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

[MickeyBobby]

18% interest? Negative past credit history? 240 points for 10 days at VGF with extended 5 years? This whole thread almost seems like someone is trying to egg on everyone in the forum.

There's nothing to even explain. The original post asked if this was a good deal in the long run. No, it is not. Don't buy. You don't understand the product, don't understand what you are buying, and it seems clear there is also no financial understanding overall for the seeming disregard for something as absurd as an 18% interest rate. Did that even make you bat an eye? I'm not sure your credit/financial history looks to be getting any better in the short or long term with decisions like this.

I'm sorry. I don't mean to seem direct or rude. Please just don't waste your money on this. Take a few years to get everything in your fiscal house order and continue to vacation at Disney when you can.

 

[miTnosnhoJ]

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.

 

[Dean]

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.

That's the best case scenario, the other options are far worse.

 

[ktmo]

Um. Sorry to hijack, but... Are they selling VGF direct again?

 

[suebeelin]

Please don't buy 240 dvc points at $600/month (or $7,200/year)-- and that's not taking into account the yearly maintenance fee of $1,450. That's $8650/yr.

240 points gets you the following in June:
6 nights in a 1bd at beach club
4 nights in a 1bd at GFV
12 nights in a studio at beach club
10 nights in a studio at GFV

For $8650/year.

In other words, you'll be paying $720/night for a beach club studio $865/night for a grand Floridian studio.
$1,441/night for a 1bd beach club
$2,162/night for a 1bd grand Floridian

You will be PAYING MORE THAN RETAIL!!

Another alternative is to rent 240pts worth of rooms for between $3,100-3,600 (they rent for $13-16/pt, and you can go through a broker or a direct owner) if getting a 1bd is important to you.

I would much prefer to pay around $3,500 to rent, no obligation of owning, for 240 points rather than pay than $8,650/year for the same rooms.

My advice? Don't buy. Not at $8650/yr for 240pts.

Good luck

 

[Lynne M]

OK, I plugged those numbers into a loan calculator. You'd be paying roughly $50,000 just in interest on that loan if you take it for the full 10 years. Fifty. Thousand. Dollars. Just in interest. Over and above the cost of the DVC membership. Fifty thousand dollars thrown away, with nothing at all to show for it. It's not like you get that back if you sell your contract. I can't see any scenario in which that would be worth it.

What else could you do with that money? Put a down payment on a house? Buy two or three cars? Put a kid through college?

If you can afford $700/month payments on a timeshare, you can put that $700 in the bank and save up till you can buy DVC at resale without financing. And keep that interest money for yourself.

 

[GoingtoWDWagain]

Thanks a bunch for all of the information!

 

[GoingtoWDWagain]

Please don't buy 240 dvc points at $600/month (or $7,200/year)-- and that's not taking into account the yearly maintenance fee of $1,450. That's $8650/yr.

240 points gets you the following in June:
6 nights in a 1bd at beach club
4 nights in a 1bd at GFV
12 nights in a studio at beach club
10 nights in a studio at GFV

For $8650/year.

In other words, you'll be paying $720/night for a beach club studio $865/night for a grand Floridian studio.
$1,441/night for a 1bd beach club
$2,162/night for a 1bd grand Floridian

You will be PAYING MORE THAN RETAIL!!

Another alternative is to rent 240pts worth of rooms for between $3,100-3,600 (they rent for $13-16/pt, and you can go through a broker or a direct owner) if getting a 1bd is important to you.

I would much prefer to pay around $3,500 to rent, no obligation of owning, for 240 points rather than pay than $8,650/year for the same rooms.

My advice? Don't buy. Not at $8650/yr for 240pts.

Good luck

Thank you so much!! I now have a much better understanding of DVC. Truly appreciate the information from all.

 

[BWV Dreamin]

To the OP, I am a VGF owner. I love the resort. If I had it to do over I would buy a fixed week studio. I had no idea how hard it would be to book studios. I know you want a one bedroom but that is much easier to book. You could convert your week to points and borrow for that one bedroom. You never know when you'd like to stay in a studio. Then there will be no stress. Lots to think about.

 

[gagirldawg95]

We were lucky enough to be able to buy VGF directly from Disney last August. At the time I didn't realize the wait list was a big thing (it was officially closed) - I simply calmly insisted that the only resort I wanted was VGF, I needed enough points for a 5 night trip in February and a 4 night trip in October, and I wanted a 1 bedroom. If they wouldn't sell to me, I'd buy resale (the resale discount at that point wasn't enough to offset resale hassle, in my opinion). I think the fact that I was financing made them more motivated to accommodate me. But because I paid the entire DVC loan off 6 months later, interest wasn't a huge factor (and it was worth it to allow me to time my liquidity). Where those points they sold me "magically" came from - I don't know. They must have gotten them from foreclosure or ROFR. But DVC is smart enough to make a sale if they can.

