Suze Orman said timeshares are a silly investment

[mickeyfan2]

Suzy Orman woud say taking vacations or buying Christmas presents and using a CC to pay for it isn't a good idea either. How many people listen to that advice?

And she would be correct. I may charge a vacation or Christmas presents, but they are paid off when the bill come in.

 

[Love the Mouse]

DH and I purchased our DVC 5 years ago and have never once regretted the purchase. We stayed in one of the All Star resorts and it was just a hotel room with a Disney theme.

The amount of trips that we have been afforded to take and the places that we have stayed, we would never have been able to afford them without our DVC. Wildreness Lodge at Christmas, The Boardwalk 2x, OKW several times, Vero Beach 2x, The Disney Cruise, sending my parents on an anniversary trip.

We have enjoyed each and every trip and have created many memories both for DH and myself and now our DD(2).

I know people who have saved for that one family trip and spent $5000 to do Disney...that is half of my timeshare and in the last 5 years we have gone countless times (at least 2x a year) to that one trip.

When we purchased our DVC, we knew that we loved Disney, we knew that we would go back many times over our lifetime, as well as take other vacations elsewhere and knew that paying for our vacations "in advanced" so to speak is what we were doing.

Each family is different, each family wants different things. We would NEVER give ours up, and given the chance, we would add on more points. I have enjoyed each vacation and all of the memories that we have, and can't wait to go again...either to Disney or someplace else.

Michela

 

[corndog]

And she would be correct. I may charge a vacation or Christmas presents, but they are paid off when the bill come in.

I don't want to threadjack, but with all the rewards cards out there, if you are not paying for everything possible with a credit card you are leaving money on the table.

 

[mickeyfan2]

I don't want to threadjack, but with all the rewards cards out there, if you are not paying for everything possible with a credit card you are leaving money on the table.

I agree. That is why we charge everything, even insurance payments, and pay off the credit card each month.

 

[nbodyhome]

There is an emotional tie to DVC that is different than an investment. So it can certainly be worth it for someone, even if it may not be cheap or a good value (and I think with a large family, it can certainly be a good value - or if you always have a deluxe resort like the Polynesian and stay instead at OKW, that isn't too bad either).

I have gone through the DVC information before, and I don't think that staying at a place like the WL or any of the Disney resorts is a good value with DVC. If you can afford DVC, you can afford to stay at a mid-level deluxe resort (just my two cents, I did a lot of research a few years back on whether it'd be a good value). I couldn't find it a way to make it one - but again, it's an emotional thing as well. And the DVC units are nice, there is no arguing that.

I liked my $36 Saratoga Springs room on Christmas though - that was the best!

 

[rie'smom]

I don't want to threadjack, but with all the rewards cards out there, if you are not paying for everything possible with a credit card you are leaving money on the table.

My whole point about Suzy Ormon was that people will do what they want to do right or wrong. We know that DVC is not a brilliant investment but we've made other very good investments and can afford it.It was purchased as a need but as a want.

I use a CC too and pay off balance monthly. In fact, I used my AmEx to buy the 300 pts for DVC and received 28,500 membership rewards. However, I paid off the balance the next day.

 

[rt2dz]

I don't want to threadjack, but with all the rewards cards out there, if you are not paying for everything possible with a credit card you are leaving money on the table.

Be careful though. The rewards could be less than you think. CC charge interest daily and charge interest on top of interest. If you wait until a bill comes in, you're still paying more and getting a less reward. And most cc only allow you to pay the bill of a maximum of twice per month for that reason.

Not that you still can't use it, but you want to pay attention to how you do it. For example, put all your bills on cc on the same day, then pay the cc later that day or the next.

ETA--Oh yeah, and when people say they "invest" in DVC, they aren't generally talking about the type of investment where you get a return on your money (ie, stocks, bonds), but where they spend money. Kind of like investing in clothes, food, vacations period, electronics, etc. It's not only the product you are getting, but the emotion.

And how it works finicially depends on a host of factors: Where you stay--we stay deluxe every time. Or how many people are in your family (3 or 7?). Or how often you go. What will you purchase. The time of year you go or how long you go--weekends cost more than weekdays. And then if you are paying cash or interest by financing.

 

[BethR]

Be careful though. The rewards could be less than you think. CC charge interest daily and charge interest on top of interest. If you wait until a bill comes in, you're still paying more and getting a less reward.

Don't mean to continue this thread hijacking, but this is not true, unless you have a balance. If you pay off your charges in full each month, you don't pay any interest. At least that is how all of my charges work.

 

[rt2dz]

Don't mean to continue this thread hijacking, but this is not true, unless you have a balance. If you pay off your charges in full each month, you don't pay any interest. At least that is how all of my charges work.

