IS DVC Ownership really that expensive?

[dvcdream4fld]

Sorry for the continuation. To compare the timeshare to investment is a flawed argument because the timeshare is fixed amount of points that will run out the end of the contract. However, unlike an investment which is subject to increases and decreases in the market, your dvc timeshare will be a fixed amount of points which is worth a certain amount of nights stays at dvc. Sure maintenance fees will increase, but as you can see from my example the cost per night far out weighs the maintenance fees. Lastly dvc also offers additional savings in the form of discounts food and fun. I guess for me it was a smart buy that equals to years of fun which costs virtually nothing.

 

[MountainMouse]

I'm a new owner. I guess I finally want to chime in on this whole value thing, because I see flaws in these argument and I just wanted state my opinion. Firstly, I'm frugal, and I enjoy finding the best value for my money. Before buying in, I waited ten years to see if DVC resale market was stable. For the most part, if you bought resale in the last 10 years you will have made money from selling your timeshare today, which generally, you can't say that about most timeshares. Second, I bought enough points at ssr cash so that I can go to disney once per year and sell the remaining points to cover my maintenance fees. This year, I sold some points at estimated profit of $400 and booked a studio which would have costed me $300 to $500 per night. My plan is to use the dvc timeshare in the same way until resale prices start decreasing and then decide at that point whether I should sell to recoup my initial investment. Honestly,

Did you keep any information on how resale prices have increased over the last 10 years. We initially looked 11 years ago and are in the process of buying now. I've been able to look up historical direct prices back that far but not resale.

 

[dvcdream4fld]

I didn't keep, but I can tell u in 2009-2010 during the downturn in the economy the price dropped from the 40 to 30s, so I would caution anyone who thinks you can resell for a profit, but I am more certain that provided disney does not stop renting of points then u can recoup ur maintenance fees.

 

[MountainMouse]

I didn't keep, but I can tell u in 2009-2010 during the downturn in the economy the price dropped from the 40 to 30s, so I would caution anyone who thinks you can resell for a profit, but I am more certain that provided disney does not stop renting of points then u can recoup ur maintenance fees.

So in 2009/2010 you could buy SSR in the 30s resale and before that it was in the 40s. Now it's 70s and low 80s. Nice little profit for this who bought 5 years ago. Do you know if the jump up to today's prices coincided with the recent jump in direct prices.

 

[dvcdream4fld]

I say do ur own research, but I was referring to Hilton head and Old key west. Resale prices generally increase overall, but at some point because this is a fixed contract they may start to decrease, and I was surprised over the time I've watched the prices that they have not. The fact is disney right of refusal keeps the prices higher, and I haven't seen anything that disney is going to decrease this as long as people are willing to buy.

 

[MountainMouse]

I say do ur own research, but I was referring to Hilton head and Old key west. Resale prices generally increase overall, but at some point because this is a fixed contract they may start to decrease, and I was surprised over the time I've watched the prices that they have not. The fact is disney right of refusal keeps the prices higher, and I haven't seen anything that disney is going to decrease this as long as people are willing to buy.

Thanks for the information, like I said, I couldn't find details on resale values back that far so doing my own research hasn't yielded anything very useful. Also, good to know you weren't referring to SSR. I felt like I had really missed the boat over the last few years with that price difference.

 

[dankil13]

I say do ur own research, but I was referring to Hilton head and Old key west. Resale prices generally increase overall, but at some point because this is a fixed contract they may start to decrease, and I was surprised over the time I've watched the prices that they have not. The fact is disney right of refusal keeps the prices higher, and I haven't seen anything that disney is going to decrease this as long as people are willing to buy.

I really regret not buying OKW a few years back when prices were in the $50's and low $60's but I didn't have the cash. Now that I am looking to buy in the next few months I am having a hard time resonating with the fact that my purchase will cost me $15 a point more than a few years ago (even though the difference in only $2k-$3k!

 

[mwwagner]

I really regret not buying OKW a few years back when prices were in the $50's and low $60's but I didn't have the cash. Now that I am looking to buy in the next few months I am having a hard time resonating with the fact that my purchase will cost me $15 a point more than a few years ago (even though the difference in only $2k-$3k!

