Why be a DVC member???

[Laxmom]

marnietch, I am glad to hear you say that. We leave for OKW in a week and we love HHI.

One other aspect that I forgot to mention was just about ts in general. We bought to force us to take vacations. We were married 18 years and had never taken a trip other than to visit family. Since we purchased our first ts 7 years ago, we have been to Hawaii, Aruba, HHI many times, S. California, Williamsburg and Orlando. The best part is that the expensive part of the trip, lodging, is covered so the most expensive trips - Hawaii and Aruba- cost us under $2300 each for 3. That is airfare, food, excursions and rental car.

 

[Ka-chow!]

I'm really not trying to stir things up or pick on you MILLZ, but this goes to my earlier point that there those who argue (if not rationalize) that they have made an "investment" by their purchase. An investment is saving or deferring consumption.

is there anything better than investing in your family. best decision ive made

Cutting to the chase, the reality is that fully funding a child's or grandchild's 529 college fund is a much better way to place tens of thousands of dollars to help a kid's longterm financial security than buying a vacation or vacation plan.

I love vacations with my family too, but the expense is for our pleasure and enjoyment. It's just not a financial investment.

 

[Dina]

I'm really not trying to stir things up or pick on you MILLZ, but this goes to my earlier point that there those who argue (if not rationalize) that they have made an "investment" by their purchase. An investment is saving or deferring consumption.



Cutting to the chase, the reality is that fully funding a child's or grandchild's 529 college fund is a much better way to place tens of thousands of dollars to help a kid's longterm financial security than buying a vacation or vacation plan.

I love vacations with my family too, but the expense is for our pleasure and enjoyment. It's just not a financial investment.

Some people are lucky enough to do both--- save for their child's education, as well as buy DVC I do feel like it was an investment for my family--- I'm ensuring that no matter how much it costs to stay on Disney property in 20 years, we're going to have very comfortable accomodations. That's our happy place! An investment doesn't have to be purely financial.

 

[Ka-chow!]

Some people are lucky enough to do both--- save for their child's education, as well as buy DVC I do feel like it was an investment for my family--- I'm ensuring that no matter how much it costs to stay on Disney property in 20 years, we're going to have very comfortable accomodations. That's our happy place! An investment doesn't have to be purely financial.

Dina: My contention is that people use the term "investment" to defend or rationalize their purchases.

An investment is buying something or depositing money with the hope to generate interest or get a higher return in the future.

For example let's say I spend $80,000 in a depreciating assets, like a sweet new bassboat and truck. I buy gas, tackle, gear, etc and spend many, many hours fishing and not doing more financially productive activities like working. I spend all day fishing and catch a few fish. Since I brought a couple of pounds of fish home, I call the boat, truck and equipment "investments" to "feed my family".

You would know I'm rationalizing. Yes, I am pulling out some value from the purchase (a couple of fish). The evidence would say that the financial argument was a weak one as I could have spent a small amount of time working and quickly generated the money to buy a few pounds of fish at the store. The best argument is that I just like to fish.

Secondly, I would not say people are "lucky" to take vacations and putting money away for kids' college. I think people shouldn't buy a timeshare or vacation club before saving kids' college. I hope you haven't chosen DVC before a college fund, paying off debt, etc..

I'm not rich, but I think that it's great for people to buy stuff and indulge if they can afford it. I doubt Warren Buffet would call taking a vacation an "investment".

 

[Dina]

Dina: My contention is that people use the term "investment" to defend or rationalize their purchases.

An investment is buying something or depositing money with the hope to generate interest or get a higher return in the future.

For example let's say I spend $80,000 in a depreciating assets, like a sweet new bassboat and truck. I buy gas, tackle, gear, etc and spend many, many hours fishing and not doing more financially productive activities like working. I spend all day fishing and catch a few fish. Since I brought a couple of pounds of fish home, I call the boat, truck and equipment "investments" to "feed my family".

You would know I'm rationalizing. Yes, I am pulling out some value from the purchase (a couple of fish). The evidence would say that the financial argument was a weak one as I could have spent a small amount of time working and quickly generated the money to buy a few pounds of fish at the store. The best argument is that I just like to fish.

