DVC questions- feeling overwhelmed

[RichV03]

Hi there,
My family is considering buying into DVC after our recent trip to WDW. We have two kids(aged 1.5 and 3.5 right now) and know we want to take them to disney multiple times in the future. With all the information out there I'm feeling overwhelmed on making the right choice for us. Wondering if someone can just be blunt and honest to me for the questions I have.

- Is it really worth it?
- Is it better to buy right from DVC or on the 2nd market?
- If buying on second market are you stuck at only one resort?
- Are there big pros/cons on buying straight from disney vs resale?
- If in the future we feel its not worth it for us any more is it hard to resale what we have?

Thanks in advance!

 

[CraigInPA]

"worth it" is subjective. On a financial level, it will take somewhere between 8 and 15 trips to "break even" over going to deluxe hotels at WDW at a discount, and you'll never financially break even if you are happy with the discount hotels at WDW. On a 'feel good' level, that it why many people buy DVC. You're part of the "club". You get the purple light at the tapstiles. You can go up to top of the world lounge. If you buy direct, you'll get discounts on food and merchandise (although, to be fair, many of those discounts overlap with a Disney Visa card).

You can save a LOT of money by buying resale (2nd market), 40% in many cases. For that, you forgo the ability to stay at the Riviera and newer resorts, don't get the annual pass discount, don't get the aforementioned dining and merchandise discounts, and don't get to exchange points for cruises or adventures by disney (both of which are a poor exchange rate). In order to get all of these perks, you need to own at least 100 direct points. A lot of people buy exactly 100 points direct, and then buy additional resale points. Owners with enough direct points are referred to as "blue card" owners, because they have a blue membership card. Owners without enough direct points for the perks are "white card" owners.

The only resale purchase that locks you into one resort is Riviera. The other 14 resorts have free exchange for resale owners.

The resale market for DVC has been robust. While there have been times when the price has dropped considerably due to recessions, it has historically rebounded. Unlike virtually all other timeshares, DVC points have never gone anywhere near free. At this time, I believe the resale prices are at new highs. While the recent COVID-19 pandemic may push us into a recession, I feel that it may take some time for that to be reflected in the resale prices of DVC.

 

[Minniemoo15]

-For us, it was worth it. We go pretty much annually and before buying in, we were paying a lot to stay deluxe or rent points.

- we bought resale - we saved tens of thousands of dollars. The extra perks that we miss out on would never come close to making up that difference. We only go once a year so the annual pass discount was not something we would take advantage of.

- if you buy resale at one of the 14 original resorts,you can trade into anywhere - except Rivieria. For us this wasn’t a big deal. I figured for the tens of thousands we saved, we can stay cash there if we ever really want to. If you buy Riv resale you can ONLY stay at Riv. I would not recommend buying Riv resale for that reason.

- Biggest pro of buying from Disney is that is very easy and fast. You can get perks. You can stay at Riv and future resorts built. Pro of buying resale is that you save a lot of money. I also liked being able to negotiate asking price with the seller to what I thought was fair.

- The ease of selling depends on which home resort you buy, how many points you have and general market demand at that time. Buying Riv direct and then selling shortly after will likely lead to a bigger loss than traditionally seen due to the resale restrictions. In the past DVC has held its value well, unlike other timeshares (though nothing is certain in these uncertain times).

 

[SL6827]

Go resale. Wait a bit and the prices may just drop here soon.

 

[Lumpy1106]

If you have the resources, I would definitely buy resale right now;

1. Disney is in no financial position to exercise ROFR on ANY reasonable offer.
2. There is a glut of motivated sellers
3. Unless you REALLY, REALLY like Riviera, the restrictions on where you can stay are almost meaningless for the foreseeable future.
4. Unless you are avid, AP'ers, there is almost no financial incentive to spend the extra cash on direct.

