Is it for me? I think so, but need you to give me the push...

[officialtom]

I'm WDW obsessed, and so are my partner and my mom. I've gone four times, and hope to go every year for the rest of my life. It's truly my "happy place" and my favourite place to spend a week or two each winter.

I've thought about DVC before but I'm not 100% convinced that it's for me. I've done some research so understand more or less how the points system works. Here's a bit about me:

-25, Canadian, young professional employed permanent/full time with the federal government
-I'm about to take out a mortgage to buy a house. I'm thinking I could mortgage for DVC at the same time?
-I love WDW and want to spend time there every winter if I can. Normally stay in a moderate resort but have looked at deluxe before and it's not out of the question.

Any opinions, comments, or hints would definitely be appreciated!!

 

[cbettua]

I think it may be ideal for you, since you only plan to go once a year and you know your dates ahead of time.

 

[dreamfinder]

I've said this before, if you need a push, then it's not for you. Run the numbers respective to your current resort selection choice. If you stay in a mod typically, do the numbers to see when your breakeven point would be. Don't bother comparing the deluxe costs if you don't stay there now, some rumbling in the Spirits most recent thread (about DVC by the way) point to room rates continuing to go up, just to help make DVC look more attractive.

Mortgaging the points adds years onto your break even. If your bank would let you throw on another 15k to you home loan, then it may not be as bad, but timeshare mortgage is normally 10% or higher interest (sometimes much higher). Banks don't get that DVC has a better resale value than other properties, so they still charge sky high rates.

That said, it could work out in your favor. If you can swing the costs, and have no concerns about your job, and being able to pay the yearly dues, and the long term numbers work, then its a fine deal.

I will throw out the obligatory look at resale comment. Can save $40+ per point by buying resale, and you only lose some of the trade out perks.

 

[slappy magoo]

-I'm about to take out a mortgage to buy a house. I'm thinking I could mortgage for DVC at the same time?

By this, do you mean you would do both mortgages at the same time? Or you would tack on the extra money from your house mortgage needed to pay for the points?

Neither one is particularly ideal. Tacking the price onto your mortgage would result in lower monthly payments for DVC versus financing through DVC direct with their high rates, but you'll wind up paying more in the long run. So find out how much more the payments would be and if it's something you can absorb. And bear in mind your maintenance fees would then probably not be attached to the payment but a separate bill.

 

[GoofGoof]

Look at buying resale for sure.

My personal advice would be to wait until after you buy the house and settle in for 6 months or a year before buying DVC. It's hard to predict how much it's gonna cost you per month to live if you are planning on making a major life change. DVC will cover your room for each trip but you still need to come up with additional hundreds or thousands to cover meals, park tickets and airfare. If you do finance, make sure you are comfortable making the DVC payments. Nothing worse than turning your "happy place" into a point of stress in your life.

The best advice I can give you is run the numbers and decide for yourself if it works for you. If it does, then ignore all of us and just do it

 

[Goofnut1980]

It was a no-brainer for us. We go 2 times a year at the least, and Nathan and I were sick of having to wait for deals to book a room and we usually stayed Deluxe or Moderate. (depending on the mood) but we were able to take friends the last trip and his parents last December. Next May we are taking my mom, brother and his girlfriend (we would rather leave her at home though) It made sense for us. We did finance it through Disney but we paid it off this year. They will do a 10 year loan and yes, that is crazy with the interest rates they charge, but if that is how you need to buy it, do it and just pay 3x the payment and its paid in no time.

Don't let others doom and gloom you from something you enjoy. My mom always told me to live. Yes you have to be wise in the process and the only piece of advice I can give you is... Do NOT over buy on points. Look at how much you go and the type of accommodation that would suit you and buy the right number of points. I see so many people by hundreds and hundreds of points and then sell or complain because the maintenance is so much cost yearly, they can't afford it.

 

[BigTxEars]

I am all about doing what you want at or for Disney so I say dive in. We bought twice via resale and paid cash, but we would have financed if we had too. It's only partially about the savings DVC offers to us, the rest of it was about the feelings belonging to DVC gives us. That is of course is completely subjective so it's value is as well. Life to short to always "do the right thing" regarding money IMO.

