Is this worth a DVC ownership at Villas at Disney's GF?

[GoingtoWDWagain]

Hi...so confused and hoping someone with DVC experience can help out. Looking at 240 points at Villa's at Disney's Grand Floridian for a monthly payment of $600.00 due to an approval at 18% interest for ten years plus the annual dues. This is directly through Disney not a resale. Is this worth it in the long run with these figures?
Thanks a bunch for any information you can provide.

 

[Disney Dad ADL]

18% interest? I've never looked into financing so I don't know what the going rates are, but that interest rate seems brutal. That's like charging it on your credit card.

As a whole, "worth it" is a difficult question to answer. Depends a lot on your travel habits and what kind of accommodations you are willing to stay in.

But I'd be really hesitant to buy if I had to finance at 18%.

Edit: Sorry, to be a bit more helpful:
240 points x $180 per point = $43,200
I assume you put 10% down? = $4,320
$600 per month x 120 months = $72,000
Total paid = $76,320 / 240 points = $318 per point.

240 points at VGF in Dream season gets you about 11 days for a standard view studio per year. Assuming a hotel room is $400 per night, DVC still saves you money even at $318 per point, however you have to consider whether you actually would have stayed at the Grand Floridian Hotel 11 nights per year every year for the next 49 years.

Edit 2: Assuming $400 per night for the hotel room, and also assuming 4% increase per year for both annual dues and hotel room feels, break even point is around year 18 (2033).

 

[GoingtoWDWagain]

18% interest? I've never looked into financing so I don't know what the going rates are, but that interest rate seems brutal. That's like charging it on your credit card.

As a whole, "worth it" is a difficult question to answer. Depends a lot on your travel habits and what kind of accommodations you are willing to stay in.

But I'd be really hesitant to buy if I had to finance at 18%.

Edit: Sorry, to be a bit more helpful:
240 points x $180 per point = $43,200
I assume you put 10% down? = $4,320
$600 per month x 120 months = $72,000
Total paid = $76,320 / 240 points = $318 per point.

240 points at VGF in Dream season gets you about 11 days for a standard view studio per year. Assuming a hotel room is $400 per night, DVC still saves you money even at $318 per point, however you have to consider whether you actually would have stayed at the Grand Floridian Hotel 11 nights per year every year for the next 49 years.

Edit 2: Assuming $400 per night for the hotel room, and also assuming 4% increase per year for both annual dues and hotel room feels, break even point is around year 18 (2033).

Thanks a bunch. I was told I'd get ten nights in a one bedroom villa standard view at the villas at GF once a year in July. We put a $500.00 deposit to hold it but that's it....nothing else. We vacation to Disney World every year and only stay on Disney property. I'm just having a concern with the $600.00 per month plus the annual dues. The payment alone adds up to $7200.00 per year not including the annual dues. We usually stay at the GF or Beach Club resort for two weeks and pay less than that with our AP holder discount. Just unsure if the sting of these payments are even worth it after 10 years? Looking at the final amount makes me wonder if the purchase of a condo would be a better investment and I'd have use of it all year. We vacation to Florida every year and would only use our points for Disney World.

 

[DisCatGirl]

18 percent? Is that even legal? That's a crazy high interest rate.

 

[GoingtoWDWagain]

18 percent? Is that even legal? That's a crazy high interest rate.

That was the rate Chase bank approved me at.......due to past credit history.

 

[supersnoop]

That was the rate Chase bank approved me at.......due to past credit history.

Are you prepared to pay $44,000 towards your vacation lodging? You're talking monthly payments and interest rates. Look at the real numbers.

 

[RaymOOOnd]

You should note that owners at VGF have a notoriously tough time reserving the studios they want, even right at 11 months out. So it isn't like you go into a huge amount of debt for this and then are reaping the sweet rewards with no frustration. I personally would flip out and sell the contract the first time I couldn't get a villa at the home resort I'd paid 40k for.

 

[npmadsen]

You should note that owners at VGF have a notoriously tough time reserving the studios they want, even right at 11 months out. So it isn't like you go into a huge amount of debt for this and then are reaping the sweet rewards with no frustration. I personally would flip out and sell the contract the first time I couldn't get a villa at the home resort I'd paid 40k for.

18% is extremely high interest

 

[Disney Dad ADL]

Thanks a bunch. I was told I'd get ten nights in a one bedroom villa standard view at the villas at GF once a year in July. We put a $500.00 deposit to hold it but that's it....nothing else. We vacation to Disney World every year and only stay on Disney property. I'm just having a concern with the $600.00 per month plus the annual dues. The payment alone adds up to $7200.00 per year not including the annual dues. We usually stay at the GF or Beach Club resort for two weeks and pay less than that with our AP holder discount. Just unsure if the sting of these payments are even worth it after 10 years? Looking at the final amount makes me wonder if the purchase of a condo would be a better investment and I'd have use of it all year. We vacation to Florida every year and would only use our points for Disney World.

