Pondering the investment

[LaneOT]

Hello all...my first Thread on DisBoards..Just came from a week a Disney and need a bit of advice!!! So far able to garner alot of information about the DVC, however would like some advice from owners about whether or not its worth it... We went to SSR for the preview and absolutely fell in love with BLT suites and are excited about the prospect of staying there, however we are little hesitant with the pricing.. It totals about 271/mth for 200 pts plus 60/mth for maintenance. I just want to know what you're experiences are with the DVC and whether you feel your investment was wise....Thanks alot!!!

 

[Disney_Villain]

First of all, welcome to the DIS boards!

Our 3 DVC contracts of 460 points total were tossed on our home line of credit (at about 5% interest), so we got a lot better terms than through DVC financing. We are thrilled with our investments, even though we will be more thrilled when they are all paid off 2.5 years from today.

Since we 1st bought DVC in 2006, we've stayed at half the DVC resorts, booked Disneyland hotels twice, and booked 7-night Disney Cruise Line trips twice on our points. The system has worked very well for us, even with some spontaneous last-moment bookings (which we didn't expect to work). The DVC resorts have been very clean, with very friendly cast and good to excellent bus service.

In the end, we feel that we are getting a better deal now and for the rest of our lives on DVC points than on cash at the Moderate & Deluxe WDW resorts we used to stay at. We want a balcony and quiet pools (away from family pools) and most DVC resorts can provide that for us - at a lot less than what it would cost us to stay on cash at the Deluxe resorts with these amenities.

 

[DisDaydreamer]

Depends on what you think you are investing for. If you are looking for a financial gain... don't. Many people have worked the numbers a bunch of ways and come up with different answers. The answer is different for everyone.

Many times DW and I have said over the years that DVC was the best investment we ever made, but our investment was in our future vacations. DVC has been the main reason we have sooo many good memories and times.

Economically, we could have found cheaper vacations ongoing, but ultimately, we would've had reasons we couldn't afford it this year or that, or choose a less than preferable destination or package.

For us it is worth it because we enjoy it and it makes us take time every year to stop and smell the roses (or the ocean).

 

[disneynutz]

Hello all...my first Thread on DisBoards..Just came from a week a Disney and need a bit of advice!!! So far able to garner alot of information about the DVC, however would like some advice from owners about whether or not its worth it... We went to SSR for the preview and absolutely fell in love with BLT suites and are excited about the prospect of staying there, however we are little hesitant with the pricing.. It totals about 271/mth for 200 pts plus 60/mth for maintenance. I just want to know what you're experiences are with the DVC and whether you feel your investment was wise....Thanks alot!!!

It's not an investment, it's a expense, a pre-paid vacation plan. If you can save money by buying into the DVC then go for it. Only you and your family know how you would use the plan and everyones different. I could tell you what we like, but you might hate it.

I always recommend that you put your emotions away and rent a room at the DVC resort that you would like to buy into. We have talked to many members who have admitted that they made the mistake of getting caught up in the DVC/Disney moment and regretting purchasing sight unseen.

 

[Golden Rose]

We went back and forth about buying DVC for about a year and a half, during which time we took two trips to WDW, one with my mother. We stayed at the BW and the GF and spent more than $5400 on our rooms. We were in the process of planning a third trip, when we decided that we would just be better off buying DVC.

It was a good buy for us; the numbers just made sense. Now that our son is three, we're starting to go every year, sometimes twice a year. We like to travel with family and/or friends, so we were sometimes getting suites. Now we can get the two bedroom villas, and even have the grand villas as an option.

Now, we bought just recently (two contracts - AKV from Disney, BWV resale) and we haven't made our first trip yet. We're not worried about it making financial sense for us - that was pretty obvious - we're worried about how it will compare to our previous vacations. We always stayed Concierge level at Deluxe resorts. With DVC, Concierge isn't even an option except at AKV. We are hoping that the money savings and the bigger rooms will make up for the lack of concierge snacks and mousekeeping.

 

[Granny]

Welcome to the DIS boards.

Frankly, you're not going to get a lot of unbiased advice here. Almost everyone on these boards feels their DVC ownership is well worth it...or else they would have already sold it and probably wouldn't hang out on the DVC boards after that, would they?

Yes it's worth it to us. Does it save us money? Not really, as we go to WDW more often than we otherwise would have.

Does it allow us to stay in much nicer accommodations on-site than we would ever be able to afford? Definitely.

You'll have to make your own determination if DVC is worth it to you. If you ask someone driving a $60,000 car if it is worth it, they probably will think it is. That doesn't make it worth it to me.

 

[Mr_Potts]

This is my first post on this board. I added on 200 points at BLT during the cruise and I heard from both a guide in the Wonder's member clubhouse and from the husband of a cast member on the beach that some Disney employees were selling their company stock and buying BLT. The reason: they feel BLT will have a better return on their investment than the stock. I have been trying to figure out what they meant by that statement. I assume they think that the points for BLT will go up in value or that they can rent out points. I have to admit that this influenced my decision to buy.

 

[Granny]

This is my first post on this board. I added on 200 points at BLT during the cruise and I heard from both a guide in the Wonder's member clubhouse and from the husband of a cast member on the beach that some Disney employees were selling their company stock and buying BLT. The reason: they feel BLT will have a better return on their investment than the stock. I have been trying to figure out what they meant by that statement. I assume they think that the points for BLT will go up in value or that they can rent out points. I have to admit that this influenced my decision to buy.

