What are the advantages/disadvantages of owning a deeded time share, as opposed ..

[nezy]

Hi! This cam up in another thread, so I though I would ask of those in the know or who might be in the know:

What are the advantages to a deeded timeshare as opposed to one with a limited time of ownership, other than the obvious (i.e. passsing it on from generation to generation)?

 

[dianeschlicht]

That's about it! Actually, DVC can be passed on until the contract runs out.

One disadvantage I see to a deeded timeshare is how good a "deal" will it be when it is old and worn out and the developer didn't keep it up as they could have. That is one reason I had no qualms about buying DVC with an end date. I know Disney will take care of things!

 

[spiceycat]

dvc is a deeded timeshare but it has a limited life either 2042 or 2054 - you can write the interest rate off on your income tax (if you don't own a second home).

You can will DVC to your children (or whoever) just like the other timeshares.

because of DVC limited life - you can pre determine the actual cost of DVC (I include a 10% increase in the annual fee - to be on the safe side). DVC generally run 6% or less - last year it was more - insurance and taxes went up more than they had in the past.

you should only join DVC if you love WDW and go every year or every other year and you stay ON-SITE - if you are happy staying off-site don't buy DVC - it is not worth it - but if you are only happy staying on-site and you want the room that a condo offers then DVC is it.

I love my DVC and I am quite happy with - I also own other timeshare to trade - much, much cheaper ones - their maintence fees are also much cheaper.

 

[Dean]

It's more important to some than others. While DVC might be an exception, there aren't many timeshares I would want to own when they're 50 years old. It is true that the time remaining will start to hurt the value of DVC at some point. Some timeshare owners just can't stomach owning RTU properties, others look at the overall package and decide what's best.

To me, it's no big deal. I've owned RTU and deeded and actually in between. I use them, trade them and decide when to sell them. The one I own in MX ends in 2033, I don't care. Actuall it may be a blessing as it will be one less thing for my heirs to worry about.

 

[tjkraz]

Originally posted by Dean
While DVC might be an exception, there aren't many timeshares I would want to own when they're 50 years old.

I suspect there are timeshares 10 or 15 years old which are already starting to fall into a state of disrepair.

Personally I view the "Disney" name as adding a lot of value to our purchase. Frankly I trust DVC more than I would trust any other TS developer.

Having seen the manner in which OKW has been maintained over the past 12 years only helps reinforce my confidence.

 

[Lisa P.]

The quality of the management of any resort is what will matter most over the long haul. If a management company does a poor job, it's up to the owners to vote them out and bring in a new management company.

There are enough beautiful old vacation resorts in the world to satisfy my concerns over a deeded resort falling into disrepair. Also, the underlying real estate (land) in a very desirable area ought to retain enough value that the property could be sold or rebuilt as a worthwhile approach, if the buildings were to deterioriate significantly. Either way, some value is retained for the owners. Therefore, I prefer a deeded (owned, not leased) property.

The ownership vs. RTU issue matters to many buyers also. This can become an issue when reselling. I would be more concerned about a RTU, if I didn't expect to reach my "break even point" by the time the resort contract is within 20 years of ending. Resale value probably should not be part of the decision-making process on ANY timeshare since it's always uncertain. With Disney, there seems to be enough of a current market for reselling that this is not much of an issue at this time anyway.

Lastly, I've always wondered whether Disney maint dues will become extra costly in the last 5 years, to ensure that the resorts are returned to Disney's regular inventory in pristine condition at 50 years old. Just speculating.