What will happen after 44 years?

[NO1BALOO]

We just came back 4/4/02 and did an add on at BCV 100 points. Just wanted to get some feed back from some of you really smart people out there. When talking to other DVCers, some of the members were not adding on because they feel other timeshares out there offer life time owenership. Does this concern anyone? After twenty years or so will out point value drop to half the value? With other tiime shares does life time owenership mean you can will your time share to your children and so on and so on?

 

[RWishbone]

After 44 years, I will be dead. If there is no after life, then I do not care what happens. If I am in heaven, then I will not care what happens. If I am "somewhere else"...then I hope I remember all my good times at the DVC to pull me through.

 

[PamOKW]

FYI -- It's not 44 years....the program ends January 2042.

Some timeshares do offer permanent ownership....just like willing a home. However, some of these timeshares also go belly-up. Sometimes the "heir" isn't all that interested in the timeshare either and will just sell it. I think the comparison of lifetime vs. DVC is only a small component when considering a purchase. Do you want a ramshackle cabin in the woods you'll own "forever" or a DVC vacation for the next 40 years? Some people would prefer the cabin...not me.

The usable life on the DVC membership is still quite good and will still even see a 20 year-old until their 60th birthday. There is always the idea that a possible "extension" will be offered down the line for those who are interested.

At some point, the value of reselling DVC will be less than what we paid. I'm not sure when that point will be. I thought it would come soon after purchasing but over the last ten years the value has only continued to increase. Buying with the idea that you'll make money in a resale is not a good idea. You need to buy DVC to enjoy DVC....not for any other investment type reason.

 

[KaterBell]

In 40 years, I'll be 64. I'll look fondly upon my memories as a DVC member... By then, I'll (hopefully) be retired, and want to travel to Europe and enjoy my empty nest or live full time on Cape Cod. Who knows! This is guaranteeing me 40 years of good vacations, and I feel good about that !!!

Maybe they'll have something new by then that our kids will buy (when we have them) and they'll take us along with them.

 

[JeffreyH]

You ask what the value of the points will be in 20 years. I'm a numbers guy (in case anyone hasn't noticed that from other posts!)...I've looked at this in a lot of ways. One pretty simple way is to look at 2022-2041 and see what you get for those 20 years versus what you have to pay. If main. fees increase 3% per year, in 2022 you'll be paying about $1,000 per year in such fees if you have 150 points. You'll get 150 points....lets say about 10 nights in a studio room. That should be "worth" at least $2,000 a year, being VERY conservative (people pay over $200 TODAY for such a room). Or you could rent your 150 points for $13.33 each (only 1-2% increase in value per year is needed to get to that price).

So...for 20 years someone could pay $1,000, get $2000 or more in value. What would you be willing to pay today (or in 2022) to be given $1,000 per year for 20 years? If you want to earn 7% on your investment, you'd be willing to invest $10,600 on day one.

My point? I'd be willing to bet that the value of a DVC point in 2022 will be as high or higher than it is today. But keep in mind that $70 in 2022 will probably have the buying power of about $35 today....

 

[mickey7861]

In 40 years DH will be 84 and I'll be 81. Heck my DS will be 59 and my DD will be almost 57. If DH and I are still around and coherent enough to care that our DVC is expired I'll be happy.

 

[maburke]

I think the limited lifetime of DVC is an advantage. Now, we all know that DVC is not your average timeshare -- I never thought that I'd consider a timeshare, and I just sent back my documents today for BCV!! (Just had to get that in.)

But a problem with some other timeshares is that they are essentially worthless after you buy them; you can't sell them, even at a loss. But your obligation to pay the annual fees goes on, and with a permanent ownership one, it goes on FOREVER. You might not even be able to GIVE it away, because it comes with the annual fee liability.

Keep in mind that over 40 years, annual fees well outweigh the initial price.

 

[CarolA]

I will be 82!!! who cares, I am not doing this for my heirs my goal is to run out of money the day I die!

 

[hellokitty]

maburke
you are right i just looked at the cost analysis i found at
mouseplanet.com

and they are saying it would cost ~$15,000 to purchase
200 pts. but ~$40,000 in maintence fees over the 42 yr. period!!

oh my gosh, i never looked at it that way.

 

[auntsue]

We'll be in our mid-nineties, so it's not something I am concerned about. If we get only ten more years out of it, it will have been worth every penny, and we only joined Nov 99. We are going three times this year and I am just so excited. Before DVC, we went every two years, if we were lucky. And I definitely agree, that DVC is unlike any other timeshare on the market, but the #1 priority, I think, is that you gotta love the mouse, and if you do, how can you go wrong? Forty years of Mickey!

 

[Bigcat]

What I want to know is what happens to the reserve fund when everything expires. Does anyone KNOW the answer?

 

[Dean]

Originally posted by Bigcat
What I want to know is what happens to the reserve fund when everything expires. Does anyone KNOW the answer?

The goal would be to have no reserve fund and spend the last dollar on the day of expiration. The question is whether the Board (Disney) will tune the resorts up at our expense. There's also the outside possibility that DVC will offer extensions, but that's only likely if any of the newer resorts have a different ending date. Eagle Pines, if it happens, is likely to be that resort with a different ending date.

As for lifetime useage, I agree it doesn't matter at this point but it will some day. From a value and resale standpoint, that day should be somewhere around 30 years left. I own some that are lifetime and others that expire, it doesn't matter to me at this point. One of the ones I own expires in 31 years and I just bought it about a year ago.

 

[larry_poppins]

In January 2042, the world will end.

You have heard it here first!

Larry Poppins

 

[hellokitty]

lol, larry