Sitting on the fence ... help!

[dcladdict-ohio]

Took the tour two weeks ago while on a 3 day land (AKL)/ 4 day cruise, finally got tired of everyone telling us we were not smart to do a Disney vacation every year and not buy into DVC

Of course I am now hooked and am trying to decide what to do .... DH was not with me so I am educating him at the same time. I know it's the blind leading the blind but I am trying my best.

I have a couple of questions that someone out there may have some insight on:

1. Are we too old? DH and I are both 49 so our points will out live us, is that smart? We do have a DD who is 15, she will probably vacation with us forever (if we pay!)

2. I have seen many comments on these boards regarding not financing the purchase. If the interest can be used as a tax deduction why is the financing such a bad thing?

3. We are DCL people at heart (5 down, 2 more booked). I keep seeing where DCL is not a smart use of points .. is this true or is it really just less of a value than the resorts?

4. DH and I can retire in 7 years, we are looking at being able to use DVC points outside 'prime time' to travel ... will this work or are there restrictions?

5. DH is not a fan of the parks .... he's a golf addict. Is DVC the way to go ... he likes WDW a far as the resorts etc.

TIA for any opinions. Apologies for what are probably silly and repetitive questions for most of you.

 

[chalee94]

1. Are we too old? DH and I are both 49 so our points will out live us, is that smart? We do have a DD who is 15, she will probably vacation with us forever (if we pay!)

unless you love AKV or SSR, you should look for a resale contract: generally cheaper prices and the older DVC resorts like VWL and BWV tend to expire in 34 years anyway.

(exception: if you decide you love BCV, it probably will be priced similarly whether you buy resale or direct.)

2. I have seen many comments on these boards regarding not financing the purchase. If the interest can be used as a tax deduction why is the financing such a bad thing?

it's still more cash going out...adding to the total cost of your stays...making hotel stays more competitively priced.

3. We are DCL people at heart (5 down, 2 more booked). I keep seeing where DCL is not a smart use of points .. is this true or is it really just less of a value than the resorts?

it's generally cheaper to pay cash for cruises. once in a while, it's nice to have as an option if you've got pts to burn, but it's not a good deal.

4. DH and I can retire in 7 years, we are looking at being able to use DVC points outside 'prime time' to travel ... will this work or are there restrictions?

as long as you can plan to book 11 months in advance and you enjoy your home resort, there are no restrictions. be aware that DVC "prime time" is not always the same as for wdw as a whole.

5. DH is not a fan of the parks .... he's a golf addict. Is DVC the way to go ... he likes WDW a far as the resorts etc.

sure, OKW and SSR are right on some of the courses...there is also currently a DVC perk related to golf membership at wdw - but that is subject to change at any time.

 

[debbiepump]

DH and I are 61 and 55 (me). Bought two years ago. Kids are grown, don't enjoy WDW, will probably never go with us. DH hated WDW until we bought into (well I bought into) DVC. Now, he loves it. He loves the fact that he can get up and relax in the villa and not have to 'comando' through the parks all day and night. He (and I) love the fact that I can go and he can stay and do what he wants and what I want. Finance?? I read these posts from folks concerned that their credit scores aren't perfect, etc., DVC (or anything to this magnitude) is a luxury, an extra 'treat' in life, not something you have to worry about coming up w/the money for. As far as it being a tax write off, yes, that's true, but that's not how we function. We're debt free and love it that way. Once you have our points and realize what it costs 'per point' to do a cruise, etc., you'll understand. BUT, I really feel the points are yours and to do with as you see fit. I like the fact that with these points we can use them for various timeshares outside of Disney, use them for cruises or even the concierge group. Lots of variety. I love WDW because I can go down with friends, my sis or alone and feel safe in the parks. Buying into WDW was a big commitment for us, we live all the way across the continent in Seattle and wouldn't dream of selling right now.

 

[cseca]

3. We are DCL people at heart (5 down, 2 more booked). I keep seeing where DCL is not a smart use of points .. is this true or is it really just less of a value than the resorts?

TIA for any opinions. Apologies for what are probably silly and repetitive questions for most of you.

Sorry I can't help you with your other questions BUT just to give you a thought.
IF you decide to buy into DVC, what people have been known to do is to rent out their points to use for DCL vacations. It's NOT the most convenient option but it is the better value. Or rent out some points and use combination of points and cash for the trip.

DVC best value is when used for staying on DVC resorts (OKW, SSR, AKV, BWV, WLV, BCV, VB, HH, and coming up BLT). Anything other than those resorts it most probably (I'm not sure about outside exchanges, I'm mostly talking about other Disney resorts and DCL) will cost you more to use DVC points than paying cash.

