Should a 22 yr old buy DVC rental?

[countrygrl4]

Is DVC only for those with families/spouses? I'm 22 and totally see the appeal of DVC bc I LOVE to travel and have been lucky enough to go on a vacation every year sometimes twice a year since the age of 8. Now that I'm basically on my own (still living w/ the rents while trying to do grad school) I would like to travel more with friends and love the flexibility with DVC. I know what some of you maybe thinking...YOUR 22?! That's crazy to want a timeshare...well maybe I am. I just think its cool plus it will allow my friends and family to use it when I am not. So I guess my question is if I have the money would it be dumb for me to buy a DVC rental?:shrug: I have no clue!!

Thanks for the opinions in advance just no rude opinions please!

 

[Pioneer Hall]

This is actually a perfect area for me because I am 23 and just purchased DVC myself through a resale. I can give you my opinion on the topic, but there are definitely going to be answers all over the spectrum on this. First off, a big thing to realize from your post is that DVC is not a rental. You are actually purchasing a deeded piece of property and will be a legitimate owner of something. While the contract does revert to Disney at the end, while you hold that deed you actually own what you purchased. This is why you pay dues and taxes on a yearly basis.

I personally saw it as a good investment for me. I am lucky enough to be able to go to Disney about 3 times a year (either with family or friends). The fact that I know that Disney vacations will be a constant part of my life even when mom and dad aren't footing the bill made me want to really look into the program and see if it would fit. For a lack of a better term, my parents had the ability to spoil me with stays in deluxe resorts and I know that in the future I would want to stay in a resort of that level. While I have stayed in Values and Mods with no problem, I know that thinking out in the future with family in mind I wanted that level of resort. DVC really only makes sense if you are looking for deluxe level resorts to start.

The big consideration for me was being able to afford the purchase price. I am still living home for now and will be for part of 2011 as well. So I had the opportunity to save a good amount of money over the course of my first year in a full time job. I personally didn't think financing would be a great option for this. DVC is a luxury purchase and I felt that if I couldn't pay it out, I shouldn't get it. I was able to find exactly what I was looking for (200 pts-Animal Kingdom Lodge) at a price I could pay outright. From here I looked at dues in order to determine how they moved with the average level of inflation as well as resort prices. It seemed that dues were progressing better than those and for those points I would be looking at around $1,000 a year for the next few years. It will go up over time, but so will everything else. Until later on when I decide to add on points (it is inevitable as I get married and have a family I think when we want bigger rooms), this is the only DVC expense I need to worry about.

So the decision of it makes sense really will depend on what you think makes sense. Are you planning on staying in mainly deluxe resorts for the next 40+ years? Are you able to truly afford this without making any big changes to your daily life? Do you think you will be able to do this with dues for the next 40+ years as well? You mentioned grad school (something I am planning for as well in the not too distant future), and I also factored how that would play into this whole equation. Needless to say for me, that if I couldn't pay it all outright now it wouldn't have happened since paying for grad school is more of a priority. Thankfully I am a financial minded person, so I was able to play everything out.

If you think that you can work it all out and will utilize the program, then I think it is far from crazy. There is nothing wrong with starting now to plan for the future. If you have any other questions about my decision process or want me to tell you more about how I actually purchased, please feel free to PM me. Best of luck in your decision.

 

[slappy magoo]

For me, it's not about your age, but where you are financially. Personally, I'd hold off at least until you have your own apartment. DVC is an expense - paying for your points, in cash or financed, plus maintenance fees. That's money you're not saving for a deposit or down payment on a mortgage, making it that much harder to achieve independence.

 

[tampabrad]

Not to sound rude, but you are not on your own if you are living with your parents.

After you finish grad school and have a career, your own home, and are paying your own bills, then consider buying into DVC.

 

[ZHoyt]

You never know where life will take you. I would wait until you settle into a career before you know whether DVC will fit into your life. It will still be there for you, but there may be times in your life when despite what you want, you won't be able to go on a luxury vacation. Even if you pay in cash, you are still paying a substantial fee each year for maintenance/dues. I only own 100 points and pay over $600 just to maintain. I love DVC, but until you know what your budget is going to be like when you find a job, it is foolish to lock yourself into something like that.

