What would YOU do if buying first-time into DVC today?

[PsycProfPlum]

Like others, I'd suggest resale all the way. The math makes a lot more sense. It's an easy process and there are sticky posts here links to reputable agents.

Given your planned travel in fall, there isn't going to be much available at 7 months out so you'll want to buy where you want to stay. Unfortunately, since this was your first trip, that will be hard for you to know. Given your travel window, home resort will be important. I'd suggest you watch as many "resort tour" youtube videos as possible to help narrow possible home resorts down then, ideally, rent points at the place you think you'd like the most. Some resorts are a log closer to the action than others and the cost varies quite a lot as well.

I'd also suggest not buying a huge contract out of the gate. My first contract was 130 points at Saratoga Springs given the costs were among the lowest and we planned on hopping around to all the results on those points. After seeing how bad 7 month availability is in fall, we added a second contract at Boardwalk specifically so we could book for fall. I'm really glad we didn't jump in with 250 points from the outset. Since you are still exploring resorts, you might decide later to add a second home resort.

 

[Tink10]

I don't know if this even matters, but here's my story.....Just food for thought for down the road.

On our first trip to WDW WAY back when, we did 10 nights. 5 at Poly and then 5 in a 1BR at BWV. We totally fell in love with BWV and the 1BR, so a couple of years later, we bought DVC (Got the cast discount on the points and were so spoiled by the 1br, that I can never stay in a hotel room or studio again)

We bought BWV points, because that was out true home & then bought 300 SSR points to supplement, because even with a little one, we rarely, if ever, booked 11 months in advance. We've gotten amazing use out of them & That worked out perfectly...until now. We've never used our points on a Disney Cruise, The Disney Collection or Adventures by Disney. The other benefits aren't that great, so they're of no consequence to us. We tend to travel off-season, so the 11 month advantage doesn't mean much. To put it simply, we're now empty nesters and while me & hubby still go to WDW, we don't go to the parks anymore (crowds are just terrible). We were never expecting to not go in to the parks....but we've decided that we're done.

So, in the past month, we've sold three of our contracts. We made a very nice profit from what we had originally paid and decided to keep one SSR contract. But most of our actual Disney stays will be using Wyndham points through RCI that we got for free.

We fell in love with Vero, so we just had an accepted offer on a Vero contract,(waiting on ROFR) but that was a whim & as inexpensive as they were, we're happy just using them until we're old & feeble. (We're not there yet)..But, we can still stay at WDW via points or RCI, as long as we don't expect to stay at BWV, BCV or VGF....which we're okay with.

Would I buy in now at the prices DVD is charging.......No. I'd go resale, regardless of the benefits.

I work in the timeshare industry and they should never been thought of as an investment. They are prepaid vacations..But are they really? (Maintenance fees & dues).

I do agree with the 'Buy where you want to stay" philosophy, as long as you know that IS where you always want to stay. We just got tired of Boardwalk and because of the crowds, it just stopped working for us

We bought when my daughter was 6. Do I regret it...Absolutely not. But interests change, life situations change. In my current profession, I communicate with SO many timeshare owners who thought buying was a fantastic idea. That changes too.

I'd try out a villa......See how you like it & if it would be 'worth it' over time, based on the cost. If you just like the accommodation, check some of the other companies (HGVC, Marriott, Wyndham) which can be purchased for a fraction of what DVC costs. If you love being on property then be sure to look at resales if the 'Member Perks' don't matter so much. I would just say try everything before you buy.

Just my story & two cents

 

[KAT4DISNEY]

My wife and I are looking into DVC ownership. On our recent trip to WDW we attended a DVC meeting and enjoyed the information and atmosphere. My wife, being a CPA is skeptical of the entire deal. With that said, what would you do as of today if you were purchasing DVC or “on the fence”? Is it “worth it” considering the info below? What, when, where, how would you buy?

Here is some background info to consider:
* just returned from our FIRST trip as a family to WDW. Stayed at Swan using Marriot points. Got the deluxe feel with little cost.

* Two kids, 6 and 4
* travel from coastal NC (10 hr drive), so “going to the beach” is not a priority.

* purchase year probably 2020 or 2021
* cash purchase, finance charges too astronomical for my CPA (and me)

* Possible travel time to WDW: late September/early October, spring/early summer, occasionally Nov/Dec holidays.

* Travel frequency: probably every 18 months

* prefer studio or 1-bedroom.

Any and all opinions will be appreciated. Thanks for taking the time to read and help.

Steve

Buy resale and buy at a location you'll be happy staying at if you can't switch resorts at 7 months.
Use banking/borrowing for your intended trips.