Here is the VGF point chart:

http://www.wdwinfo.com/disney-vacation-club/GF-Points.htm

July is Magic season, so a 1 bedroom standard view costs 340 points per week and 46 points per night (Sun-Thurs). 10 days in a standard view 1 bedroom villa would cost 478 points. 240 points would get you a standard view STUDIO for 10 days in July (238 points).

I honestly wouldn't do it. There are differing viewpoints on this, but I personally think that financing something that is essentially a luxury purchase isn't a good idea IMO.

If you're OK with staying anywhere at WDW, consider SSR, which is the cheapest resort after taking into account the annual dues.

 

[GoingtoWDWagain]

You should note that owners at VGF have a notoriously tough time reserving the studios they want, even right at 11 months out. So it isn't like you go into a huge amount of debt for this and then are reaping the sweet rewards with no frustration. I personally would flip out and sell the contract the first time I couldn't get a villa at the home resort I'd paid 40k for.

Yikes...11 months out and no availabilty?!
At that point could I sell the contract? I have no idea how any of this works and am trying to be as informed as possible.
Thanks again.

 

[GoingtoWDWagain]

Here is the VGF point chart:

http://www.wdwinfo.com/disney-vacation-club/GF-Points.htm

July is Magic season, so a 1 bedroom standard view costs 340 points per week and 46 points per night (Sun-Thurs). 10 days in a standard view 1 bedroom villa would cost 478 points. 240 points would get you a standard view STUDIO for 10 days in July (238 points).

I honestly wouldn't do it. There are differing viewpoints on this, but I personally think that financing something that is essentially a luxury purchase isn't a good idea IMO.

If you're OK with staying anywhere at WDW, consider SSR, which is the cheapest resort after taking into account the annual dues.

I'm sorry I forgot to mention what the sales person said was I could keep borrowing from the following year to get ten nights per year at GF in a standard view villa not a studio. You're right I just can't make sense of this amount of money per year for next ten years when I can stay in the standard GF hotel room for less with an AP holder discount. I know the hotel doesn't offer what the villa offers (kitchen, washer, dryer, etc...) but we're okay with that.
Thanks a bunch for your help

 

[RaymOOOnd]

Why are you looking at VGF? Is your heart set on that? As anyone on the board would tell you, you'll find a more favorable financial and availability picture at the other resorts. That said, if you want to stay in a studio at GF the only reliable way is truly to own there rather than at another resort.

 

[GoingtoWDWagain]

Why are you looking at VGF? Is your heart set on that? As anyone on the board would tell you, you'll find a more favorable financial and availability picture at the other resorts. That said, if you want to stay in a studio at GF the only reliable way is truly to own there rather than at another resort.

We were offered 55 years of use at VGF not for the others. We would not stay in the studio, we'd stay in the one bedroom villa standard view.

 

[KAT4DISNEY]

Honestly, it doesn't sound like you're familiar enough with the program to really be able to make an informed decision although I understand that is what you are attempting to do now. There are other far more economical ways to buy DVC if it turns out it is something that makes sense overall for you to own. And if you are taking advantage of discounts to get 2 weeks for less than the payments for one week then no, it doesn't make sense to do this purchase at VGF IMO from the little info provided.

 

[Disney Dad ADL]

I'm sorry I forgot to mention what the sales person said was I could keep borrowing from the following year to get ten nights per year at GF in a standard view villa not a studio. You're right I just can't make sense of this amount of money per year for next ten years when I can stay in the standard GF hotel room for less with an AP holder discount. I know the hotel doesn't offer what the villa offers (kitchen, washer, dryer, etc...) but we're okay with that.
Thanks a bunch for your help

No problem, happy to help.

Yes, you can borrow points from future years, so you could get a 1 bedroom villa at VGF for 10 days basically every other year.

For example, you have 240 points in 2016 and 240 points in 2017. You decide to spend 480 points to book a 1 bedroom villa this year, so you use your 2016 points and borrow your 240 points from 2017.

2017 rolls around and you try to book another room. However, you now have 0 2017 points (remember you already used them). You can borrow 240 points from 2018, but you still won't have enough. You have to wait until 2018 and then borrow from 2019 to make 480 points.

