Is it really worth it for us?

[tripplanner2]

ok, my ever practical husband may be right (I hate to say that!) We are a family of 4 (dd's 6 and 7)
But, we were running the numbers and with the annual dues at SS, it would cost us just over $2,000 every 3 years in dues alone. Then if you factor in the initial buy in (about $10,000 for 160 pts resale) - it doesn't seem to be a bargain at all. We would go every other year, but just to calculate, if we banked points from 2011, borrowed from 2013, we could go in 2012 for a week. It would cost us say $2,000 in dues, plus say $250 (10,000 % by the 40 years ownership), so $2,250. Last year we stayed at the Poly for just about $3,000, plus the kids got the free dine, play and stay... So, if we were DVC members we wouldn't be eligible for those PIN deals that can be so great... So, that's my train of thought, am I on the wrong track? Should we just continue to go and stay at a deluxe every other year and stay with the Disney deals?

I feel like you. I keep crunching the numbers and I don't see it being less expensive. But, I have stayed deluxe (on my bosses dime) and now stay value or moderate because I am paying the bill and it is a huge difference. Completely different vacation experience. So that is what I think the others are talking about. Yes you can still do Disney for the same money but you will have a better overall experience if you buy into DVC and can go deluxe every trip. I think once I am back to work full time it is something we will do. For now, I will continue to hunt for the best deals. But I really want to buy in at some point. Hopefully within the next couple of years.

 

[ElizabethG]

So SS would be about 241 or less for one week (Magic Season points)

For every other year you would need 241/2 = 120 points
(bank 2011 points, in 2012 you vacation and use 2011 + 2012 points)

For every third year you would need 241/3 = 80 points
(bank 2011, in 2012 you borrow 2013 points and use 2011+2012+2013 points)

I think that significantly reduces your cost per vacation from your original estimate.

 

[bdiddy]

Hi, I'm going to jump in on this if you don't mind. My DH and I also just got all the info in the mail and I spoke to someone on the phone but we are having a hard time figuring out what the benefits are. And I'm having a hard time getting past how much the annual dues are. After paying for the initial purchase and then to pay the fees for 50 yrs just doesn't seem like a deal to me.

We took our 1st trip to Disney almost 2 yrs ago and then went back this last Dec when they extended free dining and we had airline credit as well. But when I would plan our trips the cost of the tickets to get in the park and the dining were the majority of the cost of the trip - not the accomodations.

So...I'm thinking if we pay out $20K-$30K for our initial purchase and go every year, we still have get there, buy tickets and food AND pay out $600 a year then how is that saving us money? For that $600 a year we could just stay at a value I guess. (We stayed at moderate the few other times we went) and even staying at a moderate again doesn't seem worth the total cost after all is said and done.

I do get that many of you are saying that it is just a different way of staying there and I'm sure that would be great but I'm having a hard time figuring out if that is worth the cost??


Thanks for everyone's comments!!

 

[stefanospops]

The main factor in our decision to become DVC members was that I know the only place I will be vacationing for at least the next 5 years is likely WDW and that I will be going there at least one per year. There may be other vacations sprinkled in there but this will likely be our primary destination until the youngest (currently 16 months) is probably a teenager. I figure I break even after about 7 or 8 years. This factors in the annual fees and does not consider Disney raising their rack rates.

The best part about this is that if I have recouped my costs after 8 years then decide this no longer works for me I can sell my contracts and technically whatever I get for them is "profit" since I already broke even. I used to think of this in terms of whether I would still go to WDW 25 years from now, but seeing how vibrant the resale market is I no longer care about the duration of the contract. I'll just sell it if it no longer makes sense for our family.

As a realtor here in Toronto I advise a lot of clients looking for an investment to buy pre-construction condos because you pay for something in today's dollars that won't be available until the future. Since frequently (especially here in Toronto for a number of reasons) the future value of real estate over a 3 or 4 year period is likely to be higher then it makes for a great return. I view DVC similarly even though it is something I am not "waiting" to be built. The main reason is because it is still a real estate interest that is tied to what Disney charges for their hotel rooms. Unless Disney significantly discounts their hotel rooms and oversupplies WDW with rooms, then room rates should continue to rise. This is my two cents.