Secondly, I would not say people are "lucky" to take vacations and putting money away for kids' college. I think people shouldn't buy a timeshare or vacation club before saving kids' college. I hope you haven't chosen DVC before a college fund, paying off debt, etc..

I'm not rich, but I think that it's great for people to buy stuff and indulge if they can afford it. I doubt Warren Buffet would call taking a vacation an "investment".

Not flaming, but,I think people use the word investment loosely (not always financial). And, I think you have your own issues with DVC-- it doesn't work for you--and you're taking the word literally to tell people it's a bad decision. I think we know that when people say they're investing in their family--- they aren't talking about money. And, yes, I do think we are lucky that we can afford DVC and pay for our children's education. There are children out there who will never know what it feels like to take a vacation, or go to college-- I feel very blessed.

 

[Laxmom]

I look at it as investing in my family as well. We now take trips we didn't take previously. I totally agree that not all investments have financial gains. In this case, the gains are memories and the pay off is family time. We are prepaying for future trips, plain and simple. We purchased for our own enjoyment and certainly don't expect to make money when and if we sell. You can't put a price on the experiences we have or the travels we will share.

 

[tubtruck]

Surley it is an investment if you would have been staying onsite in simlar quality accomodations anyway, an because of DVC you have saved money.
I expect I could give my membership away in a couple of years having saved money by buying DVC as we would have been paying cash for similar rooms anyway and DVC has not changed our vacation habits.

 

[KAT4DISNEY]

Dina: My contention is that people use the term "investment" to defend or rationalize their purchases.

An investment is buying something or depositing money with the hope to generate interest or get a higher return in the future.

I understand the definition of investment that you are referring to - for capital gain/profit - ie, in a monetary sense. However, as is typical in the english language there are other definitions of the word and the way it is used in referring to DVC isn't necessarily even a loose interpretation. Just refer to Webster's and you'll find many other definitions. However, for some families the numbers will work out better for them to invest their vacation dollars in DVC rather than pay rack rate.

In my case - we have invested in DVC for better gain on my health and sanity! This is then an investment in my family for if my sanity is good the family is much better off!

 

[Ka-chow!]

Dina: Since the topic basically asked the pros and cons of being a DVC member, I was right in caution the thread's originator about "investment" type language. I'm not trying to upset people by pointing that out, but I don't think it warrants a personal attack that I have "issues".

He or she probably wants to purchase, but is searching for rational reasons to do so. How people spend their money or how they justify their decisions are their own business.

I think most DVC members bought it simply because they liked it and wanted to. There is nothing wrong with that, but I don't understand why they there is a reluctance to just admit to it.

 

[lukenick1]

Your right Ka-chow.....
I (as the original poster) am looking for rational reasons to buy into DVC. I still am having a hard time with paying tons of money on maintenance fees and park tickets on top of the money already paid to buy in. It really is an expensive vacation. Not only are you paying annual dues but you have to purchase park tickets, pay for air fare (or some of us do ), and then eat. No matter how you look at it, it is very expensive. I feel that it would be worth it to somone who lives close who can take advantage of the annual pass and doesn't need to buy airline tickets. Then it would be VERY WORTH IT!!

I'm still considering it though, but only because our best friends bought in.......call me confused!!! I don't want them having all the fun without us

 

[Laxmom]

That does go along with what I was mentioning about DVC being flexible. You don't have to go every year or even every other. With the banking and borrowing, you can travel every third year so you only would have those expenses for that trip. With a traditional timeshare, you would have that every year, or at the very least, every other year. We bought DVC at HHI because it is drivable for us and we love it there. Our trips to Orlando will be sporadic at best. That trip is drivable also but not without an overnight stay which adds to the costs that you mentioned.

I point this out because some of the things you mention about DVC are also issues you would have to face with a traditional timeshare as well. You would still have food and sometimes airfare. The tickets is the only real variable that is solely a theme park vacation.

Either way, you are "investing" in future vacations. For us, it has been worth it. Only you can make that call. If you really enjoy great vacations then explore timeshares, including DVC, to see which one is for you. We looked at Fairfield/ Wyndam, DVC and Marriott. You will find that most people on this board prefer Disney; it is a site dedicated to Disney. Check out TUG2.net for info on all timeshares. Buy because you see a need/want in your life but not because your friends did. Good luck with your decision.

