Proof DVC is complicated.

[Brian Noble]

No doubt about that. I just pointed out that I feel that market value is a noteworthy difference to some other timeshares. It should never be a main reason to go with DVC (as development of the past is a bad predictor for the future) and it certainly wasn't for me but if life happens and you can't or don't want to use it anymore, there is a better chance to get some money back.

Unfortunately, market value is a double-edged sword.

If you are buying from the developer, market value is mostly upside. But if you are buying resale, market value starts to look more like downside risk coupled with opportunity cost. Prior to buying DVC, my timeshare portfolio was put together at a cost of approsimately zero dollars, and it delivered nearly twenty years of great vacations, paying lower maintenance fees than I would have spent on equivalent rent*. I might have to throw a little money at disposal, but I am still way ahead of the game because of those many years of usage value.

Now, consider one way in which DVC is not like most other points-based timeshares: DVC resales are resort-restricted, and at least today no amount of money can wash resale points. So, not only are DVC resales expensive, but they are also less useful. In comparison, you can pay between zero to maybe a thousand or so for a nice pile of Wyndham points (depending on on home resort/fee ratios/etc.) and those points spend just like those bought from the developer for standard reservations.

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*: For DVC exchanges, I ended up paying less in total costs than a Member would have spent only on Dues for the same stay, let alone less than market rents.

 

[IsDVCForMe?]

Do timeshares have an expiration date?

 

[walt34]

Unfortunately, market value is a double-edged sword.

If you are buying from the developer, market value is mostly upside. But if you are buying resale, market value starts to look more like downside risk coupled with opportunity cost. Prior to buying DVC, my timeshare portfolio was put together at a cost of approsimately zero dollars, and it delivered nearly twenty years of great vacations, paying lower maintenance fees than I would have spent on equivalent rent*. I might have to throw a little money at disposal, but I am still way ahead of the game because of those many years of usage value.

Now, consider one way in which DVC is not like most other points-based timeshares: DVC resales are resort-restricted, and at least today no amount of money can wash resale points. So, not only are DVC resales expensive, but they are also less useful. In comparison, you can pay between zero to maybe a thousand or so for a nice pile of Wyndham points (depending on on home resort/fee ratios/etc.) and those points spend just like those bought from the developer for standard reservations.

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*: For DVC exchanges, I ended up paying less in total costs than a Member would have spent only on Dues for the same stay, let alone less than market rents.

I completely agree. But coming back to the video that started this thread, being able to sell a contract bought from the developer is probably the more relevant scenario, I believe. I am refering to the segment where he claims, she needs to 'find another sucker' to take over her contract and best case scenario is she loses every dime she spent on her DVC timeshare. That's true for many timeshares but not true for DVC - at least at the moment.
And that's not even the worst part of the video.

 

[Brian Noble]

I am not sure it ever makes dollars-and-cents sense to buy any timeshare from the developer. I know that's not how I justified it.

And I am sure the video is clickbait trash. I am not giving it my attention either way.

 

[Sandisw]

Do timeshares have an expiration date?

Some do and some do not.

 

[Chili327]

I'm not sure I do either.

The only difference I see is that as long as WDW exists, it might be easier to get out of than others.

Price it low and someone will attempt the purchase.

Now that you mention it, I don’t see a difference either. Guess I’ll just have to sell my contract. Shucks!

… hopefully someone will buy it.

But that is quite an important difference, in my opinion.

Maybe I don’t understand other timeshares, I just assume they are horrible experiences so I don’t look into them. lol
But I’m sure I didn’t think DVC was going to be worth doing before I learned… so my point still stands, the others aren’t worth it.

I tried watching and regret every second of that time lost. I turned it off after 5 minutes after he called it the Disneyland Vacation Club.

Agreed.

@Chili327

Since this youtube video is so obviously clickbait, I'd unplug it in your post not to help the baiter to make money.

I am going to do so, but then I also feel like others will actually search for it, which may actually be worse… maybe I should just delete this whole thread?

the biggest difference for me is that the other timeshares don't let me stay at Beach Club.

Or Boardwalk, or Wilderness Lodge, etc, etc.

I am not sure it ever makes dollars-and-cents sense to buy any timeshare from the developer. I know that's not how I justified it.

It must for some?

