Points and benefits!!!

[WDWmatty]

I'm pretty new to all this, I was looking at the points and how much they cost and it looks to me that it would cost you more to use the points, than it does just going on vacation as usual. For example for a week at OKW is 109 points $84/pt =$9156. Where as my normal vacation was alot less than that. I know im missing something could somebody please point it out and explain it. Thank You. I was also wondering if you think it would be worth it to invest at a young age such as 16. thank you.

 

[mbhoxsie]

WDWmatty...

One thing you are missing....

If you were to purchase those 109 OKW points at $84/pt, you'd pay $9156... ($84 dollars is a bit high for pts right now... Resale market is going for quite a bit less...)

But then those 109 points would renew themselves every year at the start of your use year until 2142... Once you paid off the initial $9156 you'd have the next 39 years of vacations with DVC accomidations for the most part paid for...

Yes, there are dues & taxes... Generally on average of $4/pt, which would mean you'd pay roughly $436/year.. Part of that might be tax deductable...

Add on inflation, and try staying in a 1BR apartment on Disney Property 10 years from now...

In a nutshell, there's a high level view of the savings...

 

[Dean]

If you will go every year for a week and stay on property, you will come out far ahead by buying. You will not be able to buy yourself at 16, nor would I think it a good deal in most cases at that age.

 

[PamOKW]

There's a slight typo in mbhoxsie's post. The current expiration is January 2042 (not 2142). The new SSR will have an expiration of 2054.

WDWMatty -- The points you need to reserve a DVC room will also not change very much if at all. The total number of points can't go up but they can be "rearranged". So, your initial cost is locked in. The dues can go up but they only go up to cover actual costs, not any profit for DVC.

 

[Duckielucky]

When we bought our points I figured that the actualized cost was $10 per point per year. On the resale market points are going for $10 per point.

109 points would equal $1,090. Not bad for a week.

 

[dcfromva]

Originally posted by WDWmatty
I'm pretty new to all this, I was looking at the points and how much they cost and it looks to me that it would cost you more to use the points, than it does just going on vacation as usual. For example for a week at OKW is 109 points $84/pt =$9156. Where as my normal vacation was alot less than that. I know im missing something could somebody please point it out and explain it. Thank You. I was also wondering if you think it would be worth it to invest at a young age such as 16. thank you.

WDWmatty,

The points you purchase are good for another 39years. In your hypothetical example, you would have to divide 9156 by 39 to find out the cost per year ($239) and then add on the maintence fee which changes each year (currently 3.49 per point-- X 109 points= $380.41) to figure out your out of pocket costs ($619.41) for one year.
If you are 16, I don't think you can own the property outright. I think you would have to have a custodian's name (someone of legal age) on the deed in addition to yours or set up some kind of trust account with you being the beneficiary. Obviously, you would want to consult with an attorney on the best way to approach this.

-DC

 

[dcfromva]

whoops! duplicate

 

[Duckielucky]

In the above calculation there was no consideration for interest. Figure it as either the actual interest you pay to finance or the opportunity loss.

At 9% that would be $412.02 per year. Add that to the $619.41 calculated above and you get $1,031.43. Divided by 109 jpoints and you get $9.46 jper year per point. As I said, $10 per point per year is a fair estimate.

 

[Lisa F]

Originally posted by Duckielucky
In the above calculation there was no consideration for interest. Figure it as either the actual interest you pay to finance or the opportunity loss.

At 9% that would be $412.02 per year. Add that to the $619.41 calculated above and you get $1,031.43. Divided by 109 jpoints and you get $9.46 jper year per point. As I said, $10 per point per year is a fair estimate.

I have to say that none of the investments we made before and around the same time as DVC are getting 9% per year. In fact, we have lost metric buttloads of money since we bought into DVC, but our DVC is worth more today than we paid when we bought it. Of course I don't expect that to always be the case but for right now, going on a Disney trip feels a heck of a lot better than looking at our portfolio!

Lisa

 

[married@wdw]

Originally posted by Lisa F
I have to say that none of the investments we made before and around the same time as DVC are getting 9% per year. In fact, we have lost metric buttloads of money since we bought into DVC, but our DVC is worth more today than we paid when we bought it. Of course I don't expect that to always be the case but for right now, going on a Disney trip feels a heck of a lot better than looking at our portfolio!

Lisa

Must agree! We paid half cash/half financing. My 401K looks pathetic and my company stock with still down 4% from where it was when I bought at OKW. And our finance rate was only 4.5%

Meanwhile, we got our OKW points for around $8200 and we could probably sell them for closer to $10,000-11,000. Wish I had known that when I bought! I would have bought extra points so I could sell them now!

 

[mbhoxsie]

Originally posted by PamOKW
There's a slight typo in mbhoxsie's post. The current expiration is January 2042 (not 2142). The new SSR will have an expiration of 2054.

hehehe... It was a freudian, I tell you... I was just hoping for those rumored contract extensions...

 

[Lisa F]

Originally posted by married@wdw
Must agree! We paid half cash/half financing. My 401K looks pathetic and my company stock with still down 4% from where it was when I bought at OKW. And our finance rate was only 4.5%

Meanwhile, we got our OKW points for around $8200 and we could probably sell them for closer to $10,000-11,000. Wish I had known that when I bought! I would have bought extra points so I could sell them now!

Just be grateful that your "company stock" does not say Enron on it (yes, my hubby worked for the great energy giant that went up much like a red star going supernova). *sob* at least I have my DVC to console me.

Lisa