Grand Floridian Expansion

[mindflipper]

Okay, everyone, I'll 'fess up and admit that we're DVC owners. After Mom died, we used part of the money we received from Mom's estate to purchase some points at the Beach Club. The kids were thrilled. For them, it was like having a bit of Nana continuing forward with them into the future.

I consider it to be a "break even" investment. We won't make money off of it, but we won't lose money on it either. And in this economy, that's saying something. So it was a good purchase overall. I wouldn't recommend it if you have to finance it, but if you can find the money to pay for it up front, and you know you'll be visiting Disney for many years to come, it's not bad. In fact, I consider it to be our very own piece of the Mouse.

Thank you, Mom.

I never could understand taking on what was basically a second mortgage, but you found a way around that.

In your case, it becomes a straight break-even point at which point in time does the costs you would have paid to stay at a deluxe Disney resort >= the cost paid for the DVC. If you go alot, then passing that break-even point could be possible. But if you're not a frequent visitor, I don't think you can.

P.S. I think your mom would be glad to know that her money is being used to give the kids a great time at Disney. Grandmothers love to dote on the grandkids.

[Wizzard419]

Wait, you actually have to comit to it for a long period, like 30 years? I keep seeing that number kicked about.

[theBIGyowski]

Wait, you actually have to comit to it for a long period, like 30 years? I keep seeing that number kicked about.

You put down a large amount in the beginning...and that pretty much pays for the DVC points for each 365 days over a period of 30+ years. So you pay for everything all up front. The only things you pay for each year are kinds of fees...like HOA fees if you live in a subdivision or townhouse.

Do I wish DW and I could afford DVC? Yes. Will we in the foreseeable future? Probably not.

[Wizzard419]

You have to be s*@(ing me, I can see 5 years or so but 30? As long as you do a few basic things you could probably go to WDW every year for the next 30 years and still come out ahead.

Man, I totally am not right for that, I hate going on vacation to the same place 2 years in a row.

[momeja]

P.S. I think your mom would be glad to know that her money is being used to give the kids a great time at Disney. Grandmothers love to dote on the grandkids.

I think so, too. We actually gave it to the kids as a last present from their Nana.

The way it works is that the ownership interest is until 2042 for most resorts, 2054 for the new resorts (SSR and AKV), and 2060 for BLT. You don't have to keep it the whole time and can sell it on the resale market if you no longer want it. We bought our points on the resale market because it was cheaper. It also means that we didn't take the hit that people take when they purchase new points from Disney.

Break even is generally considered to be about 7-8 years, so you definitely have to be committed to Disney to buy. On the other hand, if you've got the commitment, it's a good purchase. Right now, we use it with the kids, but H. and I are looking forward to the days when the kids are out of the house and we can go to the Food and Wine festival just the two of us.

[Polynesian Princess]

I think paying for it out of pocket is a very different thing than taking out a loan for it. If you have the cash to pay up front (and didn't do something crazy like selling your house and living on the streets to do it ), then that's a luxury that the person has chosen and it's worth it to them.

The loan is trickier. So many people are bound by credit card debt, car loans, and house payments and I hate to see people saddle themselves with more debt, even if it is in the name of Disney. They see it as a great value because they see the initial price investment for 30 years and compare it to the cost for one trip they've just paid for out of pocket. I think a lot of people don't consider the annual dues, theme park tickets, transportation (flights aren't cheap!), and food costs that they're still going to be paying, plus the biggest expense - interest. If they pay the loan on schedule, they're throwing away thousands of dollars on interest. If I remember correctly when I looked at the numbers when I got married to see if it was something we should do or not, if you take loan Disney offers, you pay almost as much in interest as the initial starting fees. As others have said, many of them would be better off to invest the amount they're paying each month and using that to pay for trips as they come.

I understand why some people love the vacation club, but I have no interest in ever joining. In addition to the reasons I already mentioned, I just don't see it as a good choice for my husband and I. For one thing, I don't like the cut off dates and the current lack of information about what's going to happen when they expire. Being less than 30 years in the future, my husband and I would only be in our 50's when they would expire, with plenty of good Disney years left. One of the big reasons I read a lot of people use in defense of DVC is all of the money you can "save" by using the kitchens and cooking meals (which I think is debatable since you're paying the money to join, plus the extra points to get something above a studio). I love eating out and do not want to cook on vacation. I'd rather spend the money I'd use joining on getting good Disney food (not all on one trip, of course ). When comparing the decor of standard rooms to DVC rooms at the resorts that have both, I think the DVC rooms aren't nearly as well themed and decorated. They're much more generic looking and I want the full Disney experience. And probably the biggest reason of all is that I like staying at different hotels. They all have their great aspects and I would be sad to miss out on all of the ones that aren't DVC. Even with as much as I love and adore the Polynesian, I wouldn't want to stay there the whole trip, every trip.

[Wizzard419]

Wait, you still have to buy park tickets? (I heard they get meal plans for free right now)

[Polynesian Princess]

Yes, you still have to buy your own tickets. I've never heard about them getting free food either. When they're offering free dining as the special, they don't even automatically get that. I think they have to make it a "Magic Your Way Package" by buying park tickets when booking their room. I've never seen anything about them getting it free all of the time and did some research in case something has changed and didn't see anything suggesting that.

[Wizzard419]

Well that is just crappy. I guess that is the only way to ensure that they don't end up holding the bag when they raise prices.

[momeja]

Poly Princess is right. What you're saving is your hotel cost. Although in the early years of the DVC they did give APs with the points, no longer.

[Peerless83]

If this is true, it was only a matter of time. I think DVC will continue to be a focus for Disney over the next decade or so. I am interested in the regional DVCs I have been reading about. I think it is a great way to bring Disney to those who cannot travel to California, Florida, Paris, etc.

[mindflipper]

Poly Princess is right. What you're saving is your hotel cost. Although in the early years of the DVC they did give APs with the points, no longer.

But you have to go enough in order to break-even on the investment, or Disney will be making easy profit off of you...

[Wizzard419]

Going by what they explained, they make an easy profit off you either way since you're going to have to buy tickets/ap, and you're probably going to buy food and services from the WDW resort. At Disneyland they do have a lot of kiosks for them, a bit wasteful though since they are manned but they can't be aggressive and call people over.

[momeja]

Going by what they explained, they make an easy profit off you either way since you're going to have to buy tickets/ap, and you're probably going to buy food and services from the WDW resort. At Disneyland they do have a lot of kiosks for them, a bit wasteful though since they are manned but they can't be aggressive and call people over.

Absolutely. After all, why would Disney do it otherwise?

[Polynesian Princess]

Going by what they explained, they make an easy profit off you either way since you're going to have to buy tickets/ap, and you're probably going to buy food and services from the WDW resort. At Disneyland they do have a lot of kiosks for them, a bit wasteful though since they are manned but they can't be aggressive and call people over.

Plus the profit they make on unused points. While most people can use their points by going regularly and banking and borrowing them, I'm sure there's times when someone can't go and the points are lost (unemployment, health issues, etc.). But more common would be the small losses of points - someone who has 50 points left over because it's not enough for another night and they go to waste. Again, with banking and borrowing that's reduced, but I still think over the large population of DVC that it has to happen a fair amount.

Absolutely. After all, why would Disney do it otherwise?

As much as we wish it could be free or cheaper, it's really better for us in the long that Disney makes a profit, otherwise they wouldn't be able to stick around for long and give us new things to explore. Of course, we can still whine sometimes about the money and how it keeps us from living there.