Timeshares-DVC or otherwise-thoughts? opinions?

[Brian Noble]

I own three. None of them are DVC. All of them were purchased resale, for pennies on the dollar. I've never regretted a single one of them. It's not an "investment", but it has allowed us to secure some wonderful condos at very attractive prices, and made for priceless vacation memories.

That said, it is not a purchase to enter into lightly. The lodging might be a good value, but all the other expenses of a vacation---time off work, travel, entertainment, food---still have to be paid. We considered DVC---very strongly---before deciding *not* to buy. The reason? Like some here have discovered, we were not sure that we would always want to vacation at Disney. As the kids get older, we figured there was a good chance that our vacation tastes might change. And, DVC is IMO really only good for staying at WDW. For almost any other purpose, it is a bad value.

So, our first purchase was Wyndham (resale) instead. Bonnet Creek is a lovely property, right next to CBR, and our stays there have been just as much fun as our stays at Old Key West have been. Wyndham has a larger portfolio of great resorts in more locations---many within driving distance of us---and the cost was much lower, both purchase and ongoing. The others we own sometimes allow us to exchange into DVC resorts, and we appreciate that. But, it's a hit-or-miss thing, and if it went away tomorrow, why, we'd be okay with it.

I'm not sure I'd ever buy a timeshare directly from a developer. Even with DVC, the resale value proposition is usually more attractive unless you absolutely have to own at whatever the newest shiniest resort happens to be. I would also never finance such a purchase, though others have. Finally, it's easy to buy a timeshare, but it is hard to sell one, so if you are considering it---take your time, and get infored at TUG, Timeshare Forums, and similar places. These things last for a lifetime (and in some cases, many lifetimes) so you want to feel good about your purchase over the long haul.

Edited:

I think that percentage wise there are very few (who are happy with their purchase.)

I think it is very unlikely that most DVC purchasers regret their decision. It's not even the case that most timeshare purchasers *generally* regret their decision, based on the various surveys I've read. Indeed, people who already own timeshares tend to buy new ones at a rate faster than the general public. That doesn't speak to legions of unhappy people. I suppose they could all be lying to themselves---after all, denial isn't just a river in Egypt---but that doesn't sound like the most straightforward explanation. It's also possible that timeshare owners are just gullible saps. I won't speak to that.

Do some people regret it? Sure. For most people, timeshare is an impulse purchase. Almost no one really does any research before signing on the dotted line, and inevitably that leads to some folks changing their minds---if they don't do so before their rescission period ends, they are in for a nasty surprise.

But, despite all the obvious flaws in the industry---and they are legion---most owners are still happy with what they own.

 

[Buckalew11]

Love my DVC. Love it, never a regret once. I knew I wanted it in 2001 but we waited to pay cash because I would not ever finance a timeshare purchase.

Growing up, my parents had (and mom still has) RCI. We loved it too. Vacations were wonderful on HHI and up and down the the east coast for the beach.

It isn't for everyone but it is something I know I will always love. My only DD does not care for WDW. She's 16 and has been over it for years. So she can sell it, rent it, or give it away when I'm gone. But until I'm old, I'll be enjoying my trips to the World!

 

[Inkmahm]

Most financial gurus will tell you no to timeshares. Most financial gurus will say no to just about any luxury spending. I've heard Dave ramsey complain about people who buy mercedes Benzes .

Personally, I love our timeshares. We brought them to use as a vacation instrument, not for an investment.

Not to be disagreeable, Sanchez but every one who I know who has purchased a timeshare has loved it and if the majority of folks on the dvc board were unhappy with their purchases, we sure get a huge # of folks who have what we call "Addonitis". They continually go back and pick up new contracts.

Now that being said I'm in a pretty decent financial boat. I'm 50'ish, in a decent paying stable (as stable as you can be nowadays) job. and the only big purchase I have to worry about is my kids college tuition.