 

[ToddyLu]

We bought in July 2009 (Dec UY) at AKV. We got the 2008 points then more points 12/1/09. So we were able to get 2 SV studions at AKV for $2250(monthly mortage note x 5=about $1250 + another lets say $1000 for MF for the rest of that year and closing cost.) So for $2250 we got a $3500 studio that we would have never paid cash for. In addition we got a SV studio for my MIL at a $3500 value for our trip. DVC gave us $7000 for rooms that cost us a buy in initially for the second half of the year at $2250. That is why it made financial sense to us. If you are happy at values and moderated then don't do DVC. We just wanted to stay at deluxe hotels becasue we "do" Dsiney every year and do not ever see that changing, even with us not having children. So that is how we look at it financially.

 

[JHM]

One thing you have to take into account is how you like to travel. If you are comparing the $$ for DVC to the cost of a value resort, you would never come out ahead. If you prefer to stay in the delux resorts then it could be for you. Before we bought into BLT, this is the analysis we did:
*Put our purchase price into a "Vacation Fund" and add the amount of annual dues to it every year and assume it earns X% interest
* Subtract from that the annual cost of LODGING ONLY at the resort we normally stay at (YC) for a rate approx 30% below rack rate - maybe you could get a better deal, maybe not
* Plug in an annual inflation rate for the dues and for the rack rate room
*Calculate what % you would have to earn on your Vacation Fund to fund vacations for the next 60 years - when the DVC points expire.

This can be customized for the amount of points you purchase as well as the cost of a resort for when you travel. For us the results came out to having to earn, post tax, 13.25% annual return over the next 60 years. If you earn more than that, then you would be better off paying yourself and having $$ left over. Less than that then you would run out of $$ before you took all your vacations. Seeing that, it was a no brainer for our situation.

But again, everyone's situation is different - primarily based on when you travel and where you would stsy if paying $$. And also remembering DVC covers only lodging.

 

[Mtnman44]

The standard advice usually is pretty accurate. If your normal travel habits include at least one trip every couple of years AND you normally stay in Disney Deluxe resorts, then you will more than likely notice a pretty decent cost savings (over time of course).

The real clincher for us is that we get the above PLUS we get a 1BR or a 2BR for a 12 day trip every other year for about what we would pay for a value room or maybe a moderate with a good deal. Vacationing in a 2 Queen hotel room with three kids is waaaaay different than in a Villa, as most of us are very aware. For us, this is the true "value" in the timeshare/dvc vacation model. There is no way we could afford two week trips in these types of accomodations if we were simply paying cash at the best available rate. My dues are about $700 a year. So on an every other year, 12 night trip, let's just say $1400 bucks or $116.00 a night including all taxes. There is NO way to beat that. Now of course, I haven't figured in the original purchase price into that. When I do that, it takes me about 8 trips before I have truly broken even but after that, it's all gravy. In other words, if I instead had put that cash in the bank and used it to pay for these trips, after about 8 trips, the money would be gone....no more 2br villas for us.

DVC is not the only way to achieve this, nor is it the cheapest. However, staying on site makes the vacation more "fun" for us, it is for the most part more convienient, and the DVC program and its flexibilty is great.

 

[rangermom]

You really need to decide if DVC is right for your family. You need to look at your vacationing styles and habits, family size, and finances and compare them to owning DVC and not owning.

For us, being a family 5, DVC is a great option since some of the 1 bedrooms sleep five or we have to option to stay in a 2 bedroom if we want to. If we stayed value we would need two rooms or a suite. We moved to AZ last Sept and have been to DL twice since. One trip was plaaned only about a 1 1/2 months out. It is great being able to book a room and the cost is already paid, esp since we are less than a days drive to DL. Orlando and Anaheim have a lot of a things to do in the area so sometimes we just book a couple of days extra on our trip to do things in the area.

Owning DVC has also committed us to vacations. We used to spend most of our vaction time at home or visiting relatives, but now we vacation at least once a year to Disney and have brough family with us.