Oh wow...that's really, really bad advice. Buying a timeshare, even BLT, as an investment hoping it grows in value??

While it is true that many DVC owners bought at a price years ago and could sell for more than that, I don't think DVC makes any sense as an investment to grow in value.

Common sense indicates just the opposite. DVC is a right-to-use timeshare with a specific expiration date. What you bought will last 50 years. In 10 years if you want to sell it, it will last 40 years. Inflation, etc could allow you to break even or maybe sell for more, but if that's the case the same money could have been put into other investments and made the returns.

I'm not saying that BLT won't appreciate in value for a while. I'm just saying that DVC is not a particularly good investment option. Hopefully the main reason you bought is because you want to visit WDW every year or so and stay in great accommodations at an affordable price.

 

[disneynutz]

This is my first post on this board. I added on 200 points at BLT during the cruise and I heard from both a guide in the Wonder's member clubhouse and from the husband of a cast member on the beach that some Disney employees were selling their company stock and buying BLT. The reason: they feel BLT will have a better return on their investment than the stock. I have been trying to figure out what they meant by that statement. I assume they think that the points for BLT will go up in value or that they can rent out points. I have to admit that this influenced my decision to buy.

Disney employees get a 15% discount on their DVC purchase so it changes the picture a bit.

We bought BCV at $98, now you can buy it at $88. AKV was $104, now it's $90. Not much of an investment.

 

[Granny]

Disney employees get a 15% discount on their DVC purchase so it changes the picture a bit.

I think they are also restricted in how they can sell their ownership, aren't they? Otherwise they could buy all day long and turn around and sell.

 

[CarolMN]

DVC is a prepaid vacation plan. It isn't a good value for everyone. My opinion is that if you have to finance the purchase, it's not a good value (except under very specific circumstances).

Do you go to WDW at least every other year and stay in a deluxe resort when you do?

Do you see yourself continuing to do that for the foreseeable future?

Do you / Can you plan your trips at least 7 months in advance - even better, can you can plan them at least 11 months in advance?

Can you minimize the number of weekend nights (Friday & Saturday nights) that you stay? Those are more expensive than the Sunday - Thursday nights.

Do you have the discretionary income to commit to the other costs of a WDW vacation - i.e., transportation, tickets, meals, souvenirs, etc. (A good financial adviser will tell you that 'discretionary income' means you already have an emergency fund equal to 3-6 months of normal expenses, you are saving for retirement and college (if appropriate), have disability income and life insurance and no credit card debt).

If you can answer yes to most of those questions, continue to research - you are a good candidate. You will need to compare the cost of DVC with the way you currently vacation to see if it will save you money. Your break even point will probably be several years away - I haven't calculated it myself since the price per point was $65).

Keep in mind that many members end up going more often, staying longer, staying in larger accommodations and treating friends and family. DVC has not saved them any money - it's costing them more.

DVC is not a financial investment - you cannot count on selling it later and getting your initial investment back. Some who bought earlier can do so right now, but there is no guarantee and it depends heavily on how long Disney will support resale prices via it's ROFR. Some will say that is not a worry - but it wasn't all that long ago that mortgages were easy to get because bankers & consumers thought home prices would continue to rise.

For the right person in the right circumstances, DVC is a wonderful bargain and a great investment in family vacation!

Good luck with your decision!

 

[MahaloPoly]

Subscribing because I am in a similar situation. We just returned from WDW last weekend. We were upgraded to a Magic Kingdom view during our stay. I would sit up late to look at the castle and then wake up at dawn to see the sun rise on the park. So naturally when we passed Bay Lake Tower every day on the monorail, I fell in love with the possibility of having that Magic Kingdom view, every year or two.

We are currently waiting for materials to arrive from the DVC, but we never had the chance to go to a presentation or tour. So I am concerned about what disneynutz said about buying something sight unseen... that sounds like me!

 

[Coach81]

If you can financially afford DVC, I would highly recommend it. We have gone a few times since we bought in a year ago, and we are planning on going back at least twice a year for the next few years. It is an investment in our family, and since we could afford it, we are thrilled with it.

Good luck with your decision.

 

[LaneOT]

Thank you for all your help...after thinking about it and talking to my sales rep, I decided that I would book a room at one of the villas and really experience it before I decide to purchase sight unseen... Thanks again!!!!!!!!

 

[DeeCee735]

If you are looking at it as an investment in future vacations (as well as a vacation expense), than you are looking at it correctly. If you are looking at it as a financial investment, bad idea.

Don't forget one big thing here, once you own, you'll go more

Means more money into the Disney pot , and more out of your pocket.

Also, think about the near future, this was one of the deciding factors for us. Did we think we'd want to go over and over in the foreseeable future - answer - YOU BET! So it made alot of sense for us to buy. Our first stay with the kids was at a deluxe, it was the POLY in June of 96. I don't remember the cost but it was up there in the thousands for a week, then we went back a couple of times, and by the time we bought in 2000 we could have nearly paid for DVC the first time!

We were fortunate enough not to have to finance at the time we bought or initial contract and the add ons (we just finished adding on with a purchase at AKV this past summer), but the dues are also a financial commitment.

You must be comfortable, in the long run, with your financial commitment and your choice of vacation timeshare. I will say that most people on this board so not regret their purchase - us included - nothing beats DVC for vacationing in OHO. Good luck!