I own at marriott and disney. I use my disney continuously with and without my kids. The years that I don't go I rent my points.
I've own at disney for more 10 years and have more than gottne my money back on my investment. Lately I've been a pretty big critic of disney quality so I've may sell but that is not because of the dvc, it's because of how disney is making cutbacks to the parks etc.

My advice is this. take a very honest look at how you like to travel.
Time shares are a huge consumer business. I find it really hard to believe that millions of people out there are dissatisfied, if they were how would they continue to grow and profit.

We are also DVC owners and love our DVC. I have was always against timeshares until I finally checked into DVC ownership. I should have checked into DVC years before I did. My one regret is not buying sooner than we did!

I would NOT purchase a timeshare if I had to borrow money to do it. When we purchased DVC, we had no other debt and we paid cash. It is a luxury, not a necessity.

Do I save money having DVC vs paying for our trips? No. But not for the reason you may think. We purchased 150 points to start with at one resort and have added on several times so that we now have 655 points at three resorts. Addonitis definitely is a hazard once you own DVC! We now travel to WDW 3 times each year. March, October (for F&W) and early December (love those holiday decorations.) We have annual passes and the TIW card to save money on the TS meals that we love. Saving money by owning DVC? Nope. But that's because we bring our families with us to enjoy WDW, too. We find that we often bring family members with us now that we own DVC because we enjoy treating them to vacations with us. We tend to pay for all the meals and the rental cars in addition to the villa. Sometimes tickets for our guests, too. Would we be able to be so generous if we didn't own DVC? Not likely.

On the rare chance that we can't use all of our points in a year, we are able to rent them to nonowners or transfer them to fellow DVC members. It's easy to do.

 

[HM]

We've owned a Marriott timeshare on HHI for over 10 years now. We've never exchanged it (dumped our II membership years ago) and are very happy with that purchase. We love where we go and would have to pay a lot more than we do in dues to stay there (if it were even available for rent). We had visited the island for many many years before buying, so knew that it was right for us. We did not look at it as an investment, but rather a way of taking the exact vacation we liked every year.

Although we've vacationed at WDW every year for the same 10 years, we did not buy DVC, because we didn't think it was something we'd do 'forever' and have enjoyed staying at various levels of resorts and have taken advantage of a lot discounts. I know we could have paid for a DVC with all we've spent there by now though.

 

[jakenjess]

Add us to those DVC owners with no regrets! We have had some absolutely fabulous vacations we never would have had without it. We enjoyed WDW as a couple before kids, and I know after the kids are grown we will still enjoy it and hopefully our kids will still occasionally vacation with us and their own families.

 

[perdidobay]

We bought DVC 9 years ago, after our kids were grown, as we like to go to WDW at least twice a year, and so far we haven't burned out on WDW. We paid cash,and added on 5 times (20-50 points each). I like the fact that we are not locked into a certain week of the year, a certain size of room, and we can bank/borrow/sell points as need be.

We have no regrets. It's been great not having to constantly wait and watch for room discounts. The discount on annual passes is just a plus!

As for ANY purchase that's a "want" and not a "need", buying something you really can't afford is never a good deal.

 

[Greysword]

Reading the DVC boards might lead one to believe that that many people are happy with their timeshare purchases. I think that percentage wise there are very few. Many are too embarassed to say that purchasing a timeshare was a mistake. For some, the purchase may seem like a good idea for the first few years, then reality sets in.

I would like to see your statistics for this broad statement regarding DVC owners on the DIS boards. I believe this statement is ill conceived, unless I missed a section of the boards, which has a lot of DVC complaints/sellers. Instead, I think this is simply a personal opinion made to look like it is based in fact. However based on the input on the DVC boards, I think the opposite is true of active DVC members who also visit the DIS. This can be measured; however, with a series of polls. Outside of the DIS, I don't think there are any statistics to base the argument in either direction.

I think that you have hit on an issue that many do not consider. So many people buying into DVC think that they will always vacation at Disney.

