Thinking of taking the plunge.... please help (long)

[ctrabada]

We are a family of 3 (me, DH and DD7) living in So. Fla. Our parents live in Orlando and visit quite often, but we only stay inside WDW once a year for about 4 nights, in the off-season, with AP or FL resident discounts. I like to stay deluxe or concierge, but this year we stayed moderate 5 nights, plus a long weekend in July at Pop and again a weekend at Pop in Oct for MNSSHP.

We went to the SSR presentation and fell in love. We are Disney fans and have been for many years. We are thinking of buying 200-210 points but need to make our decision by Saturday, Oct 2 in order to take advantage of their current promotion. We think that 210 points will meet our annual needs... staying 5 nights in a 1-BR and one long weekend in a Studio.

I need help from the DVC vets....

1. We usually spend about $1,300/yr on our WDW vacations (room only). Financing + maint costs will be $270/mo ($3,240/yr). Is it worth it to spend that much money on DVC points when we can stay much cheaper by waiting on codes?

2. My DH has a problem with the 50-yr limit... My parents own a 2-BR oceanfront Marriott timeshare in Hilton Head (that we absolutely love and use every year) and their timeshare is for life. How do I convince DH that DVC is a good deal? They build equity on their property... how much equity can you build with something that decreases usage life every year?

3. How easy/difficult is it to make reservations? I would hate to buy DVC and then not be able to reserve on the dates I want. We usually go in the off-season, but sometimes go for a weekend in the summer....

4. Should I buy directly from Disney or buy points via a reseller?

I really want to buy, but feel unsure if this is something worth it for my situation. I understand that for out-of-state people who stay 7-14 days and spend a lot of money in the Disney hotels, DVC is a money-saving alternative, plus the perks of having kitchens, but is it something that a Florida resident who stays 5-8 days a year with AP discounts should consider?

I've run numbers and we wouldn't start seeing savings until about our 15th year of ownership, provided room rates increase at 5%/yr and maint fees increase 3%/year. That's a long time to wait for savings.... I have almost convinced myself to buy them, but I need to convince DH and feel more secure about the purchase.

Please tell me why you love DVC and how it's worth buying instead of keeping my status quo? Sorry this is so long, but it's a big decision for us and I want to make sure we do the right thing. Thanks to all of you for any help you can provide!

 

[anniet]

Cristy, I'll answer from MY personal perspective, but I'm sure others may feel differently

1)DVC does NOT save us money. We used to visit and stay off property in cottages in Kissimmee and occasionally in moderate WDW resorts. We are spending more on DVC, but what it has done is it has upgraded our vacation experience. In the long run it will pay off, but for now we are spending more on vacation, but getting accomodations we only dreamed of staying in before.

2)No you don't own it forever, but you probably won't live forever. I'll let the real esate experts answer the question about equity---(hey Dean????) but the price of DVC has increased almost 100% over the last 10 years, so those who bought in on the ground floor and are now selling their DVC are making a profit and had 10 years worth of vacations.

3)The ability to make reservations depends on the time of year you wish to stay. We always travel in January and/or September and have never had a problem. I would imagine if you want to book Christmas week on Thanksgiving, you are going to run into a problem.

4)I bought direct, but wish I knew about resale before I bought. Right now DVC I believe only is selling Saratoga Springs, so if you want your home resort to be something different I think you would have to buy resale. Whether you buy direct or resale, DVC will treat you the same once you become a member.

Good luck!!!!!

(p.s. It took me 10 years to get dh to even look at DVC, we did, we bought immediately and EVERY TIME WE STAY he tells me it's the best thing we ever did!!!!)

 

[spiceycat]

in my trips to OKW I have meet several people from Fl - I asked the same question - they say it was for fun!!!

they enjoyed being in WDW and they loved to stay on-site.

you won't have a problem staying in the summer. Thanksgiving week, Dec 1-14 - are far busier at DVC resorts than the summer.

lately Oct and Nov - because of the food/wine festavial have also become high demand times.

so far - april/may/june have not - I guess more DVC members like to do the food/wine than the flower/gardern festavial....

you also need to know that DVC resorts do not work like more other timeshares - at the 60 day mark - DVC villas that are not being used go to CRO (WDTC) to be rented along with other WDW resorts. There is generally more demand for DVC resorts (because of the kitchens) than WDW resorts. (well that is my opinion)

so if you can make your reservations before the 60th mark. this doesn't mean you want get a reservations when it is 60 days or less - just that your chances are not as good.