My caution would be about buying based on 1 trip but it doesn't sound like you plan to run out and buy tomorrow. Maybe after 1 more trip and to stay at one of the DVC resorts and see how you feel about it then?

 

[GoUgaDawgs]

We bought resale Polynesian a couple years ago. Picking the resort was really hard for us. We are a family of 4 and mainly plan to stay in studios but with one boy and one girl we knew we wanted a studio with 5 sleep surfaces. Also wanted to be either on monorail or Epcot resort... Love mk but always end up in Epcot for dinner. Didn't love studios only but since the vast majority of time we were planning on studios we were ok with that compromise. I didn't want a 2042 expiration date. We got in right at the end of the 25 point direct allowing us the dvc incidental benefits....

All that being said if I was doing it again today I would probably split my points at two resorts Riviera and poly. I don't love the resale restrictions at Riviera but if you split the contract size into smaller portions I believe resale value will hold. Those Riviera points I would bank and borrow for when I wanted something other than a studio. Also I would like access to the incidental dvc benefits like season pass for however long they last. Also I like trying new resorts so I would use them for the dvc resorts they build in the future just to try. Poly I would do resale as my studio home. You could do bay lake but I don't love their studios. Grand Floridian is awesome also if you can get a good price and don't mind the extra monorail wait coming back from Epcot at night (I found the transportation center wait for a mk monorail painful the time I stayed blt).

Wherever you end up i think you will be happy and won't regret the purchase! We are really enjoying more Disney.

 

[Deb & Bill]

To be fair, $50 in 1997 = $80 today. OKW for 175 points seems to be going around $100ish per point. So while it is more expensive, your only talking about 20% of real appreciation.

But we were both working at the time we bought with very good salaries. Now we are both on a pension and Social Security and our retirement savings. The appreciation would be 25% not 20%. I still wouldn't do it. I'm seeing resales of OKW for more like $115-120 per point. That's close to 50% appreciation. I still wouldn't buy DVC now with the prices. I'd just not go.

 

[MICKIMINI]

Having bought for the first time in 1996, we have owned OKW, BRV, SSR, VBR and waiting to close on BWV. We're older now, prices have increased but we still love WDW mostly as a resort but occasionally enjoy MK or EPCOT.

With two young children and within a one day drive (a long drive but no less than a day flying) I would buy BRV (prices are low right now) for access to MK and consider a smaller BCV or BWV for easy EPCOT access...yes, I would buy both and plan on staying in a one bedroom villa with a "buffer" of points more than what you think you will use. The kitchen and washer/dryer are priceless in my opinion, as is easy proximity to the parks you will go to.

I would research resale prices and look for a loaded (past year points included) package that is a fair price since no one really knows why some contracts sail through ROFR and others do not though I would not make an offer to keep Disney happy. I'm not a CPA, but I would only pay cash. Buying two contracts means you can start with one and then add another when you have the cash. Keeping the same UY is best, however if you use the resorts for different vacations it won't be a big deal. Buying a loaded contract means you may be able to get a years worth of points without paying dues (offsets buy in costs) and then you will always have the option to borrow if your kids bring friends, in laws want to come along, etc and you need a bigger villa. Plan on booking at 11 months out - especially for the months you mentioned.

If you find your kids are bored with Disney in their teen years, you should still be able to sell your contracts for a decent amount, though no one can predict the future prices. By purchasing two contracts, you have less exposure than one big point package that might be tough to sell. There is a cost to all travel, yet my husband and I believe those memories are "priceless" and we have memories of 30+ WDW trips. We have recaptured and actually made a good profit on the sales we have made. It's been totally worth it for us - good luck!

 

[gscott8075]

To be fair, $50 in 1997 = $80 today. OKW for 175 points seems to be going around $100ish per point. So while it is more expensive, your only talking about 20% of real appreciation.

At HHI, the MF have increased from $3.50 in 2001 to $8.56 in 2019. 244% increase

 

[gscott8075]

Perspective from a former DVC owner - I owned points for almost 20 years and recently sold. We owned at OKW and HHI. Sold OKW a long time ago and sold HHI last month.

We learned that our vacation habits evolved over the last 30 years since we were married. We started off going to WDW every year, and then realized there was a whole world to see and we have been once in the last five years. We fell in love with HHI and now that the kids are older, they even said they preferred renting a house on the island instead of the resort.

We were fortunate that we got our original point purchase $$$ back (not considering the decline in the value of the dollar since we bought) And we have many great memories.

If I were starting all over today, considering the point value and dues have far exceeded the inflation rate, the value proposition has reduced to the point where I would not buy into DVC.