I've stayed in most of the DVC properties by now (mostly on cash reservations), and I unhesitatingly say that I adore VGF.

Direct purchase can make sense, as can financing in some circumstances. But I would echo the advice of other posters - don't overpay due to insufficient research. Study these boards and really think hard about what you want for accommodations and how much you're willing to spend for that. There are lots of ways to vacation at Disney, and many options even within DVC. And 48 years offers you chances to buy into VGF down the road.

Good luck!

 

[GoingtoWDWagain]

We were lucky enough to be able to buy VGF directly from Disney last August. At the time I didn't realize the wait list was a big thing (it was officially closed) - I simply calmly insisted that the only resort I wanted was VGF, I needed enough points for a 5 night trip in February and a 4 night trip in October, and I wanted a 1 bedroom. If they wouldn't sell to me, I'd buy resale (the resale discount at that point wasn't enough to offset resale hassle, in my opinion). I think the fact that I was financing made them more motivated to accommodate me. But because I paid the entire DVC loan off 6 months later, interest wasn't a huge factor (and it was worth it to allow me to time my liquidity). Where those points they sold me "magically" came from - I don't know. They must have gotten them from foreclosure or ROFR. But DVC is smart enough to make a sale if they can.

I've stayed in most of the DVC properties by now (mostly on cash reservations), and I unhesitatingly say that I adore VGF.

Direct purchase can make sense, as can financing in some circumstances. But I would echo the advice of other posters - don't overpay due to insufficient research. Study these boards and really think hard about what you want for accommodations and how much you're willing to spend for that. There are lots of ways to vacation at Disney, and many options even within DVC. And 48 years offers you chances to buy into VGF down the road.

Good luck!

Great information!! Thanks a bunch! I don't think we will be purchasing at this time.

 

[lovewdwfun]

I would really recommend meeting with a financial counselor and/or advisor. If this post is indeed true, you really need some help in understanding how to handle your finances. Poor credit history and financing a luxury vacation at 18% is an absolutely terrible financial decision. Ok the plus side, buyers like this have enabled me to get great deals in distressed points...

 

[freediverdude]

Mark my words, in 10 or 20 years, maybe even 5, some of these people who are not buying a monorail resort because "it seems a little too high" are going to be regretting it. When those points are $300 each, we are all going to be lamenting about how we thought $170 was outrageous (btw, it's going up to $171...tomorrow? Sometime in the next few days, so last chance people). Just look at what happened with past resorts. I know that's not any guarantee for the future, but I don't see those resorts being worth a whole lot less than what they are now ever in the future. If we have another recession, the prices will dip down again for a while like 2010-2011, but they will return back up. It's real estate, it's all about location, location, location.

 

[suebeelin]

Mark my words, in 10 or 20 years, maybe even 5, some of these people who are not buying a monorail resort because "it seems a little too high" are going to be regretting it. When those points are $300 each, we are all going to be lamenting about how we thought $170 was outrageous (btw, it's going up to $171...tomorrow? Sometime in the next few days, so last chance people). Just look at what happened with past resorts. I know that's not any guarantee for the future, but I don't see those resorts being worth a whole lot less than what they are now ever in the future. If we have another recession, the prices will dip down again for a while like 2010-2011, but they will return back up. It's real estate, it's all about location, location, location.

I have both a monorail resort and an Epcot resort (bwv and BLT) and would be happy to have only one or the other. In fact, I prefer my Epcot resort.

My older sister bought direct at BLT, a monorail resort, in 2009. She ONLY stays at bcv or bwv, or pays cash for yatch club. She wishes she bought resale in 2009 for bcv/bwv instead of buying BLT.

Paying MORE than retail for a decade isnt recommended. Note the op also asked whether the numbers he presented made sense. It does not make sense in his case. He's happy at both bcv and GFV. Renting is probably a better alternative for him.

 

[Supplanter]

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.

The time share store recommends monera on their site, they offer no credit check financing for fl properties at 12 percent. Still pretty bad, but a lot better than 18

 

[KAT4DISNEY]

Mark my words, in 10 or 20 years, maybe even 5, some of these people who are not buying a monorail resort because "it seems a little too high" are going to be regretting it. When those points are $300 each, we are all going to be lamenting about how we thought $170 was outrageous (btw, it's going up to $171...tomorrow? Sometime in the next few days, so last chance people). Just look at what happened with past resorts. I know that's not any guarantee for the future, but I don't see those resorts being worth a whole lot less than what they are now ever in the future. If we have another recession, the prices will dip down again for a while like 2010-2011, but they will return back up. It's real estate, it's all about location, location, location.

