Is DVC ownership actually worth it in the long run?

[rowrbazzle]

Without breaking the bank and rolling down payment into monthly payment any idea on what that might come out to a month? Unclear on points and why some are more than others. But I would probably be happy with one of the older villas BWV or BCV since they are in the EPCOT resort area. My favorite hotel in Disney is Contemporary but Im afraid BLT and Poly will be too much.

Take a look at different prices for resale and you'll see that (currently) there aren't gigantic differences in costs of those resorts, particularly when you factor in the years on the contract. http://www.wdwmagic.com/articles/19sep2017-best-economical-dvc-resort-to-purchase-fall-2017.htm gives a breakdown of different resort costs by per point cost, dues, and years remaining. If the Contemporary is your favorite, Bay Lake Tower is similar in cost to the Epcot resorts, but the contract is 18 years longer. The points needed aren't bad either. If you're buying in now, a week at the Polynesian is pretty much the same $ cost as the Beach Club depending on the season, despite requiring more points to stay.

 

[Dean]

My decision to buy (still in the process) was based on a comparison of the 2 trips we were already planning -vs- cost to buy DVC and take those trips (same dates).

Numbers rounded:

$10K - 2 trips to POR (room, tix, QSDP calculated assuming discounts previously available for same time period)
$15K - 2 trips on DVC (buy-in, DVC AP's, oop food budget)

For $5K I get a room upgrade and location upgrade, but we will be on a food budget. My DVC should still have a resale value of 5K. The room savings on every trip thereafter will eat into that $5K cost. The resale value may increase or decrease. Time will tell. But I consider myself break-even after those 2 trips. That money was money already in a savings account or being put into a savings account, not invested, waiting to be spent on vacation, I'm simply not going to worry about the time value of money or missed opportunity costs, etc. Additionally, we are buying minimal points. So, there will be no "let's just squeeze in another trip"....."a 2 bedroom would be really great"....etc. It will be our "normal" vacation plan because that is what we have the points for.

IMO there are only 2 valid metrics for those with experience, what they would have spent and renting DVC points plus one has to account for risk, commitment and the time value of money on funds used.

Take a look at different prices for resale and you'll see that (currently) there aren't gigantic differences in costs of those resorts, particularly when you factor in the years on the contract. http://www.wdwmagic.com/articles/19sep2017-best-economical-dvc-resort-to-purchase-fall-2017.htm gives a breakdown of different resort costs by per point cost, dues, and years remaining. If the Contemporary is your favorite, Bay Lake Tower is similar in cost to the Epcot resorts, but the contract is 18 years longer. The points needed aren't bad either. If you're buying in now, a week at the Polynesian is pretty much the same $ cost as the Beach Club depending on the season, despite requiring more points to stay.

Long term BLT is likely the second cheapest option generally speaking. If one will consistently and almost exclusively use a specialty option like BWV/BLT standard or AKV value AND buy the less points dictated, that can become the cheapest option in some cases. For example, the last time I calculated SSR points used for AKV standard vs AKV points used for value, one had to be at or over 2/3 of the time in an AKV value of the desired size to break even. Of course this was before SSR standard came on board which can further skew the options/thought process and it will vary a little with the specific assumptions.

 

[rowrbazzle]

IMO there are only 2 valid metrics for those with experience, what they would have spent and renting DVC points plus one has to account for risk, commitment and the time value of money on funds used.

Long term BLT is likely the second cheapest option generally speaking. If one will consistently and almost exclusively use a specialty option like BWV/BLT standard or AKV value AND buy the less points dictated, that can become the cheapest option in some cases. For example, the last time I calculated SSR points used for AKV standard vs AKV points used for value, one had to be at or over 2/3 of the time in an AKV value of the desired size to break even. Of course this was before SSR standard came on board which can further skew the options/thought process and it will vary a little with the specific assumptions.

SSR wasn't really on our list so I hadn't evaluated it, though I know it's usually at the top of the list for long-term value. BLT didn't work for us from an aesthetics or studio size standpoint. Otherwise, it really would be a great deal given the financials and the location.

 

[Dean]

SSR wasn't really on our list so I hadn't evaluated it, though I know it's usually at the top of the list for long-term value. BLT didn't work for us from an aesthetics or studio size standpoint. Otherwise, it really would be a great deal given the financials and the location.

But the person you quoted specifically stated that CR was one of their favorites, just they were concerned they would be too expensive. Certainly if you limit to the resorts like VGF, VGC, CCV & Poly, there aren't going to be a lot of savings ANYWHERE. And often it becomes financially unreasonable to buy those where some of the cheaper options may still be reasonable. Basically no one new to DVC truly knows what they're resort preferences will be and thus I'm of the opinion better to make a $1000 mistake you can dump for $9000 than a $20000 one you can only sell for $15000. DVC is a luxury purchase, you're basically trying to get the most in your situation for the least cost; but in the end it's really all sunk funds so one needs to be OK with the risk and cost if they lost it tomorrow.

 

[rowrbazzle]

But the person you quoted specifically stated that CR was one of their favorites, just they were concerned they would be too expensive. Certainly if you limit to the resorts like VGF, VGC, CCV & Poly, there aren't going to be a lot of savings ANYWHERE. And often it becomes financially unreasonable to buy those where some of the cheaper options may still be reasonable. Basically no one new to DVC truly knows what they're resort preferences will be and thus I'm of the opinion better to make a $1000 mistake you can dump for $9000 than a $20000 one you can only sell for $15000. DVC is a luxury purchase, you're basically trying to get the most in your situation for the least cost; but in the end it's really all sunk funds so one needs to be OK with the risk and cost if they lost it tomorrow.

Oh certainly. I was just speaking from our perspective when looking into DVC. Honestly, I wish BLT worked better for us because it is a good deal, particularly considering its prime location. It seems like it would be a good fit for the original poster.