We're thinking about buying into DVC but we need some advice....

[sasha]

Hi Everyone,

DH & I are seriously thinking about buying into DVC. We're thinking we want our home resort to be AKV. We are Disney fanatics (even got engaged at DL), however we've never been to WDW. It's someplace we've always wanted to visit, but we want to wait until our DDs (2 & 4) are a little older. But we figure we will plan a WDW vacation in the next 2-4 years. Plus we have a Disney Cruise planned for next year. Here's where I need advice:

DH & I were proud to be debt free for many years (except for our mortgage), but we had no credit card debt. Unfortunately in 2006 DH was part of major layoffs at his company and was out of work for quite some time. He's in a very "unique" field and it took him a long time to find another job that pays what he was making before. I'm a SAHM, so we really didn't have any income except for unemployment and fill-in work he was doing. In the time he was out of work we incurred some credit card debt. Our plan is to pay off the debt within the next 2-3 years so we will once again be debt free. Even though DVC is something we're interested in, we weren't planning on doing it until we're completely debt free. Well, I just got off the phone with DVC and they said that we would be able to pay for our cruise next year with points (our initial points plus 400 promotional points they would give us). Now we're thinking that maybe we should buy into DVC now rather than waiting a few years for the reason that it would cover our cruise and our trip to WDW that we want to do within the next few years. Wouldn't it be better than throwing that money away, not that it would actually be throwing it away, but you know what I'm saying. The cruise is costing us about $6,000 and accomodations for a trip to WDW would cost about another $2,000-3,000. That's about $9,000 for two trips when DVC would be $16,000 for 50 years of vacations. Does that make sense? What would you do? Would you buy into it now or wait until you're completely debt free?

We should be getting the "Dream" book within the next couple of days so hopefully that we help us make our decision. I heard great things about the book, but advice from other DVC members would be greatly appreciated.

TIA!

 

[Mtnman44]

You are going to get varying opinions on this and really only you can make the decision. Debt should be used sparingly. Getting yourself debt free and saving for the purchase is a very good suggestion. If that $9,000 you are planning to spend on your next two trips is going to be cash, then yes, I'd saying using that for a down payment on your DVC might be a wise move for you. Another perfectly reasonable suggestion is to use that $9k to pay off the cards, then start saving for vacation expenses. If you plan on visiting WDW every year or two for the foreseeable future, DVC is generally a good choice.

 

[rahrah]

I do not believe that 400 points is enough to take 4 people on a disney cruise. I do not have the charts at hand, but that sounds like the amount of points for one person.

 

[Teyedoubleguhrrrr]

My .02

Get your Dream Book and check to make sure that the number of points you would use through banking/borrowing/promotional would cover your cruise at the same cabin level you desire. Sure, the Guide might be right that you could cover the cruise for the four of you, but is it at the level you would want?

In terms of debt/financing, have you considered a home equity loan/line of credit to cover at least some of the DVC cost? That way, as you are paying off DVC, you also get a tax benefit. Depending on your bank, you can get one with no prepayment penalty, so if you are able to pay it off sooner, then you can. Something like that might allow you to hit the credit cards harder (since they have that nasty higher interest rate!) AND do DVC. Just a suggestion.

It is definitely a tough decision. Keep in mind that beyond the initial purchase costs, you will also have the yearly maintenance fees to pay. Will that put a crimp in your plans?

I wish you luck in your decision-making process. It's good that you are thinking this through so thoroughly. These boards are a great source of information - so do LOTS of reading!

 

[caracarn]

I agree that this is a tough choice. I can tell you what we have done with DVC and trying to remain debt free. Our situation may be different in that we were lucky enough to receive bonuses from my job at various points, which helped speed up or Disney debt reduction.

