What are benefits of buying into DVC?

[dutton]

I have read FAQ, but still can't figure out what financial benefits would be. We are a family of 6 and after last trip we have realized that we need to have a 2 bdr with a kitchen in order to accommodate us all sufficiently. I am spoiled as to staying on site and I know my options are the cabins and DVC properties. If I buy this year, does my lease end 2042? If I need 150 points, is that all I will ever need? In 2 years will I need 170 points for what I needed 150 points this year and therefore have to buy 20 more points? How long can you bank points? I am sure I have more questions, but I think this is most of my confusion. Oh, do the rooms have washer/dryers in them? Thank you!!

 

[Michelemouse]

Okay...I'll tackle some of your questions...

Right now the only on-property DVC resort for sale is the Beach Club Villas. If you were to purchase your points there then they would, indeed, end in 2042. However, DVC will be selling Saratoga Springs Resort soon and if you purchase your points there it is reported they will go through 2054. Even though they will be selling these points in the near future Saratoga Springs will not open until next year. Saratoga Springs will be located across the water from Downtown Disney in the area that was formerly the DIsney Institute.

You purchase your points at one resort and then have an 11-month window to book your stay at that resort. Your points are also good at any other DVC resort and you will have a 7-month window to book at those resorts.

The total points for each resort cannot change. While then can, conceivably, raise the points for one season or unit size they would have to take those points from another season or unit size. We joined in 1997 and the only changes they have made was to split the Boardwalk Villas into two different views. The ponits for the other resorts have stayed the same.

You can bank points into the next year but they then must be used by the end of that year. YOu can also borrow ahead one year. If you bank points they cannot be "unbanked" and if you borrow them but end up not using them they cannot go back to their original use year...they remain borrowed.

I hope this helped. If you have any other questions ask away.

 

[Michelemouse]

I forgot to mention that joining DVC was the best decision we have ever made. We used to stay in standard hotel rooms and now are able to stay in 1 & 2 Bedroom villas that are amazing.

Maybe this very basic analysis will help with your decision. If you were to buy 150 points at Saratoga Springs at $89 per point it would cost you $13,350.00. Your cost per point, per year would be $1.78 ($13,350 divided by 50 years divided by 150 points). Add to that your yearly maintenance fees (probably around $4.00 per point) and you get about $6.00 per point. A 2BR at the existing resorts "costs" anywhere from 22 (OKW in the cheapest season) to 50 (BWV, BCV, VWL in the most expensive season) points per night. That would be $132 - $300 per night for a room that would rent for significantly more if you were to pay cash.

So, if you plan to go to WDW at least every other year DVC would probably make sense.

 

[new_yawka]

Lots of questions....here's a few answers:

Washers and Dryers - YES. In the room in 1BR, 2BR and GV, available at a community location for those in a studio (which you will not likely be)

Banking/Borrowing - one year each. Meaning, you can bank up to one year (but must use the points no later than the next year) and borrow up to one year ahead. Accordingly, the maximum points you can theoretically use at one time is 3 years worth (if you bank and borrow)...if you go at a time when you straddle you use year...it could be more...but that's in the "Advanced Points Management" class

Points "needed" - the total points for a given unit for the year cannot go up. However, they can be redistributed to different days of the week or different times of the year.

Your Deeded interest will run through 2042 if at OKW, BWV, BCV, VWL, VB or HHI. If, however, you wait a week and buy at the new SSR (Saratoga Springs) it will go through 2054

That's a start. Good luck in your decision!

 

[crisi]

For the financial benefits, you need to come up with a formula that works well for you...

Here is a possiblity:

Current room rate at Ft Wilderness cabins or a Home Away from Home Resort Rack Rate (use whatever discount you think is reasonable to expect over 40 years - they are high now, but historically haven't been high) x tax x 7 days.

Cost per point / 38 years (or whatever for SSR) + dues amount on one point x # of points required for a week when you want to go.

This will give you the cost of each of your stays. It ignores both inflation and time value of money, but its an easy one to do.

Here is my calcuations for my first trip.

BWV resale at $63 a point.
/ 39 years = 1.62
+ $4.10 dues = $5.72.
342 point trip (seven nights in a 2 br) = $1956.

