Why don't you all tell me who DVC suits best

[carolina_yankee]

I disagree. If I had 30K to buy DVC I would not have used that for my vacation. I would have invested it and use the 10% (for ease of numbers) for my vacation, so 3K and still have the 30K. So this does need to be included. The points would be money I would use for that year too. So my vacation would cost the interest on the investment and the points money. That is what is need for the financial only consideration. There are other very valid non-financial consideration that need to be considered too.

Where do you get a reliable, annual 10% return off of a 30k investment these days without some risk of losing principal? And, for some, a $3k return could change their tax bracket. At any rate, $3k would still have some tax as income, wouldn't it? Also, minimum investment is in DVC is around $14K+, not $30K. You can do even better if you buy resale, say around $12k.

Now, granted, if I had $30k lying around could get a reliable 10% return, I would use $15k for a DVC purchase, then take the $1500 annaul return on the remaining $15k and use it for dues, airfaire, and an AP!!

 

[NMW]

I can only tell you about our family and why I think it works for us. We have 3 children and were always staying in Deluxe resorts (BC,BWI,POLY). Honestly even when we only had 2 kids or our youngest was under 3 and "not counted" we stayed in Deluxe resorts. It's what we like. We were going every year for 8 nights/9 days and doing those old Dreammaker packages that give you the resort stay plus these ultimate park hopper passes. We usually added the gold or silver meal plan to. This easily cost us about $8,000 without airfare.

We looked into DVC and calculated just the cost of the resort stay without tickets or meal plans. It seemed like a no-brainer for us. Our DVC will be "paid for" so to speak in about 4 or 5 trips. We canceld our planned vacation at the POLY and put the money towards a BWV resale from the Timeshare Store, the rest we took from savings. We bought 230 points and plan to add to get to 315 points next year, to always do 2 bedroom villas. Yes, we still have to buy tickets, but DVC members get a discount on AP's and we stagger our vactions to use them twice in a 365 day period. So we do save money on that. We still have to buy food, but now that the meal plan is available to DVC members, we are getting it for our next trip! Plus there is so much more room-way better than having all 5 of us in a standard room at the POLY! Best of luck!

 

[bicker]

But you did not include the value of the money that you use for the purchase if you had invested it.

Don't worry, I've surely have factored that in as well (based on the rate of return of my other investments over the meantime).

 

[shellynn24]

We joined DVC for a number of reasons and finacial savings was not the first one. Although for my DH that was his he didn't like the All Star Movies.

I WANT to go to WDW every year. I do not have a desire to go anywhere else.

I don't want to be able to only stay at All Stars. I want to stay in a deluxe hotel.

So we looked at our budget and could afford to pay the DVC. So now all I have to worry about is food, air fair, and souvinears. I don't have to worry to save for the hotel. I do ebay, garage sales and save money for vacations in our budget. (I am a SAHM) I come up with half and then we match it with our savings. (TMI? )

Family vacations are VERY important to me. Family time so now we HAVE to do it every year.

We looked at it this way. Is it the smartest move we will make...it will take 30 years to let you know that. Will we regret it? No I don't think so. We will have wonderful memories with our children and their children. so why not.

If you can work it in your budget and talk DH into it then it is right for you.

Besides it is the best kept secret!

I agree with everything you said here! This is why we will be buying into DVC before the end of the month. The idea that we have the points and have to use them every year will make DH have to go on vacation, this in itself makes DVC worth it to me.

 

[bcvillastwo]

Earlier someone wrote

IMHO, DVC works best for those who:
* Go to WDW at least every other year
* Stay on site in a moderate or deluxe resort when they do
* Are willing and able to plan more than 7 months in advance
* Have the discretionary income to commit to future vacations without financing the initial purchase.
* Plan to stay exclusively in one of the DVC resorts

This is the conventional wisdom and I agree with it for the most part because it is sensible.

But, while that may represent the conventional profile of a potential DVC'er it by no means represents every potential DVC'er.