I think one of the greatest misconceptions regarding a DVC membership is that it requires a visit to the parks to enjoy fully. We use our DVC membership for two purposes: to visit the Mouse and as a base of operations.

The first use is clear to understand; however, many do not think of the second when purchasing a DVC membership. Florida and Southern California have a lot to offer outside of the Disney parks and restaurants. Other Orlando theme parks, Kennedy Space Center, Busch Gardens, Florida Beaches, and convention/sporting events are all accessible to make for a wonderful vacation while staying at a WDW DVC resort. Anaheim offers even more with Hollywood, the greater Los Angelas metro area, and San Diego within arms reach.

Another option is to take advantage of DVC's other resorts, such as Hilton head Island in South Carolina or Vero Beach, FL. DVC is currently building a resort in Hawaii, which will offer an additional vacation destination no where near a Disney Theme Park. I will add, for good measure, that DVC can also be traded into RCI if desired or used at some of the more exclusive resorts around the US (such as in NY, DC, and Colorado).

In summary, the Disney Vacation Club has many options available for it's members, which do not have to require a park stay any more than a vacationer to central (or Eastern) Florida, Southern California, or Hawaii.

To the OP's initial question, it was worth it for us to enter the timeshare market. Since my family lives in the Tampa Bay area and my wife shares my love for Disney, it was easy for us to buy DVC and use it to both visit my parents (they come to us in Orlando as much as we go to them) and visit the Mouse. We plan on visiting Florida every other year anyway, and it was probable we would be making a WDW trip during these visits.

Before buying, my wife and I were able to see the value of timeshares due to our friends owning Starwood (Sheraton). They are able to convert their weeks to points, which they use to visit many destinations (such as Vegas, NY, and others). Their wedding gift for use was an overnight in a Four Seasons on the big day and a few nights at the Swan (owned by Sheraton) at WDW. OUr observation ws the timeshare forces them to take regular vacations (every other year or more), which is actually a plus for us.

Good luck with your decision!

- Chris

 

[disneygals]

In 1996, we paid full price over 20k at the Manhattan Club, came home and a friend told us to get out of it and look for resales online. We cxld, paid 5500 for a Vistana floating week and pay about $750 for yearly dues.

Years ago we did trade to VT and VA, but you really have to plan ahead. Couldn't go last year to FL, so joined II and are staying one week at the new Marriott Lakeshore reserve and one week Vistana...leaving tomorrow...should be packing!

I still wish we had bought DVC, but what we did made much more sense financially...we are a family of 5 and would always need a 2 BR.
We love our timeshare, but the best rule is buy where you want to go, don't count on trading!

 

[Sanchez]

I would like to see your statistics for this broad statement regarding DVC owners on the DIS boards. I believe this statement is ill conceived, unless I missed a section of the boards, which has a lot of DVC complaints/sellers. Instead, I think this is simply a personal opinion made to look like it is based in fact. However based on the input on the DVC boards, I think the opposite is true of active DVC members who also visit the DIS. This can be measured; however, with a series of polls. Outside of the DIS, I don't think there are any statistics to base the argument in either direction.

- Chris

Of course I have no statistics. I also indicated that due to my profession I am likely to see the negative aspects of timeshare ownership. Nevertheless, if you look at the foreclosure rates, the large volume of resales, and the drastically decling values (despite DVC's attempts to prop them up with right of first refusal) it stands to reason that there are a significant number of people who are dissatisfied and/or cannot afford it - meaning that a bad decision was made somewhere along the line. Finally, just because some says that they are satisfied does not mean that they made a good decision.

There are many timeshare defenders and you and others have every right to feel satisfied with your purchase. It is of value to you and that is all that matters. Whether I believe that timeshare owners are "suckers" or not should not matter to you whatsoever. A timeshare would have no value to me as there is no way that I could justify the expense when compared to the limited benefit. Others may disagree. Objectively, I think that we can all agree that as a pure investment timeshares are not a good idea.

