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

[DisDadDVC]

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.

I don't need to know ANY numbers other than 18%. This is a 110% "no".

 

[GoingtoWDWagain]

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% 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.

Thank you so much!! Your post explained
so much to me! To answer your question, it's not a fixed a week. We stated what we needed a minimum 10 night stay in a standard view villa in July and she said we'd need a minimum of 240 points and have to borrow from the following year.
Thanks again!

 

[KAT4DISNEY]

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......

The guides job is to sell, not to do actually math apparently. First, it's not even a similar comparison of 1 week VGF to 2 weeks at BC.

The quick calculations above show how you'll be paying $76K for the points if you keep the loan the entire time. If you are paying $4k for 2 weeks at Beach Club and VGF is only getting you 1 week we might assume you could do 1 week at Beach Club for $2K? Not considering inflation on the Beach Club stay it's a much, much longer time than 10 years until you'll reach a break even.

Don't rush into this is my advice and always remember you were talking to a timeshare sale person when you did that tour. I know you'll get some people chiming in on better numbers to help you better understand what the comparison will be.

 

[miTnosnhoJ]

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......

Definitely get that in writing!

 

[GoingtoWDWagain]

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).

I will definitely have to contact the sales person. Our interest other than it being one of our favorite resorts was the stated. She said they'd give us an added 5 years...that was the only "perk". We did not misunderstand that because thats what lead us to put a desposit...that statement.

 

[miTnosnhoJ]

Thank you so much!! Your post explained
so much to me! To answer your question, it's not a fixed a week. We stated what we needed a minimum 10 night stay in a standard view villa in July and she said we'd need a minimum of 240 points and have to borrow from the following year.
Thanks again!

Already, you are eating into your potential savings. Instead of going to the Grand Floridian every year, you can only go once every two years. Are you getting a 1BR suite for your current stays, or a regular VGF room? Concierge level? Lots of variables.

 

[KAT4DISNEY]

Thank you so much!! Your post explained
so much to me! To answer your question, it's not a fixed a week. We stated what we needed a minimum 10 night stay in a standard view villa in July and she said we'd need a minimum of 240 points and have to borrow from the following year.
Thanks again!

That is points for a standard view studio every year in July for 10 nights, not a 1BR. A 1BR would require approx 478 points/year.

 

[KAT4DISNEY]

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......

Just to say, that's impossible. The end dates are fixed barring an extension to the entire resort by DVC and the only resort that has had that is the original resort, OKW, and that did not work out so well. There was some misunderstanding going on or perhaps you had been talking about some other resort so she was comparing to that when she indicated the extra 5 years.

 

[Disney Dad ADL]

Just to say, that's impossible. There was some misunderstanding going on or perhaps you had been talking about some other resort so she was comparing to that when she indicated the extra 5 years.

Yeah, it can't be 55 years. Even Poly ends 2066 which is only 50 years.

 

[Dean]

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.

As noted, it depends but it doesn't sound like it's a good choice for you right now. I'd suggest you learn about the system and options and if it still sounds like a good choice for you, save up so you can either pay for it or finance a lot less at a much lower interest rate. I don't know your personal situation and don't want to but as a blanket statement, one who's credit is in that shape shouldn't be buying a timeshare much less financing it and if not, you likely shouldn't be buying at all.

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.

There are no guarantees on availability unless you get a fixed week. GF is a tough deal to reserve even at 11 months out. If you sold you'd be significantly upside down for some time just like buying a car and reselling it.

 

[GoingtoWDWagain]

That is points for a standard view studio every year in July for 10 nights, not a 1BR. A 1BR would require approx 478 points/year.

What she stated was you own 240 points and you "borrow" the needed amount from the following year to have the needed points for the 10 night one bedroom villa standard view room.....as per the current point chart because it changes and more points may be needed in the later years. So I would own 240 points and have to borrow from the following year to stay in the one bedroom villa standard view if available 11 months out.

 

[Disney Dad ADL]

What she stated was you own 240 points and you "borrow" the needed amount from the following year to have the needed points for the 10 night one bedroom villa standard view room.....as per the current point chart because it changes and more points may be needed in the later years. So I would own 240 points and have to borrow from the following year to stay in the one bedroom villa standard view if available 11 months out.

Yes, you can do that, but it means you can only stay there EVERY OTHER year rather than every year in a 1 bedroom villa. You can't borrow points from 2 years in the future for example.

