Originally posted by JMarty
1. How has the expeerince gone for most people - has it been as enjoyable and easy to use as most "the pitch" says?
Nope. It's absolutely ghastly! We're all miserable, can't you tell???
2. I would like to understand why the value of the exisitng points don't increase in value proportionatley as the new points to the new resorts are offered if all the points are equally interchangeable?
That question is a little easier to answer now that SSR is the only resort that
DVC is selling. Contracts at SSR end in the year 2054, while the other properties all run through 2042. There was always some disparity between points purchased through DVC and those on the resale market, even before SSR went on sale. Hard to tell exactly why that was, other than ROFR. DVC has Right Of First Refusal on all resales, and you could tell DVC's buyback prices within a few dollars. Most resales would tend to sell within a few dollars of that ROFR threshold.
3. I say this next one with tongue and cheek - I know my investment if made will go into years (hopefully) of wonderful vacations - at the end of my ownership do my points have any value - are they bought back by the resort or should I consider investing in an actual condo if I want long term value?
The best way to answer this would probably be for me to scream at you "DVC is NOT an investment", but I won't do that.
But, it really isn't an investment. It is a prepaid vacation. Assuming you buy into DVC with the intention of making 40-50 years worth of trips to WDW, Hilton Head, Vero Beach, or some of the other trade-in options, you will make a killing over the prices you would have paid by staying at WDW deluxe resorts.
By my definition, an investment is something that appreciates in value over time. DVC may or may not appreciate. If you buy into DVC with the intention of taking 5 or 10 years worth of trips and then selling your points for a value close to what you have paid, then you're taking a big gamble.
As stated above, DVC's Right Of First Refusal helps keep resale prices in check. A lot of things could happen to Disney or the economy in the future which would negatively impact the "value" of your DVC ownership.
The only given is that you will get lots and lots of vacations at a fraction of the price.
4. how often do the points required per stay and monthly fees change?
Point values for a room CANNOT change. Well, actually, they cannot change over an entire resort. When the resort goes up for sale, the total points for the property have already been determined. For SSR, if you were to take the total number of rooms (Studio, 1B, 2B, Grand Villas) and add up the number of points it would take to occupy those rooms year-round, THAT is the number of points that DVC will sell.
I did the math once. I think it's upward of 10 or 11 MILLION points at SSR alone.
DVC does retain a percent (about 5%?) of the ownership at all resorts which is used to take rooms out of service for rehab and to allow WDW guests to book the rooms at cash prices.
So the TOTAL points at a resort cannot change.
What DVC CAN do is reallocate those points. In other words, if a Studio at SSR on a Monday in January costs 12 points now, DVC could raise that cost to 13 points in the future. But the only way they can do that is if they make a corresponding REDUCTION in the point values somewhere else in the structure of that resort.
This type of reallocation has only happened once--at Old Key West about 7-8 years ago. I wouldn't hold my breath waiting for it to happen again. The
point charts as you see them today are likely to remain the same for years to come.
The annual dues (maintenance, whatever you want to call it) are adjusted annually. Old Key West is the oldest property, and their dues have gone up an average of 2-4% over the 12 years. That's pretty close to cost of living.
Dues have taken a bit of a hit in the last 3 years primarily for two reasons:
1. Insurance costs rose dramatically after 9/11.
2. With interest rates as low as they are, DVC's reserves are not generating as much interest income as they did in the 90s.
By contract dues cannot rise more than 15% per year. That's a big figure. But at least realize that timeshares are regulated to the point that the increases are not arbitrary. Member dues are tied directly to DVC's costs of operating the resorts and DVC itself.
5. IF i could get re-sale at one of the WDW resorts should I consider that before Saratoga Springs?
That's a very personal decision and one you need to make for yourself.
The most significant element to choosing a Home resort is the 4 month booking advantage. You can reserve your Home resort up to 11 months ahead of your travel dates. This can be important during certain busy times of the year. At 7 months before your stay you can reserve any DVC property.
So, if you look at the prospectus for SSR and say "that's where I want to spend most of my DVC trips", then that's where you should buy. You will have 4 months to book a stay at SSR during which owners of BCV, BWV, etc. CANNOT book at your resort.
Resale prices do tend to be cheaper. But there are some drawbacks:
1. It can take some legwork to find the resale you want and to negotiate with the seller. Then you need to wait on ROFR (and start over again if you lose the contract to DVC.)
If you hook-up with a good broker, this can be fairly painless. But others have horror stories to tell of DVC exercising ROFR or sellers causing problems (pull out at the last minute, causing delays in the closing, etc.)
2. Most buyers pay closing costs. That will run you $250-400 regardless of the number of points you buy. If you buy a low number of points, say 150, you're adding $2-3 to your purchase price.
3. You need to find your own financing. DVC will finance purchases of SSR with as little as 10% down. Their rates are competitive, although a home equity line is likely to produce the lowest rate you will find.
4. The older resorts only have 38 years remaining on their contracts. SSR has 50, and you can only buy it direct from DVC.
5. Also, be careful what you are getting. DVC allows members to borrow points from their next Use Year. Many resales have no points available for the current Use Year, and part (or all) of their points gone for the NEXT Use Year. Could be almost 2 years before you catch up.
Hope that helps. Good luck with your decision.
