Is DVC worth less now?

[davper]

I understand that the closure is unavoidable and pretty much forced by the government. Not Disney's fault.

But, through no fault of my own, I am now out 2 years worth of points because DVC is not allowing us to bank current uy points into next use year. And I am not the only one who is losing points because of this.

So my question is this...
Knowing that you can lose years of value from your contract, does it make the value of DVC less and cause you to think twice before making a purchase?

 

[robinb]

How did you get 2 years of points that will expire before they can be used? When is your use year?

 

[McCrae]

Unless you are planning to sell, DVC has lost no value. We will
still be able to take holidays in the future.

 

[Sandisw]

I understand that the closure is unavoidable and pretty much forced by the government. Not Disney's fault.

But, through no fault of my own, I am now out 2 years worth of points because DVC is not allowing us to bank current uy points into next use year. And I am not the only one who is losing points because of this.

So my question is this...
Knowing that you can lose years of value from your contract, does it make the value of DVC less and cause you to think twice before making a purchase?

To be honest, for me, not at all. But, I do think it brings to light how important it is for anyone who does purchase to really understand it all and to a much deeper level than many of us did when when we bought,

We are learning through this how big of a risk it is to travel beyond banking window and with banked points at the end the UY. While many knew about this, it was a risk we figured fell on us causing the cancellation. Who ever imagined what would happen with resort closure,

We are learning how important it is to understand we are real estate owners and what that means in terms of limitations in preventing losses.

More, importantly, we are learning that DVC and Disney are not the same. We are no longer cash guests and not entitled to or should be expecting support from Disney,

Given all this, I think some people may decide it doesn’t work to stay owners or become owners,

I think it is similar to what DVC renters are going through now and many are deciding that It’s not worth the savings just to lose it all when they never considered this scenario

 

[Minniemoo15]

It doesn’t make me think twice about our purchase, but it does make me think twice about adding on. I don’t want to have to deal with renting out any extra points and the new risks that come with that. Before this DH and I were toying with the idea of adding on another 100-200 points. But we have enough points for what we actually travel with so we will stick with one one contract.

It has also highlighted the importance of use year and made me thankful that we have the one that we do.

 

[robinb]

I don't think it has lost value to me. I do think that resale prices will come down a bit because people will not have the same disposable income for DVC as they did 2 months ago. The will think twice about dropping $20K on a timeshare. Plus, there will be a number of people forced to sell because of financial problems which will also bring the price down. I don't plan on selling anytime soon so the selling price in the near future doesn't affect me.

I also think that rental prices will take a bit of a hit. I think that people will want the security of renting directly though Disney. That will affect me more as I have a reservation I made in October that I was planning to rent if I didn't use it.

I very carefully selected my Use Year when I bought DVC and it has worked out perfectly for me. I very rarely book outside my banking window.

 

[Matty B13]

I also think that rental prices will take a bit of a hit. I think that people will want the security of renting directly though Disney. That will affect me more as I have a reservation I made in October that I was planning to rent if I didn't use it.

Have you seen the prices that Disney charges for Villas???? Let just say people who rent are getting a great deal, compared to those prices. They would have to completely lose 2 vacations to lose the same amount of money Disney charges for say a 1 or 2 bedroom villa.

Of course if your just renting studios, the hotel room prices direct from Disney are comparable, but not the Villas.

 

[bobbiwoz]

If this is a one time in my lifetime pandemic, the value of my DVC points hasn’t changed for me in a major way.

 

[karen4546]

If this is a one time in my lifetime pandemic, the value of my DVC points hasn’t changed for me in a major way.

I agree! We just purchased last year and only a total of 15 points Direct (100 in May and 25 in September) We have have an August UY. I have a trip booked for May 23 and am still holding out hope. We borrowed from 2021 for a trip in SEptember but if the resorts are still closed and we can not make our May trip then hopefully, I can just use our points for the May trip for the September and December trips and not borrow from 2021. We did use 2019 and 2020 points and I bought 20 OTU points for the May trip.

 

[MICKIMINI]

I'm not so sure rental prices will go down - I believe they may go up. It's the economics of supply and demand. Many of us owners don't want to deal with the measly amount we get for rentals now or in the future. Better to get a bigger villa than risk renting. The pool of rental points will shrink - less points available = more $$ PP IMHO. For those that don't own: $14.50 PP to rent - $8.00 (avg) for MF's = $6.50 PP less income taxes. This equation does not take into equation the amount we PAID for DVC - many tens of thousands. I would much rather lose a couple dollars per point and finally get to stay in a Bungalow or stay longer! My guess is that the majority of owners feel the same way.

 

[Sandisw]

Have you seen the prices that Disney charges for Villas???? Let just say people who rent are getting a great deal, compared to those prices. They would have to completely lose 2 vacations to lose the same amount of money Disney charges for say a 1 or 2 bedroom villa.

Of course if your just renting studios, the hotel room prices direct from Disney are comparable, but not the Villas.