 

[hsisthebest]

I would advise you double and triple check all the issues that DVC members can have. I have seen people not be able to book 9 consecutive nights because weekends were full, or not get the resort they were hoping for. I have gotten a pin code every year for 4 yrs straight with 35% of of villas, that would push my break even point (8 nights @ 2 bed BCV in Sept.) to at least 15 years. Mostly though, I like to keep my options open and try out many different resorts-i.e. AOA .

 

[GoofGoof]

I would advise you double and triple check all the issues that DVC members can have. I have seen people not be able to book 9 consecutive nights because weekends were full, or not get the resort they were hoping for. I have gotten a pin code every year for 4 yrs straight with 35% of of villas, that would push my break even point (8 nights @ 2 bed BCV in Sept.) to at least 15 years. Mostly though, I like to keep my options open and try out many different resorts-i.e. AOA .

This is why home resort is still important (and not just for the price of MFs). You will never have any problems at 11 months even in the most busy times. Trading in at 7 months can be more of a challenge based on room type, time of year and resort. I've never had an issue getting the room I wanted, but I've never tried to get a BCV or BWV room during food and wine.

DVC is definitely a personal thing. If you get pin codes for 35% off every year for the time you want to travel and have high confidence that will continue indefinitely then it might not make sense to buy in. I can tell you for sure that not everyone is getting those offers especially if they can't travel in the fall or in January.

 

[LuvtheGoof]

I would advise you double and triple check all the issues that DVC members can have. I have seen people not be able to book 9 consecutive nights because weekends were full, or not get the resort they were hoping for. I have gotten a pin code every year for 4 yrs straight with 35% of of villas, that would push my break even point (8 nights @ 2 bed BCV in Sept.) to at least 15 years. Mostly though, I like to keep my options open and try out many different resorts-i.e. AOA .

If you are looking at staying value, then DVC is not for you. If you only stay at BCV every year in Sept, then it might work for you. Consider the following: a week long stay in Sept is 271 points. There are resales available that you can purchase for a total of $24,480. Your dues would start out at $1,560 for the year. Even using a 35% code on a 2 bdr villa will cost you just over $4,300 this year. Your breakeven point is 8 years, as you mentioned, if you assume that both dues and room rates go up 4% per year. At that point, you will have spent $38,892.34 for DVC, but the room would have cost you $39,747.41. After that, your savings are even better. The next year, your dues would be $1,979.14, but the room (even with 35% discount) would now run $5,458.21. Saving you $3,479.07 that one year alone. And you are hoping that Disney is going to continue sending you those pin codes. At some point, they will stop, as will most, if not all, of the discounts. You will then be forced to pay rack rate to stay there.

Anyway, as I have always said. DVC is NOT for everyone, but works for us. It is NOT an investment, but a way to save money on your hotel costs at Disney. Nothing more, nothing less.

 

[hsisthebest]

If you are looking at staying value, then DVC is not for you. If you only stay at BCV every year in Sept, then it might work for you. Consider the following: a week long stay in Sept is 271 points. There are resales available that you can purchase for a total of $24,480. Your dues would start out at $1,560 for the year. Even using a 35% code on a 2 bdr villa will cost you just over $4,300 this year. Your breakeven point is 8 years, as you mentioned, if you assume that both dues and room rates go up 4% per year. At that point, you will have spent $38,892.34 for DVC, but the room would have cost you $39,747.41. After that, your savings are even better. The next year, your dues would be $1,979.14, but the room (even with 35% discount) would now run $5,458.21. Saving you $3,479.07 that one year alone. And you are hoping that Disney is going to continue sending you those pin codes. At some point, they will stop, as will most, if not all, of the discounts. You will then be forced to pay rack rate to stay there.

Anyway, as I have always said. DVC is NOT for everyone, but works for us. It is NOT an investment, but a way to save money on your hotel costs at Disney. Nothing more, nothing less.

I like what you did there, making the numbers work to DVC advantage. However, if you note in my post, I am staying for 9 nights. This would get very sticky and expensive in DVC points. We will be staying a Wed.-Sat. so that includes 2 Friday nights and 1 Saturday night. This equates to 351 points, not 271. Currently DVC-resales has 350 BCV points for $33,600. Dues per year would also be higher than your quote, more like $1932. This makes overall 8 year cost $49056, IF rates for rack continue to increase at the rate you provide I would still be $10000 ahead at this point. Break even would occur between years 10-11. When I think how much my life has changed in the past 10 years I couldn't even fathom what it will be like 10 years out from now and how that would pertain to a Disney trip with my family.

