Why Dont you do DVC??

[SSR]

yeah that was my husband thoughts too

The calculators that show the break-even points between 8-12 years take this assumed ROI and lost opportunity cost into consideration.

 

[ReneeA]

I don't think it's a fair comparison to include transportation, park tickets, etc into the equation when determining if DVC is a good value.

However, people should consider the future value of their money. $16,000 today to buy the smallest contract DVC allows for an initial purchase, if invested with a conservative 5% return, would be $19,500 in 5 years. So you can't use $16,000 to determine the breakeven is 5 years.

Timeshares, whether at Disney or someplace else, are never a good financial investment IMO. It may be a good emotional investment, which is why people are so passionate about defending their decision to purchase.

I would normally agree with you about not including the food, but when the best discount that they offer us as a family is the free regular dining plan (and it really works well for us), it's difficult to break down how much you pay for room/food/tickets when it's a package. I'm never going to get free dining with DVC. If I want to add on the DDP, I'll have to pay for it...which is why I included it in my original post.

I agree with you about it being a good emotional investment...if you like it and get joy out of it, then it's a good investment for your family. The question as asked by the OP was "Why don't you buy DVC if you go every year and stay in Deluxe/Moderate rooms." I answered that since we go every year and stay in moderates. I've read over and over again why people buy into it and why it's great for them. It's fantastic that it works for them. I think it would casue me great anxiety to give DVC thousands of my dollars upfront and still have hundreds a year in dues to pay. I'm not tied to anything now...if I bought, I would be.

 

[roomthreeseventeen]

You also have to consider that when you stay DVC, you get far less maid service, if that's important to you, which it is to us!

 

[SSR]

You can buy a resale contract, like we did, for considerably less than $16K.

Agreed. We got 200 SSR points for several thousand below that.

 

[Corwin]

...However, people should consider the future value of their money. $16,000 today to buy the smallest contract DVC allows for an initial purchase, if invested with a conservative 5% return, would be $19,500 in 5 years. So you can't use $16,000 to determine the breakeven is 5 years.

Those of us running cost comparisons are well aware of this. However, realize that you also have to take into account the time value of money that would have been spent paying for a cash reservation each year.

Again, you must compare apples to apples for an accurate comparison.

 

[TinkBride]

The calculators that show the break-even points between 8-12 years take this assumed ROI and lost opportunity cost into consideration.

Where are these calculators everyone is referring to? That is exactly where DH and I are - when do we break even and is it going to still be worth it in that amount of time....

Does the calculator take into consideration the maintenance fees?

 

[bakenatj]

Rent hmmm.........

We just went to an open house this past trip and are still in the process of crunching numbers and trying to figure out if it works for us.....

We could buy in at 12,000 that was for 100 points a year

we would only pay in cash, so we'd have to save up but I didn't realize the buying a resale option


now renting, how does this work? What is the average you'd spend on a deluxe room renting points?


We are a family of 5 who tend to like to go to DIsney every other year sometimes every year, unless I get preggo we wait awhile longer And we normally stay Value, but cannot do that anymore since lil one is turning 3 soon. What was presented to us is for the price we pay for our Moderate everytime we come to Disney in the future we could buy in at BLT and break even in XX amount of years.......honestly I just have headache now after a few days of crunching numbers and I can't see anything clearly anymore

You can rent points generally for around 10 - 13 a point. You have the same number in your family as mine, so a 1 bed room unit at BLT for a week (Lake View) would run 242 points in October. Renting that cost you $2662.00 ($11.00). Sometimes you can find points for less, but not always.

 

[SSR]

You also have to consider that when you stay DVC, you get far less maid service, if that's important to you, which it is to us!

I prefer Benjamins in my pocket. I have no problem going through the extreme effort of loading the dishwasher or making my bed, heaven forbid, throwing some bath towels in the washing machine outside my bedroom.

 

[roomthreeseventeen]

I prefer Benjamins in my pocket. I have no problem going through the extreme effort of loading the dishwasher or making my bed, or haven forbid, throwing some bath towels in the washing machine outside my bedroom.

DVC does not save you money, so I'm not sure what Benjamins are in your pocket.

 

[SSR]

DVC does not save you money, so I'm not sure what Benjamins are in your pocket.

I've done the math. It saves money for us in our situation. YMMV.

Tinkbride: try here. http://www.disboards.com/showthread.php?t=2401774

 

[poohj80]

DVC does not save you money, so I'm not sure what Benjamins are in your pocket.

Maybe it doesn't save YOU money, but it has saved many of our families quite a bit of money and will continue to do so since we are past the break even point. We understand it's not for you, but it's working for a lot of us!

 

[Amy&Dan]

Here we go again.

