Thanks for All Your Help, but Decided Against DVC

[pauld2]

This board has been very helpful to me as I weighed a decision on a timeshare between DVC and a Marriott timeshare at Myrtle Beach. I was fairly neutral between the 2 of them, so I thought I would point out a couple of issues that weighed in my decision. Hey, I may be a DVC'er someday, but just not now.

My choice came down to a high-season 2 bedroom gardenview at Myrtle Beach for $17,900 and annual fees of $650, or 175 DVC points at BCV for $12,950 with annual fees of $700. I was going to use the DVC every-other-year in a 2 bedroom magic season. The main knock on DVC is the fees, at roughly twice the annual level as Marriott for a comparable villa. You DVC's might want to start pressuring Disney to hold the line on those fees. The second knock was the points required to convert to different properties in the concierge collection, the exchanges did not seem that fair.

Even with the higher costs I was still tempted to go with DVC because of the "magic". Also the points system introduced an impressive degree of flexibility within the year and among different years.

In the end I have gone with the Marriott Myrtle Beach, as I should be able to easily trade into off-site resorts (and probably some on-site ones as well), but I will still be spending a lot of time at Disney one way or the other.

I think DVC is a great product, but make sure you guys hold Disney's feet to the fire over fees and exchange values. See you all at the Park, and thanks again for your help.

 

[colleen costello]

And Myrtle Beach is a bit closer to Ontario than Orlando is!

Glad you are happy with your decision. The ocean is a wonderful place to visit. We'll look for you at WDW when you stay on rented points!

 

[baileybrad]

We are DVC members. I really wish there was a way "to hold Disney's feet to the fire" when it comes to the annual dues. I am really at a loss as to what I can do other than taking proper care of the facilities when using them to hold down on the wear and tear. Glad you were able to find something that works out the best for your situation.

 

[eva]

Remember that DVC dues also pay for the great CMs that work at the resorts, transportation to the parks, MS, etc. You might pay less dues for another timeshare, but I bet the service isn't going to compare at most of them. DVC can only charge in dues what it actually costs to run the resort. So if prices don't go down but they cut back the dues that means that facilities and service are going to suffer. Myrtle Beach does sound nice. I hope that you enjoy the beach. It is nice in that area.

 

[joepoe]

Originally posted by pauld2
...My choice came down to a high-season 2 bedroom gardenview at Myrtle Beach for $17,900 and annual fees of $650, or 175 DVC points at BCV for $12,950 with annual fees of $700. I was going to use the DVC every-other-year in a 2 bedroom magic season. The main knock on DVC is the fees, at roughly twice the annual level as Marriott for a comparable villa. ...

Buy the Marriott through resale, not Marriott. You will get a huge discount off the 17,900. You can probably get it for 10,000. DVC has ROFR and exercises it so going through resale lately has not been worth it. Good luck and I hope you save some money.

 

[Lisa P.]

Buy the Marriott through resale, not Marriott.

The price quoted is probably at Marriott's lower preconstruction pricing. If this is for a prime summer season week, it's likely to hold its value fairly well, compared to weeks purchased during the peak, final phase, selling period. There are no resales on the market yet and there probably won't be for a little while yet. Whether it's worthwhile waiting for the resale market to get large enough for the price to drop is really up to the buyer... it could take 5 or more years.

DVC can only pay what it actually costs to run the resort.

Eva, I've seen this statement many times and I don't understand it. I thought DVC was the management company for the resort once it's "sold out." As such, they would be able to determine a profitable management fee for the services rendered, wouldn't they?

Certainly, there's a limit to what they could charge without inciting a bad reaction among members (and potentially, a vote for new management). But it has happened within the industry, that a management company gradually became excessive in their management profits.

In any event, I had thought that DVC is able to earn a reasonable profit from managing the resorts. If it is true, then DVC dues would be paying for more than it actually costs to run the resort - though this is still reasonable.

Am I mistaken? Is DVC run differently from most other timeshare properties or does DVC continue to derive some profitable gain from managing the DVC resorts? Anyone know for sure? What do the documents/bylaws say?