We have only used DVC at WDW and DL, and have taken 6 trips total since July 2007. We are pretty close to breaking even on our first purchase. To me DVC has helped our family really enjoy vacations that we probably would not have taken. Not due to money, but just we would have put them off for a few years. (It took me 10 years for our first trip as a family).

 

[rcstef16]

I struggled with this for a year after we bought our points, and was sick that we made a mistake. We stayed at the Polynesian once as well and Carribean once and Coronado numerous times before buying. At times I wish we could stay there again, but with the points we can not. Once we did stay at the DVC it was so much better than styaing at the Modertes, and I contend cheaper than the deluxe priced hotels (given Disney will not give away rooms or tickets/dining forever). I have not thought we made a mistake since we went on our first trip. What we typically do is buy annual passes with our $100 discount and go twice in twelve months. Then we take a couple years off and do it again. We do have a family of five, so Disney requires us to get two rooms if we stay in a non-vacation club hotel, where you do not have that issue. For us it was right, but you are right it is not cheap. The only other thing is the prices of vacation club go up each year, and we waited longer than we wished we did.

Good luck

 

[ToddyLu]

That first visit is something, isn't it. I felt like Ellie Mae coming to the concrete jungle. Changed our vacation habits for the better--vacation is now much more relaxing.

 

[Snow Shoe]

Everyones reason for purchasing DVC is different for them and their families. We had been going to Disney every year since 1986, staying on property at CR in two rooms. Every year a price increase of around 10% came with our new CR reservation. When DVC first opened in 92 at OKW we looked and didn't like the location, but really loved the idea. We really like the Epcot area and so in 98 when Boardwalk Vills was selling we purchased there.

Here are some examples of what special things we've done with our points since purchasing at BWV. In 2001 we used points and went to DLP for a week and stayed at the Disneyland Hotel there. Had a blast going into Paris on the Metro several times and just being at DLP. Then in 2007 we banked and borrowed our points to get a Grand Villa at BWV for Christmas week through New Years. By then, two of our adult children were married with kids of their own and our third kid brought a friend. Here is picture of our balcony, framed in white box.

In 2008 I retired and we used points to stay a week at GCR and DL, then went to WDW for another week afterwards on points at BWV. We are meeting our oldest son and his family next month at BWV for a 10 day stay. We're introducing Disney to their 2yo DD for the first time. Over the years we have stayed at the GF, and WL several times on point as well. In 2011, we've already made a weeks res's at the Manderian in Washing DC for just the two of us.

When we purchased DVC we thought of using it soley at WDW, but found other places we want to go to and DVC is helping us to do that. You can crunch all the numbers you want and figure that it's not for you. I would suggest that you rent some points and stay at a DVC resort and find out for your self, and then make your decision.

 

[Coach81]

Get DVC.. you'll be glad ya did!!!

 

[jessrose18]

Can I jump in and ask a quick financing question? If you buy through disney do you pick how many years you want to finance or is it a set term? Also I think I heard financing for good credit is aroudn 12% right now is that true? And is it always like a home equity loan where the interest is deductible or is that only in certain cases? Do you then need a house appraisal for financing? Thanks. Those new 100 point contracts are looking great to us!

 

[blondietink]

We have been DVC owners for 6 years now and have never regreted it. In order to stretch our 175 points, we often still take advantage of the specials to the general public, like Free Dining, percentage off discounts, etc. We have manipulated our points so that this year, starting in August, we will be going 3 or 4 times in a 10 month period. Add to that the discount on an annual pass and the savings really add up. Then we will take a break for a year and travel someplace else while banking our points again. We love the system and could not afford to vacation as much as we do now if we didn't have the DVC.

 

[littlestar]

Personally, I think the direct buy-in prices from Disney are very steep. I wouldn't do it at today's direct prices in this economy, especially if I had to finance it. Now, you could buy 100 points resale at SSR for probably around $70 a point. I could stomach that price better than $112 a point through Disney and a 11 or 12 percent interest rate -

 

[parlay]

Can I jump in and ask a quick financing question? If you buy through disney do you pick how many years you want to finance or is it a set term? Also I think I heard financing for good credit is aroudn 12% right now is that true? And is it always like a home equity loan where the interest is deductible or is that only in certain cases? Do you then need a house appraisal for financing? Thanks. Those new 100 point contracts are looking great to us!