 

[ElizabethG]

We are also DVC owners and love our DVC. I have was always against timeshares until I finally checked into DVC ownership. I should have checked into DVC years before I did. My one regret is not buying sooner than we did!

I never wanted a timeshare. I only started looking into it once BLT was built. We stayed there on a cash ressie (checking in on opening day). My family and I just loved it so much. My DH said, "We are always staying here!". That made me look into it. I also get so much personal satisfaction out of thinking about going year after year. I never have to think, "Maybe it would be better if we skipped this year and saved some money." The accomodations are paid for, so we are going! I love it. If I stop loving it, I will sell. I'm not worried about making my money back if I do. The amount of personal satisfaction I would have gotten from it would have more than paid for it. It is a sunk cost. Anything back would be profit.

I like your signature quote!

Mort: "I like computers!" King Julian:"So you know?" Mort: "No, but I don't have to know to like!"
Penguins Of Madagascar

Here is another: Kawalski:"BUUURRRRPPPP!!!" ... Mort:"It smells like the Circus."

 

[Pakey]

I want to point out that my earlier post regarding my dissatisfaction with my 500+ DVC points has nothing to do with money or the economy. I paid cash for the contracts, the annual dues are only about $2500 so not a big deal. I'm just bored with WDW. We've been over 20 times and rarely go into the parks anymore. However, I only get 3 weeks of vacation a year and have 500 points. We go out of the country for at least 2 weeks every year on our big vacation so yes I do regret buying it.

When we bought it, our vacation style was different. It was great for 10 years; it no longer is. Unfortunately, timeshares are not like a car lease and I now regret having tied myself to a vacation style that no longer is what I want to do.

I know there are legions of diehard DVC fans here and I think that's great. I'm just admitting that, for myself, I made a mistake buying a timeshare and thinking that I'd want to vacation there forever. And I didn't buy DVC on my first trip, or my second, or my third; I've been going to WDW for 30 years. I would be happy going every 5 years or so but with 530 points for just my husband and I, we are now tied to it.

 

[eliza61]

I want to point out that my earlier post regarding my dissatisfaction with my 500+ DVC points has nothing to do with money or the economy. I paid cash for the contracts, the annual dues are only about $2500 so not a big deal. I'm just bored with WDW. We've been over 20 times and rarely go into the parks anymore. However, I only get 3 weeks of vacation a year and have 500 points. We go out of the country for at least 2 weeks every year on our big vacation so yes I do regret buying it.

When we bought it, our vacation style was different. It was great for 10 years; it no longer is. Unfortunately, timeshares are not like a car lease and I now regret having tied myself to a vacation style that no longer is what I want to do.

I know there are legions of diehard DVC fans here and I think that's great. I'm just admitting that, for myself, I made a mistake buying a timeshare and thinking that I'd want to vacation there forever. And I didn't buy DVC on my first trip, or my second, or my third; I've been going to WDW for 30 years. I would be happy going every 5 years or so but with 530 points for just my husband and I, we are now tied to it.

I'm not sure I would classify this as regret. You're taste simply changed, which is pretty much the chance we take with any purchasing decision. You mentioned that you got at least 10 years of great vacations annually out of them so that's a pretty good return on investment.
timeshares are pretty much like car leases (except longer terms) in that you run the same risk. I remember buying a Mazada RX 7 9 months before I got pregnant with my firstborn Now here we were with a 2 seater sports car and a baby on the way. LOL. Sure I would have made a different decision had I known I was going to be preggars so soon after purchasing the car but you know what they say about hindsight.

 

[jodifla]

We've owned for 14 years now, and certainly don't regret it. I was at a party a couple of months ago and talked to some very happy DVC owners; they've owned as long as we have and own more points.


Particularly if you live in Florida, DVC is really attractive. It gave us a great base of operations, and we invited friends and family to join us. We could drive, take food, and had Florida seasonal passes, so it was a really great way to do what we did anyway -- Disney -- in style.

