what is the catch, sounds too good???

[SG1Fan]

DVC has been wonderful for my family and I.
member since 1998
I never looked at DVC as a savings. I looked at it as a luxury upgrade. I get a huge 1 bedroom every year. I'm not cramed into a value resort. I also have other places to go. If your "I dont get it" is how does disney afford this? I have some opinion as to how. We still spend money in the park. WE aren't offered as many discounts as people who are in the normal Disney resorts. So we spend money and its almost guaranteed every 2 years that a DVC family will go to WDW. Its good business.

 

[OneMoreTry]

The catch is this:

If you took the buy-in money, invested in a balanced mutual fund, and the US economy stays the same as it has for the past 200 years, AND THEN went ahead and stayed in an economy or moderate resort every year --- you would come out ahead in the long run (20-40 years) financially. Plus you would have the money on hand for emergencies if needed.

DVC is holding its value, but that could change tomorrow.



The positive of DVC is:

You would have a prepaid vacation on the books, which is nice psychologically.

Economy lodging and even moderate is not as nice as DVC.

Owning DVC is great.

You can be a part of the DIS DVC forum!!! Best on the boards.

 

[shelly3girls]

I think the general opinion is that you prefer value resorts then DVC is not for you. If you normally stay deluxe then DVC will save you money. We feel like we get deluxe accommodations (actually even better) for the price of a moderate. We are really glad we own DVC especially now with the change in AP rates.

 

[DizneyNutz]

You have no idea how right you are---we haven't even made our "FIRST TRIP HOME" and I am wondering whether or not we can afford to....ADD ON! HELLO! It's addictive!! We go back to WDW in September---4th trip---already planning the 5th and we haven't stepped on the plane---the only advice I can give is, pay it off as quickly as you can, because the addonitis will set in, especially when you start looking at all the places you can go using your points..the sky is the limit!!!! Lord help us!

 

[tnhillbilly]

I want to thank everyone that has replyed to this post. You have been a great help. This was the first Thread I had started and was afraid that it would get no replys. Thanks for everything and keep if comming I want to know as much as possible.

 

[rayelias]

To us this just sounds too good to be true, there has to be a catch somewhere we are not seeing or understanding.

There IS a catch... No matter how many points you buy, it won't be enough.

One of the side effects of being a DVC member is this terrible affliction called "addonitus". No matter how much you plan and figure, you're very likely to add on points.

I say this, half jokingly, and half truthfully. Ask around - you'll see a LOT of people add on to their initial contracts. You'll find some that do it before their first trip home! BE PREPARED (and don't say you weren't warned)

My DF and I enjoy three 5-day (4-night) vacations a year on our paltry 100 points (and we have a couple left over). You'd think 3 WDW vacations a year would be enough. We used our AP (before this last fiasco) to stay a FOURTH vacation. So, we're considering adding on a small contract.

 

[sleepydog25]

In a nutshell, DVC is a good deal if you plan to vacation regularly at WDW (or any of their other collections), plan to stay in deluxe suites, and want to prepay your accomodations for the next 37-49 years (depending on where you buy). There aren't any real hidden strings attached. . .DVC is counting on the fact that there are enough folks out there looking at the advantages who will pay up front to finance a large portion of their vacations in the years to come.

The bottom line is that DVC isn't for everyone, but if you love WDW, visit often, can afford the buy-in, and don't mind waiting several years to break even on your "investment,", then DVC is a good deal. Sure, there are cheaper ways to enjoy WDW, but none of them have the cachet of owning a part of the magic. Good luck on your decision.

 

[disneyholic family]

In a nutshell, DVC is a good deal if you plan to vacation regularly at WDW (or any of their other collections), plan to stay in deluxe suites, and want to prepay your accomodations for the next 37-49 years (depending on where you buy). There aren't any real hidden strings attached. . .DVC is counting on the fact that there are enough folks out there looking at the advantages who will pay up front to finance a large portion of their vacations in the years to come.

The bottom line is that DVC isn't for everyone, but if you love WDW, visit often, can afford the buy-in, and don't mind waiting several years to break even on your "investment,", then DVC is a good deal. Sure, there are cheaper ways to enjoy WDW, but none of them have the cachet of owning a part of the magic. Good luck on your decision.

yes, when we looked at it a few years ago, we came to the conclusion that if we were living in the US and could guarantee that we would visit each year, then it seemed like an intelligent investment...
but given that we're located overseas (americans living overseas), that we're never 100% sure we'll make it back each year (though up to now, we've only missed one year in the 15 we've been overseas), and when we do get to WDW, it's usually for 3 weeks at a time (although this year is unfortunately only 2 weeks), and that we never know 7 months in advance what we're doing (not really even 7 weeks in advance), etc.etc.etc., we just didn't feel it was a wise investment for us....

but it definitely seemed to us like a good deal for most people...

 

[Sammie]

As everyone has stated the hardest thing is not buying more points. Then your dues go up. You start out with a studio which compared to most Disney resort rooms are great. But then you make the mistake of getting a one bedroom or even a 2 bedroom and then you are hooked and suddenly need more points.

There are a few changes over staying at a Disney resorts vs DVC. You will not get daily housekeeping unless you pay extra. That does not bother most DVC members. You will not get daily clean towels until the 4th day when you get trash and towel. If you are in a studio, it is a hassle, I won't pretend its not. If you are in a one bedroom or larger you have a laundry so you wash them yourself.