So if the majority of your trips will be DCL, I don't think DVC is the best option for you. But if you do your own land and sea combo that might be better. You can still pay cash for DCL and use points for your land portion.

Good luck!

 

[hakepb]

Another Cruise angle, even if a cruise looks like a current OK use of your points:
The total of points on the charts for all DVC resorts are fixed. (If the raise one area, they have to lower another area within the same resort)
Points needed for anything outside DVC, including DCL generally increase every year. (Exchanges with II may or may not remain constant because they are exchanging a reservation) For DVC to book your cruise, they have to make a cash reservation to someone else to pay for your cruise.

 

[rstackjd]

Wife and I (48 and 48) just bought this year fr the first time - AKV. We know the points will out live us (at least me - she takes better care of herself! ) and decided that it didn't matter becasue it just means that after wer're gone our kids and grandkids will still be enjoying DVC and maybe thinking of us - a little immortality as it were. We also thought it woul dbe great to be able to give the kids and grandkids occassional trips here and there (ie. none of the grandkids will have to pay for thier own honeymoon as long as they don't mind a Disney honeymoon!). Then again, we're still kids at heart too so we expect to use and enjoy our membership for many many years.

We financed it. It was simple really - we were about to lay out several thousand in cash for a trip in april. That cash made up the dwonpayment and much more. The monthly payments on an annual basis are still less then we've averaged for spending on WDW and related trips in the last 9 years so we're still not spending anymore, just spreading it out. Rather than save $3000 and then pay for a vacation - we pay a little each month - at the end of the day it's all the same.

As for DCL - we've been once and would love to again, but the "Disney Tax" is just too much. Our plan is to use our DVC points for WDW and DL vacations and when we "need" a cruise, to just jump on NCL or Princess. Then again, I suspect that a spare no expense DCL trip could be in order for a milestone anniversary down the road.

 

[Disney_Villain]

Know what you mean. I'm 40 and DH is 46 - we bought in 2 years ago and have since added on twice (as well as extending OKW by 15 years). Who knows how long you're going to live or what health you'll be in later on. I know it would break DH's heart to see our points expire - I'd rather not see them expire before he does!

The good news is that after about 7 years of vacationing on your points, you will start to enjoy the "pre-paid" costs of DVC . . . and maybe you and I won't get our full x years out of contracts BUT we'll likely get the MAJORITY of them.

 

[Dean]

IMO financing a luxury purchase is a poor choice, too much risk. If it's that important plan and save is my opinion. As for a tax deduction, paying $1000 a year to get a $200-300 tax savings is poor math, same for financing a home in large part for the tax deduction.

 

[Mickey'sApprentice]

Instead of purchasing points, and then renting them out to pay for cruises, purchase just enough points for your WDW fix and then pay cash for your cruises. Many people go to Disney one year and cruise the next. They then bank and/or borrow points for the WDW portion of the trip.

Disney also has a DVC resort on Hilton Head Island South Carolina, which is a huge golf destination. The Hilton Head Resort has some plusses and minuses for ownership, but may be worth investigating for the avid golfer. You would definitely enjoy staying there at the 7 month window if you didn't purchase there.

SSR and OKW are close to golf as well.

 

[marynvince]

IMO financing a luxury purchase is a poor choice, too much risk. If it's that important plan and save is my opinion. As for a tax deduction, paying $1000 a year to get a $200-300 tax savings is poor math, same for financing a home in large part for the tax deduction.

If you spend all of your life saving until you can enjoy a luxury you may find that you run out of time to do the things you want to do.

It's all a matter of perspective and priorities. Kids are only young once. I can't get those waiting years back.

As for the interest paid on financing, it's a matter of convienence...Does it makes sense to pay $3.00 or $4.00 at starbucks for a vente cafe latte every day on the way to work? The cost of those lattes over the course of a year can add up to the interest paid on a DVC loan.

Spend what you are comfortable spending. Paying cash yields the lost opportunity cost of what that money could earn in interest. Financing is paying that interest. Either way there is an interest charge involved. Many charge cards have balance transfer interest rates that are lower, 2.9%, then what your cash could earn in a CD.

Good Luck. If you like Disney and visit often, you will be happy with your DVC purchase decision.

 

[jimmacmn]

1. Are we too old? DH and I are both 49 so our points will out live us, is that smart?

DW and I bought our first OKW contract in 1994 when we were 47. We have gotten a tremendous amount of usage out of our contracts so far and right now we could sell them for more than what we paid for them. For us it has been a win/win situation.