Out initial purchase was financed with Disney after much thought, and our recent 100 point add-on at AKV is on our HELOC for the tax advantages. In both cases the decision to wait until we had the cash or go for it to get more use, came down to the fact that we, as you, would probably have gone on the trip anyway even if we had not had the points. As such, it did not seem to make sense to spend money on the trip AND try to save for DVC. We paid off our initial 10 year loan in 18 months, and we have a plan to get our add-on paid off in about 24 months as is. Of course another bonus or additonal cash can speed that up.

In the end, we felt the decisions we made were right for us and it took us some time to reach those decisions in both cases. That's really the process I think we all go through on these boards. Disney tugs as the levers of family time, fun, relaxation and fond memories of years gone by, but all that joy can be erased if you are a nervous wreck because of the debt you have incurred, or are on your trip and worrying about how you will pay it off. Determine what works for you and go for it!

 

[sasha]

Thanks so much for your responses everyone! DH & I are still trying to figure out what to do. This is something we REALLY want. Just a few months ago we were talking about making vacations a priority for our family since our girls are finally old enough to travel well. Our cruise for next year is our first "real" vacation since having kids. We are such a Disney Family! We go to Disneyland at least once per month and sometimes stay at the DL hotel. Plus we would LOVE the opportunity to be able to go to WDW more than once in our lifetime, which would likely be the case if we don't do DVC.

To answer some of your questions:
- A Home Equity Loan is kind of out of the question for now because we just bought in late 2005 so we haven't acquired much equity yet. However we are looking into refinancing.
- Yes, we were planning on paying cash for our vacations. We usually don't use credit cards. It was only something we were forced to do while DH was out of work. So that $9,000 we would spend on two vacations might be better spent buying into DVC for $16,640. Right?
- As fas as points for the cruise go, it will cost DH & myself 594 points to go on this cruise. (We would pay cash for our girls, which we already have.) We will have our 160 pts, plus 320 BONUS pts, plus we would borrow some points from 2009 since we likely won't go on another "big" vacation until 2010. So we'll even have some extra points to stay at the DLH for 2-3 nights in 2009. Hopefully this makes sense.
-The monthly payment + dues are something we can manage to do without cutting back too much. Although we're not rich, we can certainly afford an extra $250-300 per month without it being too much of a financial strain on us. Although with our tax refunds throughout the years we would likely pay off DVC before 10 years.

I hope this isn't too confusing. It's a big decision to make for our family. And although it's something we really want to do, we need to make sure it's the right decision.

Does anyone in a similar situation have any regrets about doing or not doing DVC?

 

[Mtnman44]

With that information, that makes the decision a little simpler. Assuming that you ARE going to spend $9,000 cash on Disney over the next two years even if you don't buy DVC then compare the two choices:

Choice 1:
-Go on Cruise and WDW trip and spend $9,000 for it.

Choice 2
-Spend $9,000 on a down payment for DVC. Use points for a cruise and a WDW trip.
-Pay loan on approx $7,000 DVC balance plus dues each year (Approx 175 per month).
-Starting in 2010 or so, enjoy DVC and Disney Hotels for the next 40+ years!

In that situation, assuming you still have plenty of income left over to pay down the credit cards, then I would go with choice number 2. You certainly get more out of your $9,000 with DVC than with one time trip.

 

[flyerron]

Yes buying at DVC makes sense if you are spending all that cash for vacations. Remember that the DVC resorts are really condos not just rooms. While debt is not a bad thing, you should choose your debt wisely. It sounds like you want to buy & want other posters to confirm your desires. If you can afford it-do it. In the long run you will most likely be happy that you did. So there!

 

[fletch1027]

My .02

Get your Dream Book and check to make sure that the number of points you would use through banking/borrowing/promotional would cover your cruise at the same cabin level you desire. Sure, the Guide might be right that you could cover the cruise for the four of you, but is it at the level you would want?

