Yet Another Analysis

[JerseyBob]

How about this? (to justify expense of becoming DVC member)
Not that one would rent out the points every year, but to put a "value" on the financial outlay - if one was to rent out the points at $10 a point, he or she could yield $1500 (for 150 points) minus $600 (approximate cost of current maintenance fees) for a net of $900 (before taxes). $900 divided by $12,600 is a 7.14% - not bad for today (or 8.1% if applying MB). Of course I guess there's no guarantee that points can always be rented out for $10 per point or at all. Or are points fairly "easy" to rent out for $10 per point?

 

[LoveMyDVC]

I don't know how diificult it is to rent points. If you are considering becoming a member, you will not be disappointed if you enjoy going to WDW. I have been a member for 2 years and have just purchased a resale and await ROFR from Disney.

Like others have said, you are really prepaying your future vacations. If you go to WDW frequently, you'll get your money's worth. It really isn't an investment.

 

[Lisa P.]

$900 divided by $12,600 is a 7.14% - not bad for today (or 8.1% if applying MB).

You haven't accounted for the loss of your purchase money at the end of the DVC contract. Normally, when "investing" your money and looking at the return, you would assume that the invested money will still be there for you at the end of the term. At the end of the DVC contract, you don't have any purchase money left.

So this would only be relevant for a short term plan, perhaps for as long as you are confident that Disney will continue to exercise their ROFR, artifically boosting resale values. Even then, you have to account for a possible depreciation of your principal (buying at developer pricing and reselling at resale pricing, less the resale broker's commission).

 

[mikesmom]

Actually, the use of the purchase money I lost was the money I DID invest in other things. If the money we invested in Cisco (which dropped like a rock) had gone into DVC and if now I'd sell the DVC ownership... Let's see, we could have bought more points at $67, right now Disney is doing ROFR at anything less than $72, that's better than 7%.... I'd be way ahead of the game right now.