More on point 3 - Disney is going to have to cut back on capital improvements - just too big of a financial hit right now. They won't cut Ratatouille, Guardians, or Tron. Projects in jeopardy would be Mary Poppins and Spaceship Earth (will probably be scaled back - there was rumor of that before anyway). They have barely broke ground on Reflections and aren't even close to breaking ground on Disneyland Hotel (let's call it DHV). Riviera sales have not exactly been robust, and they don't really want to have a second DVC nearing completion unless they are certain the one on the market will sell out (hello Aulani). My guess is Reflections will go into hiatus, and the push will be to get DHV approved (no real cash outlay in the mean time), with that being the next DVC to open when things improve.

My advice; research here for what contracts are going for, make an offer for a little less than asking (don't get greedy - sellers have to eat too), and see what happens. Just my $0.02, given here for free. Take it for what it's worth.

 

[RichV03]

So if I were to buy points at hilton head, I could still use them at any of the 14 original? AK, Beach club, Grand Californian, ect.? Also can you still use points with the rest of RCI? I noticed adventures by disney is not included but not sure if that meant all the other places they said we could go outside of disney.

 

[Minniemoo15]

So if I were to buy points at hilton head, I could still use them at any of the 14 original? AK, Beach club, Grand Californian, ect.?

Yes, at 7 months you can trade into any of the original 14 DVC resorts. But buying into HH is risky if you don’t actually want to stay there. You run the risk that there is nothing available at WDW at the 7 month to trade in to.

Also, the dues at HH and Vero Beach are very high. If you want to stay at WDW, it is best to buy a DVC on WDW property.

 

[Matty B13]

So if I were to buy points at hilton head, I could still use them at any of the 14 original? AK, Beach club, Grand Californian, ect.?

Yes, but Hilton Head has some of the highest Maintenance Fees that will eat any saving by getting a lower price on points after the first few years.

 

[TraderSamWDW]

- Is it really worth it?
Will you go at least every other year? Subjective question, but most people do love their DVC. You hear add-on-itis a lot for a reason.

- Is it better to buy right from DVC or on the 2nd market?
Unless you are buying Rivera, I would not buy direct. And only buy Rivieira if that is where you want to stay (at least the majority of the time)
as @Lumpy1106 said, Disney is really in no position to buy anything via ROFR unless it is something they have someone waiting on. Their cash on hand has to keep them in business, its not going to DVC ROFR.

- If buying on second market are you stuck at only one resort?
No, unless you buy Riviera Resale. If you buy anywhere else you can stay anywhere EXCEPT at Riviera and any new resorts to follow. I would not be surprised if Reflections opening is getting pushed back this very moment

- Are there big pros/cons on buying straight from disney vs resale?
Perks that can change, the biggest being discounted gold passes - which can save you 500 per person a year.
Others are there (moonlight magic) but less noteworthy

- If in the future we feel its not worth it for us any more is it hard to resale what we have?
So far it has not been, but at this very point in time it is a hard question to answer, things could change easily

 

[_auroraborealis_]

I wouldn't buy anything not VGC and expect to use them at Grand Cali.

 

[RichV03]

I wouldn't buy anything not VGC and expect to use them at Grand Cali.

but if i buy VGC do you think there will be any issue to stay at a WDW property? I only ask because i can see wanting to visit both parks

 

[_auroraborealis_]

but if i buy VGC do you think there will be any issue to stay at a WDW property? I only ask because i can see wanting to visit both parks

Depends on when and what your expectations are. Even owning at VGC, you need to be planning 11 months out. VGC points can only book WDW at 7 months, and depending on season it can be difficult to get studios at 7 months. If you have points for a 1BR at WDW you have more choices, but if you're after saving the most money, the 1BR is not where you will do that.

 

[RichV03]

Depends on when and what your expectations are. Even owning at VGC, you need to be planning 11 months out. VGC points can only book WDW at 7 months, and depending on season it can be difficult to get studios at 7 months. If you have points for a 1BR at WDW you have more choices, but if you're after saving the most money, the 1BR is not where you will do that.