When we started at HHI in 2001, a weeknight in a 2 BR in HHI was 33 points and the dues were 3.50 ($115 per night) Today, its 41 points and 8.56 ($350) And that's just the cost of maintenance fees.

While you might make your original payment back, you also might not. Commissions will take 8%-10% and it is unclear what happens to the resale market as DVC tightens the rules on a regular basis to make resales as undesirable as possible.

Again, great memories, great vacations - but the pricing structure is dramatically different than it was when we started.

Good luck with your decision.

 

[CanadaDisney05]

At HHI, the MF have increased from $3.50 in 2001 to $8.56 in 2019. 244% increase

Thats only a 5.09% annual increase. Wasn't there some sort of hurricane damage that caused a giant increase in one year?

 

[CanadaDisney05]

.

When we started at HHI in 2001, a weeknight in a 2 BR in HHI was 33 points and the dues were 3.50 ($115 per night) Today, its 41 points and 8.56 ($350) And that's just the cost of maintenance fees.

Commented in the above post that the maintenance fees imcreased about 5.09% annually which is above inflation, but considering 2001 was a time economic downturn, and I believe the resort may have had hurricane damage at one point, it hardly seems outrageous. The change in the point chart means that the 2 BR during a specific time of year may have become more expensive , but something else must have gotten cheaper.

Really what I'm getting at is that the price increase your illustrating is something that should be built into financial projections. It's not anywhere near extreme enough to completely derail a well prepared financial analysis

 

[MICKIMINI]

Differing circumstances cause people to see things from a different perspective. I like to be smart with my money, however it is my choice and my money to spend or not to spend and in the end...will I be happy with my purchase? Yes, I love being part of DVC despite the many changes. Life is short so do what makes you happy...

You ask a hundred people here and you'll get a hundred opinions. The only one that counts is your own.

 

[gharter]

Good question. We purchased 2 contracts about 4 years ago.
Do lots of research. This site has an amazing amount of information and was an incredible resource.
There are 2 camps. Purchase where you don't mind staying and its cheap, or purchase where you want to stay. I am definitely in the second camp and purchased both contracts where we wanted to stay.
Even with the loss of some perks, i would still purchase resale over direct. We purchased both of our contracts resale. And while both were purchased before the most recent changes, I stil think resale makes sense.

 

[gscott8075]

In 2001, the MF cost for a 2 BR was around $115 per night Sunday - Thursday. With the point chart reallocation and the increase in dues, the same room costs $350 per night. We usually paid cash for the weekend because the point cost was way to high. (66 and 99 prior to reallocation, 66 and 66 after).

Sure, less that rack rate. But it’s increased much more than the rest of the market. In fact, for the same $$ we are splitting a 6 br 3rd row home for a week in Sea Pines with my sister and her family.

Hurricane or not, the dues continue to increase at an alarming rate. The last 20 years have seen very low inflation. DVC has bucked that trend.

We love the resort - but the value is just not there any longer.

 

[Lumpy1106]

Write a spreadsheet to get a feel for how long it will take to see the benefit of DVC. Remember to consider rack rate inflation (assuming you don't buy and continue to stay on property on a regular basis), DVC dues inflation, and the value you will realize if you don't go and rent out your points. I would definitely not purchase DVC if you need to finance, but take that cost into consideration too. Don't forget that dues vary by resort and ultimately drive the cost over the initial price/point.

Once you've got that started, research what contracts are really out there on the resale market. Remember that lowball offers don't work because Disney will snag them through ROFR. These message boards are the best resource, followed closely by the DVCResale and ********** apps. You can compare these to direct contracts, but if you are on the fence, my guess is the payback time you calculate using your spreadsheet will convince you that Direct is not the best choice for you. You can dig through the points charts, but a much easier way to determine how many points you need for your anticipated trips is the DVCCalculator app.

Do that legwork, then come back here to ask questions, or check YouTube. There are a ton of great videos (Jen LaForge is the best IMHO) that answer a lot of questions you might have.

 

[kniquy]

Possible travel time to WDW: late September/early October, spring/early summer, occasionally Nov/Dec holidays.

As your kids get older and get involved with more extracurricular activities your travel times will be more restricted. As it is now my 13 yo twins basically have the month of july off from soccer, but it starts right back up in Mid august. School will also become more demanding, so traveling will have to be left for school vacations or summer. Not ideal but taking kids out of school for trips will be tougher as they get older. Just something to consider as this may impact your choice of UY.

