Need Advice On How Many Points To Purchase

[gppnj]

Hi. Please forgive me if this is a long post, but I'm looking for advice, and I want to give as much information about my personal situation as possible so you can give me the best information. I've already learned so much just from read all the other posts.

I will be buying into DVC in the next two months. However, I'm still not sure about the amount of points I should get. I am unlike the typical DVC member in that I am a single adult, and I do not have any family. I like to go on vacation. Although I have gone on vacation alone a few times, I generally go with a friend (but not the same friend every time).

I think the reason many people buy into DVC is so that they can affordably get larger accommodations that can hold their whole big family. Since that doesn't apply to me, why am I planning to buy into DVC? Two reasons:

1. I see it as a hedge against inflation. If I figured out the cost for me to stay one week at SSR in 2005 and compared it to one week at a non-DVC Disney resort in 2005, my guess is it's a better deal to stay at a non-DVC Disney resort. However, as the years roll on, my feeling is that that reverses. I see that way the rates at non-DVC Disney hotels have risen. In 2015, I'm pretty sure that it will be a much better deal to stay at a DVC resort with points purchased in 2005 than it is to stay at a non-DVC Disney resort at 2015 rates. (If anyone disagrees with this, please let me know. Maybe I'm looking at things the wrong way.) The more years pass, the more this trend is amplified.

2. The other reason DVC appeals to me is that it will essentially allow me to prepay for my vacations - and more so in my case than for most other people. When someone is traveling with their family, they've naturally got to cover all the costs of their trip themselves. By contrast, when I travel with a friend, we have to pay for our own airfare, but we split the cost of hotel accommodations. Therefore, when I stay at a DVC resort with a friend, I will have the friend reimburse me for his or she share of the room. I'm not looking to make a profit off of my friend, but I'm not under any obligation to cover my friends' expenses whenever we go away (I'm not independently wealthy), so I see nothing wrong with having them pay me a fair amount that's about half of what we would have spent on a hotel othewise. (I'll have to figure out exactly how I determine how much to charge.) I can use the money I get from my friend to cover other expenses such as park tickets and meals, which therefore essentially gives me a prepaid vacation (not just prepaid accommodations).

So now I'm back to my original issue: How many points should I get? In my case, I don't foresee ever renting a two-bedroom unit. A studio would be perfectly fine for me except that unfortunately the information I have says that studios have one bed rather than two. As a result, I'd say I'd be using studios when I'm traveling with a friend I don't mind sharing a bed with and getting a one-bedroom unit when I don't want to share a bed. (It's really a shame that studios don't have two beds.)

Although I love Walt Disney World, most of the time, I don't want to spend more than one week there in any particular year. From that standpoint, it would seem like the basic 150 points would be plenty for me. However, I never intend for my one week at WDW to be my only vacation in a given year. I like to visit various other places as well. That raises the question of whether I should buy more than 150 DVC points so that I can use my other points for my trips to other places. This is the essence of my confusion.

I'm hearing varying things on this board about the wisdom of using DVC points for things other than staying at DVC resorts. I know that with a given number of points, I'll never be able to stay as many nights somewhere else as I would at a DVC resort, and I don't have a problem with that. The real issue goes back to the matter of inflation. If, for example, I use 160 DVC points to trade for a week at a condo in Hawaii, will I save money versus just paying for that condo out of pocket? More importantly, if ten years from now I use 160 DVC points purchased in 2005 to trade for a week at a condo in Hawaii, will I save money versus just paying for that condo out of pocket? If I can still use my DVC points that I'll buy this year as a hedge against inflation, I suppose then it's worth it for me to buy enough DVC points to cover both my trips to WDW and my trips elsewhere. However, if using the points elsewhere is just a bad idea all around, I'm probably better off just getting enough to cover my WDW trips.

I would greatly appreciate any thoughts you have on this. (And thank you for reading this.)

 

[dizplanner]

First off on the bed situation - studios at OKW have two queen beds, studios at the rest of the resorts have a queen bed and a double sofa bed. One bedrooms everywhere have one king bed in the bedroom and a queen size sofa bed in the living room. So except for OKW studio, your friend will be on a sofa bed regardless of whether you rent studios or one bedrooms.