 

[LuvtheGoof]

I like what you did there, making the numbers work to DVC advantage. However, if you note in my post, I am staying for 9 nights. This would get very sticky and expensive in DVC points. We will be staying a Wed.-Sat. so that includes 2 Friday nights and 1 Saturday night. This equates to 351 points, not 271. Currently DVC-resales has 350 BCV points for $33,600. Dues per year would also be higher than your quote, more like $1932. This makes overall 8 year cost $49056, IF rates for rack continue to increase at the rate you provide I would still be $10000 ahead at this point. Break even would occur between years 10-11. When I think how much my life has changed in the past 10 years I couldn't even fathom what it will be like 10 years out from now and how that would pertain to a Disney trip with my family.

True. If you don't think that vacationing at Disney (World, Land, HH, VB, or Aulani) would be something you will absolutely want to do in 10 years or 20 years (every other year at least), then you would probably be better off just paying the Disney rate when you do go. We know that we will be going to Disney for the next 30-40 years (multiple trips per year) if we are physically able. It is one of those - it works for us, but may not for you things.

 

[GoofGoof]

I like what you did there, making the numbers work to DVC advantage. However, if you note in my post, I am staying for 9 nights. This would get very sticky and expensive in DVC points. We will be staying a Wed.-Sat. so that includes 2 Friday nights and 1 Saturday night. This equates to 351 points, not 271. Currently DVC-resales has 350 BCV points for $33,600. Dues per year would also be higher than your quote, more like $1932. This makes overall 8 year cost $49056, IF rates for rack continue to increase at the rate you provide I would still be $10000 ahead at this point. Break even would occur between years 10-11. When I think how much my life has changed in the past 10 years I couldn't even fathom what it will be like 10 years out from now and how that would pertain to a Disney trip with my family.

DVC is a longer term investment. IMHO it's easier to look at it like at 10 year (or less) decision. Nobody can safely say they know what they will be doing over 10 years from now. If you look at it as a 10 year decision and then assume you would sell your points it makes the math more practical than trying to consider it a 28 year investment. With that being said you need to make an assumption that the resale market will still be around in 10 years and an option. Doing the math takes a bunch of assumptions like rate the hotel rack rates will increase, rate DVC dues will increase, value of your points resale, rate of inflation (if you want to use time value of money in your math) and also the probability that discounts will be offered indefinitely to cash guests.

I ran some quick numbers based on what you posted. Don't take this as me trying to convince you to buy in. It's just the way I choose to look at DVC. I assumed your 350 points used for 9 nights each September bought resale for $33,600. I assumed both rack room rates and DVC fees go up 4% per year. I assumed an interest rate of 3% per year. I also assumed that in 10 years your points could be resold for $21,000 or $60 (loss of $3 per point per year from $96 to $66 plus a 10% commision to the broker when you selll). The present value of that future cash is about $16,000. I then took the present value of the savings between DVC fees and the cash rate paid for 10 years. If my cash rate for the 9 nights starts this year at $3,700 then I would break even at the 10 year mark after selling my points. At $3,700 the pre-tax cash rate would be $365 a night. Compared to the rack rate of $830 for the 2 bedroom DVC villa at BCV in September that's a savings of 56%. In other words if I buy in today and use the points as described for 10 years and then sell the points at $60 I am locking in a 56% discount on rack.

There is a risk that the resale market tanks, but Disney won't likely let points go much below $50 for BCV and it's wildly popular. IMHO you are likely to get more than $60 in 10 years but that's being conservative. On the flip side there is a risk that whatever discounts to rack are currently offered dry up. You also need to have $33,600 just lying around which is not all that common. It's not for everyone and I'm not looking to sell anyone on anything. This is just one of the many ways to consider the value of the purchase.

 

[BigTxEars]

Lots of factors go into a DVC buy or not buy decision

Also +1 on home resort mattering.

We bought into SSR (twice) but we are staying at OKW in Jan, booked it well under the 7 month window. But many other resorts we could not get even in Jan. If we were trawling in more popular times of the year then the 7 /11 month window would matter even more. Buy where you are OK with staying at the very least, or where you want to stay if possible. We are fine with staying at SSR, or any where else on property to be honest. If for some reason we hated a resort I sure would never buy there