I am sure the video is clickbait trash. I am not giving it my attention either way.

You definitely shouldn’t. I almost didn’t post it, but I really wanted to talk about how absolutely ignorant a “smart” guy can be. And that it is a perfect example of how badly knowledge can be given out there.

 

[DisneyFanSea]

The vast (vast) majority of timesahres have positive usage value, even though they don't have much market value. Given that, it is pretty easy to offer them up for adoption on e.g. tugbbs. I've successfully adopted a few this way, and they have delivered solid value since then.

https://tugbbs.com/forums/threads/how-can-i-give-away-my-timeshare-on-tug-for-free.132509/

Is that really the case?

Many times the biggest defining problem expressed with traditional timeshares is that the annual dues exceed the market cash rate.

This is why many people are giving away their timeshares for free, paying all closing costs, and offering to pay several years of annual dues to the buyer in order to offload it.

Looking at Fidelity real estate timeshare broker site is full of these kind of timeshares.

I'm not sure I do either.

Most traditional timeshares are for 1 specific resort for a specific week right? These kind of timeshares probably have the worst value versus a point/vacation club type of timeshares with major hotel brands.

 

[DisneyFanSea]

maybe I should just delete this whole thread?

The video link should be removed but the thread should stay in my opinion. If someone really intends to waste their time and give ad to those both attacking their brand/vacation of choice with stereotypes and misinformation that’s on them. But the thread should stay to show rebuttal points.

But I’m sure I didn’t think DVC was going to be worth doing before I learned… so my point still stands, the others aren’t worth it.

Generalized stereotypes with timeshares prevented me from buying into DVC for 5 years once we were in a financial position to do so. Definitely would have broken even with my resale contracts by now had I did more research back then.

 

[AstroBlasters]

I’ve watched Graham many times and he seems to be a pretty smart dude, but this video goes to show how hard it is to understand DVC & how they don’t see the difference from other timeshares.
Also the video he is reacting to seems to not understand much either.
The comments are even worse on how ignorant people can be.

Do Not Watch if trying to talk yourself into DVC. lol (a ton of misinformation)

I have always thought that guy was a tool.

 

[Judique]

I am going to do so, but then I also feel like others will actually search for it, which may actually be worse… maybe I should just delete this whole thread?

No, I wouldn't delete the whole thread. Since I don't get overly concerned with what outsiders project about timeshares or read about it much, it just kind of hit me that this guy figured out a way to make money by distorting the whole industry not just DVC.

It kind of brought me back to when my ex and I were doing some tours mostly to get freebies and a night here and there and his older brother started expressing his opinion. I was divorced by the time I again found my interest turn towards a set vacation that I could take yearly. Eventually I'd ruled out all the others and decided on DVC after about 3 years of staying and learning, so when I walked in I didn't need anything except for a contract to be written. I've never been sorry.

Older brother bought and sold Hilton Grand Vacation Club. They may have used it twice. Full disclosure - Bil got into a sort of timeshare industry with a high end property portfolio in major cities around the world and still has a stake in it in his retirement as far as I know. Nothing you will see advertised. Nowhere I will ever stay. So, obviously he found a value in shared property ownership.

Meanwhile the comment section was interesting once I got by the insulting references. People cloud their own judgement and guys like this reinforce that very easily whether he actually feels the same way or not. He probably owns somewhere.

 

[airjay75]

Is that really the case?

Many times the biggest defining problem expressed with traditional timeshares is that the annual dues exceed the market cash rate.

This is why many people are giving away their timeshares for free, paying all closing costs, and offering to pay several years of annual dues to the buyer in order to offload it.

Looking at Fidelity real estate timeshare broker site is full of these kind of timeshares.


Most traditional timeshares are for 1 specific resort for a specific week right? These kind of timeshares probably have the worst value versus a point/vacation club type of timeshares with major hotel brands.

I am by no means an expert. Brian can probably give you a much better answer. But, I think the positive usage value for many timeshares come not from the specific resort at which you own a week (which may or may not have have cash rates that exceed dues), but from your ability to exchange for weeks at other resorts where the cash value of what you have booked does exceed your dues. I think people who buy timeshares in other systems really learn how to use those exchange systems much the way we on these boards learn to use the exchange system within DVC.