 

[KAT4DISNEY]

What she stated was you own 240 points and you "borrow" the needed amount from the following year to have the needed points for the 10 night one bedroom villa standard view room.....as per the current point chart because it changes and more points may be needed in the later years. So I would own 240 points and have to borrow from the following year to stay in the one bedroom villa standard view if available 11 months out.

That's correct if you are planning on going every other year. You can only borrow one year in advance so for example if you wanted to go this year you'd use the current points (2016) and next years (2017). Then next year (2017) you want to go you'd only have the following years points (2018) available to you because you had already used the 2017 points. If you want to go every year then you'll be paying cash for something else every other year or for point transfers in, or staying in studios every year.

 

[TXWAC]

You are headed for a heartbreak. Get whatever money back you can. Chalk the rest up to Life University and run as fast as you can.

 

[GoingtoWDWagain]

As noted, it depends but it doesn't sound like it's a good choice for you right now. I'd suggest you learn about the system and options and if it still sounds like a good choice for you, save up so you can either pay for it or finance a lot less at a much lower interest rate. I don't know your personal situation and don't want to but as a blanket statement, one who's credit is in that shape shouldn't be buying a timeshare much less financing it and if not, you likely shouldn't be buying at all.

There are no guarantees on availability unless you get a fixed week. GF is a tough deal to reserve even at 11 months out. If you sold you'd be significantly upside down for some time just like buying a car and reselling it.

I am looking into getting my own financing rather than go with what they provided. If not 18% interest is not something I will commit to and will have to wait for a better time for me to purchase.

 

[miTnosnhoJ]

Here is a link to the Declaration of Condominium filed with the State of Florida for VGF. Section 2.2 mentions that the ground lease ends in 2064. (48 years from now. 50 years from when it was filed)
When you are up against a legal document like this against the verbal promise of a timeshare salesperson, guess which document wins?
http://or.occompt.com/recorder/eagl...30171571&id=DOC1139S415.A0&parent=DOC1139S415

Note: I am not sure that link will work. If it does not, go here http://or.occompt.com/recorder/web/
and put in 10545 for Book and 3964 for page.

 

[Dean]

I am looking into getting my own financing rather than go with what they provided. If not 18% interest is not something I will commit to and will have to wait for a better time for me to purchase.

I don't think the interest rate is the main problem here. One doesn't get 18% with DVC currently by having good credit. The ways to get bad credit are pretty straight forward and none of them suggest buying a timeshare is a good idea. I don't mean to be harsh but to get you to think about what you're doing.

 

[Minniesgal]

We own at VGF and we love it its our favourite resort but we bought with cash. I can't see how DVC would ever be worth it while financing especially at 18%.

 

[Disney Dad ADL]

I am looking into getting my own financing rather than go with what they provided. If not 18% interest is not something I will commit to and will have to wait for a better time for me to purchase.

Remember also when you are considering this purchase that the annual fees will not go away and generally increase every year. Currently the annual dues on 240 points at Grand Floridian is $114.25 per month ($1371 per year). They could theoretically increase by 15% per year, although this has never happened before, I would at least bank on an increase of about 4-5% per year, which means it will be about $250 per month in 15-20 years.

Usually you have 10 days to cancel with no penalty. If you still have time, I would seriously consider cancelling it and taking the time to learn more about the program. If you still are interested, I would try to save the money to pay cash. If you really think you can afford to pay $7200 per year for the timeshare and $1400 per year for annual dues, that is $8600 per year. Why not just put that cash aside? In 3 years, you will have $25,800.

With $25,800 in cash you could buy:
1. Saratoga Springs 250 points at $78 per point = $19,500. Enough to stay in a 1 bedroom for 1 week EVERY YEAR in July or 2 weeks in a studio
2. Boardwalk Villas 220 points at $94 per point = $20,680. Again enough to stay in a 1 bedroom for 1 week every year in July or 2 weeks in a studio
3. Bay Lake Towers 200 points at $117 per point = $23,400. Enough to stay in a studio for 10 days every year in July

 

[freediverdude]

How it ends up working out if you finance is this. Basically you will end up paying similar to full rack rate for a nicer room with the added amenities for the next ten years, and after that you will get a steep steep discount only paying the annual dues. So it makes sense if you know you will keep going longer than 10 years, and don't mind paying full price for a room for a while in exchange for getting a similar deal later to what the Old Key West original buyers are getting now, very very cheap rooms in the future later on. Plus contract is likely to be worth something for 3-4 decades (likely a lot, come on will those monorail resorts ever not be worth a lot?). So you're really not just losing that money unless you use it for the full term, in which case you're getting dirt cheap rooms for decades after that first decade. It all comes down to whether you really will use it for that long or not.