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

[Axelskater]

Besides, if you were "that guy"

Another interesting wrinkle to this post:
Disney is "sold out" of VGF points. And they rarely exercise the ROFR on VGF resales.
So these 240 points they are selling probably become available from a foreclosure on someone in financial distress because they could not pay their mortgage or their dues or both. Don't be that guy.

And you had to sell short, you would lose every dime which you put in.

 

[gagirldawg95]

IMO, dvc is not a safe investment. If you've got money that you won't miss TOO much, then it's a perfectly fine purchase.

I mostly agree, but I do think few people view DVC as an "investment" as a significant motivation. There are far more compelling investment opportunities available. People on these boards have an affinity for Disney, and that basically necessitates spending more than the equivalent economic value (outside of WDW), because that's generally what Disney offers.

Pursue DVC because you love Disney so much you're willing to commit to many years of vacations here (including all associated costs, which isn't limited to MF). It can be a reasonably prudent expenditure based on economic circumstances and vacation preferences. In my opinion it's too risky to view it largely from an investment standpoint, and from reading these boards, I think few do that.

But if it's truly manageable financially, you'll be coming to Disney anyway, and you can satisfy the other main criteria for being a good DVC candidate, then it's a great option in my opinion.

 

[Popouri DVC]

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

We like VGF so much that we added on additional points so we can get a 2 BR every year. Good luck.

The two bedrooms are absolutely lovely. We had to add-on there because we wanted to always stay in a one bedroom, but last Christmas time we took mom so we splurged on a two bedroom.

We are now so spoiled by the extra space, I cannot see us booking a studio anytime in the near future...

 

[Disn3yVision]

18%??? Ouch. Definitely not worth it. If you really want to join DVC maybe look into a home equity loan or a more feasible way to finance it... But know that most people would advise that if you need to finance DVC it probably isn't a good purchase for you.

 

[_auroraborealis_]

18%??? Ouch. Definitely not worth it. If you really want to join DVC maybe look into a home equity loan or a more feasible way to finance it...

I wouldn't recommend a home equity loan for a timeshare, unless it were an equity loan on a paid-off house, and within a fairly aggressive evaluation of cashflow and liquidity. Home equity loans to use for anything save that primary dwelling are usually not good ideas, unless the matter is one of life or death. A timeshare is never life or death.

(Arguably, any money loaned at 18% should also follow the same guideline. It should be a matter of critical importance to the ongoing health and well-being of one's family unit. Timeshares are lovely, but they don't meet the criteria I have in mind. Open-heart surgery, chemotherapy, and getting by while the primary breadwinner is in rehab are more what I'm thinking.)

 

[Disn3yVision]

Home equity loans to use for anything save that primary dwelling are usually not good ideas, unless the matter is one of life or death.

Some might consider paying 18% interest on a timeshare a matter of life or death, lol

 

[_auroraborealis_]

Some might consider paying 18% interest on a timeshare a matter of life or death, lol

18% is pretty deadly.

 

[Dean]

I wouldn't recommend a home equity loan for a timeshare, unless it were an equity loan on a paid-off house, and within a fairly aggressive evaluation of cashflow and liquidity. Home equity loans to use for anything save that primary dwelling are usually not good ideas, unless the matter is one of life or death. A timeshare is never life or death.

(Arguably, any money loaned at 18% should also follow the same guideline. It should be a matter of critical importance to the ongoing health and well-being of one's family unit. Timeshares are lovely, but they don't meet the criteria I have in mind. Open-heart surgery, chemotherapy, and getting by while the primary breadwinner is in rehab are more what I'm thinking.)

I wouldn't under any circumstance for a non essential. Risking ones house for a timeshare is brutal.

 

[_auroraborealis_]

I wouldn't under any circumstance for a non essential. Risking ones house for a timeshare is brutal.

AS I say, aggressive analysis of liquidity. If it's more a matter of liquidity, there may be very low risk.

 

[Deb & Bill]

I didn't think they were actively selling GFV and no waitlist because it was full.

 

[crisi]

I wouldn't under any circumstance for a non essential. Risking ones house for a timeshare is brutal.

Depends on what "for liquidity" means. If you are taking out a $20k home equity loan off of a million dollar home with $500k in the stock market and a $2M 401k 20 years from retirement - you aren't risking your home. But you also aren't wondering about GF being a good deal at 18% interest.

 

[Dean]

AS I say, aggressive analysis of liquidity. If it's more a matter of liquidity, there may be very low risk.

To a degree but realistically anyone who isn't liquid enough to pull out $20-30K to pay for this isn't going to be able to afford it. If they just decide not to and essentially borrow to invest, I'd generally disagree with that approach as well but it isn't the same risk. In reality there are all types and degrees of risk but essentially no one who's asking this question is in that situation and certainly not someone who wouldn't qualify for financing without getting much higher than usual rates.

 

[Paula Sedley-Burke]

I didn't think they were actively selling GFV and no waitlist because it was full.

I was recently told this also by our guide so I am very confused! We bought the Grand when first released and regretted not buying more. We have been waiting for a release of wait list ever since.

 

[Supplanter]

To a degree but realistically anyone who isn't liquid enough to pull out $20-30K to pay for this isn't going to be able to afford it. If they just decide not to and essentially borrow to invest, I'd generally disagree with that approach as well but it isn't the same risk. In reality there are all types and degrees of risk but essentially no one who's asking this question is in that situation and certainly not someone who wouldn't qualify for financing without getting much higher than usual rates.

Eh everyone is in different circumstances and I disagree with blanket statements telling everyone not to buy on credit unless they have a net worth of 3+ mil. The reality is most people are going to vacation and they have some amount of money that'll go towards it regardless of their other financial circumstances. If they are committing to enough Disney vacations then it does make sense, even financed.