A renter who spent $5k to $10K rent a larger villa and loses it all, is not going to be that keen to gamble again,

The thing of DVC was always I can get a larger villa for the same price. But, I’ve read many posts from renters or would be renters who are hearing these stories and saying no way, I’d rather book a few hotel rooms instead.

 

[LAX]

I understand that the closure is unavoidable and pretty much forced by the government. Not Disney's fault.

But, through no fault of my own, I am now out 2 years worth of points because DVC is not allowing us to bank current uy points into next use year. And I am not the only one who is losing points because of this.

So my question is this...
Knowing that you can lose years of value from your contract, does it make the value of DVC less and cause you to think twice before making a purchase?

I thought we all should have been aware that points can be lost even before anyone heard of COVID-19. However, seeing how DVC/DVD end up handling this unprecedented mess will likely have an impact on people's decision on purchasing.

LAX

 

[Judique]

I'm not so sure rental prices will go down - I believe they may go up. It's the economics of supply and demand. Many of us owners don't want to deal with the measly amount we get for rentals now or in the future. Better to get a bigger villa than risk renting. The pool of rental points will shrink - less points available = more $$ PP IMHO. For those that don't own: $14.50 PP to rent - $8.00 (avg) for MF's = $6.50 PP less income taxes. This equation does not take into equation the amount we PAID for DVC - many tens of thousands. I would much rather lose a couple dollars per point and finally get to stay in a Bungalow or stay longer! My guess is that the majority of owners feel the same way.

I feel similar and the other aspect is that getting studios is getting difficult! Spreading out in a 1 bedroom or 2 bedroom depending on how many come along is going to be my new norm.

Renting out helped me back about 8-9 years ago when I had a problem. But, I don't believe it should be the norm. Its seems it's become an industry. That's not the DVC I purchased 20 years ago.

 

[fsjking]

I'm not so sure rental prices will go down - I believe they may go up. It's the economics of supply and demand. Many of us owners don't want to deal with the measly amount we get for rentals now or in the future. Better to get a bigger villa than risk renting. The pool of rental points will shrink - less points available = more $$ PP IMHO. For those that don't own: $14.50 PP to rent - $8.00 (avg) for MF's = $6.50 PP less income taxes. This equation does not take into equation the amount we PAID for DVC - many tens of thousands. I would much rather lose a couple dollars per point and finally get to stay in a Bungalow or stay longer! My guess is that the majority of owners feel the same way.

You aren't accounting for how many owners are going to not be able to afford Disney trips due to lost jobs. They will be more likely to rent to cover their MF's rather than having to sell their ownership now.


Of course there will be less renters as both domestic renters will have the same issues and international travel will be an issue for quite a while. So it could go either way.

 

[Minniesgal]

Not to me i have always been nervous of using points after the banking window has clsed for the year. I managed to buy our piubts so that the majority of our trip falls at the very beginning of our UY and only the first couple of nights are at the end (we travel across UY works for us)

 

[MICKIMINI]

You aren't accounting for how many owners are going to not be able to afford Disney trips due to lost jobs. They will be more likely to rent to cover their MF's rather than having to sell their ownership now.


Of course there will be less renters as both domestic renters will have the same issues and international travel will be an issue for quite a while. So it could go either way.

So true, I didn't consider that...there are so many facets here that we won't know the true damage for years.

 

[we"reofftoneverland]

Yes, because the economy is suffering.

 

[Pooh12863]

I agree! We just purchased last year and only a total of 15 points Direct (100 in May and 25 in September) We have have an August UY. I have a trip booked for May 23 and am still holding out hope. We borrowed from 2021 for a trip in SEptember but if the resorts are still closed and we can not make our May trip then hopefully, I can just use our points for the May trip for the September and December trips and not borrow from 2021. We did use 2019 and 2020 points and I bought 20 OTU points for the May trip.

They will put your 2020 points back to 2020, but as things stand at this moment your 2019 points will expire July 31 unless you bank them by tomorrow. All current banking rules still apply.

 

[BWV Dreamin]

I do feel the value of DVC is going to go down. There will be many discounts coming to entice people to come back to WDW. People have lost jobs, some permanently. It will take a while for businesses to recover, if at all.

 

[Lewisc]

To be honest, for me, not at all. But, I do think it brings to light how important it is for anyone who does purchase to really understand it all and to a much deeper level than many of us did when when we bought,

We are learning through this how big of a risk it is to travel beyond banking window and with banked points at the end the UY. While many knew about this, it was a risk we figured fell on us causing the cancellation. Who ever imagined what would happen with resort closure,

We are learning how important it is to understand we are real estate owners and what that means in terms of limitations in preventing losses.

More, importantly, we are learning that DVC and Disney are not the same. We are no longer cash guests and not entitled to or should be expecting support from Disney,

Given all this, I think some people may decide it doesn’t work to stay owners or become owners,

I think it is similar to what DVC renters are going through now and many are deciding that It’s not worth the savings just to lose it all when they never considered this scenario

People are starting to learn the limitations of travel insurance. I always thought poster, on DIS and other boards, vastly over-estimated what is covered by travel insurance and under-estimated the kinds of circumstances which might lead you to cancel but wouldn't be covered.