Some may but most of the ones who are lamenting the $170/point are possibly the ones who know that nobody needs to own DVC in order to go to WDW. The numbers are a much longer payback at the prices they are now and Disney is become a more and more expensive vacation by the second these days. More may be lamenting that they feel locked in if they end up underwater on a loan on a monorail resort in a couple years which is what they would be in the short term and probably even intermediate term. Pay as you go is not a bad idea.

 

[freediverdude]

I have both a monorail resort and an Epcot resort (bwv and BLT) and would be happy to have only one or the other. In fact, I prefer my Epcot resort.

My older sister bought direct at BLT, a monorail resort, in 2009. She ONLY stays at bcv or bwv, or pays cash for yatch club. She wishes she bought resale in 2009 for bcv/bwv instead of buying BLT.

Paying MORE than retail for a decade isnt recommended. Note the op also asked whether the numbers he presented made sense. It does not make sense in his case. He's happy at both bcv and GFV. Renting is probably a better alternative for him.

Your experience proves my point. You bought near park resorts for under $100 just a few years ago, and now what are they? Even resale? I think you're fooling yourself if you don't think prime locations next to the first and third most visited theme parks in the entire world won't go up in price. Back when previous resorts were sold, they were considered high at that time. I wish I had done whatever it took to purchase back then.

 

[_auroraborealis_]

I kind of wonder what happens to the MK near-park resorts if the monorail has a catastrophic failure, though. (Resort and DVC sides, of course, would be impacted.)

Monorail sometimes seems as though it is held together with faith and trust and duct tape.

 

[Dean]

Mark my words, in 10 or 20 years, maybe even 5, some of these people who are not buying a monorail resort because "it seems a little too high" are going to be regretting it. When those points are $300 each, we are all going to be lamenting about how we thought $170 was outrageous (btw, it's going up to $171...tomorrow? Sometime in the next few days, so last chance people). Just look at what happened with past resorts. I know that's not any guarantee for the future, but I don't see those resorts being worth a whole lot less than what they are now ever in the future. If we have another recession, the prices will dip down again for a while like 2010-2011, but they will return back up. It's real estate, it's all about location, location, location.

That's true no matter what they buy or don't. Some that don't buy will wish they had, some that buy will wish they hadn't, some that buy VGF will wish it'd been Poly, SSR, AKV, etc and any variation you can think of. Part of the problem with your line of thinking is that it only works out reasonably if one ends up preferring VGF, can afford it long term and there are no hiccups along the way that depress resale prices or the ability to sell at all. There are variables we can't anticipate or account for. Even assuming no park closings and that DVC is still in business, your assumptions are basically best case scenario. Even if VGF hit's $300 a point retail in 10-15 years, resale won't be that high and when you account for inflation, one would be lucky to break even best case scenario (having used points of course and paid dues). This line of thinking is also why the buy smaller contracts issue isn't guaranteed to be a good option long term. Plus many would have spent a significant amount of money they didn't have to. If one can afford it (IMO that's pay cash without consumer debt) and that's what they want then go for it just like the luxury car that one wants but doesn't need. Understanding these issues are part of the reason one needs to spend enough time and effort to understand the variables to make these decisions. However, IMO, NO buyer who isn't already well versed in DVC has enough information to make a truly informed decision along these lines and it is my strong opinion that buying low and trying the system is almost always the best option even for those that think it isn't.

 

[suebeelin]

Your experience proves my point. You bought near park resorts for under $100 just a few years ago, and now what are they? Even resale? I think you're fooling yourself if you don't think prime locations next to the first and third most visited theme parks in the entire world won't go up in price. Back when previous resorts were sold, they were considered high at that time. I wish I had done whatever it took to purchase back then.

I think the current direct prices are insane. I bought BLT about 18 months ago for $86/pt. Granted, that was a pretty decent price for the end of 2014/beginning of 2015... But it was less than 2yrs ago, and now I can resell at a 30% profit?? A timeshare?

The prices are a bit inflated, IMO.

I won't even state what I got bwv for. At the time it was neither a good nor bad deal. That was 5/6 years ago.

I crunched the numbers and figured I would get my ROI in 7-9 trips, assuming there is no resale value. I wouldn't touch dvc now at these prices, especially the direct prices. That's just me, as we tend to be frugal but like luxury.

Things like buying large purchases in cash (car/home), maxing out our retirement funds, etc.... takes precedent.

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.

Hey, my brother drives a masarati. It costs 3 times my odyssey but he has the cash and doesn't mind the luxury purchase. Same idea.