I though the same thing. And we don't carry balances from one month to the other (and a credit rating of just under 800 for it). Then my DH (that stupid MBA in accounting & finance ), showed me daily online one month that, yup, that balance had interest incurring daily (and adding the previous days balance into that) with no carried over balance. I'm a hard learner. And, OK, he has a degree dealing with numbers and still had a hard time figuring it all out.

We then went through every cc we owned (a whole whopping 3, one of them business) and read the fine print--all did that. Everytime we get an offer in with great bonuses, we think about switching--compare interest rates, the bonus points, and how interest is figured. Sometimes, usually, how the interest is calculated makes a lower rate card a higher rate in the end. They do have to make money; otherwise there is no point in loaning you the money.

We still use our bonus card, but twice a month where we can pay it off within 24 hours or only when we have to (booking travel) between those dates.

And, heck, not even all rebates are equal. I want a Disney cc, just for the picture , but the bonus isn't as good as our rebate (cash back) card.

 

[mickeyfan2]

Don't mean to continue this thread hijacking, but this is not true, unless you have a balance. If you pay off your charges in full each month, you don't pay any interest. At least that is how all of my charges work.

Mine too. We only pay ours off at the end of the month, during the grace period.

 

[mickeyfan2]

They do have to make money; otherwise there is no point in loaning you the money.

They pay the company $97-98 for every $100 that I charge. From my accounting classes there is a 3-5% bad debt occurred on all purchaces, so not getting 100% is the same to the retailer. The CC company deals with the bad debt.

I have to differ with you DH, the CC we have all have 25 day grace periods before we pay interest. Now if we don't pay in full during the grace period then all interest is calculated from day 1.

 

[canwegosoon]

Wow is this a hot topic! I will say that we are anti-timeshare, but DVC works great for us. My husband made a very in depth spreadsheet when we were looking at purchasing. We weren't looking to "make money" but to see that we would break even. We broke even this year and from here out it's all bonus. My DH is Vice President of his company and works very hard, long hours. He wouldn't vacation if given the choice, but DVC alleviates that arguement for us...we own it, so he'll use it. When we purchased we thought we'd use it to trade out to other locations and 7 years later, we've yet to do that. We absolutely love Disney and go at least one or twice a year. We are a family of 5 that would choose Poly over any other resort except the villas. The villas give us more space, separate bedrooms, and a washer/dryer. We tend to not use the kitchen much but it's a nice option. With the washer/dryer in the unit, we pack less and just toss in a load before going to bed. With 5 of us to pack for, this alone is a huge incentive. By the time our years run out, we'll be too old to care and will have enjoyed MANY years of fun with the kids and given them many memories. So I guess I look at it more of an investment in my family instead of a financial investment. Would I make that step if it was going to cost us more than we've paid into it...nope, but like I said, we've broken even and will have come out ahead in the end because we'd be vacationing at Disney anyway.

1. ITA(I could have written the post)
2. Family memories(priceless)-Kids know they will be bringing their kids(paying maintance fees of course)
3. Lets ask the origional owners of OKW...that are putting property up for sale, if it is a good investment...don't forget they pretty much have a gaurenteed bottom(min dollars) thanks to ROFR, which most timeshares do not have.

 

[brivers222]

Watching the ticket prices rise out of control the tax hikes on the hotels and the hotel rates going up... I think it would of been silly NOT to lock our hotel prices in for the next 48+ years... DVC is a great investment if you plan on vacationing AND staying on resort at WDW.

 

[nbodyhome]

Watching the ticket prices rise out of control the tax hikes on the hotels and the hotel rates going up... I think it would of been silly NOT to lock our hotel prices in for the next 48+ years... DVC is a great investment if you plan on vacationing AND staying on resort at WDW.

I'd guess that once the properties need refurbishing, Disney would pass that along in higher rates? (i.e. - maintenance fees?)

I am a Disney fan, but I don't know what I'll be doing next year - (well, hopefully Europe again) let along in 48 years! I figure if we really want to be in a DVC unit, we can buy points from someone. But we live close by, and I usually now just go for the Pop Century.

Again - it's up to the individual. Each person has their own reasons. I have gone over it and it didn't make sense for me. But others feel differently - I just personally don't think it's much of an investment (monetarily).

I remember after staying at DLP, a vacation club advisor who I was speaking with assumed I was DVC when I'd mentioned going. I said no, I don't think I'd have gotten as good a deal through DVC as what I got (an AP rate). Now I may or may not even get to DLP when in Paris, and it's cheaper for me just to go on my own and not through any timeshare to do so.

 

[bellarella]

I though the same thing. And we don't carry balances from one month to the other (and a credit rating of just under 800 for it). Then my DH (that stupid MBA in accounting & finance ), showed me daily online one month that, yup, that balance had interest incurring daily (and adding the previous days balance into that) with no carried over balance. I'm a hard learner. And, OK, he has a degree dealing with numbers and still had a hard time figuring it all out.