In terms of debt/financing, have you considered a home equity loan/line of credit to cover at least some of the DVC cost? That way, as you are paying off DVC, you also get a tax benefit. Depending on your bank, you can get one with no prepayment penalty, so if you are able to pay it off sooner, then you can. Something like that might allow you to hit the credit cards harder (since they have that nasty higher interest rate!) AND do DVC. Just a suggestion.

It is definitely a tough decision. Keep in mind that beyond the initial purchase costs, you will also have the yearly maintenance fees to pay. Will that put a crimp in your plans?

I wish you luck in your decision-making process. It's good that you are thinking this through so thoroughly. These boards are a great source of information - so do LOTS of reading!

Based on what you said, it sounds like you are comtemplating a 200 pt. purchase. Correct me if I am wrong, but by my numbers, you could potentially have 1,000 points at your disposal if you go on the cruise between Feb and August of 2008 assuming you buy at SSR with a Feb use year:


200 points for 2007 banked until 2008
400 promotional points that you will get to be used before Aug 2008
200 points for 2008 UY (Available Feb 08)
200 points borrowed from UY 2009

 

[dunkie7557]

The DVC is not free for 50 years. You have to pay dues which my guide said to allow 3-5% increase each year. Plus Disney is known to be a very expensive resort to visit with costs of theme park tickets plus airfare , plus food. the food cost can be controlled if you truly use the cooking facilities you get with the 1bd+ units. There are other things in life that will come up that you need to save for like college and retirement. don't put them off. If you want to come to disney you can always stay off property or in a moderate hotel on property to save money especially if you don't cook. My guide said that there are lots of people who do impulse buying and then have to sell because they need to free up cash. Don't get suckered in. The point is you can still go to disney but at a cheaper route than the DVC. check out EBAY for bargains as there are tons of good places to rent out near disney as an example.
I I have seen how easily debt can come into your life due to an illness or job loss etc. firsthand..If you are asking total strangers if you should do it, then i feel you really are not comfortable with your money situation. Also a lot of people end up buying more points because they need to travel on weekends and during the high seasons when the kids are out of school and on vacation. check out the point guides real slow to make sure what you are buying will work for your family. it will cost thousands more to buy more points.

 

[starbox]

My advice would be to wait until the end of the year - there are some pretty strong rumors that a DVC in Anaheim is going to be announced and that would probably be a better home resort. If it's not announced, you can always do AKV as planned.

 

[flyerron]

The DVC is not free for 50 years. You have to pay dues which my guide said to allow 3-5% increase each year. Plus Disney is known to be a very expensive resort to visit with costs of theme park tickets plus airfare , plus food. the food cost can be controlled if you truly use the cooking facilities you get with the 1bd+ units. There are other things in life that will come up that you need to save for like college and retirement. don't put them off. If you want to come to disney you can always stay off property or in a moderate hotel on property to save money especially if you don't cook. My guide said that there are lots of people who do impulse buying and then have to sell because they need to free up cash. Don't get suckered in. The point is you can still go to disney but at a cheaper route than the DVC. check out EBAY for bargains as there are tons of good places to rent out near disney as an example.
I I have seen how easily debt can come into your life due to an illness or job loss etc. firsthand..If you are asking total strangers if you should do it, then i feel you really are not comfortable with your money situation. Also a lot of people end up buying more points because they need to travel on weekends and during the high seasons when the kids are out of school and on vacation. check out the point guides real slow to make sure what you are buying will work for your family. it will cost thousands more to buy more points.

Wow, Do you always see a half empty glass?? This is depressing! I guess no one should buy because of all the potential pitfalls. Maybe I should never cross the street, I might get hit by a car or bus.