If you finance through Disney you can choose to finance for 10, 5 or 1 year (I don't know if they will let you finance for other amounts, but definitely not more than 10 years). I thought the interest rate was 10.5%, I could be wrong. It is not like a home equity loan, although that is another option for financing. If you are using Disney you don't need a house appraisal, if you use a home equity loan to finance, you will need the appraisal.

Good Luck!

 

[jessrose18]

If you finance through Disney you can choose to finance for 10, 5 or 1 year (I don't know if they will let you finance for other amounts, but definitely not more than 10 years). I thought the interest rate was 10.5%, I could be wrong. It is not like a home equity loan, although that is another option for financing. If you are using Disney you don't need a house appraisal, if you use a home equity loan to finance, you will need the appraisal.

Good Luck!

So is the disney loan interest deductible on your taxes? thanks for the reply. I did a search and it looks like interest is deductible! But, I am confused when people say it turns out to be 2% of the interest cost am I reading that right, I thought it was 100% deductable as a 2nd home mortgage. And i also found some things saying if you don't stay there 10 nights a year it might not be? Any info on this, I could only find certain posts and there wasn't much follow up.

How about any of the dues can you deduct any of those? (looked it up, I guess the real estate tax portion of dues is deductible )

 

[BEASLYBOO]

My 2 cents, I bought DVC because I loved Disney World and had a young child. I knew that we would go frequently, more than most since we live so close to Orlando. I didn't buy with the idea that it would be a cost savings, frankly I still drop a bundle at Disney even with DVC. Why I bought is exactly for these reasons:

It doesn't save us money. It does allow us to have the kids in another room while we sleep and spread out a bit. It lets us scramble or fry up an egg in the room in the morning and enjoy a cup of good coffee.

The comando days are done, sometimes we visit the parks, sometimes we don't but no matter we always have a very nice place to stay. We've grown to love the familiarity that comes with multiple stays at our favorite resorts and we still look forward to coming back. Since becoming owners in 2000 DVC as enriched our Disney vacations and after 10 years I still feel the same, thats why it works for me.

Good luck with your decision!

 

[parlay]

So is the disney loan interest deductible on your taxes? thanks for the reply. I did a search and it looks like interest is deductible! But, I am confused when people say it turns out to be 2% of the interest cost am I reading that right, I thought it was 100% deductable as a 2nd home mortgage. And i also found some things saying if you don't stay there 10 nights a year it might not be? Any info on this, I could only find certain posts and there wasn't much follow up.

How about any of the dues can you deduct any of those? (looked it up, I guess the real estate tax portion of dues is deductible )

I personally do not deduct the loan interest - I was told by an accountant that it was not deductable. I didn't really ask why. I only deduct the property tax portion of my annual dues.

 

[hellerjw]

So is the disney loan interest deductible on your taxes? thanks for the reply. I did a search and it looks like interest is deductible! But, I am confused when people say it turns out to be 2% of the interest cost am I reading that right, I thought it was 100% deductable as a 2nd home mortgage. And i also found some things saying if you don't stay there 10 nights a year it might not be? Any info on this, I could only find certain posts and there wasn't much follow up.

How about any of the dues can you deduct any of those? (looked it up, I guess the real estate tax portion of dues is deductible )

We deduct the DVC loan interest every year. You get a mortgage interest statement just like you would for your primary residence. Its considered a 2nd home as far as the IRS is concerned. Now, if you were already claiming a 2nd home deduction (RV, house boat, beach house, etc) you couldn't deduct the DVC loan but for most folks with just a single residence it is more than likely deductible. DVC configures the loan so that it is secured by the deed which makes it work just like a conventional mortgage.

Everyone's tax situation is different so there may be other factors that may preclude the deduction so its always best to ask your CPA.

As for the dues you can deduct the property tax portion but we don't own enough points for that to be a meaningful amount each year and haven't been deducting them.