Im thinking we will most likely be wanting 2br places in future with having two kids. There so much info out here that i feel like im just going in circles trying to decide if its right for us lol. We love disney, and plan on going a bit. But we loved the idea of seeing other places too with the RCI connection. Do you know if that is still an option if you buy on the resale market?

 

[MICKIMINI]

Wondering if someone can just be blunt and honest to me for the questions I have.

OP's have gotten into details so I won't. Blunt answer, right now, today? Wait. Spend time on this forum educating yourself and watch all the videos. When and if you decide it is right for you, buy on the secondary market and save cash...the market has dipped just slightly recently and will likely slip more. Disney has historically held its value, though dips after 2008, 9/11 were a time of great sadness when many sold and a time to scoop deals if you had the cash. Buying direct IMO doesn't offer anything I need for the cash they want (40% +/- more)

DH and I first bought OKW in 1996 and have bought and sold many contracts over the years - for a profit. Timing is everything and since it is real estate, it is a big decision. Patience...

EDIT to add: Buy where you want to stay!

 

[RichV03]

OP's have gotten into details so I won't. Blunt answer, right now, today? Wait. Spend time on this forum educating yourself and watch all the videos. When and if you decide it is right for you, buy on the secondary market and save cash...the market has dipped just slightly recently and will likely slip more. Disney has historically held its value, though dips after 2008, 9/11 were a time of great sadness when many sold and a time to scoop deals if you had the cash. Buying direct IMO doesn't offer anything I need for the cash they want (40% +/- more)

DH and I first bought OKW in 1996 and have bought and sold many contracts over the years - for a profit. Timing is everything and since it is real estate, it is a big decision. Patience...

EDIT to add: Buy where you want to stay!

Thank you for the helpful insight!

 

[_auroraborealis_]

Resale can use RCI. RCI is typically a poor value with DVC points. I would never recommend buying DVC looking at RCI as a regular use.

 

[Lperd]

We were in a similar situation when we bought DVC. Our DDs were the same age as yours and we went a couple of times paying cash at Deluxe Villas. I was hooked on Disney and looked at the cost of booking cash at Deluxe Villas vs large initial outlay to buy DVC and was sold by the fact that:
1. Huge Nightly cost difference between cash reservation and DVC points cost
2. We planned to be going yearly to a DVC resort
3. We go during school breaks which is high season for cash reservations so deals unlikely to be offered
4. We plan to keep our DVC membership for 10+ years
5. We had the cash to by into DVC. I would never leverage ourselves with a loan to buy a timeshare
It’s been almost 10 years now and we don’t regret buying DVC. If it’s worth it to you is a personal choice but for us we made the decision on whether we could see ourselves using it over the long term. We also bought at Aulani as we love Hawaii and are in the west, so planned to use our points for Aulani as well as WDW. Aulani points were more expensive but I’d still buy your points at a resort you know you would like to go to.

 

[ELMC]

Hi there,
My family is considering buying into DVC after our recent trip to WDW. We have two kids(aged 1.5 and 3.5 right now) and know we want to take them to disney multiple times in the future. With all the information out there I'm feeling overwhelmed on making the right choice for us. Wondering if someone can just be blunt and honest to me for the questions I have.

- Is it really worth it?
- Is it better to buy right from DVC or on the 2nd market?
- If buying on second market are you stuck at only one resort?
- Are there big pros/cons on buying straight from disney vs resale?
- If in the future we feel its not worth it for us any more is it hard to resale what we have?

Thanks in advance!

You asked for blunt and honest, so here goes!

1) It's "worth it" if you want to stay in nicer Disney accommodations for the same amount of money as a moderate. But the numbers have become more complicated and many of the people on these boards talking about their own wonderful experiences with DVC bought in at much lower levels than what we see currently. So my answer is that it could be worth it if you really maximize your usage. But more likely than not it will just be a very nice purchase that improves your vacation without saving you any real money.