 

[CaptainMidnight]

Myrtle Beach is too crowded in my opinion, and has a huge amount of hotels on a small area, that are 4 deep from the beach on some sections. My recommendation is to make sure to stay there a couple of times and make sure it is what you are looking for in terms of environment and atmosphere. Hilton head also has some wonderful timeshares, including Marriott timeshares. There is much more room on the beach and a less crowds in comparison, and more of a first class 5 star experience than the sometimes bargain Myrtle Beach area. If yoou've already bought, I'm sure it will be wonderful If not, check it out to make sure its what your looking for.

Marriott offers a nice timeshare, perhaps second best in the industry. I'm just suggesting caution on the location, that it meets your expectations. Also, I'd strongly recommend checking out resales, which can easily be done through our very nice site sponsor (Thank You Timeshare Store), by clicking on the icon at the upper right corner of this page. Good luck with your decision.

 

[eva]

Lisa, if you read the DVC paperwork you will see that they can only charge in dues what it actually costs to run the resort and MS. They can not make a profit off dues. So if dues go up then it is because predicted costs have risen. This is why dues fluctuate from year to year, even going down many years. It's kind of like people that own their own buisness paying quarterly taxes. An estimate is made and they pay their 4 installments. At the end of the year the true cost of taxes is calculated and there could be a refund or you may have to pay more. DVC works a bit in the same way. Costs are predicted each year and calculated per point. At the end of the year the true costs are calculated and if there is a surplus it is put towards the following year's maintenance. Then the dues are calculated for the upcoming year. If we have paid too little then the dues are readjusted for the upcoming year to reflect that and we pay more. I know that there is really some type of escrow account for dues that must have some type of percentage held there, but I can't remember the specifics right now. It works like a mortgage company that also has you paying your land taxes in your mortgage payment. They keep a bottom line amount in escrow for upcoming taxes. Hopefully I explained this ok. I'm sure that someone out there can do a lot better job of it.

 

[dbkelly]

Does anybody have the financial statements handy? I remember reviewing the numbers and I thought a saw a management fee. If I am correct, then Disney could be making money from our dues. If anyone has the financial statements and can post them, please do.

D. B. Kelly

 

[ClarabelleCow]

I love Myrtle Beach, but you can't compare the too. We rent a 3 bedroom oceanfront condo in Myrtle Beach every August. I am paying $1100.00 for the week!!! This weeks starts August 16. The nice part, is it is part of the Fairfield Resort Seawatch Plantation. What I am saying is be careful buying in Myrtle Beach only because there are so many units, take a long look at re-sales, whether Marriot, Fairfield, or whatever.

 

[pauld2]

Thank you for the comments. As for the Myrtle Beach price, I think it is decent. I have been watching the resale market for a couple of months and believe the $17,900 pre-construction is comparable to what I would have to pay resale for a similar week at the Marriott Grande Ocean on Hilton Head. I am taking a flyer on this place sight unseen, however. I am banking on the lack of high end timeshares at Myrtle Beach giving me good trading power within the Marriott system. I am also betting on a secular trend for vacationing closer to home due to terrorism concerns. Myrtle Beach is somewhat cheesy now, but I think redevelopment might boost its fortunes.

For those familiar with Myrtle Beach, is this a reasonable prospect ?

 

[WolfpackFan]

Originally posted by CaptainMidnight
Myrtle Beach is too crowded in my opinion, and has a huge amount of hotels on a small area, that are 4 deep from the beach on some sections.

On the other hand, we absolutely love Myrtle Beach and go there several times a year. Sure it's crowded but so is WDW. Last I heard they haven't needed Fast Passes yet to swim in the ocean. It all really depends upon what kind of vacation you're looking for.

 

[CarolA]

You are braver than I am. I would NOT take a flyer on a $17,000 unit. That said, I think Marriott has a good product and did look at the Grand Ocean in HH. Decided against it for several reasons. On the fees, I don't remember what Marriott was charging. However, I do know that pre-construction fees can often be less than on-going fees so I would see what the annual fees are for someplace like Grand Ocean before I bought to make sure the developer is not subsidizing now and that they don't go up when the developer is sold out.