Depending on where you want to buy, if you plan to stay at another location you can not book earlier than 7 months out. Usually at 7 months you can get a location but it might not be your first choice and at certain times of the year it can be difficult get specific resorts at 7 months.

You need to be able to plan your trips in advance. While some have been lucky to get reservations at the last moment, as more and more become members I am not sure how last minute booking will be affected.

Cancellation is different. 31 days not to lose any points. If these points were borrowed then you would have to use them before your use year to prevent losing them.

We all love our DVC or we would not have bought, but do know it is different from calling CRO to book a room. The accomidations you get to us outweight any inconvenience or difference but you need to know all this going in.

 

[msdis]

You seem to have a good handle on it. We have 360 points at OKW and last year were able to stay 29 days in a 2 bedroom and 2 nights in a studio followed by 5 nights in a Grand Villa. This is all for about $1200 in dues. Our initial buy in was not financed, so we figured we had it paid for after about 5-6 years of trips. We have also used our points for an exchange to Hawaii.

Diane -didn't want to give the new guy the wrong impression but you must have banked or borrowed to have stayed this many nights in these types of rooms. Cheapest adds up to over 800 points.

 

[simpilotswife]

Just wanted to add one caveat on that whole points thing. The points for DVC resorts are guaranteed to stay approximately the same. The same cannot be said for non-DVC resorts or DCL.

If you are planning to buy points to stay at other Disney properties you should be aware that the points needed for non-DVC resorts and DCL are high and continue to go up each year.

 

[fishermouse]

There is another catch as well you must be willing to forget all about work , go down to Disney and have a magical time. You can also go other places if you want but you'll probably need "MORE POINTS". Trust me yolu will buy more points.....

 

[jade1]

I think the general opinion is that you prefer value resorts then DVC is not for you. If you normally stay deluxe then DVC will save you money. We feel like we get deluxe accommodations (actually even better) for the price of a moderate. We are really glad we own DVC especially now with the change in AP rates.

See I dont agree with this completely. We always stayed at Value and an occasional splurge in a moderate. "Some day we may even stay, dare I say, at BW or WL for maybe one night." Since we discovered DVC, it has become crystal clear that DVC is for us, especially when we weigh in the huge increase in the resale value of our points. I think many folks stay (not "prefer") in a Value because $300 to $900 a night is a little steep even if you can afford it. Now our initial investment is out performing our other investments and we are going 2 trips a year on $1000 of dues (250 points) and in much better resorts and accomodations.

 

[Cruelladeville]

I disagree with the statement that you would be money ahead if you invested, and used the profits to stay on-property, rather than buy DVC. I bought in 1997 at $54 and can sell now at $80, which is a nice increase. DH figured that if I rented out all our points--which will NOT happen--I would make over 8% profit after paying dues. Is anybody's investments paying 8% every year? 3 years ago everything tanked, and I lost 1/4 of my total investment--I received NOTHING, and lost 1/4. So I took the money, and bought another contract, and at least I got vacations every year. DH is a "bean counter" and says I used faulty logic--but he's at the airport with a huge smile on his face every time we fly down to Disney

 

[rayelias]

The catch is this:

If you took the buy-in money, invested in a balanced mutual fund, and the US economy stays the same as it has for the past 200 years, AND THEN went ahead and stayed in an economy or moderate resort every year --- you would come out ahead in the long run (20-40 years) financially. .

I don't think that's necessarily the case.

First, in order to do that, you need to guarantee a ROI, AFTER taxes, of at least (roughly) 3.5% a year, presuming that the increase in maintenance fees continues to rise this way.

Second, don't forget about the "perks" we get. Now, they're not guaranteed, but that takes a lot into consideration. For example, we have 100 points at OKW, and pay about $380 in maint. fees. But, with the DVC discount, my DF and I saved $200 on our APs! Additionally, another important fact to remember, even if they take away all our "perks", we never pay SALES TAX on our rooms.

Third, you're presuming that the cash rates will rise at the same level as inflation. Businesses don't base their rates on "inflation" - it's supply and demand. If the demand for Disney rentals increases at a rate higher than inflation (or if operating costs increase higher than inflation - very likely just looking at wages and insurance), then you can presume that the cash rates will go up considerably higher than inflation.

DVC is not right for everyone. And, to be sure, even though we, personally, are saving a LOT of money by owning in DVC, we actually spend more money than we otherwise would on vacations. We do go more often - which means more airfare, dining, etc.

With our 100 points, we get 12 nights a year in a studio. Staying at a VALUE would cost us, nearly $100 a night (with taxes and fees). So, let's say for the next 9 years cash rates never increase. I will have paid $10,800 in occupancy costs (at a VALUE, mind you). Compare that to my 100 points purchase for $73/point plus estimated maintenance fees for 9 years ($4/point) = $10,900. So, after 9 years, my DVC has paid for itself (including maint fees) AND it still holds resale value. After that, my occupancy costs are only maintenance fees. Even if it averages $8 a point, that's 12 nights for less than $70 a night. Let's presume that value stays the same price (yeah, right). I will have to earn a 30% ROI (after taxes) to break even ($100 vs $70/night = $30 difference/$100 = 30%). AND, my DVC contract STILL has (some) value! (FYI, at a 5% annual increase, after 9 years, the value rate will be about $150-160 (with tax/fees))

On top of all that, I'm NOT staying in a value. No offense, but even the Moderates don't come close DVC rooms and ammenities.

I LOVE my DVC, both from a "touchy-feely" vacation standpoint, AND from a financial standpoint.