Travel frequency: probably every 18 months

If you plan on going this much and want to stay in deluxe rooms then DVC can save you money. If you think it will stretch out to closer to every 3 years then DVC is not ideal because you will risk losing points if a trip has to be cancelled. One essential piece is being able to plan close to 11 months out. This is especially crutial when you are trying to book a trip between Sept and Dec. If not able to plan this far out then DVC is likely not a good fit for you.

prefer studio or 1-bedroom.

You will appreciate the larger units with full kitchen and laundry -- just having the extra space is nice so that you are not just left lounging on beds when you are back in the room.

just returned from our FIRST trip as a family to WDW. Stayed at Swan using Marriot points. Got the deluxe feel with little cost.

Seeing this was your first family trip I would consider narrowing down your contenders for resorts (hopefully you are going resale for the substantial savings), then for your next trip look at renting DVC points so that you actually see what a stay is like at one of your possible DVC resorts.

 

[ScubaCat]

Just a +1 on the "resale all the way" and buy where you want to stay. Also, you'll eventually want 2 bedrooms whether you realize it now or not. Good luck!

 

[RaymOOOnd]

Anyone know if a greater and greater proportion of sales are being financed as they raise prices? Unless everyone is making 500k+ per year and I haven't known about it until now, I'm not sure how so many people are buying this... Unless DVC is going the way of houses and cars which are bought on loan by virtually everybody (as if a rapidly depreciating car would ever sell at a price of $40-60000 if not for the financing option, which inflates it, which makes financing more necessary, and so on).

As with car commercials that hardly even mention the price of the car anymore but rather tell you the monthly payment, soon the guides may be saying something like "just $328 per month for 600 months!".

 

[ScubaCat]

Anyone know if a greater and greater proportion of sales are being financed as they raise prices? Unless everyone is making 500k+ per year and I haven't known about it until now, I'm not sure how so many people are buying this... Unless DVC is going the way of houses and cars which are bought on loan by virtually everybody (as if a rapidly depreciating car would ever sell at a price of $40-60000 if not for the financing option, which inflates it, which makes financing more necessary, and so on).

As with car commercials that hardly even mention the price of the car anymore but rather tell you the monthly payment, soon the guides may be saying something like "just $328 per month for 600 months!".

Well the max term is 10 years so 120 months is the limit there Some people are successful in business, some have money in the family, and some just save. I'm stubborn and saved for about 8 years so I could buy way more BCV points than I really wanted to . But that's just because I hate to pay interest or any more than I have to. It costs an arm and a leg to take a Disney trip as it is, so other than my dues, which I pay with disney e-giftcards from Target, it's one less thing in my life now that I have to worry about.

"So many people" is a relative thing. If you spend time in a web forum dedicated to DVC, then sure you'll come across a certain number of people that are very well off. Yet, on a given day, more than half of WDW park guests come in from off property. Locals aside, it's likely still a lot more than half stay in off-site hotels. So again, it's just a matter of relativity. There are somewhere around 200-250K DVC owners, yet about 254 million US adult citizens (not even considering that some owners are international.) So it's a very small minority when you look at it that way.

Have you ever bought a car and suddenly started noticing how many others seem to have the same make, model, and color? It's that same phenomenon.

 

[RichVIII]

We started this crazy ride after our M-I-L wanted to take her granddaughter on a trip of lifetime to Disney. Since she has mobility issues, we looked at cash stay at either BLT or BWV or BCV since the scooter would be easy to navigate to at least one park without buses. We landed at BLT 1 Bedroom and fell in love. We did not know until the stay about DVC but wanted to come back and stay at BLT more. We luckily purchased prior to many of the newer restrictions so we are blue card resale holders. Shortly after 160 cash resale purchase, we purchased another 50 within a year and then another 115 shortly after that. We thought that 160 was soo perfect for us and last us a lifetime. 325 points later we are in borrow mode. Looking back, I wish I would have purchased at least another home resort so we had more choices. That said, our full 325 gets us far at BLT and one-beds elsewhere so that I am happy about. The more we have stayed at other resorts in the past three years, the more we find we liked the “theming” better. I use to say we didn’t care but as we have gone more frequently, the resort (and non-park experience) has become more important. I will tell you that we were APs before DVC and that has lead to 6 years of APs and far more trips than I can count. The thing all the spreadsheets won’t tell you is the increased spending by more frequent and often trips. Don’t get me wrong, we don’t regret it, it is just something we never expected.

 

[Stevep2002]

Thank you to everyone for their input, advice, stories and magical memories.

As we progress in our research I will continue to post knowing the valuable feedback and positive environment that has been created. The information received has certainly allowed me and my wife to continue to research and not drop the discussion completely.

Thanks again