Second, I would probably just get enough points for your WDW vacations (and HH or VB if you plan to visit either of these resorts). I don't think the 160 points to trade out to II is fixed, so I would not purchase points intending to get inflation protection when trading. You can always add on later if you find you do need more points. I'd start with 150 points.

 

[Tramp68]

First off, OKW is the only DVC that has 2 beds in the studio rooms. All of the rest have a bed and A sleeper-sofa. You could always keep all of your stays at OKW. The points are cheapest there as well.

As for how many points you need, you should ask yourself several questions..

How often will I go?

How long will I stay?

How often will I use my points for something else?

How much can I afford?

160 Points is a nice number as it allows for trades for 1 week elsewhere while also allowing you to go for 8 days in a studio during the most expensive time of year. You can always rent out any unused points.

Just dont forget to take into account your maintenance fees each year which run about $4 a year per point at SSR and as much as $6 a year per point at other resorts.


I know that it is usually not efficient use of your points for cruises and the Grand Floridian etc. But I am not sure about the 1 week for 160 points. I have not really looked into that. We just rented LESS points than it would have cost us for an Alaskan cruise and have been able to pay for our airfare and cruise and have money left over....I have heard other people say otherwise

You can always add on later. Once you buy a large block of points you cannot break them up to sell a piece off.

I.E. You buy 300 points now and decide you are only using 200...you cant sell off 100 points.

But, if you bought 200 now and then add on 100 later, you could choose to sell off the extra 100 if you find you arent using them.

Look at the point charts. Think about your plans and finances. You will come up with a good number for you.

Best of luck to you.

 

[lllovell]

If you and a friend are comfortable in a hotel room, then you would be comfortable in a studio. The 2nd bed (except at OKW) is a sleeper sofa, but I have heard FANTASTIC things about these new style sleepers. No bars in the middle, etc. Supposed to be super comfy.

I also agree with the above poster (and most on the boards) that its not typically the best financial decision to use your points to trade. The value on the number of points per night at most hotels, etc are MUCH steeper than the same night at a DVC resort. So, most here would advise renting your points, taking the cash and purchasing a vacation elsewhere (for Disney Cruises as well). There are some issues with renting points, but if done correctly, it is a reasonable way to be able to take "other" vacations from time to time.

Click on the above schedules and you will get an idea of how many points you will need to come at the times of year you are interested in vacationing. Certain seasons require more points than others. I don't see 150 being a bad starting point at all! Also, check out the resale market and ask all the questions you need here. It is a great way of purchasing, but you have to provide your own financing - but its a wonderful way to get your foot in the door as well!

Good luck!

 

[RobDoc]

It sounds as though you have devoted a lot of thought into DVC as it applies to your personal situation. Your analysis seems to be pretty sound and consistent with the conclusion reached by many on this board.

DVC can certainly be a hedge against inflation- WDW resorts have generally risen at a faster rate than increases in DVC maintenance fees (3-5% per year). As for using DVC points for non-DVC options, many will suggest that is not the best use of points. I will agree that the best use of DVC points (value) is at DVC resorts, but I think there is also value in using them for other options (including II exchanges). It all depends on what price you choose to value yuor points. Many will place a value of $10-15 per point, since that is what they feel they could get by renting their points to others. Since I have had no desire to rent and long ago got the value of what I originally paid in vacation savings, I choose to value my points at what they actually cost me this year ($3.84 for my OKW points, $4.04 for my HH points). Using that valuation, I can easily justify using my points any of the non-DVC programs and get a good value for the reservation.

As for the World Passport collection (or any of the other non-DVC options), that program can change at any time. The points currently charged for an exchange could be changed, the program could even be discontinued. Originally, RCI was the exchange company and points were based on points required for a week's stay during the season you wished to exchange. The program was changed to II and the current exchange point chart over a few years time and, while I don't expect it to change in the near future, it could be changed again.

I would not purchase DVC based on any of the current programs or perks being offered as many have changed over the years. It's fine to base your decision on your assessment of the value of the program as it exists at this time, but expect some changes over time. In addition to the changes (improvement, IMO) in the World passport program, DVC has changed the point costs for DVC resorts (this happened once, in 1996, for OKW stays), has dropped a food program, modified recreation programs (dropped some, added others) and changed the discount program for park admissions - so there is definitely a history of changes over time.

All things considered, it sounds as though you have done a good job of analyzing how DVC would work for you.

Enjoy!