2) There's been a lot of great info on this thread, but you asked for blunt, so here goes....buy resale.

3) Only if you buy Riviera resale

4) Other people answered this better than I will. The only thing I'll add is that you should assign a cash value to the benefits you derive from buying direct and factor them into your analysis.

5) No. There's a very vibrant resale market. But here's my caveat. I think anyone who is buying right now is buying at the height of the market. So it is more likely than not that you will take a loss should you ever decide to sell. Juxtapose that to many of us on here who could sell our contracts today for a tidy little profit and I think you understand our (my) cynicism.

6) I sort of read it in the thread but you didn't ask it in your OP, don't plan on using non-VGC to stay there, and don't buy there because it's too expensive. Either try to get lucky at 7 months (it does happen) or simply stay cash when visiting DL.

Good luck with your decision!

ETA: Unless you are hellbent on staying ON Disney property at a Disney resort, there are much better options out there. Wyndham Bonnet Creek is closer to the parks than many Disney hotels and you can get 2BR units for a fraction of Disney rooms. Same for a lot of the Disney Springs partner hotels. There are a ton of hotel options in Orlando and most of them don't carry the premium pricetag that you pay for staying at a Disney hotel. Most of them don't have the "Magic" either, but it's up to the individual to determine how much that is worth.

 

[RichV03]

You asked for blunt and honest, so here goes!

1) It's "worth it" if you want to stay in nicer Disney accommodations for the same amount of money as a moderate. But the numbers have become more complicated and many of the people on these boards talking about their own wonderful experiences with DVC bought in at much lower levels than what we see currently. So my answer is that it could be worth it if you really maximize your usage. But more likely than not it will just be a very nice purchase that improves your vacation without saving you any real money.

2) There's been a lot of great info on this thread, but you asked for blunt, so here goes....buy resale.

3) Only if you buy Riviera resale

4) Other people answered this better than I will. The only thing I'll add is that you should assign a cash value to the benefits you derive from buying direct and factor them into your analysis.

5) No. There's a very vibrant resale market. But here's my caveat. I think anyone who is buying right now is buying at the height of the market. So it is more likely than not that you will take a loss should you ever decide to sell. Juxtapose that to many of us on here who could sell our contracts today for a tidy little profit and I think you understand our (my) cynicism.

6) I sort of read it in the thread but you didn't ask it in your OP, don't plan on using non-VGC to stay there, and don't buy there because it's too expensive. Either try to get lucky at 7 months (it does happen) or simply stay cash when visiting DL.

Good luck with your decision!

ETA: Unless you are hellbent on staying ON Disney property at a Disney resort, there are much better options out there. Wyndham Bonnet Creek is closer to the parks than many Disney hotels and you can get 2BR units for a fraction of Disney rooms. Same for a lot of the Disney Springs partner hotels. There are a ton of hotel options in Orlando and most of them don't carry the premium pricetag that you pay for staying at a Disney hotel. Most of them don't have the "Magic" either, but it's up to the individual to determine how much that is worth.

Thank you for the feedback. Regarding staying off property but close by still, do hotels like that offer shuttle service like disney does? I only ask because sometimes figuring in the cost of car rental and paying to park seems to be a wash in some instances as just staying on property. Thanks again!

 

[ELMC]

Thank you for the feedback. Regarding staying off property but close by still, do hotels like that offer shuttle service like disney does? I only ask because sometimes figuring in the cost of car rental and paying to park seems to be a wash in some instances as just staying on property. Thanks again!

Many of them offer shuttle service but it is not as reliable as Disney transportation. But you bring up a good point in that there are many different variables to factor in. To add to the mess, you could buy one annual pass for one person in your family and that comes with free parking. That said, I think that Uber/Lyft are now the best way for getting around WDW. They're certainly less expensive than renting a car and paying for parking, and you get dropped off way closer to the front of the park than you would by driving yourself.