2 bedroom rack rate $705
- 40% discount = $423
+ 11% tax = $470
* 7 nights = $3290

Savings $1334.

But that compares apples to apples. Without DVC we'd likely be staying somewhere else, be happier with studios, not bring the Grandparents along.

 

[mickeymom629]

We are a family of 6 and have enjoyed staying at the FW cabins and two adjoining rooms at All Stars Music and Sports. But DVC has enabled us to stay places we would never have splurged for before and we enjoy two huge bedrooms, two nice baths and washer/dryer and kitchens which have cut down on packing and food expenses. It also means, we will keep going back! We try to use our points (originally 150 at Hilton Head, but we just added 50 more Vero Beach) as carefully as we can, usually at OKW and not on weekends unless it's off season.

In my opinion, it's something we didn't have to do, it is a "luxury", but I am so happy we did it. I just wish we had done it sooner.

 

[skoi]

I can't add any advice, because we're still in the thinking-about-it stage, but the replies were helpful to me! There are only four of us, three who love Disney, one who likes it, but the one who likes it has now acquired the strongest taste for deluxe hotels.

We just got our video today, didn't find it too informative though. Nothing we didn't know from reading the board and looking at your helpful links.

Thanks,
Julie

 

[bcvillastwo]

This question always generates lots of responses and I always find the different responses interesting and informative.

To set the stage, I (1) dislike staying off property, (2) prefer the luxury resorts, but settle for moderates and economy when necessary, (3) like to visit as often as possible but at least once a year, and (4) was looking for accomodations that were more like a condo, as in I wanted more room.

I prefer to breaking the cost down on a per point basis (as someone above suggested) that enables me to compare the cost of DVC to the cost of staying any property of my choosing. Some people spend a great deal of time and energy as they look at cost but I pretty much followed the approach Crisi & Michelemouse use. If you don't want to get into too much precision $6.00 per point seems like a good place to start.

But, cost wasn't the only factor. I can get a nicer, more spacious room for less than I would pay for a less spacious room and I have more amenities. I get to go to WDW more often--two to three times a year depending on what time of year. There is flexibility in terms of locations and accomodations (studio, 1 bdrm, 2bdr, grand villas at some locations, two off site beach properties, and more).

I have no regrets, we could have purchased sooner but we needed more convincing and more time to mull over buying. Once we recognized that we really liked WDW and wanted to go at least once a year---then the decision was easy.

Good luck and pay close attention to all responses. It's still a pretty big financial decision and should not be made lightly.

 

[Maistre Gracey]

Originally posted by crisi
For the financial benefits, you need to come up with a formula that works well for you...

Here is a possiblity:

Current room rate at Ft Wilderness cabins or a Home Away from Home Resort Rack Rate (use whatever discount you think is reasonable to expect over 40 years - they are high now, but historically haven't been high) x tax x 7 days.

Cost per point / 38 years (or whatever for SSR) + dues amount on one point x # of points required for a week when you want to go.

This will give you the cost of each of your stays. It ignores both inflation and time value of money, but its an easy one to do.

Here is my calcuations for my first trip.

BWV resale at $63 a point.
/ 39 years = 1.62
+ $4.10 dues = $5.72.
342 point trip (seven nights in a 2 br) = $1956.

2 bedroom rack rate $705
- 40% discount = $423
+ 11% tax = $470
* 7 nights = $3290

Savings $1334.

But that compares apples to apples. Without DVC we'd likely be staying somewhere else, be happier with studios, not bring the Grandparents along.

I agree with, and also use this formula. It shows the true cost of DVC.
In addition to cost benefits, many of us here enjoy other aspects of DVC, such as larger accommodations ect...

Good luck with your decision....

 

[JOC]

Right now the only on-property DVC resort for sale is the Beach Club Villas.

Boardwalk Villas is also available for purchase through Disney.

 

[jennypenny]

Another cost factor that applies (for us) is food. We allow ourselves one meal out per day (usually lunch) and I cook all of the other meals. I just go to Walmart when we get there and stock up (spending no more than I would at home during a normal week). With our family of 5 we save over $100 on meals per day by preparing food in the room. If we stayed in a normal hotel room we'd have to eat every meal out.

I'm not trying to start the cook and save money/don't cook you're on vacation debate I just wanted to add another possible cost factor.

Jenny