Yearly maintanence fee question...

[MarylandPizzaman]

I am very interested in buying 150 points at BWV and join the DVC. But I have a large question.
I understand the $12,600 for the points and all but with the yearly fee I am going to end up paying well over $30,000 and thats not even including when the rates raise as I suspect they will.
I will probably only go on vacation once a year or once evry other and I would be payin about $1,000.00 a year if you average the whole points and fees together. This dosen't seem like a savings of any kind. Could someone out there make me see the light and help me over this hump?
Thanks,
Jim

 

[Gail & Joe]

My DH and I spent at least $18,000 in the past six years to stay in the deluxe hotels (GF, WL, & Contemp.). We just bought at VWL in April. We will be going to stay at VWL in Dec. for the first time. We have been going to WDW every year for the past six years and plan on going every year. I wish we had done it sooner.

 

[SlyHubby]

you are correct in the total calculations you've done. I did the same calculation a few years ago (though my numbers were obviously different at the time). when calculating whether it's a good deal, the initial purchase price is not as big as the maintenance you'll pay over the 40 years.

however, there are a number of issues to consider:

1. the portion of the dues which are attributable to real estate taxes is tax deductible.

2. let's suppose we take your $1000/year figure (though I think that's a little high). With your 150 points, staying in a studio Sunday through Friday during non-peak times, that gets you 10 to 15 nights a year. Do you think you'd be able to get DVC-caliber accommodations for $70 to $100 per night? The studios go for $200 to $250 per night for cash right now. if you take better accommodations the numbers will be different - but, I am most familiar with the studio route above because that's what we do.

3. taking #2 a step further, not that any of us knows, but, considering the effects of inflation, just what do suppose the cost of a room will be in 20 or 30 years? if you think it's going to stay the same, chances are that you're very wrong. what were the rates 10 years ago? extrapolate from that.

overall, DVC is a good deal. I don't think you can let yourself get too wrapped up in the numbers - because you'll convince yourself out of it. How is it that DVC has managed to continue raising the price/point over the past few years and appears to be preparing to do it again? remember, there's less time remaining on the contracts, yet they've still gone up in value. so, had you done your numerical exercise a few years ago, you would most likely have come to the same conclusion with slightly different numbers. but, in the few years since then, you would have gotten the use out of your DVC membership in addition to seeing it go up in value!

DVC is a financial commitment and a vacation commitment. it isn't for everyone. for us, it's a guaranteed quality and price for the next 40 years. I don't have to worry about scrambling to see if I can find a room in the area with a cheap rate. when we want to go, DVC always has a room for us somewhere.

 

[SlyHubby]

Gail, your situation/experience is identical to ours in every respect - except we bought into DVC 3 years ago.

 

[MarylandPizzaman]

Thankyou Slyhubby,
You have helped me see it from a different point of view, Which as I take it is what makes this board special.
Thanks again
Jim