And then we did Vero when we just wanted a weekend beach getaway.

We also only have 206 points, so we don't feel buried under them or the dues in any way.

 

[PghLybrt]

We bought DVC and I really only have one regret, I wish I would have sooner. We now have 3 contracts and 450 points. I find, for us, we simply do not have enough points! We have no children but we like to take vacations with family or friends. Many of them could never afford to come with us and we know this, they would also never let us pay. However with DVC many view it as already paid for so they feel more at ease coming with us and letting us foot the bill. People might think I am crazy for doing that all the time but i think it is no fun playing if you are the only one with all of the toys.

Dvc works for us. I have been at disney for the past 35 years and really can't see myself not wanting to go back as there is always something new to see/do! We do other vacations as well that are not timeshares so we have the luxury of picking when and where for those too!

 

[evaready51]

You are wrong on so many levels. We own at DVC - SSR and am on the Boards every day. I would say 95% of the folks love their DVC!!

We never puchased it as an investment but as a prepaid vacation plan. We are now empty nesters and still enjoy Disney. But we are also aware that we have other options to vacation in many more places.

 

[dianeschlicht]

You are wrong on so many levels. We own at DVC - SSR and am on the Boards every day. I would say 95% of the folks love their DVC!!

We never puchased it as an investment but as a prepaid vacation plan. We are now empty nesters and still enjoy Disney. But we are also aware that we have other options to vacation in many more places.

I have to agree with that. There is a lot of complaining over on the DVC boards about the endless details that some do or don't like, but in general, I'd say that MOST DVC owners love their timeshare. We have owned for 13+ years, and that entails 30 some trips. We've only traded out once, and that was to Hawaii. Disney became our "go to" vacation place, and even though we are in our mid 60's with grown children, we still look forward to our DVC trips to WDW. We generally go twice a year for 7-10 days at a time, and Yes, We DO go into the parks every day yet. It might not be for the whole day, but we have annual passes (with that handy DVC discount), so we can just go in for dinner, if that's all we choose to do.

I know someone earlier on the thread it was NOT an investment, but we do look at it is the best investment we have ever made in our VACATION! Since Disney is our destination of choice, we know where we are going, and it isn't going to cost us thousands of dollars each time we go. Basically, we go to Disney 20-30 days a year and stay in deluxe accommodations for our "dues", which is around $1200 annually. I dare say we would be spending a LOT more than that each trip (even with those booking incentives out there now) if it wasn't for DVC.

 

[Anal Annie]

I think that you have hit on an issue that many do not consider. So many people buying into DVC think that they will always vacation at Disney. The investment is so large (cost of the timeshare, annual dues, tickets, travel expenses) that buying into a timeshare will always cost more than not. Timeshares should never be looked at as an investment.

Reading the DVC boards might lead one to believe that that many people are happy with their timeshare purchases. I think that percentage wise there are very few. Many are too embarassed to say that purchasing a timeshare was a mistake. For some, the purchase may seem like a good idea for the first few years, then reality sets in.

As a real estate lawyer I have rarely, if ever, come across a client who thought that timeshare purchases were a good idea. When times get tough you can cancel you vacation, but annual dues and other expenses still need to be paid. Take a look at the number of resales and foreclosures to see how many have come to the realization that a timeshare purchase was a bad idea. I realize that I tend to see the negative side of things, but I am of the opinion that anyone purchasing a timeshare has been suckered into doing do. Disney (with the "Welcome Home" b.s.) and other timeshare companies (with the high pressure sales tactics) would not be doing this if it did not mean there was a huge profit involved. (i.e. they are capturing vacation dollars that they otherwise would not have captured.)

The only good news (selfishly) is that with so many friends and clients in timeshare purgatory I have had many free (or nearly free) places to stay over the last few years. So if you want to make your friends and relatives happy buy a timeshare! They are the ones who will benefit most.