Really, as awful as it sounds, Even financed at 18 percent SSR points purchased at $80 a point will average an annual cost of around 9 dollars a point a year... With the per point cost right in line (a little under actually) with what disney is charging for new points and lower dues. A savings of around 40% over the best promos Disney has available.

I guess im just saying each person has different circumstances. If the choice the person is making is between 3 back to back disney trips that will cost 2-3k each all on a credit card or picking up 150 ssr points for 13k, then it's a pretty easy decision. Most people aren't looking at staying home or buying dvc as their 2 options. We are paying cash for ours, but I certainly dont fault anyone for financing one, it is still savings over paying cash or Buying direct

 

[_auroraborealis_]

it is still savings over paying cash or Buying direct

In this case, it is buying direct at 18% interest. Not a savings.

 

[Dean]

Eh everyone is in different circumstances and I disagree with blanket statements telling everyone not to buy on credit unless they have a net worth of 3+ mil. The reality is most people are going to vacation and they have some amount of money that'll go towards it regardless of their other financial circumstances. If they are committing to enough Disney vacations then it does make sense, even financed.

Really, as awful as it sounds, Even financed at 18 percent SSR points purchased at $80 a point will average an annual cost of around 9 dollars a point a year... With the per point cost right in line (a little under actually) with what disney is charging for new points and lower dues. A savings of around 40% over the best promos Disney has available.

I guess im just saying each person has different circumstances. If the choice the person is making is between 3 back to back disney trips that will cost 2-3k each all on a credit card or picking up 150 ssr points for 13k, then it's a pretty easy decision. Most people aren't looking at staying home or buying dvc as their 2 options. We are paying cash for ours, but I certainly dont fault anyone for financing one, it is still savings over paying cash or Buying direct

We'll have to disagree. The rationalization that consumer debt can be good is part of the problem IMO. That people are going to spend money when they can't afford it isn't a good enough reason to make it worse by financing.

 

[Supplanter]

We'll have to disagree. The rationalization that consumer debt can be good is part of the problem IMO. That people are going to spend money when they can't afford it isn't a good enough reason to make it worse by financing.

I guess I don't see debt as a problem if you use it as a tool to further your goals. If the poster knows he has disney vacations worked into his budget every year but doesn't currently have the cash to pay for his next 8 on hand, he can save money in the long term by consolidating that lifetime vacation purchasing power in a dvc contract. As long as the premium he pays to borrow is less than the savings he realizes through consolidation, he comes out ahead. In the case of dvc you can more than double your buying power if you use the resale market so a reasonable interest rate isn't necessarily a problem.

Id never suggest someone get dvc if they are unsure of the costs or aren't already (or at least intending on) vacationing at that level but I also don't think it's my job to tell someone how to spend their money. If they are going on these trips anyway, their finances aren't really the concern here. It's whether the program can save them money. That's at least my interpretation of the situation.

 

[Dean]

I guess I don't see debt as a problem if you use it as a tool to further your goals. If the poster knows he has disney vacations worked into his budget every year but doesn't currently have the cash to pay for his next 8 on hand, he can save money in the long term by consolidating that lifetime vacation purchasing power in a dvc contract. As long as the premium he pays to borrow is less than the savings he realizes through consolidation, he comes out ahead. In the case of dvc you can more than double your buying power if you use the resale market so a reasonable interest rate isn't necessarily a problem.

Id never suggest someone get dvc if they are unsure of the costs or aren't already (or at least intending on) vacationing at that level but I also don't think it's my job to tell someone how to spend their money. If they are going on these trips anyway, their finances aren't really the concern here. It's whether the program can save them money. That's at least my interpretation of the situation.

IMO there is no good consumer debt. Personal finance is mostly about behavior and choices rather than math. You're essentially saying the lessor of evils, I'm simply labeling both as such.

 

[Supplanter]

IMO there is no good consumer debt. Personal finance is mostly about behavior and choices rather than math. You're essentially saying the lessor of evils, I'm simply labeling both as such.

I get your perspective. I guess it's probably just personal experience. I used student loans to get through college. We probably shouldn't have gone on vacations knowing we were borrowing money to make it happen but we did and eventually paid it off. I also used credit cards etc... to start a business. We took a celebratory vacation before the debt was paid off. I would gladly pay double to have those memories now.
I guess that's my take on it. Everyone has to manage their finances according to their own circumstances. I understand where you're coming from but there is such a huge range of circumstances I just would feel bad telling someone don't do it until you can pay cash and instead of paying 3k in interest they give Disney an extra 5k in room rates and have nothing long term to show for it.

 

[Dean]

I get your perspective. I guess it's probably just personal experience. I used student loans to get through college. We probably shouldn't have gone on vacations knowing we were borrowing money to make it happen but we did and eventually paid it off. I also used credit cards etc... to start a business. We took a celebratory vacation before the debt was paid off. I would gladly pay double to have those memories now.
I guess that's my take on it. Everyone has to manage their finances according to their own circumstances. I understand where you're coming from but there is such a huge range of circumstances I just would feel bad telling someone don't do it until you can pay cash and instead of paying 3k in interest they give Disney an extra 5k in room rates and have nothing long term to show for it.

We haven't told anyone what to do, only the reasonableness of the choices. They can make their own choices no matter how good or bad we think it is. That it worked out for someone doesn't change the realities of the choices themselves, sometimes with Russian Roulette you do survive. But I'd agree that some situations are worse than others but people want to argue the "exceptions" which really aren't but forgetting that the OP for this thread was for someone looking at buying at 18% interest which means that debt hasn't been good for them so far.