I think that if trading is imporatant to you, then Marriott is probably a better decision than DVC.

 

[poj7]

Hi.

Just read through this thread as I'm sure a lot of you have and I have to say that I couldn't be happier with DVC and have no regrets. I'm glad to pay higher fees to keep the club "looking like Disney". That's what it's all about and that's what we bought.

DVC vs Marriott is apples and oranges. Just depends on what you're looking for.

Paul

 

[CrayzeeDiz]

Marriot is good but Disney is awesome !!!

WDW is the most visited resort area in the world. I know Myrtle beach is nice but come-on. If you like WDW then there is no choice between the two. The fees are not that much different between the two time shares. I do agree that the trade off for the Concierge collection is bad. We bought DVC because we love Disney and plan to use all our points in either WDW or the Cruise line. The added plus is that you still have DVC resorts in HH and VB. So if you feel like the ocean you can do that too.
If you only want to go to WDW once every 4-5 years then don't buy DVC. If you think that you want to go more frequently then reconsider your purchase of marrriot...


Just my thoughts.

 

[Halle]

Pauld, please be careful....have you checked out kingston Plantation? It is a secure timeshare community, extremely clean beach and safe. We vacation at DVC and MB, haven't purchased a timeshare at MB but only stay at Kingston Plantation due to security. We had two bad experiences at another resort so please be careful, check out the area the resort is being built in.

 

[Cruelladeville]

pauld--you might want to wait a bit just to be sure. I like Marriott, but what I purchased on resale for $10,000 was purchased from the developer three years earlier for $18,000. Now, my investment is relatively secure, and shouldn't fall much, but imagine the poor guy who sold at an $8,000 loss after just 3 years--ouch!! It's not going to make any difference how reasonable the maintainence fees are if something happens, and you have to sell after only a couple of years. In those same three years my DVC points have gone up in price from $54 to $70 on resale, and now they are selling in the $75 per point area. So you aren't comparing apples to apples. Also, while Marriott trades well, even Orlando, I wasn't prepared for the fees associated with it, about $225 was what I paid to stay at a different Marriott. Also, Marriott is by the week, meaning that you must stay a week--not more or less--while DVC gives you the flexibility to stay from 1 night to 21 nights if you had the points. Add $225 on to the maintenance fees if you are planning to trade to other Marriott resorts, and you are closer to the true cost per year.

 

[Granny]

pauld...I just wanted to thank you for posting a straightforward comment about your decision. Nothing inflammatory, nothing trashing one choice to go with the other.

Looks like you've done your homework, and I hope you'll love your choice. And again, thanks for posting in a positive, objective manner.

 

[pauld2]

Originally posted by Cruelladeville
Also, while Marriott trades well, even Orlando, I wasn't prepared for the fees associated with it, about $225 was what I paid to stay at a different Marriott. Also, Marriott is by the week, meaning that you must stay a week--not more or less--while DVC gives you the flexibility to stay from 1 night to 21 nights if you had the points. Add $225 on to the maintenance fees if you are planning to trade to other Marriott resorts, and you are closer to the true cost per year.

Does the $225 include the Interval International annual dues ? If not, this number is quite a bit higher than the $79 II exchange within Marriott's that I thought would be my additional cost. Am I missing something ? I plan on trading my week the vast majority of the time, so this additional cost would be significant for me.

This has been a good discussion so far. 2 points from me: 1) I agree that DVC and Marriott are apples in oranges if you have your heart set on Disney (clearly staying on site is a great experience), my post is primarily meant for those who want to consider options and 2) DVC fees are substantially higher in my scenario - > a 2 bedroom DVC in magic season cost 4 X 350 = $1,400 per year versus $700-900 for Marriott (and Marriott fees are seen as high in the timeshare industry), subject to previous paragraph.

 

[Buzzro]

Ok. From what I understand Myrtle Beach isn't what it used to be. I guess it depends on what your looking for. I split my time between WDW and VB. HH too, but only once so far. The best of both worlds. WDW with the kids and grandkids each year and we spend a day or two at WDW and the remainder of the 2nd week at VB for our Anniversary. I'll pay the higher fees to keep it Disney.