 

[DisneyBaby!]

I guess my point was missed, that it is an intangible almost emotional thing that pushes people over IF they are on the fence. If the costs are close, or you are not saving as much as you think or cost slightly more, my point is many people don't care, they go with their gut feeling or their heart.

If your heart is telling you you really want to do it AND it is reasonable you can afford it than go for it. The people that are DVC members, GENERALLY all feel the same way, had the same reasons and struggled with the same issues, but came to the same conclusion. It is not just on these boards, but the few people I have run into off line pretty much say the same I say about why we did it and why it works for us.

 

[Buckalew11]

IMHO, DVC works best for those who:

* Go to WDW at least every other year
* Stay on site in a moderate or deluxe resort when they do
* Are willing and able to plan more than 7 months in advance
* Have the discretionary income to commit to future vacations without financing the initial purchase.
* Plan to stay exclusively in one of the DVC resorts

Keep in mind that DVC only covers the cost of lodging - you will still need to pay for transportation, park admission, food & souvenirs.

I suspect that DVC is not a money saving proposition for many people. They end up spending more on vacations after DVC than they did before DVC. They find themselves going to WDW more often than they did in the past - that's not much of a savings. (Unless you think that buying something you don't need because it is on sale is saving money, LOL). They invite friends and family along (and treat them to the room - and sometimes even more).

DVC is not an investment. It is a pre-paid vacaiton plan. While it is true that many DVC members who bought early in the program can sell their contract for more than they paid, there is absolutely no guaranntee that this will continue to be the case.

If you meet the criteria listed above, love going to WDW and can resist the temptation to increase the number of your trips, can resist treating friends and family, then DVC will almost surely save you money on vacations.

I am not saying there are not other reasons to buy DVC and I am not suggesting it is bad to go more often or to treat family and friends. But if you do those things, don't kid yourself into thinking you are going to save money (over what you were doing in the past).

Best wishes -

All of these posts are so good. And DisneyBaby, I know what you mean--I am one of the "chosen" the one who "gets" the magic. And no, I don't think that means you have to buy DVC but I think when you get Disney, you return and return again and at some point DVC just sounds right for you.

CarolMN's quote: "Have the discretionary income to commit to future vacations without financing the initial purchase."

is my biggie at this point. I believe I'll be buying into DVC in the near future when I have the money to do so in my hands and I don't have to finance even if I was not going to finance for just a few months maybe. I'd rather be able to pay for this outright. I don't do well going into any debt (as you could have guessed ). We have never gone on vacation and charged it and had to pay when we returned and I don't want to start off in DVC doing it either. Good deal now or not, I think this is the right decision for me.

Thank you all very much for your input!!

 

[mickeyfan2]

Where do you get a reliable, annual 10% return off of a 30k investment these days without some risk of losing principal? And, for some, a $3k return could change their tax bracket. At any rate, $3k would still have some tax as income, wouldn't it? Also, minimum investment is in DVC is around $14K+, not $30K. You can do even better if you buy resale, say around $12k.

Now, granted, if I had $30k lying around could get a reliable 10% return, I would use $15k for a DVC purchase, then take the $1500 annaul return on the remaining $15k and use it for dues, airfaire, and an AP!!

I agree with most of this (used the numbers for example only), but my point is that most people do not take into account the value of the money used for the purchase. I have seen many on here call (not this thread but DIS) it an investment. It is not an investment. Do any of you really think Disney does this to make your vacation cheaper? It is to make you spend more and think it is cheaper. Now I do see some points as to why to buy in, but the financial number do not work for us. Some seem to think they are pulling one over on Disney, I am just pointing out that it cost more than you think. If it gets you to take a vacation when your SO would not, or gets the whole family together once a year it is a good family decision. As I have said, we looked at it more than one. The best cost analysis I ever saw was on Mouseplanet about 1.5 years ago. And it did show you lost money in the end. The person who did it was a account or financial advisor. I don't have a link, but found it a very eye opening read. This is the point I wanted to make.

