Can't stay on Disney property with all the amenities, including MDE, on-site transportation, and magic hours benefits for $300/Night!!
What? Sure you can.
Can't stay on Disney property with all the amenities, including MDE, on-site transportation, and magic hours benefits for $300/Night!!
Total Inception-to-date costs = $36,707
$36,707 / 74 Nights = $496.04 per Night.
You're forgetting Time Value of Money. The money you paid upfront is not equivalent to paying $496 per night today. I know it makes the calculation complicated, but it cannot simply be ignored. The difference is material, and not to the benefit of DVC ownership.
After many Present Value / Net Present Value (NPV) calculations, ROI calculations, and Cost-Benefit-Ratios, I would argue that the fluctuations in the assumed discount rates to account for the time value of money are actually immaterial, and the qualitative benefits derived from all the other benefits of DVC ownership would easily offset those factors. IMHO
I'm not going to argue that DVC ownership is bad, or even quantitatively a bad deal in certain situations. I'm just suggesting that Disney wants you to run the numbers without utilizing NPV because it makes it look like more of a "deal" than it really is. That's why you always here people claiming its a protection from inflation.
In terms of discount rates, you don't have to make it complicated and compare it to potential investments. Just discount based on average inflation rates (which don't generally fluctuate drastically).
Are you guys talking USA money or Canada money?
I worked in quantitative financial analysis for over 20 years and was blown away by what a good deal DVC is when I discovered it. I calculated that even if someone detested all things Disney, buying points and intending to only ever rent them out, while never staying in a resort, was an excellent investment under every plausible scenario. If not for the “no commercial activity” restrictions, all DVC points would be snapped up at current prices by investment banks and hedge funds.
I guess I feel like I get a superior experience for much less money by staying at WBC. The amenities are amazing, and Disney would really have to step up their game to ever make on site worth it to me.
I just looked at VGF as an example and believe that it is definitely great value at below $200 per point, probably good value at around $200-$250, and above $250 starts to become a bit more questionable.Would your analysis be the same at current prices?
It depends on the specifics. DVC is is more expensive than other options but if it makes sense financially for your situation and you value staying on property, it can be a great choice. It's both a financial liability/risk and a hedge. For a studio it's pretty easy to make the financials work, same for a 2BR compared to 2 rooms but more difficult for a 1 BR. If it made sense when you bought and it still make sense otherwise, I wouldn't worry about it.I may have mentioned in another thread that my wife and I bought DVC as an inflation hedge. That is, I buy the points today and in 30 years it costs the same number of points for a studio, 1Br, etc. (more or less) as it does now. Then the MBAs show up with models and graphs and say "not really because the maintenance fees eat you up." I'm not buying it. I admit that I am pretty dumb but I just don't buy it.
Here's how I look at. Let's say I bought 300 points at CCV and I can use that annually for 7 nights in a 2Br. The cost to get a 2Br at CCV from Disney is (let's say) $1,500/nt. So I paid $56,400 for the CCV points (300 x $188) now and I get $10,500 in today's dollars of hotel rooms (7 x $1,500). Now, assuming you have (or can prudently borrow) $56,400 and that you go to WDW every year who cares about $2,250 in fees a year (300 x $7.50)?
Again, I'm pretty dumb but it appears to me I break even pretty quick on this and keep banking for years to come. Plus there is some possibility I can sell this thing in the future and break even on the purchase (again just a possibility).
One more thing I have to state. My wife and I don't want to go to Disney anymore and stay in a hotel room with our 2 boys. We want to go on vacation and for it to be at least as nice and comfortable as our house. We just don't "fit" anymore in the hotel rooms. Aside from the savings we bought DVC because we wanted the space and the comfort.
Anyway, I'd be happy to hear other's thoughts. Don't wanna argue with folks but would like it if folks could point out things I'm missing since I may buy more of these things.
The nice thing is there are different resorts for different folks. We have stayed at WBC and enjoyed our stay very much. I understand there is a big price difference be it own or rent. If WBC works for you thats great! As far as amenities I guess we have to agree to disagree. From being able to use Magical Express, to multiple transportation options on property, to being able to walk or boat 2 Parks, to the Boardwalk when staying there, to Fireworks from the Poly or BLT w/ the music piped in, to renting boats, bikes, as well as many other items for us, makes on property great for us, the way we vacation. My in-laws stayed at WBC with us and loved it, they are not big WDW people and dont really visit the parks so they liked the look.
To me WBC, like many offsite time shares have thin walls and miss the mark with some things. WBC furniture was very nice but we also have had worn and chipped there as well (as had DVC). If WBC was walking distance to DS it would rate higher for us. The transportation to for us is a big negative. We prefer to stay at DS hotels to be able to walk to DS than to stay at Hilton or Waldorf At Bonnet Creek.
Meanwhile there are people who love Pop Century or an All-Star Resort, to each their own.
$188/point....nope not worth it! We paid $85 and cannot even fathom paying what they want today!
We paid $50 a point direct for our first 175 points and thought $85 a point was high. Without DVC we wouldn't have gone nearly as often, probably wouldn't have found Marco Island and would still be living in Louisiana.$188/point....nope not worth it! We paid $85 and cannot even fathom paying what they want today!
If Mickey Math keeps you happy and you can afford it, power to you....the MBAs show up with models and graphs and say "not really because the maintenance fees eat you up." I'm not buying it.
DVC was a terrible financial decision, but it makes me super happy!
I will have given Disney more money over the 12 months on my AP than I have over the 4 years preceding my first Disney timeshare stay.
If Mickey Math keeps you happy and you can afford it, power to you.
My Disney timeshare is not an investment, it’s not a hedge against inflation, and it wasn’t a great financial decision. It is a cheaper alternative to Disney’s artificially inflated rates for a hotel room (not apples to apples, but that’s a whole other thread) and it’s a source of tremendous happiness for my family. This, of course, comes at the cost of assuming the risk of buying a timeshare and committing to 50 years of paying to keep the lights on, whether or not it will still fit into our lives.
At the end of the day, if it’s not causing your family undue stress financially, whether you paid cash, financed, or sold a kidney to buy it, a Disney timeshare, if you’re happy with it, is a great buy.
My Disney timeshare is not an investment, it’s not a hedge against inflation, and it wasn’t a great financial decision. It is a cheaper alternative to Disney’s artificially inflated rates for a hotel room (not apples to apples, but that’s a whole other thread) and it’s a source of tremendous happiness for my family. This, of course, comes at the cost of assuming the risk of buying a timeshare and committing to 50 years of paying to keep the lights on, whether or not it will still fit into our lives.