 

[kikiq]

Whoaaa, I don't know that I read that anyone said buying DVC would give anyone 50 years of "free" vacations. AND as for sasha asking for advice from perfect strangers...I don't know anyone on this DVC board but there are plenty of DVC owners here that point out pros and cons. I too am considering buying DVC and from reading I had a 2 page list of questions that I asked my guide who btw was very honest with me. Plus why stay off site when staying at the values can be less than $100/night especially with a code.

sasha - only you can decide how much debt you are comfortable with. In our situation, we passed on buying the first time around in 1992 because our DDs were young and we were concerned about our reserves. Now in 2007, our DDs are in college and we are in a different place where we feel comfortable taking on the financial commitment, our reserves are in place, we have our retirement funds in place and our girls are helping putting themselves through college. While we love AKV, the extra MF cost for animal "upkeep" makes us lean toward SSR...something else to consider that the AKV MF "might" increase more than the rest of the resorts. Our DDs are pulling for AKV, but by the time their families are responsible for the MFs, the 7 month window should be good for them to book AKV and if they want more points then THEY can buy the points they need.

sasha - good luck with your decision...and we're DLR AP holders who cannot wait for the GCV to be announced. We probably have passed your family in the parks<G>

6 more days...

 

[kikiq]

Does anyone in a similar situation have any regrets about doing or not doing DVC?

We wished we had bought DVC in 1992. It would have been OKW. However, as I said before financially it just wasn't possible. If you have a chance, make an appointment with the DVC center at DLR, there's a full studio/1BR replica of SSR units. We spent almost 3 hours there asking questions and another hour on the phone. If you want more info, PM.

AND yes, we did discuss this with our DDs as they will benefit from it from the last 25 years...our concern was were they willing to take on the MFs. Our DDs love Disney, sometimes would rather have an AP than $$ for new clothes

 

[dianeschlicht]

Does anyone in a similar situation have any regrets about doing or not doing DVC?

We waited from 1992 until 1997 to purchase so we wouldn't have to borrow the money. In retrospect, I wish we would have had the DVC in place when our kids were still kids! By the time we purchased, both were in their 20's and only one was still at home. In fact, the ONLY thing that has been a negetive for us about DVC was the fact that we didn't purchase when we first learned of it.

 

[Teyedoubleguhrrrr]

Does anyone in a similar situation have any regrets about doing or not doing DVC?

To echo what other people have said...

We did the DVC tour thing when it was new at OKW back in 1994 - but we were newlyweds just getting started (aka poor as dirt). I wish that we had been able to buy then. It is something that we have revisited over the years, looking at the costs, weighing the pros/cons -- heck we even made up a spreadsheet to calculate how much each point that we get over the lifetime of the contract actually costs us including MF, interest, etc. I think that is why DH and I are so excited to be planning our vacations (the one next April, and one the August after that to celebrate my Master's degree completion). Was it hard to wait? YES!! Was it worth the wait - we think so.

BTW - I liked what starbox said about GC for you - might be worthwhile to see how it shakes out unless the extra points thing won't work if you wait.

Good luck in your decision!

 

[sasha]

Thank you all again for your informative responses. I wanted honest opinions so I appreciate all of them - the good, the bad & the ugly. I must admit though, I am glad most of them are good. It makes me even more excited about possibly making this purchase. Although I don't personally know any of you, I'm asking you (perfect strangers ) because most of you are already DVC owners. None of my friends or family are so they wouldn't be able to give me the advice that you all can.

I've done MASSIVE amounts of research on this board and other places. I even bought the book "Timeshare Vacations for Dummies" and read that in a day. I've been surprised at all of the positive feedback DVC is getting. The only regret I'm finding people are having is that they didn't purchase it sooner. The points system seems to be the way to go. My parents inheirited a "traditional" timeshare and they aren't really happy with it because they never use it, but still pay the dues. If they don't use it every year they lose that time. It's nothing like DVC points.