 

[Thrill]

In addition to what others said before, you said that you like to travel. This implies that you intend on using DVC to travel outside of Disney resorts. I haven't seen exact numbers as to whether money is saved using DVC than paying cash for traveling to non-Disney resorts, but I can tell you that the financial gain of using DVC is much higher at Disney resorts than it as outside of Disney. While it's nice to have that flexibility, I don't believe that it should be viewed as much more than a perk. Like I said, I've never seen a run-down on the savings, so I can't state that you'd be losing money by doing so, but I can't see the savings being so high that I would be willing to commit to 50 years of vacation club.. Take this into consideration when making the decision.

 

[Pioneer Hall]

In addition to what others said before, you said that you like to travel. This implies that you intend on using DVC to travel outside of Disney resorts. I haven't seen exact numbers as to whether money is saved using DVC than paying cash for traveling to non-Disney resorts, but I can tell you that the financial gain of using DVC is much higher at Disney resorts than it as outside of Disney. While it's nice to have that flexibility, I don't believe that it should be viewed as much more than a perk. Like I said, I've never seen a run-down on the savings, so I can't state that you'd be losing money by doing so, but I can't see the savings being so high that I would be willing to commit to 50 years of vacation club.. Take this into consideration when making the decision.

It usually is not a good value to use your points outside the dvc resorts. Most people find it better to rent their points and then use the cash for whatever trip they want to go on.

 

[disneyeater]

I would add to what most other posters have said. I am 29 and while I have wanted to join DVC for a number of years, I am only now considering purchasing.

I think it is important to get your career started so you have an idea of how much money you will be making. It is important to find the place you want to live so you know what your rent/mortgage along with living expenses will be. DVC has on-going dues that you need to make sure you can afford, along with travel and tickets to the parks. What if you decide to have kids in 5 years and have to pay for dance/soccer/swimming lessons.....You really need to understand your intermediate to long term financial situation before commiting yourself to this type of purchase.

I also think it is important before making this decision to discuss it with your parents. You never know how they will feel about you making a luxury vacation purchase while still living with them.

In short, wait a while, and if you still want to do it, than do it. Who knows, maybe you will be just in time for a Poly DVC resort or something like that.

 

[slappy magoo]

I think it is important to get your career started so you have an idea of how much money you will be making. It is important to find the place you want to live so you know what your rent/mortgage along with living expenses will be. DVC has on-going dues that you need to make sure you can afford, along with travel and tickets to the parks. What if you decide to have kids in 5 years and have to pay for dance/soccer/swimming lessons.....You really need to understand your intermediate to long term financial situation before commiting yourself to this type of purchase.

The OP wrote about "trying to do grad school." And I was thinking "people who get a graduate degree tend to make more money...but on the flip side, they also have more debt FROM grad school...AND if you're only "TRYING to do grad school," wha if you wind up going for a year or two, and then NOT graduate, BUT have all of that tuition debt? AND trying to start your adult life on top of that, WITH the extra value of DVC maintenance fees?"

Granted, most people do wind up not spending as much on vacations if they're members of DVC, but I'd like to think DVC members kinda have their financial ducks in a row before spending that kind of cash.

Now, I don't know the OP. For all I know, she and her parents are flush, her grad school is paid for and she's never going to be hurting for money, and I don't mean that in a jealous snarky way, it just may be the case. If that IS the case, and living at home is not a financial decision so much as one of convenience while finishing school, then I could amend my previous concern about waiting until your career is in order. I was seeing that situation through slappy-colored glasses; I know, were I going to grad school while still living with my parents, and I had a chunk of cash to drop on DVC, my parents would probably say "hey, about a little 'rebate' for mom and dad for all that money we're shelling out for your edumacation, Slap?" But if countrygrl4's family's financial situation is more Bill Gates than bill collector, have at it,

 

[Pioneer Hall]

The OP wrote about "trying to do grad school." And I was thinking "people who get a graduate degree tend to make more money...but on the flip side, they also have more debt FROM grad school...AND if you're only "TRYING to do grad school," wha if you wind up going for a year or two, and then NOT graduate, BUT have all of that tuition debt? AND trying to start your adult life on top of that, WITH the extra value of DVC maintenance fees?"