 

[dizney4us]

This is a good thread with some people, including me, arguing some pros and cons.

http://www.disboards.com/showthread.php?t=1808918

I found that DVC'ers are very passionate about their memberships. They will talk about it appreciating in price, but when you challenge their numbers, DVC gets reframed as a "vacation prepurchase program". Alot of money has been spent for DVC, and I think poor financial arguments are often used to defend that decision. Some people even finance the purchase over a couple of years at 12-13%/year. A consideration of risk just doesn't seem to be a part of the equation. For me, I just couldn't justify the purchase in risk/benefit terms.

I recently considered buying into it, but I thought the DVC's financial arguments were strong only from the Disney corporation's standpoint, especially when you put risks of higher gas prices and/or major economic downturns into the equation. I've been told that Disney has the opportunity, if they wish, to raise maintenance fees 15% annually.

And booking need to be made 7 or 11 months in advance. I usually don't plan that far out.

I may see where the resale market in the next few years if gas continues to be 4-5 dollars a gallon or more. When people can't travel down as much, and if I'm still interested at that time, I should be able to rent or buy points much cheaper than they are now. On the other hand, Disney will also continue their slow gradual erosion of hours, services, quality, value, etc to save on costs, so I'll probably get what I pay for.

Just my 2 cents.

DVC is s great purchase if you are always vactioning there, and you have the money to spend. If you have to think so much about it, maybe your just not financially ready for DVC. We paid cash for all 330 points and I have taken so many family members on wonderful Disney trips. We wish we had done it long ago, but we thought too much about it comparing the price to what we could pay for a value or a moderate. We love it so much, and during this rough economy it's nice to know we will always be able to go there and bring family who may not otherwise ever get there. yes, the plane tickets may cost more, but EVERYTHING costs more now, and I'm not going to do NOTHING because time will just continue to pass us by regardless.

 

[Quiksilvr]

I have no problem with DVC members referring to their DVC outlay as an "investment" in their family. I think most of us understand that what they're trying to say is not that they see themselves harvesting financial dividends and monetary income from the transaction, but that they see themselves harvesting intangible dividends and emotional income from the experiences and time spent with their families at a place they love. There's nothing wrong with that particular justification. It's just as valid of a reason to purchase DVC as saying "because I want it".

If certain individuals feel that this is just a rationalization people use to (a)convince themselves that they're not buying DVC simply because they want it or (b) because they want to feel as if they are getting something specific out of what amounts to little more than buying part of a hotel room in Florida into which they continue to throw money for 50 years, then that's fine too. Why should it matter to you what someone's motivation is to make a purchase? I guess it makes some people feel good to do what they think is a "service" to the unenlightened, deluded members of the DVC population who need a "wake up call" about the nature of their membership. I find that amusing.

To the OP, I'll say that my reasons for purchasing DVC were entirely intangible. I love WDW. I've loved it since I was a little kid. When I found out such a thing as DVC existed I was ready to sign a contract on the spot. I told myself how having DVC would force me to vacation, how my family would have great experiences and memories for 50 years, yadda yadda yadda, but at the end of the day, I just thought it was awesome that I could buy 50 years worth of vacations at nice resorts and feel like I own part of Disney (beyond mere stock ownership). I liked being locked in to going somewhere that I was going to go anyway, but now I will go more. I don't own any other timeshares and I don't think I ever will. I'd never even considered it until DVC. I just can't think of any other place in the world that I'd want to go to repetitively the way I want to go to WDW.

Make fun of me if you want, but it's my money and I can spend it however I want to. I don't really care how much DVC has cost me or how much it will cost me or what the opportunity cost of my $15,000 + MFs is. Irrelevant. I'm blissfully aware that I could have done something more fiscally responsible with my money. Don't care.

 

[Laxmom]

Well said.

 

[sajetto]

I guess it makes some people feel good to do what they think is a "service" to the unenlightened, deluded members of the DVC population who need a "wake up call" about the nature of their membership. I find that amusing.
.