4. DH and I can retire in 7 years, we are looking at being able to use DVC points outside 'prime time' to travel ... will this work or are there restrictions?.

There are no stated restrictions on the usage of your points, however, you should be aware that at WDW the non prime times for the parks are not always the non prime times for DVC. For example, the DVC usage from Thanksgiving through the new year is extremely high. The non Christmas/New Years weeks in that time frame are very popular and most of the reservations are made at home resorts 11 months in advance. Right at the 7 month window, bookings can usually be successful if you are flexible about the type of unit and resort, but the more you get inside the 7 month window, the more likely you will be shut out. The Epcot resort DVD units are also in very high demand during the Food and Wine festival in October.

5. DH is not a fan of the parks .... he's a golf addict. Is DVC the way to go ... he likes WDW a far as the resorts etc.

While DW and I are fans of the parks, we are also golfers. The DVC golf membership has saved us and our traveling guests a lot of greens fees. Until this year, to take advantage of the membership play had to start after 10AM, but now play can start earlier for a $10 per player additional fee. We both love Disney golf. They have some great courses and we really enjoy the experience.

 

[Dean]

If you spend all of your life saving until you can enjoy a luxury you may find that you run out of time to do the things you want to do.

It's all a matter of perspective and priorities. Kids are only young once. I can't get those waiting years back.

As for the interest paid on financing, it's a matter of convienence...Does it makes sense to pay $3.00 or $4.00 at starbucks for a vente cafe latte every day on the way to work? The cost of those lattes over the course of a year can add up to the interest paid on a DVC loan.

Spend what you are comfortable spending. Paying cash yields the lost opportunity cost of what that money could earn in interest. Financing is paying that interest. Either way there is an interest charge involved. Many charge cards have balance transfer interest rates that are lower, 2.9%, then what your cash could earn in a CD.

Good Luck. If you like Disney and visit often, you will be happy with your DVC purchase decision.

Like I said, if it's that important, one will find a way to save the money and make it happen. But it seems most people want to have it all without sacrificing to get it. One can enjoy family and still make good choices in almost all instances, but kidding oneself about tax deductions is certainly not one of them. But as you say, people can make their own choices, poor or not.

 

[dianeschlicht]

Took the tour two weeks ago while on a 3 day land (AKL)/ 4 day cruise, finally got tired of everyone telling us we were not smart to do a Disney vacation every year and not buy into DVC

Of course I am now hooked and am trying to decide what to do .... DH was not with me so I am educating him at the same time. I know it's the blind leading the blind but I am trying my best.

I have a couple of questions that someone out there may have some insight on:

1. Are we too old? DH and I are both 49 so our points will out live us, is that smart? We do have a DD who is 15, she will probably vacation with us forever (if we pay!)
We are in our 60's and have owned for 11 years, so we are in a similar time cruncy. It has been way worth it to us though, because it makes us allocate specific time for a vacation that would otherwise get eaten up with those "things to do" at home. Oh, and yes, the "kids" do travel with you forever if you pay. Ours are 33 and 39 and they still do!

2. I have seen many comments on these boards regarding not financing the purchase. If the interest can be used as a tax deduction why is the financing such a bad thing? In most cases, interest can't be used as much of a tax deduction. If you have the money for it, why finance?

3. We are DCL people at heart (5 down, 2 more booked). I keep seeing where DCL is not a smart use of points .. is this true or is it really just less of a value than the resorts?Well, less of a value for sure, but using DVC occationally for a cruise and using it for those post cruise DVC accommodations at WDW is a great way to vacation.

4. DH and I can retire in 7 years, we are looking at being able to use DVC points outside 'prime time' to travel ... will this work or are there restrictions?No "restrictions", but be aware that prime time at the parks is not necessarily prime time at the DVC resorts. DVC members seem to prefer those l;ower point times, and those tend to be times when WDW is less crowded. For example: early December is EXTREMEMLY popular with DVC members, but is generally a slower time at WDW.

5. DH is not a fan of the parks .... he's a golf addict. Is DVC the way to go ... he likes WDW a far as the resorts etc. Well WDW has some of the best golf courses around, and DVC members get a discounted membership, so it looks to me like there is something for all of you.

TIA for any opinions. Apologies for what are probably silly and repetitive questions for most of you.

By the way...no question is silly when you are making a purchase this large.

 

[dcladdict-ohio]

Thanks so much to everyone for your sharing your insight - you guys are awesome