 

[cobbler]

If you can find that link could you post it or PM it to me? I would love to read it!

 

[sajetto]

If you can find that link could you post it or PM it to me? I would love to read it!

I'd love to see that link too!

 

[NYMomof4]

I have 4 kids so DVC is a good fit for us. When my youngest didn't go to Disney, we'd stay at POR and we did love it-but..this year we'd need 2 rooms anywhere (and we're not big on the Values for a week). POR for 2 rooms would be about $300/night give or take discounts. And then the food.... I will save $$ just by eating b'fast and some lunches in the room. We also like to bring my parents, sister, etc...on vacations and condo type accomodations are what we prefer. Now, I know that our vacationing will change over the years and I won't always need a 2bdrm, but then I'll just be taking more vacations on the points in a 1bdrm or studio

For families that would need 2 rooms anyway, I see DVC as a great fit. This, of course, doesn't include families that are ok at values for a week or more-we just like a resort environment for our longer vacations.
All that aside-we go every year anyway so it made sense to pre-plan vacations that are essentially paid for (at least in part).

 

[spiceycat]

I love my DVC and I had to finance it...

of course I had a good reason - the free tickets that they offered in 93...by the time I would have saved enough to buy in outright the free tickets would be gone.... so I went aheard (despite family and friends) and got it.

One of the best decisions I made - DVC paid for itself long ago....now I just pay the maintence fees.

if 150 points is too much for you - consider going resale...

oh I am cheap I stay in studios alot - and rent out the rest of my points....

to stay 5 days in Dec at OKW 40 points * $4.24 = $169 on site at disney.... oh yea - DVC doesn't pay.. ..Now my Westgate is a completely different story that you don't want to here about.....

now I could probably take down that price even lower because it includes property tax - which I write off my income tax....

use these they will make you feel better about DVC

http://mysite.verizon.net/brian_siu/timeshare/timeshare.html

http://www.timesharecostcalculator.com/

go with the Polyn or BWV - I still can't believe $435 for a hotel room....

http://disneyworld.disney.go.com/wdw/resorts/resortRates?id=PolynesianResortRatesListingPage

the taxes are 11.5% - the cost increase I used is 5% for both - they vary sometimes it is less - sometimes it is more (like this last time for OKW)

mind was wonderful - it came out less than 3 years....

Disney onsite is completely different from offsite. Offsite is cheap for a reason. Onsite is expensive for a reason. Most people want to stay onsite!!! and will pay the extra for it.

oh be reasonable in your investment income - it has not done too well lately I would put 6% - now over 50 years it might be 10% - but you are dealing with 50 years....

 

[carolina_yankee]

I have seen many on here call (not this thread but DIS) it an investment. It is not an investment.

I agree with you totally - and to Disney's credit, they were clear 3 different times in the presentation and closing process that this was a vacation purchase and not an investment opportunity.

And, I have to agree also that Disney (and the airlines) are getting more money out of me this year as a result of our ownership. We're staying at Disneyland to use up some point we didn't want to bank (and because I got an airline ticket voucher for being bumped), and we're coming back after Thanksgiving. Since we have APs, they're just getting food from us and a couple of souvenirs - but that ain't cheap!

I look at DVC for what it is: A vacation experience I want for a price I'm willing to pay. Of course, my caveat is that I would not have done it if it weren't for the F&F discount, so even I have my limits.

 

[ACDSNY]

I sat on the fence for several years trying to come up with the cash to pay for it. I finally gave up with the F & F promo as that was the lowest price I'd seen. We paid half with cash and financed the balance as we have a wedding for one child and college expenses for another this year.

For us it came down to the fact that Disney was getting our money every year anyway. We typically travel with over 6 people every year to Disneyland and sometimes we make it to WDW.

We bought as SSR so our kids and eventually our grandkids could enjoy it for years to come.

 

[Bichon Barb]

Is this the debate?

http://www.mouseplanet.com/dtp/dvc/3_Debate/debate.htm