I also find amusement in this and don't need a wake up call. I have absolutely no delusions about my purchase and I am about to make my most risky post. I am almost certain I will be flamed for this and be considered the most arrogant a** ever, but I guess I just can't hold back. I've got my flame suit on and I'm ready

Here's the story:

I grew up in a very strict household with well educated, financially independent parents. They both practiced medicine and it was their dream for me to do the same. Unfortunately, I crushed that dream, but chose a profession with no less respect. They sent me to undergraduate and graduate school completely paid for and provided a completely furnished 2 bedroom apartment (no roomate, the other bedroom was for an office). All of this was done so that my mind was completely focused on studies and there were no distractions like those found in the dorms. (I think we all know the variety of distractions I'm talking about.) This was also done so that I wouldn't have to worry about spending my own personal money. Obviously, A LOT of that money was saved because there was really nothing for me to spend it on anway.

I completely respect my parents and came home every few months. From childhood I was constantly reminded of the value of money and that it was in poor taste to succumb to frivolity. On these visits home my parents would ask me how much money I had saved, where I had invested it, and the return I was making on it. Each time I was taught a new lesson in finance and took all of their advice with great seriousness.

I ended up marrying a man who has the same feelings about money as my parents and was disgusted at each bill that came up for our Disney wedding. (My husband and I payed for this event ourselves) We scaled it back tremendously and ended up only having 7 guests as a result. Throughout our wedding planning I talked about DVC and how much I would love to have an ownership there. I expressed this at a holiday dinner and both my parents and husband rolled their eyes and expressed their opinions on how ridiculous ANY timeshare is.

I felt shot down and thought that if I had money in the bank it was my buisness if I wanted to spend it. However, I chose not to and instead continued to invest it as I always had. Then our wedding day came up, and my parents presented me with a 300 point contract to Saratoga Springs. Upon receiving this gift my parents expressed that it was not at all something they would EVER purchase for themselves and were reluctant to buy it. Regardless, they knew this was something I really wanted, I had never done anything to disappoint them, and had worked diligently not to waste a penny of their money. In turn, they felt it was okay if they indulged me in this only frivolity.

I was elated! I just couldn't wait to blow those points and have LOVED using them. I took my parents on a DVC trip a year later and enjoyed the time I spent with them. It was during that trip on our balcony at OKW that I decided to break some honest news to my parents..... I softened the upcoming blow by saying that I had maxed out my 401K in my first year of employment, that I had x amount of $ in my Roth IRA, and that I had multiple meetings with my financial advisor...I then told them that I had added on yet ANOTHER 300 points to my DVC.

I sure you can imagine the shock on their faces. I continued to tell them that I knew that it was the most irresponsible purchase I had ever made, that it was completely unnecessary, and that I was doing nothing, but throwing my money in the face of DVC. I also expressed that I knew that if I had simply invested my money properly, that in 35 years the initial investment on the timeshare, plus dues, plus interest would equal to over 1 million dollars. With all of this knowledge they asked me why and how could I be so foolish to do such a thing....My response was a simple one:

*I wanted it
*It has been the only interest I have had outside of my profession
*I had the cash in the bank
* And most importantly, it allowed me enough points to take bi-annual vacations with both of them in tow and FORCED me to take those vacations because of the commitment I had made. Strangely, my mentality made it impossible for me to book a yearly vacation because of the waste.
*Additionally, I told my parents that we ALL make frivolous purchases, even THEM. (For instance, my father has a cabin he almost never visits and my mother is currently in Rabat, Morocco for no other reason than that she simply wanted to go)

Upon reflection, this satisfied my prudent parents and my father eventually admitted that it seemed fine as long as this sort of spending didn't become a habit. Even though I haven't taken a penny from either of my parents since a year before my marriage. Their opinions mean a great deal to me and I know I would be nothing without them.

In conclusion I can say that their are different strokes for different folks. Some like to travel the world, some like to stick to Disney. Some like classic cars or their collection of Fendi bags.

I love my purchase knowing what a waste it is of my money. It gives me something to look forward to every year and the enjoyment of being able to spend quality time with my family.

Now flame away. I realize that this is an unsual post, that it gives more background information than necessary, and that it expresses great reliance of parents (financially in the past and emotionally in the present) However, in the area I grew up in, it is somewhat of the culture to have the upmost respect for parents. In fact, I moved from the city in which I was educated to come home and live right next to them. In the community in which I live, this is a repeated trend where parents and adult children are in constant contact. I enjoy it and have a fufillment that few have

 

[Lisa P.]