I brought most of points at $52 a point - now disney is selling them at $89 a point - and resalers are going for $70 to $74 a point. DVC has a very good buy back program - which they use.

because they have used it so well - Hilton, Marriott and Hyatt -are being to use their resale program too. they have learned to kept their properties values high - they must do this.

Some people think that once DVC quits selling DVC that they will quit buying back. I don't = why - because if DVC ever reaches the point when DVC does not sell - they can still rent the places.....Go see what WDW wants for a 2-bedroom at OKW (the cheapest) then tell me WDW want make money....

some others thing that DVC will allow us at the end of the contract to renew it - if the economy is bad and WDW sees another bad time for itself like the last 5 years - then I would think this is reasonable.

However if the economy is good and WDW knows it won't have a problem renting DVC - then yes - I can see the current DVC resort going over to WDW resorts.

SSR is a beautiful upscale resort. Almost as nice as the GF - it is beautiful - too fancy for my taste - but hey everyone is different.

WDW has always been very property mangement - the DD resorts only have a 99 years contract , so does the D/S and the Shades of Green (I am sure you have seen some of the non-military officals being very upset over this).

when OKW was first opened it was for 50 years - the same with SSR.

 

[tjkraz]

Originally posted by ctrabada
1. We usually spend about $1,300/yr on our WDW vacations (room only). Financing + maint costs will be $270/mo ($3,240/yr). Is it worth it to spend that much money on DVC points when we can stay much cheaper by waiting on codes?

The financing only goes for 10 years. After that, you only pay the maintenance and get the same quality trip for another 40 years.

You're also not comparing apples-to-apples. You're certainly not getting 5 nights in a DVC 1B for $1300 per year.

If you're comfortable with Deluxe-to-moderate accommodations, then just buy the minimum of 150 points. That will probably get you more than the 7-8 nights you mentioned in a DVC studio per year.

If you like the appeal of the 1B, then realize that you need to factor that into your calculations.

2. My DH has a problem with the 50-yr limit... My parents own a 2-BR oceanfront Marriott timeshare in Hilton Head (that we absolutely love and use every year) and their timeshare is for life. How do I convince DH that DVC is a good deal? They build equity on their property... how much equity can you build with something that decreases usage life every year?

This can easily be a double-edged sword. Timeshares (and hotels in general) see a lot of abuse over their lifetimes. Many folks have bought into (non-Disney) timeshares only to see the value drop to zero. I've read reports from people who would happily GIVE away their ownership just to get out from under the exhorbitant maintenance fees.

This is an issue that you need to work through together. Disney doesn't sell any timeshares with open-ended deeds, so it's really not an option. If that becomes a deal-breaker for you, then just keep paying cash for your room each year.

3. How easy/difficult is it to make reservations? I would hate to buy DVC and then not be able to reserve on the dates I want. We usually go in the off-season, but sometimes go for a weekend in the summer....

Depends on how selective you want to be. If you are open to any resort and any room size, there are currently about 2000 rooms available to rent. If you have your heart set on a Studio at VWL, there may only be 40-50 rooms that meet that criteria.

IMO, DVC works best for long-term planners. You can cancel up to 31 days before your check in with zero penalty. So, the best thing to do is to make your best guess at the dates you want to travel as early as possible and book the room. If you later decide you want to try a different week, call and see what's available.

4. Should I buy directly from Disney or buy points via a reseller?

That's your decision. If you want your Home resort to be SSR, buy from DVC. If you want another property, go resale.

The main advantage of Home resort is the ability to book stays 11 months ahead vs. 7 months for resorts that are not your Home. If you won't be booking more than 7 months ahead, Home resort is virtually meaningless.