DH & I had my parents watch our girls last night so we could sit down and budget and write everything out on paper. It turns out that we're in a "little" better financial situation than I thought. While we would have to cut back a little bit each month, it shouldn't really affect us. We would pay all of the MFs for the year and a big chunk of the DVC balance with our yearly tax returns. Even though we would finance for 10 years, we would pay it off in under half that time, as well as our debt. Even though it may not be the "ideal" time to purchase DVC because of our credit card debt, it makes sense to buy now so we can invest the $9,000 we will surely pay for vacations during the next few years. Plus we really want to get into AKV. Also a lot of posters say that it is only a good purchase if we plan on visiting WDW every couple of years and honestly, that would be ideal for us. As I said before, if we don't purchase DVC we likely will only go to WDW once in our lifetime. That doesn't seem like enough. We would love an incentive to go more often. And Starwood, thanks for the heads up on the rumored GCV, but I'm not sure I would want that to be our home resort because I don't think we would ever want to vacation at someplace so close to home (an hour away). Especially since we frequent DL so often. We would prefer to use our points to spend a night or two at the DLH, but we'd rather have our home resort be a place we can stay for a week or two. Make sense?

If we do decide to purchase, it will be the 160 points at AKV. That way we will get the 320 promotional points. That along with borrowing our points from 2009 should give us more than enough points to pay for our cruise next May. Plus we will plan a big WDW trip at AKV in 2010. I really like the idea of making vacations a priority in our family because it's something DH & I never did as children. And we want to start enjoying family vacations now that our girls are still young so we will have plenty of time to make memories together.

Sorry my posts have been so long. I'm planning on posting much shorter questions on other threads. Thanks again for all of your input!

 

[thisisthelife]

Hi,
Like you we are disney fanatics and back in 86 we were 29 years old and we did not have kids and we purchased 210 pts at OKW. and plus we just started a business. So my ground was already shakey if that. but we knew that we would go to disney at least once a year and after going so many times without kids and paying cash we knew that with kids it would be difficult to afford, so with that in mind and knowing you could go every year and basically stay in a villa with a kitchen (so you dont have to eat out every meal) and only have to pay for travel down there and souvineers we made our decision. It is an investment if all things go wrong you could sell. Well I am proud to say for us..its been great and we do not regret it at all ..it forces us to get away every year which is much needed, and through the 11 years we have continued to purchase points at Boardwalk, Beachclub and now Animal Kingdom, We have been able to stay for 14 days in 2bdrm villa or go on a cruise. If we had to pay cash everytime it would of paid off our points for these things. I guess it comes down to the fact of how much you love Disney. I dont think I could ever get tired of going. but its everyones personal decision and I hope I have helped you a little.

 

[flyerron]

Sasha, The more you know about timeshare the better, as a rule. However at some point research becomes an obsession & unproductive. Really you only have to understand how the system works, make a decision if it is what you want & then if you can afford it DO IT!!! Over thinking these things solves nothing. It seems as though you have done plenty of homework & can afford it. I doubt that you would be disappointed & I'll bet 160 points won't be enough once you "get it". Good luck!

 

[starbox]

Even though it may not be the "ideal" time to purchase DVC because of our credit card debt, it makes sense to buy now so we can invest the $9,000 we will surely pay for vacations during the next few years.

DVC is going to cost you waaaay more than 9,000 in the next few years. Just make sure to budget all your travel expenses - probably an additional 1,000 if you are flying.

Dining - you are talking about a week or two - we spend about 800-1,000 per week on all our meals (including travel) - and that's with a combo of DDP/DDE.

Tickets - even with the discount, AP's will be another 1,000 or so depending on the age of your kids.

So - that's realistically at least an additional 4,000 (and won't your kids want Princess dresses? Trading Pins? T-shirts? Stuffed Mickeys? Photos? Bibbidi Bobbidi Boutique Hairdos?) per Disney World vacation if you are traveling from CA and staying two weeks.

IMHO, DVC is a really, really expensive timeshare when you factor in the enormous amounts of money you have to spend each year to use it in addition to the already high buy-in cost and dues. It can be a great thing - but it costs a lot more each year than finance payments and annual dues. We live within driving distance from Orlando, and we easily spend 4,000-5,000 in addition to DVC each year.