We bought DVC... and then we sold it. Too expensive for our large family, for how we vacation.

We've also "invested" in our family's many vacations and memory-making... stayed at DVC resorts, offsite resorts for Universal/Sea World trips, wonderful beachfront resorts, Wash DC area, Williamsburg, NYC, Branson, Flagstaff/Sedona, S. Calif., all over FL, TN, VA and the Carolinas, so many places but you get the idea. To stay in all these deluxe 2BR and 3BR vacation condos, we've used our non-DVC timeshares (yes, even for the DVC vacation exchange weeks ) and our "investment" has been less than $2,000 purchase and less than $600/annual dues and fees/week. It's taken some learning and it definitely wouldn't work for everyone, but it's been fantastic for us.

If we still went to WDW several timess a year like we used to, I think it'd be nice to get the DVC discount off Annual Passes. But we don't visit Disney as often as we used to, and when we do, trading into DVC for a 1BR or 2BR week works very well for us. Can't stay at the Villas at AKL just yet through II but we're fine w/waiting and choosing from the other WDW DVCs. So we don't need to actually be members to enjoy it. Currently deciding whether we want to visit either of the beach DVCs (HHI, Vero) in the next year, over other beach resorts, or not. Decisions, decisions. Btw, if anyone is thinking about trading out to vacation closer to home in the next year and forego airfares, please go right ahead. There will be plenty of other folks like me, interested in trading their lovely timeshare weeks into DVC too.

Feel free to email me if you'd like more info about how to do this. It's nowhere near as flexible as buying/renting DVC points... and not as expensive either (so less "investment" risk). If you're able to be flexible in choosing vacation weeks and DVC resorts and you'll put in a little effort and planning, it's a great way to enjoy lots of variety in great resorts, including the terrific DVC resorts. Building those family vacation memories!

 

[Quiksilvr]

I also find amusement in this and don't need a wake up call. I have absolutely no delusions about my purchase and I am about to make my most risky post. I am almost certain I will be flamed for this and be considered the most arrogant a** ever, but I guess I just can't hold back. I've got my flame suit on and I'm ready

I actually enjoyed your post. Very interesting. My wife and I are in a somewhat similar position financially (I'll put it this way, we don't qualify to contribute to a Roth IRA and would have to lose a significant chunk of our income to qualify in the future) which is one of the reasons we were okay with making the purchase. We don't go out and buy a lot of frivolous junk. We own one car (a seven year old, paid-for mid-size sedan). We're pretty responsible with our funds generally. I think we're entitled to splurge if we want to. We only have a 160 point contract, but that's because we wouldn't use any more than that. My profession doesn't allow me to vacation as often as I'd like.

Anyway, I see nothing wrong with using your discretionary income on this. I'd rather have 50 years of fun than another $1 million in 50 years. In 50 years I don't think I'd physically be able to enjoy my extra million nearly as much as I can enjoy my Disney time now.

 

[Lisa P.]

My goodness, Sajetto, I loved your post! Good for you!

In conclusion I can say that their are different strokes for different folks. Some like to travel the world, some like to stick to Disney. Some like classic cars or their collection of Fendi bags.

I love my purchase knowing what a waste it is of my money. It gives me something to look forward to every year and the enjoyment of being able to spend quality time with my family.

Now flame away....

No flames here! You recognize that DVC isn't always a money-saving way to get the vacations you want and it's a luxury purchase. You've also made a choice to spend money that you could afford to spend on something that you enjoy. Kudos!!! We all have to make these decisions, in some form. Your post was refreshingly honest, so thank you! Enjoy those points and your trip planning too!

 

[sajetto]

Quicksilvr, we drive old cars too. They suit us just fine as long as they get us from point A to point B. Sounds to me like you're just fine if you're over the income bracket to have a Roth.

Lisa P, glad to see I'm not the marshmallow over the bonfire yet, but then again the post has only been up a few minutes

 

[Quiksilvr]

Lisa P, glad to see I'm not the marshmallow over the bonfire yet, but then again the post has only been up a few minutes

Give it time.

Just kidding! You got married in WDW in 07? We were there for our honeymoon in October. That's when we bought DVC.