I think most of the people on the DVC boards that I read are pretty happy most days of the week. Your opinion certainly does not apply to us. We love the points system and that there are a couple of options outside of WDW as well. We are very happy with our DVC membership, especially with the new expansion on Oahu. Personally, our biggest regret is that we did not purchase sooner. As other posters have said, it's not an investment property, it's prepaid accomodations that take the sting out of the cost of taking multiple vacations per year.

 

[LaurenLC]

I haven't read through the whole thread, but I have to say we LOVE our DVC membership! We just had our daughter last month and we can't wait to introduce her to Disney and all the other wonderful places that our membership offers!

 

[Brian Noble]

Florida and Southern California have a lot to offer outside of the Disney parks and restaurants. Other Orlando theme parks, Kennedy Space Center, Busch Gardens, Florida Beaches, and convention/sporting events are all accessible to make for a wonderful vacation while staying at a WDW DVC resort. Anaheim offers even more with Hollywood, the greater Los Angelas metro area, and San Diego within arms reach.

While this is true, Central Florida and Southern California have *many* non-Disney timeshares that are significantly less expensive to buy and own, and are arguably as nice or nicer than the Disney resorts. The value proposition for DVC ownership makes the most sense if you *use it for Disney*. As soon as you go "off the reservation", you're spending more than you needed to.

Nevertheless, if you look at the foreclosure rates, the large volume of resales, and the drastically decling values (despite DVC's attempts to prop them up with right of first refusal) it stands to reason that there are a significant number of people who are dissatisfied and/or cannot afford it - meaning that a bad decision was made somewhere along the line.

There are also vastly increasing foreclosure rates on primary residences, and a large number of resales of such homes with drastically declining resale value, but that doesn't necessarily mean that home ownership is a bad idea in general. On the other hand, I will grant you that *borrowing* to buy a timeshare is usually not wise, and that buying from the developer---even for cash---is also usually not beneficial vs. renting on the open market.

As to resale values: part of that is that timeshare resales are still an inefficient market, part of it is the use of FUD (Fear Uncertainty and Doubt) on the part of the developers, a few developers have actively torpedoed the resale market (by not allowing some rights to transfer with sale), and part of it is that developer purchases are impulse buys in the first place at inflated prices relative to the underlying real estate value.

But, if you are buying resale rather than from the developer, you can take advantage of all of these things, rather than suffer them as consequences---and, at that point, timeshare ownership *does* provide an economic benefit vs. renting on the open market in many cases. I can assure you that's been true for me.

Finally, an aside on ROFR: Disney isn't propping up anything. Resale prices have fallen significantly during the current market contraction, despite the fact that developer pricing has held or gone up. At the same time, data provided by a broker on another site suggests that even in the face of falling prices, DVC is exercising ROFR less often, rather than more---in short Disney doesn't need more inventory, even at these lower prices. Indeed a strict economic analysis suggests that with ROFR, resale value is in an efficient market is actually slightly lower than it would be without it, because the rights-holder does not need to bid competitively for inventory. In an inefficient market, it improves value, because it brings more parties to the table. But, Disney has a relatively efficient secondary market in comparison to most other systems' products, with well-known brokerages and an ecosystem for resale.

I think that we can all agree that as a pure investment timeshares are not a good idea.

First, it depends on what you mean by "investment." One way to value ownership is to sum up the nights you spend on vacation, and compare the cost to rent those nights on the open market vs. the cost to secure those nights through various means available to timeshare owners. If you spend less owning than renting, accounting for all costs properly with time-value-of-money considered, then owning is an economic advantage.

If you mean "devote capital to something that will outperform other potential investment opportunities" then I would agree with you in most cases, but not in all. I do know several people that are beating market-average returns by managing a portfolio of timeshares as rentals. It takes a lot of work but it can be done. (As an aside, none of them are renting DVC---the cost basis is too high.)