 

[poohj80]

internet issues - double post

 

[KellyNY]

Maybe it doesn't save YOU money, but it has saved many of our families quite a bit of money and will continue to do so since we are past the break even point. We understand it's not for you, but it's working for a lot of us!

Great point. Everyone is different. DVC would never work for me, 10 years ago I was in doubts(just a little bit), now I am glad I did not do it, but for some people, esp if they have little kids and still plan to have kids in a future, it may be a way.

 

[bakenatj]

I don't think it's a fair comparison to include transportation, park tickets, etc into the equation when determining if DVC is a good value.

However, people should consider the future value of their money. $16,000 today to buy the smallest contract DVC allows for an initial purchase, if invested with a conservative 5% return, would be $19,500 in 5 years. So you can't use $16,000 to determine the breakeven is 5 years.

Timeshares, whether at Disney or someplace else, are never a good financial investment IMO. It may be a good emotional investment, which is why people are so passionate about defending their decision to purchase.

That is easy to say and hard to do. Most people "if" they have that kind of disposable income won't stick it in the bank/invest with the thought of in 3 years I am going to make $3500.00. Plus as unstable as the market is now, most people won't make the right investment and will not make that kind of money. Plus you won't see the benefit of that money till three years from now. They want to start enjoying the benefits of that money now.

Here is how you have to look at DVC. Do I vacation WDW- Yes. Okay if we like to vacation, do we like to stay at very nice, spacious places. If yes, then it probably fits you. This is not a investment to be looked at as a monetary gain type of investment. It's a guarantee rate for a Disney vacation. In ten to fifteen years DVC members will be paying way less than what non DVC members will be paying for "accommodations".

Here is one thing I've noticed in life regarding the way people look at money. Some people don't spend but save, save, save and say when they hit a point in their life were they feel comfortable they will spend. Fact is that day never comes. People don't change, what you are is what you are. If it kills you to spend money, DVC isn't your cup of tea.

 

[Amy&Dan]

That is easy to say and hard to do. Most people "if" they have that kind of disposable income won't stick it in the bank/invest with the thought of in 3 years I am going to make $3500.00. Plus as unstable as the market is now, most people won't make the right investment and will not make that kind of money. Plus you won't see the benefit of that money till three years from now. They want to start enjoying the benefits of that money now.

Here is how you have to look at DVC. Do I vacation WDW- Yes. Okay if we like to vacation, do we like to stay at very nice, spacious places. If yes, then it probably fits you. This is not a investment to be looked at as a monetary gain type of investment. It's a guarantee rate for a Disney vacation. In ten to fifteen years DVC members will be paying way less than what non DVC members will be paying for "accommodations".

Here is one thing I've noticed in life regarding the way people look at money. Some people don't spend but save, save, save and say when they hit a point in their life were they feel comfortable they will spend. Fact is that day never comes. People don't change, what you are is what you are. If it kills you to spend money, DVC isn't your cup of tea.

Very well said.

I will go to my grave sticking to the thought process that for some people with a certain vacation style DVC will save them money. I know some people refuse to even admit it might allow a break even point.

For us it wasn't a good long term commitment and now that we are out of our contract and no longer members, I can still see what a savings it can offer to some. Since we are moderate folks at heart, we don't fall into that category.

And people talk about discounts on rooms and packages, but lets not forget DVC has discounts too. And just like those other discounts, there are no guarantees but they are out there now. And I miss those AP disocunts that added up to $400 for our family of four.

 

[lucyem]

Every reason why one person did not buy into DVC is also a reason why another person did buy into DVC. There are certainly pros and cons. You need to make sure it is right for you, or not. I do see some misinformation going around on these boards when it comes to cost and so forth. So for anyone exploring DVC please do your home work! Don't bash something you do not totally understand and do not buy before understanding what you are buying. The DVC board is a wealth of information.

 

[roomthreeseventeen]

Maybe it doesn't save YOU money, but it has saved many of our families quite a bit of money and will continue to do so since we are past the break even point. We understand it's not for you, but it's working for a lot of us!

Like someone said above, DVC is about emotional comfort, not financial.

 

[poohj80]

Like someone said above, DVC is about emotional comfort, not financial.

I'll agree with emotional comfort but it also does provide financial savings to those who vacation at WDW often and who prefer the finest accommodations. We've all done the math and we know how much we are not spending for our trips now that we are members!

 

[Corwin]

Where are these calculators everyone is referring to? That is exactly where DH and I are - when do we break even and is it going to still be worth it in that amount of time....

There are several out there on the web--just do a Google search. Personally, I looked at what was available online, then put my own together using Microsoft Excel. It's not rocket science.

Does the calculator take into consideration the maintenance fees?

Of course.

Tinkbride: try here. http://www.disboards.com/showthread.php?t=2401774

I believe this particular calculator only helps you keep track of your points. It does not do any cost comparisons.