpful, in this situation they likely add little to the future expectations. Remember that even if one owns and the value has gone up, it's only a paper gain unless you sell. Plus one could sell and take the gains and run. Thus, even if one is already an owner, there should be at least a little thought considering where one would be if they sold now vs keeping DVC. Just like a buy vs hold decision on stocks, the break point is not the same but the process is similar.

 

[JimMIA]

The problem I have with "investment" is that a lot of people use that word to try to justify an expenditure they can't justify otherwise. Most of us, with a little effort, can justify just about anything.

But if you look at DVC resale prices over the years, you have to realize that the reason they are where they are is ROFR. It has nothing to do with intrinsic value; Disney maintains resale values at a certain level to support their "new" prices, and if you want in via the resale marketplace, you HAVE to pay their price. But there may come a day, somewhere down the road, where Disney no longer feels it in their best interest to buoy up the resale price. When that happens, the prices will fall to the level that normal supply and demand dictate...which I personally think will be in line with other premier timeshare resales -- and a lot lower than they are now.

So that's not a pretty "investment" picture to me. If market demand had driven the prices up, that would be different -- but that's not what has happened. As they say, "Past performance is no guarantee of future performance."

 

[hwystr]

It's only a good "investment" if it replaces a planned trip to WDW level resort. If you were planning to stay at a $89 hotel, it will cost more than that. If you weren't planning on going often enough to use points, its an added trip/expense. It look slike you could always sell unused points, but not much of an investment return.

That said, for us its a great investment, it replaces an annual $2K+ hotel bill at a WDW resort.