Granted, most people do wind up not spending as much on vacations if they're members of DVC, but I'd like to think DVC members kinda have their financial ducks in a row before spending that kind of cash.

Now, I don't know the OP. For all I know, she and her parents are flush, her grad school is paid for and she's never going to be hurting for money, and I don't mean that in a jealous snarky way, it just may be the case. If that IS the case, and living at home is not a financial decision so much as one of convenience while finishing school, then I could amend my previous concern about waiting until your career is in order. I was seeing that situation through slappy-colored glasses; I know, were I going to grad school while still living with my parents, and I had a chunk of cash to drop on DVC, my parents would probably say "hey, about a little 'rebate' for mom and dad for all that money we're shelling out for your edumacation, Slap?" But if countrygrl4's family's financial situation is more Bill Gates than bill collector, have at it,

That is why I stressed the ability to afford it (now and later) in my post and in a PM with the OP. While I am young, I am a financial person so I did a through analysis of what the cost and opportunity cost here would be. I was lucky to graduate in 09 and secure a job with an Investment Bank where I make a decent salary. I also live home right now mainly for the convenience factor and to save money while I can. Could I live on my own...sure. However, having the opportunity to save up allowed me to not only buy DVC, but also save for my eventual grad school and future house purchase. I also did what you suggest here Slappy and discussed it in full with my parents. They agreed that it was a sound purchase for me because of how much I expect to use it over the course of my life. I also realized that the money I spent on my initial DVC purchase (again, all paid in cash with 0 financed) was less than my rent and utilities would have been for my first year of school.

So I guess this whole long story, that no one really cares about, is that age isn't as much the factor as much as making sure you are truly able to see yourself being able to afford this. Whether you are 22 or 42, you need to look at your current and future expenses to make sure that you think it will work out.

 

[foreverbelle]

I really think it isn't your age, but if you can afford it. While I was married when I bought into the DVC I was 27, going through school and we hadn't started a family. I look back at it now and think in a lot of ways how thankful I did it before having my son, by the time he came along, we were already two years into payment and while it may be only two years, I think if we had waited until the birth we probably would have never done it. Or waited.

Plus you got to take in account that DVC does increase with each property or year what we paid in at back in 07' has increased another factor to take into thought.

But whether you buy now or wait, it is a matter of what you feel most comfortable with....

Best of luck in your decision.
For what its worth, we don't regret it for a moment.

 

[countrygrl4]

WOW! I wanna thank everyone for their input! I actually talked to my parents since I have never even bought a piece of property unless you want to count my car because of the taxes on it. But I have decided to wait until I am well into my career. I don't have the money right now and even if I did I realize that all the money thay would go to dues and whatnot could really help with paying off my student loans when the time comes for that ( I somehow got two extra years defered on them!! SCORE and once I get into a program another two years of deferment!) So as much as I want it, I'll give my little 22 yr old impulse buyer brain a restraint. Thank you all again for the input! I still asked for a DVC dvd to be sent and it is on its way!! YAY!!!

 

[slappy magoo]

WOW! I wanna thank everyone for their input! I actually talked to my parents since I have never even bought a piece of property unless you want to count my car because of the taxes on it. But I have decided to wait until I am well into my career. I don't have the money right now and even if I did I realize that all the money thay would go to dues and whatnot could really help with paying off my student loans when the time comes for that ( I somehow got two extra years defered on them!! SCORE and once I get into a program another two years of deferment!) So as much as I want it, I'll give my little 22 yr old impulse buyer brain a restraint. Thank you all again for the input! I still asked for a DVC dvd to be sent and it is on its way!! YAY!!!

I'm glad you recognized that our criticism wasn't just crapping on your dream, but concern that you were potentially taking on a significant expense at a time when your money's needed elsewhere. Not everyone in your situation would. And good for you discussing it with your parents, and for having parents with whom you COULD discuss it.