 

[KAT4DISNEY]

We were offered 55 years of use at VGF not for the others. We would not stay in the studio, we'd stay in the one bedroom villa standard view.

VGF expires in early 2064 so that is 48 years left. And there are maintenance fees on top of the initial purchase. Each resort has it's own expiration but shouldn't be the sole determining factor.

 

[miTnosnhoJ]

VGF is a wonderful resort and I highly recommend it. I own at VGF and love it. However....

1. I would not recommend financing to own here. Save some money and pay cash. And make sure you have covered kids college, your retirement, and paid down credit cards and car loans before pre-paying for a hotel room for 48 years. It is really a luxury item, so make sure you have all your necessities covered before going in on a luxury.
2. The economics will always work better to buy a condo or a house off but near the Disney property. If it costs $43,200 for 10 days, that is roughly $1,576,000 for the whole year. That is why time shares are so profitable and they can pay the big commissions. Think about what you could buy in Orlando for $1.5 MM. Yet, there is a certain magic that comes from being near the parks and on the monorail and staying in the Grand Floridian.
3. Even if you come here every year, if you have a sudden job loss or a sudden emergency, having the flexibility to skip Disney that year is a good thing. If you buy DVC, you can always rent out your points if you are unable to come one year. But renting out your points typically only covers enough to pay your maintenance fees. It would not be enough to cover an 18% mortgage. But if your income is really stable, read on...
4. There are definitely benefits to buying from Disney. I bought my first 250 points direct from Disney. But be aware that the resale market is active, and you can save money. For example, the average VGF resale in March was $146 a point. Sales went through from $127 a point to $155 a point, so you have to shop wisely, but if you do, you can find a deal at the lower end of the range. Lets say you bought at $146 a point rather than 180 a point. You could save $8000 and have lower monthly payments.
5. I am curious...is Disney selling you a Fixed Week so you get a guaranteed week in July? You pay a little extra for the fixed weeks, and for a July stay, you likely would not need the guarantee of a fixed week. On the other hand, they might have just sold you enough points so that you have enough in your preferred travel season. (Which is a good thing)
6. There is more than one way to skin a cat. For example, could you buy 80 points without financing? If so, buy 80 now. Then you can bank and borrow to put together 240 points for your 10 day stay. Then look on the resale market as you are able to pay cash for additional points. (Note: In my experience, 240 points is roughly enough for a studio for 10 days or a 1BR for 5 days)
7. There are lots of scenarios that could work for you - but it is hard to make the numbers work if you are financing. You are really better off staying at the GF and watching for hotel deals. Typically you can get 35% off the rack rates - or get the Dining Plan included, and you would not have the big monthly payments.
8. We like VGF so much that we added on additional points so we can get a 2 BR every year. Good luck.

 

[GoingtoWDWagain]

Honestly, it doesn't sound like you're familiar enough with the program to really be able to make an informed decision although I understand that is what you are attempting to do now. There are other far more economical ways to buy DVC if it turns out it is something that makes sense overall for you to own. And if you are taking advantage of discounts to get 2 weeks for less than the payments for one week then no, it doesn't make sense to do this purchase at VGF IMO from the little info provided.

This is all new for me....I do not have any information other than what I was told during the tour. I'm trying to learn as much as possible before making a decision. I had mentioned that to the sales person I said if I'm paying let's say $4000.00 for a 14 night stay at Beach Club and my payments add up to $7200.00 plus annual dues how is this better. Her response, after ten years I won't be paying that I'd be paying only the annual dues.
So much information I don't know......

 

[GoingtoWDWagain]

VGF expires in early 2064 so that is 48 years left. And there are maintenance fees on top of the initial purchase. Each resort has it's own expiration but shouldn't be the sole determining factor.

Wow!! I'll have to call the sales person. She stated we'd have 55 years of use....stating they're giving us an extra 5 years.... Hmmmmm......

 

[Disney Dad ADL]

Wow!! I'll have to call the sales person. She stated we'd have 55 years of use....stating they're giving us an extra 5 years.... Hmmmmm......

You do not get any extra years on the contract for buying directly from Disney (there is maybe a weird exception if you are buying Old Key West). Every DVC resort has an end date, and all owners (resale or direct) have the same end date (again with the possible exception of Old Key West).

Do you have a particular attachment to Grand Floridian, and would you consider any other resort? Grand Floridian (along with the Polynesian) is pretty much the most expensive DVC resort at Disneyworld if you take into account how many points you need to book a room. A 1 bedroom at Saratoga Springs only costs 241 points per week in July (compared to 340 points at Grand Floridian) and the points are cheaper (much cheaper if you buy resale).