We then went through every cc we owned (a whole whopping 3, one of them business) and read the fine print--all did that. Everytime we get an offer in with great bonuses, we think about switching--compare interest rates, the bonus points, and how interest is figured. Sometimes, usually, how the interest is calculated makes a lower rate card a higher rate in the end. They do have to make money; otherwise there is no point in loaning you the money.

We still use our bonus card, but twice a month where we can pay it off within 24 hours or only when we have to (booking travel) between those dates.

And, heck, not even all rebates are equal. I want a Disney cc, just for the picture , but the bonus isn't as good as our rebate (cash back) card.

That's how they calculate the interest, but you only pay that interest if you don't pay by the grace period. If you add up your purchases and compare that to what they say you owe, the numbers should be the same. The way CCs make money (besides the people who do carry balances) is by charging the seller for each purchase you make.

 

[brivers222]

I'd guess that once the properties need refurbishing, Disney would pass that along in higher rates? (i.e. - maintenance fees?)

I am a Disney fan, but I don't know what I'll be doing next year - (well, hopefully Europe again) let along in 48 years! I figure if we really want to be in a DVC unit, we can buy points from someone. But we live close by, and I usually now just go for the Pop Century.

Again - it's up to the individual. Each person has their own reasons. I have gone over it and it didn't make sense for me. But others feel differently - I just personally don't think it's much of an investment (monetarily).

I remember after staying at DLP, a vacation club advisor who I was speaking with assumed I was DVC when I'd mentioned going. I said no, I don't think I'd have gotten as good a deal through DVC as what I got (an AP rate). Now I may or may not even get to DLP when in Paris, and it's cheaper for me just to go on my own and not through any timeshare to do so.

Yeah you living in Florida does make a huge difference. Heck, if we lived anywhere within 100 miles of the mouse we would be selling our DVC. I do enjoy however, the ability (unlike most other "timeshares") to go to various other places to use our points.

We went this past May for 2 weeks staying in a 2bdrm villa at Saratoga springs... The only thing we paid for the entire trip was our hugely discounted tickets and the DDP. The hotel (which was 3/4 of our cost our trip 3 years ago) was bought using points. We ended up saving $2000 on the DDP and $2500 on the Hotel after taking in account our maintaince fees. Next year when we go the gap will be even more as our point values remain the same but the cost of the hotel will rise.

If i had the choice though, to be close to the mouse OR own DVC... I would wholeheartedly choose living close... Not to mention you get all the kewl demo jobs

 

[Kay1]

I don't see the attraction. We love the villas and spending time with family but we don't need the DVC for that. Honestly, we get discounts because we're Florida residents, AP holder and belong to AAA and have no problem with the prices charged. We'd rather have the cash earning money in a money market fund or CD than let Disney hold it.

 

[docg]

The question is: Are vacations a good investment? Your answer to that will have a lot to do with how you feel about time shares. If you can tell me how i can make money when I go on vacation, than I will say a vacation is a positive financial investment. I personally cannot imagine not taking vacations, unless I was retired and than my daily life will hopefully be a vacation. If you accept that vacations are not a financial asset that appreciates, and you will always take a vacation, you can than decide what type of vacation you will enjoy, and what kind of deal you can get taking that vacation. Once you accept this premise, you can compare the benefits and savings of DVC, or other timeshares, with other types of vacations.

I for one find that the cost of DVC was well worth the investment and somewhat protects my return against inflation per year. ( I know maintanence goes up). I also feel thaty DVC has made me vacation more often and more frequently as it allows me to take frequent long family weekends to the mouse. In the past I was reluctant to take time off and loose income. Investments are a personal decision.

 

[cseca]

I dunno...
I know it's not an investment but if you can pay it off, it could be some sort of an investment.
I already paid mine off and now I think I can sell my contracts and make $3000 easily (this is being pretty conservative on the selling price).
Plus I found out that I can rent out part of my points to pay off my yearly maintenance fee.
So for the past 2 years I haven't had to pay maintenance out of pocket...
If I can do this for a little while (at least as long as I'm still single), that means my cost of yearly vacation is just the cost of purchasing my contracts not counting maintenance fee.

And I completely understand that DVC is NOT an investment tool, but if you have the money and play it right, it could be

 

[nbodyhome]

If i had the choice though, to be close to the mouse OR own DVC... I would wholeheartedly choose living close... Not to mention you get all the kewl demo jobs

You'd be surprised at how many people who live here do have DVC! (at least on the boards I read).

I agree with the other person who said that they'd rather have the money in the bank. If I took $12K and put it in a CD, that is like $600 per year, which is a good start to a trip. Then the maintenance fees I don't pay (and the principle and whatever interest). But if you enjoy doing it, then it's an investement in yourself!

And hey - YOU were the one who got that Kotex demo! Did I get to hand out free maxi pads? Noooooo.