Perhaps knowing that by not paying dues for the last 3 years (@ $5 per point per year) will help. Using that math you come out even steven!!

 

[dankil13]

Perhaps knowing that by not paying dues for the last 3 years (@ $5 per point per year) will help. Using that math you come out even steven!!

True - but we rented points for our upcoming Dec trip and for our trip in 2012 (although thru a friend of the family for $8/pt). My wife and I wanted to check out SSR (and hopefully get a chance to tour BWV) before we make the decision to buy at OKW (since that is the only DVC resort we have stayed at for our trips).

 

[Dean]

Sorry for the continuation. To compare the timeshare to investment is a flawed argument because the timeshare is fixed amount of points that will run out the end of the contract. However, unlike an investment which is subject to increases and decreases in the market, your dvc timeshare will be a fixed amount of points which is worth a certain amount of nights stays at dvc. Sure maintenance fees will increase, but as you can see from my example the cost per night far out weighs the maintenance fees. Lastly dvc also offers additional savings in the form of discounts food and fun. I guess for me it was a smart buy that equals to years of fun which costs virtually nothing.

While DVC isn't really an investment per se, it is a vacation savings vehicle or at least it should be. I think a big mistake that many make is they look at it as play money and fail to do the math on the costs or comparative savings partly due to the emotions of Disney and vacations. Ultimately it's about getting similar to what one would have done for less money and/or more for around the same money. And just like most investments, any savings is almost always made on the front in by limiting cost and better choices. Plus any additional money paid that was not necessary is literally money that could be invested (say VGF retail vs SSR resale).

 

[traceyg]

Not flaming, but how are you getting five kids through college? We have two very good incomes - and saving for TWO to go through college was a challenge, I can't imagine five.

And for us, vacations are a luxury, but college tuition wasn't - I don't want my kids graduating with $40k in debt. With two very good incomes, we knew there wasn't a snowball's chance they'd see a penny in aid.

The kids are: 24 (mine from previous marriage), 22 (mine from previous marriage), significant other of the 22 yo- he's like our own- our three year old even calls him "his brother", 19 (stepdaughter), 16 (stepdaughter), 3 (ours)

24 yo- started at a jr college, lived at home, earned his associates. transferred to a big university but has a job as a waiter/bartender to help with tuition and expenses. Between his dad, grandparents and my husband and I he has a lot of his expenses taken care of. He will graduate with some loans, but not a lot. I am not opposed to helping him pay them until he gets his feet under him. With the amount that he has I might even be able to just pay them off.

22 yo- started at a jr college, lived with friends, worked and earned her associates. Is now at a large university. She is paying as she goes now. Her dad and grandparents help her financially quite a bit.

19 yo- is at a jr college now. She is under her mom for her financial aid so she qualifies for grants that my biological kids do not. She also has scholarships. So far she's free of any debt. It's been a good thing that she has grants because she hasn't had the work ethic like the older three. If she didn't have grants either she'd be deeply in debt or her dad and I would be footing the bill for everything.

22 yo SO- he started at the same jr college as the 22 yo and lived at home. He qualifies for grants as well.

16 yo will fall under her mom's income to be eligible for grants. I am hoping that she does as the others and gets her associates at a jr college and minimizes her debt.

I figure that by the time the 3 yo gets to be college age we'll be done with the others and we'll be able to afford Harvard. lol

We've bought the others' vehicles, paid car insurance, cell phones, food, gas money, spending money etc etc. By the time we get the 16 yo self sufficient we'll be living the high life with the money we're able to hold onto.

It's taken a village, to answer your question directly. We handle each semester as it comes up. The 22 yo and her SO still have many many years of school left. I'm not sure how we will handle that to be honest. I know I'm good for one bachelor's degree but beyond that I'm not sure how I feel. I'll help however I can for sure. Again, we'll handle it semester by semester. If they both are going on to be doctors that's going to get costly.... we'll figure it out as we go I guess.