If you go resale, you will have to secure your own financing.

SSR contracts are 12 years longer than the others, so factor that into your decision.

I've run numbers and we wouldn't start seeing savings until about our 15th year of ownership, provided room rates increase at 5%/yr and maint fees increase 3%/year. That's a long time to wait for savings.... I have almost convinced myself to buy them, but I need to convince DH and feel more secure about the purchase.

Again, apples-to-apples. If you want to cost-justify this down to the penny, you need to realize that the DVC One Bedroom has a Rack Rate of at least 2x a normal Deluxe room and 4-5x a Moderate room.

We love the 1Bs and 2Bs ourselves. But we certainly didn't expect it to stack-up well vs. discounted cash stays at Moderate resorts. However, we also wouldn't have been willing to pay $500-600 cash per night for a 1B. DVC helped bring those luxurious accommodations down to a price range where our family of 4 could justify the cost.

 

[wtpclc]

DOn't forget - your financing cost will drop out after the first few years. After that, you'll only be paying maintenance fees for your vacation. Using today's costs, you'd save ~$500 per year. If hotel caosts and maintenance fees increase by teh same percentage, you'll save even more as time progresses.

 

[vernon]

Hi Cristy, I would say initially that you look borderline. Maybe if you look to rework the calculations a little it may make better economic sense.

I ALWAYS look to avoid weekends as IMHO it's very borderline on the value involved, therefore in your situation I would look to get enough points for the 5 days in a one bedroom ( avoiding Friday and Saturday if possible) and look at banking/borrowing points if you wanted to go more times in a particular year to weigh up which is the most economical use of those points. I.E. If there is an excellent cash price available, pay cash. If the points cost looks cheaper and you have them available use points.

Many people look at their needs and buy the amount of points they think will cover completely their requirements. But as we all know needs can change, IMHO if you're looking at this from purely an economical point of view I would look to buy the smaller amount of points that you feel 100% certain you're ALWAYS going to use and use the various other solutions to cover any "probable" needs that you have. That way it gives you the option of taking a break from WDW altogether, going somewhere else one year, saving your points up and then using the extra points over the next two or three years. I always think that if you end up having too many points one becomes less concerned about making the most economical use of them. If you limit yourself to less points than you need it will sharpen the mind when it comes to spending those points.
OK your questions

1) The other aspect to look at is quality of experience, it may not save you much money, certainly not initially, on a year to year basis, but for the same price would you rather stay in a regular hotel room or a one bedroom DVC unit ? That is not an economic choice, but it is one that is at the centre of your decision.

2) You're not building equity, or not over the length of the contract. But what you are doing is getting a discount on your holiday costs over the next 40-50 years or you are upgrading the experience for no cost.

3)I've never had problems booking a unit, even relatively late, granted I've not tried for Xmas day or Thanksgiving. It's possible you may not get the resort you wanted if you leave it late, but they are all excellent and it's almost certain you'll get a unit in one of the DVC resorts.

4) Disney you get 50 years of DVC, resale is cheaper, but most likely it would be one of the resorts that expires in 2042. It would depend on your age and how long you feel certain you'd use it. If you're already mid 50s then you're worrying about if you'll leave your benefactors 5-10 years use of DVC or 15-20 years of it. Do you want to leave your kids the use of DVC ( they may not like WDW like you do) or do you want a cheaper payment now?

IMHO most people buy for one of two reasons
1) the financial sense of it is overwhelming. In your case I don't think that is the case
2) It's a lifestyle choice. They would spend around that amount of money a year on a hotel room, but for the same or less they can stay in a one bedroom unit and pamper themselves. It is a commitment to take and therefore a risk if your circumstances change, but if you've visited the DVC units you will know what an upgrade a one bedroom represents and only you can make the choice as to if that upgrade in experience is worth making a commitment.

 

[RuthnPaul]

There have been some SSR resales through the 3 "major" resellers but, given the incentives Disney is currently offering, you would probably be better off purchasing directly through them at this time. Although I read that some new owners have been able to purchase at the sold-out resorts directly through Disney, most of the add-ons are for current members.

