Value of a DVC Point / Considering Purchase

[arcruiser]

ON our recent trip, I booked 5 nites at POFQ just in case I didn't find someone to rent from. This was early Dec. Sunday thru Thurs. at $744.

We rented 40 OKW point for a studio at $10 per point for $400, so I figure we saved $344 and got a nicer room.

On the small contract we are buying, which is a little pricet due to closing costs spread out over few points.... that same room at OKW will cost me $224.65 in the future.

 

[FamilyGuy]

But I know that If i hadnt joined dvc I would be staying at lower priced rooms so that gives me a closer real price to my savings over time.

The thing im not factoring in is the fact that we will be going more often because we can!

This is why DVC is a true win win for everyone. Disney in a way locks you into going back on a regular basis (for many this may be more often than you would have had you not purchased DVC). You obviously save over paying rack or even discounted rates for a luxury resort. And also for many of us (my family included) you stay in accomodations that are larger and more luxurious than you would otherwise.

I think the real beauty of the whole deal is that the value of the intial investment can be entirely re-couped after just a few years, which is not typical of most other timeshares. After several years, it actually appreciates (think of the people who bought in 1991)!

I think the best part about it for Disney is that it guarantees them that you will be spending more money with them in the future. More likely than not, large amounts of money!

Truly a win - win proposition.

 

[lllovell]

The calculations that I came across and scribbled on my own came up with a quicker payback than 10-12 years, more like 7-8. I don't doubt that I could change numbers here and there and come up with something different. I had to take what I felt like was the best information I had, compare it to the ever rising cost of hotel rooms in the Orlando area and when I put the numbers side by side, I could not believe how good DVC looked.

One thing that we took into account when planning where to buy and if it was worth the money is that we are vacationers. We DO take time off each year to spend with our family. The structure of DVC will allow us to change how and when we vacation over time. We have two small children and buying into Saratoga will allow us to spend time with them there and then have plenty of time left over for our grandchildren and possible great grandchildren. You cannot put a dollar amount on the future fun you will have in your life from this, but to my family it was the most important "dollars" spent.

You will have remorse probably after signing the papers, but it will quickly be gone when you start to plan your first trip.

Also, on the number of points thing....I have not been around long, but already there have been two offers of incentives from DVC for adding on. Anything from annual passes (for a huge purchase) to Hopper Passes to a weekend vacation on "their" points. I would start out with 150, then add on over time.

 

[vernon]

Scotch said

So why should anyone buy now, then? We thought we'd decided (finally) that we should buy DVC. But of course the fact that I can readily rent points from owners at DIS, for example, for $10 a point (and sometimes less) year round continues to give me pause (though not DH)

I would say the argument would be the same as why buy a house when the (fixed) mortgage cost is about the same as renting a property AT THE MOMENT. What you are doing is fixing some of your costs at the current rate. If you believe that the room rate at Disney is going to be lower in 20 years than it currently is, then I would say definately do not buy into DVC, however, it's very rare to find an example of when hotel costs have decreased over any long period of time. IF you buy into DVC now, your annual cost increase is going to be a percentage of the dues cost or about $50 a night (work on average cost of 12 points per night X about $4 per point). Where as rental increases are likely to be percentages of a larger figure, somewhere in the region of $120 per night. If both rates increase at the same inflation rate (say 5% PA ) in 5 years time your DVC purchase dues cost per night will be $63 per night ( a 13 $ increase), whereas rental points would be $127.50 (a $27.50 increase), in 20 years the cost of dues would increase by $ 82 whereas renting points for a room would increase by $165. With higher inflation the differential is even greater, at 10% after 20 years dues would rise by $ 286 per night, renting points would cost $572 per night more.

IMHO point rental costs have been supressed over the last 3 years because of the slow down in the economy and the 9/11 effect. I think this increadably busy holiday season is the start of WDW turning the corner and the days of Disney having to heavily discount it's rack rate are numbered. There is going to be more demand for rooms and Disney has learned that people book rooms at one rate( to avoid disappointment) and wait for Disney to discount their dates nearer the time so they can get a cut price stay. IMHO Disney will find if they don't cut their rates they will not lose that many bookings.

 

[twotoohappy]

When I was deciding if DVC was right for me, I was directed to http://www.badshoe.com/dvc_analysis.htm

It has a great breakdown of costs for dvc vs resorts, inflation, if you want to sell after a certain amount of time, etc. It's a great site. I hope it helps.

 

[TammyAlphabet]

Value of a DVC point? Priceless.....

 

[JodyTG]

We're just getting the process started to by 160 points at SSR. We looked at the dates that we usually travel and for 10-11 nights that's about how many points we'd need. We didn't want to buy 150 and have to borrow from the next year and then borrow more from the next year...etc. We'll most likely do add ons in the years to come (especially if I keep coming to these boards with the bad influences you guys are) but for now a studio will be perfect for me DH, DD & DS.

 

[SoCalKDG]

Lets say you buy at SSR, 200pt for 85$ per point, then sell it in 10 years for what you paid. How much did the points cost? Would it be dues plus the loss of interest? But if you were to vacation anyways, say one week at $1500 per year, than that $17,000 would have dwindled down each year(approx. $1000 per year) anyways, so that $17,000 might only be $7,000 at the end of 10 years. Then you buy 75 points and kick yourself for not buying 10 years ago.