Purchasing DVC

[OrlandoHelp]

Please help me talk my husband into purchasing a DVC.

Is there an investment opportunity in it? That may help convince him. Right now he thinks it's just an added expense.

Don't know much about it. What are the pros to purchasing and I guess the cons as well. Although I may not mention cons to him.

Thanks

 

[Sandisw]

There is a lot of great information on the boards about DVC and what it has to offer.

It is a great program for those that like to visit WDW on regular basis, who want to stay in bigger rooms, and those that can plan vacations far in advance.

You buy points at one of the resorts and this becomes your "home". You get to book reservations here whenever you want, providing there is availability when you call--that is the reason for needing to plan vacations well in advance.

When you go, which resort you pick, the room size, and the number of days, will determine how many points you need for your travel needs.

As far as investment, do not buy it for that reason. While those that bought in when DVC first began (early 90's) are still seeing a good value for their contracts on the resale market, there is no guarantee that this will happen.

We bought in to BLT last year because we wanted to commit ourselves to Disney vacations for many years. We knew that over the course of time, what we were paying to join DVC, initial cost and yearly MF's, would be less than just paying cash.

Basically, after 7 years or so, we will be getting our yearly summer trip of 5 to 6 nights in a 1 bedroom for less than what we had been spending for the same trip to the CR in a regular hotel room.

Ask lots of questions and research before making anyway decisions!

Good luck!

 

[Deb & Bill]

Don't plan on buying as an investment. It's not an investment. It's just a way to prepay for your vacations. But you'll still have to pay annual member fees based on the points you own (the location and the number). Your husband may be correct in his thoughts about it only being an expense.

Don't plan on using DVC to tour the world. Plan on using it to stay at the resort you buy points at, because that is all that is guaranteed. Non-DVC stays are renegoiated annually and even then, you might not be able to use your points for those non-DVC trips.

And don't plan on booking a stay a few months or weeks out. Most members book at 11 months out at their home resort and try to switch to another DVC resort at 7 months out. If you wait too long to book your stay, there may be nothing left to book.

DVC is nothing but a timeshare managed by Disney.

I feel like I should be saying "Bah, Humbug" about now.

 

[ToddyLu]

Just devote ther next 6 months on these forums and you will get the gist of it. DVC is only a way to "pre-pay" for your vacation at WDW. You can't approach it like an investment. It needs to be more like " look at what all we get when we stay there." Price a studio during the week you usually go--paying cash. Last year our studio was $3500 for 9 nights--add MIL's Studio to that you get $7000 total for the trip. My buy in to DVC was 210 points at AKV. So I pay $237 month mortgage for the points, $80 month for MFs, then when the loan is paid off, I pay just MFs for the next 40 years. Can't beat it if you are going to Disney yearly anyway. Buy a small contract for yourself, resale of 50 points or so and see how you like like and then invite DH to come along..... As you can see in my signature...my DH loves me for my points.

 

[ELKHUNTER]

You can call it an investment of sorts, an investment in furture vacations.

 

[DenLo]

You can call it an investment of sorts, an investment in furture vacations.

And all the added expenses associated with a Disney vacation, tickets or annual passes, food, souvenirs, travel expenses (air is just going up, up, and up).

As others have stated, the DVC is really only a way to prepay for part of your hotel room expenses now and pay less later with your annual dues as a DVC member.

It's not an investment. But you are not throwing the money away either. Many DVC members have used their memberships for years and have sold it later for a similar price they purchased it at or even higher amount for the older resorts. However, now the DVC has raised their prices so much, the likelihood of recovering your initial purchase price is highly doubtful. But only time will tell if those that are buying BLT, VGC and Aulani will ever recover their purchase price later when they sell their contracts.

I feel that both members of a couple should agree to buy DVC together. And if one doesn't agree then perhaps it would be best if you don't buy. Sorry I couldn't give you help in convincing your DH.

Except I can make this statement, my DH and I still feel our only mistake in buying into the DVC was not buying 13 years earlier when we had the opportunity. As retirees, we do take multiple vacations every year and are quite happy to spend a lot of that time at a Disney park staying in a DVC resort.

 

[wildernessDad]

It takes money to purchase it, money for dues, money for expenses while on vacation. What you get back is vacations.

 

[MarshallMoore6]

It is definitely not an investment for a financial return. It does 'force' you to take much needed vacations. It is entertainment.

 

[william1375]

If you start small. Buy a resale contract right now SSR can be had at a very reasonable price. After his first stay, doing the math on all the money he will have saved/will save staying at a Deluxe resort ... he is sure to come down with the "addonitis" fever affecting so many owners. Looking for his next addition!

 

[Greysword]

How often do you normally go to WDW?

 

[McCrae]

Most people on these boards will respond if asked is DVC an investment they will say no. Standard message DVC make when selling DVC to you.

I disagree. It depends on what you class as an investment. Yes its not your standard equity, bond or mutual fund investment....but It can improve your wealth.

When I am looking at my net wealth I consider everything....

I look to make investments that will overall increase my net wealth vs my expenses.

Owning DVC has increased my annual net worth due to the savings I have made on the vacations I have taken. I know that each year what my rough hotel expenses have been and I have saved substancial sums.

At the end of the year my net cash position is higher than it would have been if I had not invested in DVC. With interest rates on savings so low, I am in a much stronger financial position by owning DVC than by having the money I used to buy my membership stuck in a low yielding deposit account.

So IMO DVC can be classfied as a very good investment.

 

[notaclue]

We bought this year when we found out that we could have saved a bundle if we'd bought years earlier. After 3 years of taking the kids and grandkids to WDW (and paying for everything) we realized that we could have paid for our 2 DVC contracts in just 3 years. Oh well, better late than never.

 

[Crystal_27]

DVC is a way to "prepay" your accommodations, and I wouldn't necessarily go into it believing it is an investment. However, for some (those who stay in Deluxe accommodations, specifically), you should get to a "break-even" point after about 7 trips. However, DVC is still a very expensive undertaking when you consider your annual dues commitment every year, in addition to the high buy-in cost. Still, if you run the numbers of what a "typical" trip (accommodations) costs you, the numbers will either make sense or they won't. Good luck!