 

[Bill_McIntyre]

I just bought today at the 150 level. I used much of the info on this board to make my decision.

I can not consider this a timeshare I think of it as a membership into one of the most flexible and fun clubs.

The $1500 off for SSR was a nice bonus.

We have only been visiting DW every 4 years or so but at the 150 level I can do that more often. Why I am already planning on banking/borrowing my way to a nice cruise for me DW, DD10, DD8 in the next year or so (I hope I am using the acronyms properly. It is a weird code you (we now!) DVCs have!

I bought it to save money. Not as an investment. It will allow me to upgrade my vacations for a little less than a moderate vacation would cost.

Also the flexibility and the ability to rent makes it almost risk free.

At the Current $10/point rent rate I see you can easily be making money after a dozen annual point rentals. I would not do that as I want to go to DW as much as possible but hey knowing that if I do that about a dozen times to pay off the initial purchase is a nice little parachute that most purchases of this amount just do not have.

Note: I realize my generalities are not perfect but they are close enough for me (I did break it down in detail in my own analysis and the DVC came out to be such a possitive I had to do this)

Heck...it is less than half my car and will last much longer and may actually pay for itself.

It made sense for me and my DW thinks it is great because it will make me take more vacations. I hope she is right.

 

[bbowers]

Originally posted by Bill_McIntyre
It made sense for me and my DW thinks it is great because it will make me take more vacations. I hope she is right.

Bill -

That was the best thing about DVC for DH and I. It opened up our eyes to a lot of opportunities within DVC (we went to HH this year - NEVER would have considered it without DVC), but also outside of DVC.

Somehow it made me realize that life is too short - so when DH mentioned that he would REALLY like to visit the Big Apple some day (I loathe big cities...), I decided to plan a trip there. And had a whale of a time doing so - we'll be doing the Sopranos tour (DH loves them), seeing a game, etc... and even stopping up at Beaver Island, MI first because DH keeps saying he wants to go back there! (Shhh - he doesn't know we're going up there first.)

We also went on DCL this year and I don't think we would have considered it prior to DVC - even though we didn't use points and one has nothing to do with the other. It just completely changed our mindset and made us eager to REALLY enjoy a GOOD vacation each and every year.

2006 - Vegas, then Disney. 2007 - Alaskan cruise. 2008 - Hawaii. 2009 - Maybe Big Sky Resort, or Branson - and Disney. Never would have planned this far ahead, therefore never would have been able to fund the big vacations without debt (but now I know how much I need and will be all funded for the big ones in 2007/2008). It's just all different! We love it!

 

[Granny]

Originally posted by ctrabada

1. We usually spend about $1,300/yr on our WDW vacations (room only). Financing + maint costs will be $270/mo ($3,240/yr). Is it worth it to spend that much money on DVC points when we can stay much cheaper by waiting on codes?

I'm not sure that assuming that codes will always be around is a good idea. I suppose the AP discount on rooms will be around for some time, but we are already seeing non-DVC owners complaining that there aren't as many codes around as there were a couple of years ago.

As others have pointed out, you are upgrading your vacation experience. If you can do that, and break even in 10-15 years, it sounds like you've come out ahead.

Good luck in your decision!

 

[ctrabada]

Thanks to everyone for your kind advice... My DH and I discussed it at length and figured that if we still wanted to buy after 2 days, then it would be a good decision. So, I called today and left a message saying that I'm ready!!! Wish me luck... sitting by the phone waiting for a call back..... waiting....waiting.... thinking about calling again and annoying the heck out of someone..... just kidding.... waiting....

 

[jodifla]

Hey there...we live in Deerfield Beach, not far from you. We bought in '97 and have always thought it to be one of the smartest things we ever did! We use our points lots of different ways...for studios on the weekends, or for Sun-Thursday stays in larger units. Even had family down from Michigan and stayed in a Grand VIlla one year.

You'll be spoiled by staying at DVC. It's hard to go back to hotel rooms! And after you pay off the principal, and only have your dues, you'll really recognize the cost savings.