REALLY confused!

[AllisonWRussell]

Okay, so do you have to pay the $19,000 (or so) and on top of that pay the $500-$800 annual dues along with park tickets and dining? Thanks!

 

[OKW Lover]

Doesn't sound like you are confused at all. Do you have a question?

 

[DVCLiz]

Okay, so do you have to pay the $19,000 (or so) and on top of that pay the $500-$800 annual dues along with park tickets and dining? Thanks!

Yes.

 

[mousefan1972]

Okay, so do you have to pay the $19,000 (or so) and on top of that pay the $500-$800 annual dues along with park tickets and dining? Thanks!

Yes. The $19,000 is a one time cost to purchase the points. Dues are paid every year and are based on the # of points you own, and at which resort. Of course, park tickets, transportation, food, etc are out of pocket expenses for each trip you take.

 

[Deb & Bill]

Okay, so do you have to pay the $19,000 (or so) and on top of that pay the $500-$800 annual dues along with park tickets and dining? Thanks!

You are purchasing a timeshare interest with that $19000 + or -. So you pay the initial cost of the points, plus annual dues/maintenance fees. Plus on each trip you go, you need to pay for your park admission, transportation and food (as well as any souveniers).

 

[disneynutz]

Okay, so do you have to pay the $19,000 (or so) and on top of that pay the $500-$800 annual dues along with park tickets and dining? Thanks!

Don't forget your transportation cost and the fact that everything but the original purchase price increases every year for as long as you own the contract.

Bill

 

[Splashboat]

Okay, so do you have to pay the $19,000 (or so) and on top of that pay the $500-$800 annual dues along with park tickets and dining? Thanks!

To be fair, it sounds as though you calculated dues for just over 100 points. You can buy 100 points resale for $5,000-10,000 easily depending on where you purchase and what you are looking for in the contract. The rest of the costs are expenses you have to pay just as you would for any vacation whether you own time share or not.

 

[luckyman_apd]

Okay, so do you have to pay the $19,000 (or so) and on top of that pay the $500-$800 annual dues along with park tickets and dining? Thanks!

yes, you are not confused. It may or may not be a good deal. Each person is different and will use their DVC differently. So it's not a great idea for everyone. You also seem to have sticker shock. Think of it as PREPAYING for future vacations. If future vacations are not what you are going to do, and do them frequently, then it doesn't work for you.

What you need to do is take ALL the points over the life of the contract. Example, 100 BLT points would be 4800 over then next 48 years the contract is good for. Then divide your purchase price, $14,000 if buying 100 points thru Disney. So that's $2.92 for each point you have over then next 48 years. Then add the current years dues to that price. So $4.23 per point for 2012. So now you are at $7.15 per point for 2012. If you use all 100 points for vacations in 2012 you then paid $715 for your accommodations. Can you get comparable accommodations for that price? Now do that every year, and you will save money. If you only go to Disney every few years or longer, it makes no sense for you to buy. You have bought points you won't use, and paid for nothing.

 

[zavandor]

Then divide your purchase price, $14,000 if buying 100 points thru Disney. So that's $2.92 for each point you have over then next 48 years.

You should also consider the opportunity cost of investing money. If you don't buy DVC, you could invest that same money and in a 48 year time you would have much more money. More than double, I think.

At the same time, every year you can save some money vacationing with DVC, so you can detract that saving from the capital you invested.

Someone made a calculation, and comparing the cost of a vacation in a deluxe resort, you can break even in 7 years. But if you compare to the cost of a moderate or Value resort, you don't make a lot of saving.

 

[bookwormde]

That reality is why a lot of poeple go the resale route. If you do you can get you yearly points for a little over $7 including intital cost amoratized over the remaining live of the contract, lost income from the $ you spent on the purchase, and dues.

With this you can pick up studios for 100-200/nt.

 

[disneynutz]

yes, you are not confused. It may or may not be a good deal. Each person is different and will use their DVC differently. So it's not a great idea for everyone. You also seem to have sticker shock. Think of it as PREPAYING for future vacations. If future vacations are not what you are going to do, and do them frequently, then it doesn't work for you.

What you need to do is take ALL the points over the life of the contract. Example, 100 BLT points would be 4800 over then next 48 years the contract is good for. Then divide your purchase price, $14,000 if buying 100 points thru Disney. So that's $2.92 for each point you have over then next 48 years. Then add the current years dues to that price. So $4.23 per point for 2012. So now you are at $7.15 per point for 2012. If you use all 100 points for vacations in 2012 you then paid $715 for your accommodations. Can you get comparable accommodations for that price? Now do that every year, and you will save money. If you only go to Disney every few years or longer, it makes no sense for you to buy. You have bought points you won't use, and paid for nothing.

Most owners don't keep their contracts for the life of the contract so the numbers need to be adjusted based on how many years you expect to own.

Bill

 

[nunzia]

You should also consider the opportunity cost of investing money. If you don't buy DVC, you could invest that same money and in a 48 year time you would have much more money. More than double, I think.

At the same time, every year you can save some money vacationing with DVC, so you can detract that saving from the capital you invested.

Someone made a calculation, and comparing the cost of a vacation in a deluxe resort, you can break even in 7 years. But if you compare to the cost of a moderate or Value resort, you don't make a lot of saving.

And also, the way investing is going, you may lose money on that money you would have invested in DVC and after 48 years of nice vacations, come out way ahead with DVC..it's really just a shot in the dark on what value is.

 

[luckyman_apd]

Most owners don't keep their contracts for the life of the contract so the numbers need to be adjusted based on how many years you expect to own.

Bill

That may be true, but that's not a calculable figure. Who knows what the sale price will be. This is just a ballpark figure to help out. If you buy resale, and then sell at a decent price down the road, you could make it well worth it, or if you don't get a good price (as in far less than you paid) it will be more expensive. I don't plan on buying to get rid of it. I see us using it for at least the next 20 years. After that who knows, and I've calculated it to break even at the 7 year mark for us (again, nothing is absolute as dues and rack rates are not predictable). After the break even point, it's all profit to sell, and the annual cost of dues from there on HAVE to be far less then booking direct. The simple answer is if you will use it, and not increase you Disney Frequency just because you own, then it can totally be a money saver.

I hear a lot of talk of lost investment on your money as well. That may be true for bigger contracts, I don't see a smaller contract having that "lost investment" value being a big difference, especially if buying resale. It certainly comes into play if you are buying a big contract direct from Disney at $140 pp. Again, this is why it is truly a case by case scenario for who it's good for an who it isn't.

Bill, you always bring good info for me to think about in your posts. It also helps me consider everything before I make my purchase so thank you.

 

[Tamar]

Most owners don't keep their contracts for the life of the contract so the numbers need to be adjusted based on how many years you expect to own.

Bill

True, but the owners don't just walk away from them, they sell them. The profits of the sale need to be part of the equation. Although, I must say, it's more fun to just own the points and not worry about whether or not they were a "good investment".

 

[luckyman_apd]

True, but the owners don't just walk away from them, they sell them. The profits of the sale need to be part of the equation. Although, I must say, it's more fun to just own the points and not worry about whether or not they were a "good investment".

That's what I'm hoping for Just made an offer. Wish me luck.

 

[lovin'fl]

That's what I'm hoping for Just made an offer. Wish me luck.

Good luck! And congrats! You can go on the 'anyone made it through ROFR recently' thread and post your timeline...and check out recent timelines to give you an idea of how long the process will be...also gives a good idea of what price each resort is going for. Hopefully, we can say 'Welcome Home' to you!