Tell Me Yes or Tell Me No

[aliceismad]

I wish we bought ours sooner. I have been going to WDW for 2 decades and my husband kept saying "no". He didn't think that we would benefit from it. After many, many years of paying for hotel rooms(that could have gone into DVC payment), I finally just purchased it on my own. Having those points has given me the opportunity to go to Aulani. WOW. THE best use of your DVC points. We are going back for a second time next month and for what I would have paid cash for our stay, it has more then covered the cost of what I bought my DVC points for. And now I have many years ahead of me of stays for the cost of my annual dues. I own at the Polynesian and I can easily sell my contract for more then I paid for it if I wanted. So I don't agree with the person that says that it is devalued.

I've always read never to think of DVC as an investment, but most of the people I know who are owners have contracts that are currently worth as much, or even more, than they bought them for. I wouldn't want to bank on that, of course. I don't know that I've looked closely at the numbers regarding that, but I've seen the direct purchase graphs.

And from https://www.fidelityrealestate.com/blog/long-term-value-of-disney-vacation-club-ownership/

 

[i<3riviera]

agreed, most folks do come ahead that have held DVC for a long time; even when adjusted for inflation, most resorts are doing pretty well ...

resort​	original (nominal USD)​	original (2020 USD)​	2020 (USD)​
OKW​	48 (1991)​	91​	88 (-3.3% | -0.1% per year)​
VB​	63 (1995)​	106​	62 (-42% | -2.1% per year)​
HHI​	63 (1996)​	103​	72 (-30% | -1.5% per year)​
BWV​	63 (1996)​	103​	115 (+12% | +0.5% per year)​
BRV​	67 (2000)​	100​	93 (-7.0% | -0.4% per year)​
BCV​	75 (2002)​	107​	132 (+23% | +1.2% per year)​
SSR​	89 (2003)​	125​	96 (-23% | -1.5% per year)​
AKV​	101 (2007)​	125​	105 (-16% | -1.3% per year)​
BLT​	112 (2008)​	132​	133 (+0.8% | 0.1% per year)​
VGC​	112 (2009)​	134​	171 (+28% | 2.2% per year)​
AUL​	120 (2010)​	142​	90 (-37% | -4.5% per year)​
VGF​	145 (2013)​	160​	162 (+1.3% | +0.2% per year)​
PVB​	160 (2015)​	173​	138 (-20% | -4.4% per year)​
CCV​	176 (2017)​	185​	134 (-28% | -10% per year)​

source: https://www.fidelityrealestate.com/blog/long-term-value-of-disney-vacation-club-ownership/
source: https://www.bls.gov/data/inflation_calculator.htm

if you want to get fancy, you can depreciate the original values in 2020 USD by the years used of the 50 year contract; it improves the return across the board with everything being positive (+0.6% to +4.6% per year) except AUL (ignoring PVB + CCV because they're still too new to the resale market)

DVC isn't a great investment (the risk-free rate of return is generally higher) but more importantly, it's not a bad investment; if you can afford the initial buy-in, plan to stay at DVC resorts every year or two, and plan to hold for ~10 years then DVC isn't a bad use of your money; if you want to finance or aren't sure about ~10 years of Mickey, it could still work just make sure it works for your situation

 

[aliceismad]

DVC isn't a great investment (the risk-free rate of return is generally higher) but more importantly, it's not a bad investment; if you can afford the initial buy-in, plan to stay at DVC resorts every year or two, and plan to hold for ~10 years then DVC isn't a bad use of your money; if you want to finance or aren't sure about ~10 years of Mickey, it could still work just make sure it works for your situation

Interesting. Thanks for the info!

I mean, if I'm taking that $20K upfront and investing it in stocks, I may do better than DVC. But if it's just gonna sit in savings or go toward something like a new car, free/discounted vacations seems like a decent way to go.

 

[LuvtheGoof]

Interesting. Thanks for the info!

I mean, if I'm taking that $20K upfront and investing it in stocks, I may do better than DVC. But if it's just gonna sit in savings or go toward something like a new car, free/discounted vacations seems like a decent way to go.

You will never make as much in the investment to cover the cost of paying cash for the rooms going forward. Despite what some people try to claim, you would need a return far in excess of what you could actually get.

I do agree that no one should buy DVC as an investment to make money. It is ONLY to secure much cheaper resort rooms in the future. Nothing else. No one should buy expecting perks to continue either.

 

[seascape]

You will never make as much in the investment to cover the cost of paying cash for the rooms going forward. Despite what some people try to claim, you would need a return far in excess of what you could actually get.

I do agree that no one should buy DVC as an investment to make money. It is ONLY to secure much cheaper resort rooms in the future. Nothing else. No one should buy expecting perks to continue either.

I purchased my DVC points several years ago. I have 425 points with 75 directly from Disney and 350 resale. Would I buy today? No! Buy from one of the other timeshares in Orlando for almost nothing, buy enough points to visit 3 or 4 times a year for a few thousand and buy an annual pass. Do your homework and buy smart.

 

[LuvtheGoof]

I purchased my DVC points several years ago. I have 425 points with 75 directly from Disney and 350 resale. Would I buy today? No! Buy from one of the other timeshares in Orlando for almost nothing, buy enough points to visit 3 or 4 times a year for a few thousand and buy an annual pass. Do your homework and buy smart.

We bought all of ours direct well over a decade ago. We already have more than enough to go 3-4 times per year with 8-9 day stays each visit already. Always buy APs and the TiW when they sell them as well. Would we buy direct now? Very doubtful, but we won't even consider anything off-site. Just not for us, regardless of the cost.

 

[seascape]

We bought all of ours direct well over a decade ago. We already have more than enough to go 3-4 times per year with 8-9 day stays each visit already. Always buy APs and the TiW when they sell them as well. Would we buy direct now? Very doubtful, but we won't even consider anything off-site. Just not for us, regardless of the cost.

I love my DVC vacations but have also taken a few trips and stayed at Bonnett Creek, which is almost on property since you can't get there without going under the Welcome sign. You don't get the Disney Transportation System but in 8 days when I am staying at the GF we are walking to MK and driving to the other 3 parks. In 2022, we are taking friends and will treat them to a trip but stay at Bonnett Creek in a 4 bedroom Presidential unit for 8 nights. The maintenance fees for that will cost less than $3,300 while a 3 bedrron Grand Villa at Saratoga costs 664 points or over $4,000.00 in maintenance fees. Plus a contract for Wyndham on EBAY for 610,000 points, more than enough for the Bonnet Creek stay sold April 12th for $2,445 including closing and transfer costs. A resale Saratoga contract for 600 points would probably cost around $60,000.00 and still not be enough for the trip without borrowing points. The difference of $57,000.00 would also pay the Wyndham maintenance fees of $3,600 for 15.8 years. DVC, while wonderful for those of us long time owners, DVC just is not a good buy today. I will not sell my points today but I would not buy them today either.

 

[kagibson]

I'm going to do it for 2022 once MouseSavers posts the rack rates. I haven't seen them yet though.

Its on MouseSavers?