But, the average person is not a timeshare landlord. Done right, timeshares are nothing more than a way to obtain lodging at a discount to rental market rates. And, that's still an economic benefit *provided that you'd take those vacations anyway.* The kicker is that most timeshare owners find that they end up vacationing more often, and end up spending about the same amount or more than they would have without timeshares while taking more vacations. Whether or not that's a good thing is left an exercise for the reader.

 

[Greysword]

First let me start my reply by saying it is good that we have a forum to have this debate, as I think it goes to the heart of what the OP was trying to learn. That said, I think our statements are being observed by some who are attempting to make an informed decision. To that end, I want to make sure they have factual data and first person opinions that will be constructive, so I am attempting to invalidate some of the possible conjecture in your arguments for the sake of balance.

Nevertheless, if you look at the foreclosure rates, the large volume of resales, and the drastically decling values (despite DVC's attempts to prop them up with right of first refusal) it stands to reason that there are a significant number of people who are dissatisfied and/or cannot afford it - meaning that a bad decision was made somewhere along the line.

I would contend that many of the resales and foreclosures are likely a result of the recent recession and high unemployment figures instead of wid spread dissatisfaction with the product. I would contend that most of the people who sold, are selling, or are going through foreclosure would not have done so if their financial situation was not directly or indirectly impacted by the current economy, based on the sample on the DVC forums in this situation.

Finally, just because some says that they are satisfied does not mean that they made a good decision...Whether I believe that timeshare owners are "suckers" or not should not matter to you whatsoever.

It seems to me that these statements are derisive and judgemental, and as such have no place in an honest debate as to the value of a product or service. Instead, these statements are designed to belittle the opposing side instead of discussing the merits of one decision over another.

This is important; because, the OP and other people attempting to make an important financial decision are looking for facts and personal experiences to help them in their quest. Passing judgement on the character of one side or another does not constructively add to the pool of knowledge.

A timeshare would have no value to me as there is no way that I could justify the expense when compared to the limited benefit...

This is a fair opinion as to why you feel a timeshare is not right for you, and should be added to the OP's body of information, since this is exactly the personal statement they appear to be looking for.

I think this point reinforces the advice most (if not all) of the DVC members in that forum provide to people considering becoming a member, and that is to take time to ensure the decision to buy is right for their family. We can not reinforce this enough. Although I may appear to be defending DVC, I believe the purchasing is not right for many people considering it. I, like many members in the forums, did a spreadsheet to determien the financial viability of buying a timeshare with Disney versus not. Taking into account the purchase price, financing costs, monthly fees (with a 5% increase each year for the next 50), and the time-value of the purchase price if it sat in an interest bearing account at 7% interest (and was used exclusively for lodging at WDW), this was compared to the 2004 Disney resort rates (to ensure the other perks of staying on property were not a varable) at all three levels of accomodations, with a 40% discount from rack rates and a 8% annual increase in price. In the end, we would break even at year 15 with our initial purchase of SSR at $95/point.

In reality, we have already used about $6,000 in accomodations (compared to package price from CRO at that time for each stay), which is about half of our initial buy-in price at SSR (without monthly fees and interest). Thus, we are ahead of schedule on our ROI. Also, if we sold our 165 points at $60/point (bottom of the current prices), we would receive about $9,900. This would easily pay for the remaining loan balance we have on these points and have about $3,000 left over. Thus, we have about $16,000 of value (in potential cash and services rendered) for our $14,000 investment (roughly initial buy-in amount, plus annual fees to date, plus estimated interest not used on taxes rounded up).

If this ROI categorizes me as a "timeshare defender", then so be it. However as a finance analyst by trade, I feel our return on investment has and will continue to remain high. If I lost all of my income today (in this terrible economic environment) and had to sell my DVC membership, then I could do so at the low end (and below for many of the current rates) and come out even or with cash in hand. Therefore as a counterpoint to your thoughts quoted above, a timeshare has significant financial and personal value for me and my family, with significant benefits, and the costs have been completely justified for us.

The OP can now take both of our opinions, negate them as opposites, and move forward in their research

- Chris