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Disney DVC
- Thread starter jcldtrek
- Start date
C&D
Well-Known Member
You probably want to go here: http://forums.wdwmagic.com/forumdisplay.php?f=81
MaxsDad
Well-Known Member
Not a member yet, but ...
I have been considering this lately myself too. This is how I figure it is worth it to get DVC.
If you could purchase 160 points at AKV on sale at $96 per point that would cost $15,360. That purchase price would buy a membership that would last 50 years. $15360 divided by 50 is $307.20 per year. Now look at Annual Dues/maintenance fees. They are currently about $4.65 per point or (x160) $744 per year today. Add these two figures together and you get about $1050. This is how much membership would cost you (if you didn't finance) each year in today's money.
Those 160 points could get you a week in a standard view 1-BR at Boardwalk Villas in the Value season or a Standard view studio in the Christmas season.(I left my AKV point chart at work, sorry) Today's pricing for a week through normal Disney Resorts Reservations would be $3,340 and $3,740 respectively. The rooms would have to discounted about 70% to bring it down to the DVC cost. Heck, even 1 Preferred room at Pop Century during the Christmas week would cost $1050, and that's a value resort!
It seems to be generally agreed upon by both sides of this issue that while Annual Dues will increase each year, that Rack Room Rates at WDW will also rise as they are both victims to inflation. So that's a wash, so to speak.
The other angle I have read others offer up is invest the money and use it to pay for your lodgings at WDW. One thing I have never seen brought up about this angle is income taxes. In the US, citizens have to pay income taxes on interest income between, what 15 and 30 percent? Some states even have state income tax to on top of that. If you put 15,000 in a FDIC insured, guaranteed 1-year CD today, you would get about 5% or $750, before taxes. That's about enough to pay for 2 nights in a Deluxe Resort room. Now consider DVC: the allocation of your 160 points each year from your membership that you bought with that 15K, the points that could get you a week at WDW in Deluxe accommodations, is a non-taxable event. What's more, a portion of your Annual Dues would be deductible on your returns if you itemize deductions (consult your adviser).
I am looking, but I still don't see the down side to DVC if you plan on vacationing at WDW regularly in the immediate and foreseeable future.
I have been considering this lately myself too. This is how I figure it is worth it to get DVC.
If you could purchase 160 points at AKV on sale at $96 per point that would cost $15,360. That purchase price would buy a membership that would last 50 years. $15360 divided by 50 is $307.20 per year. Now look at Annual Dues/maintenance fees. They are currently about $4.65 per point or (x160) $744 per year today. Add these two figures together and you get about $1050. This is how much membership would cost you (if you didn't finance) each year in today's money.
Those 160 points could get you a week in a standard view 1-BR at Boardwalk Villas in the Value season or a Standard view studio in the Christmas season.(I left my AKV point chart at work, sorry) Today's pricing for a week through normal Disney Resorts Reservations would be $3,340 and $3,740 respectively. The rooms would have to discounted about 70% to bring it down to the DVC cost. Heck, even 1 Preferred room at Pop Century during the Christmas week would cost $1050, and that's a value resort!
It seems to be generally agreed upon by both sides of this issue that while Annual Dues will increase each year, that Rack Room Rates at WDW will also rise as they are both victims to inflation. So that's a wash, so to speak.
The other angle I have read others offer up is invest the money and use it to pay for your lodgings at WDW. One thing I have never seen brought up about this angle is income taxes. In the US, citizens have to pay income taxes on interest income between, what 15 and 30 percent? Some states even have state income tax to on top of that. If you put 15,000 in a FDIC insured, guaranteed 1-year CD today, you would get about 5% or $750, before taxes. That's about enough to pay for 2 nights in a Deluxe Resort room. Now consider DVC: the allocation of your 160 points each year from your membership that you bought with that 15K, the points that could get you a week at WDW in Deluxe accommodations, is a non-taxable event. What's more, a portion of your Annual Dues would be deductible on your returns if you itemize deductions (consult your adviser).
I am looking, but I still don't see the down side to DVC if you plan on vacationing at WDW regularly in the immediate and foreseeable future.
DisneyPhD
Well-Known Member
There are not a lot of people posting on this thread because there was a big thread with a lot of debate about this topic just a week or two ago. Unfortunately, it turned a bit nasty and was locked, but there was lots of good information on it. Max's Dad has a good analysis of the costs. He's right, I don't ever remember anyone bringing up the idea of taxes on the income if the money was invested instead of using it to purchase DVC.
pjshockeymom
New Member
My husband and I bought into DVC in 2004 and we now wish we had done it much sooner. Not only do we like the fact that we can stay at the delux resorts, but we also enjoy the flexibility of DVC. For us, and our family, Disney is our idealistic vacation.
We look at it as an investment and something we can leave to our son if that's what we choose to do.
Max's Dad has some excellent analysis and information.
We look at it as an investment and something we can leave to our son if that's what we choose to do.
Max's Dad has some excellent analysis and information.
schewy
Member
My family lovesit. I approached it this way. If I go once or twice a year for at least a week. I will spend more on hotel rooms in a few years than the cost of the membership.
If you would not use the properties or take a cruise every year or every other year I would not purchase it.
I have been going to WDW since it opened and I experience something new each time I go.
If you would not use the properties or take a cruise every year or every other year I would not purchase it.
I have been going to WDW since it opened and I experience something new each time I go.
SnowFire
Well-Known Member
The decision to buy DVC is not an easy one for most peoploe due to the large investment. We have been members since 2000 and absolutely love it. There are many things to consider, a few of which include:
- Does the financial commitment make sense for you?
- Do you want to return to Disney over and over? I assume you do or you probably wouldn't be considering DVC. DVC allows for a variety of vacation options as well as trades for various timeshares. Consider where you might want to travel.
- How often do you want to visit Disney? This was actually a selling point for us since we have a tendency to put off major trips until "next year." Owning DVC insures that we will take a real vacation more frequently.
- What type of resort do you prefer? If you consider the resort just a place to sleep and would normally stay at a value resort, DVC may not make sense. We happen to prefer the deluxe resorts so that was a selling point for us.
- Does the financial commitment make sense for you?
- Do you want to return to Disney over and over? I assume you do or you probably wouldn't be considering DVC. DVC allows for a variety of vacation options as well as trades for various timeshares. Consider where you might want to travel.
- How often do you want to visit Disney? This was actually a selling point for us since we have a tendency to put off major trips until "next year." Owning DVC insures that we will take a real vacation more frequently.
- What type of resort do you prefer? If you consider the resort just a place to sleep and would normally stay at a value resort, DVC may not make sense. We happen to prefer the deluxe resorts so that was a selling point for us.