DVC show financing

wariokartel

Earning My Ears
Joined
Oct 24, 2018
An example is in 2009 AKL was $100 a point and eventually fell to around $63-65 by 2012.

If you have a bunch of owner who have subprime loans and then have any level of economic recession do not expect ROFR to hold prices up.
 
  • moericus

    Mouseketeer
    Joined
    Dec 29, 2010
    When have the DVC resale prices plummeted?
    DVC didn't "plummet" exactly but it steadily decreased and the re-sale market was a graveyard until about 4 years ago.

    As another poster commented. It's amazing how quickly we forget about 2008-2016. The "great recession".
     

    wariokartel

    Earning My Ears
    Joined
    Oct 24, 2018
    But if they keep taking low ball contracts wouldn't that force buyers to start offering more
    Not if a seller cannot afford to wait for a better offer. My whole point is that you shouldn’t expect DVC to hold it’s resale value when the intrinsic value is relatively low.

    Also keep in mind that there is more DVC supply than ever before with plans to continue to create more.
     

    Jennasis

    DIS life goes on
    Joined
    Jun 11, 2000
    DVC didn't "plummet" exactly but it steadily decreased and the re-sale market was a graveyard until about 4 years ago.

    As another poster commented. It's amazing how quickly we forget about 2008-2016. The "great recession".
    Didn't the "Great recession" end in like 2009?
     
  • YesterDark

    DIS Veteran
    Joined
    Aug 4, 2017
    I personally look at the whole thing like this: DVC is a long term investment. You're not going to see a ROI until maybe 10-15 years depending on contract/vacations and assuming you're not renting points out.

    There are a few different thoughts here. I personally would either pay out the whole thing in cash up front or finance 50% of it with a home equity loan. I certainly will NEVER finance something like this with a god awful 10+% interest rate. If you're financing a vacation with that kind of rate, then you are foolish.

    The cost of a cash layout is the opportunity cost of not having that cash in the short and medium term of the loan. So, my personal threshold is that when I can afford to drop 20-40k on a property and not suffer the opportunity of cost of cash on hand, then it's time to pull the trigger.

    (I've been considering the financing of a 300ish pt contract)
     

    zakdavid

    Earning My Ears
    Joined
    Nov 7, 2019
    I personally look at the whole thing like this: DVC is a long term investment. You're not going to see a ROI until maybe 10-15 years depending on contract/vacations and assuming you're not renting points out.

    There are a few different thoughts here. I personally would either pay out the whole thing in cash up front or finance 50% of it with a home equity loan. I certainly will NEVER finance something like this with a god awful 10+% interest rate. If you're financing a vacation with that kind of rate, then you are foolish.

    The cost of a cash layout is the opportunity cost of not having that cash in the short and medium term of the loan. So, my personal threshold is that when I can afford to drop 20-40k on a property and not suffer the opportunity of cost of cash on hand, then it's time to pull the trigger.

    (I've been considering the financing of a 300ish pt contract)
    I bought direct from disney originally and they accept credit card. What I did was finance on a 0% APR credit card for 18 months and paid it off in that 18 months so I essentially financed it for free
     
  • sharadoc

    Visit WDW since '86, driving since '94.
    Joined
    May 6, 2008
    I don't see DVC as buying or financing real estate, I see it as paying monthly rent for an annual or longer vacation. You're left with nothing at the end either way. The only advantage is knowing how much that vacation is going to cost each month.

    I have run the numbers many many times. Even with paying all cash, I still don't get the advantage of paying thousands of dollars a year for a vacation that will cost thousands of dollars a year anyway. If I own 200 points and my maintenance fee is $7, I'm paying $1400 just for maintenance and that is where I draw the line. Not worth it. (But I will happily rent points and help that member pay their fees :)

    But I listen to the DVC show, especially Jackie, and it all sounds wonderful and I wish I had bought when Boardwalk opened. We toured it and just weren't in a good place then. But we didn't even know we could finance directly with Disney or we would probably have jumped in anyway lol.
     

    Starport Seven-Five

    Mouseketeer
    Joined
    Aug 16, 2019
    I have run the numbers many many times. Even with paying all cash, I still don't get the advantage of paying thousands of dollars a year for a vacation that will cost thousands of dollars a year anyway. If I own 200 points and my maintenance fee is $7, I'm paying $1400 just for maintenance and that is where I draw the line. Not worth it. (But I will happily rent points and help that member pay their fees :)
    It makes sense if you travel to Disney World every year and were going to stay at deluxe level resorts anyways.

    Take for example this listing: https://www.dvcstore.com/listing-detail.cfm?ID=BLT150-02-0920
    2060 expiration so 40 years left. Purchase price would be 23533/40=$588.33 per year
    Maintenance dues of $6.40*150=$960
    So 2020 cost after amortization of the contract cost would be $1548.33

    That number of points could get you up to 10 nights in a studio depending on when you travel. Not a bad deal at all considering where you are staying.
    463982

    In exchange for that though you are losing flexibility with trip planning and the opportunity costs on the initial investment amount. 8% on that $23,533 is $1,882.64...
     

    zakdavid

    Earning My Ears
    Joined
    Nov 7, 2019
    I don't see DVC as buying or financing real estate, I see it as paying monthly rent for an annual or longer vacation. You're left with nothing at the end either way. The only advantage is knowing how much that vacation is going to cost each month.

    I have run the numbers many many times. Even with paying all cash, I still don't get the advantage of paying thousands of dollars a year for a vacation that will cost thousands of dollars a year anyway. If I own 200 points and my maintenance fee is $7, I'm paying $1400 just for maintenance and that is where I draw the line. Not worth it. (But I will happily rent points and help that member pay their fees :)

    But I listen to the DVC show, especially Jackie, and it all sounds wonderful and I wish I had bought when Boardwalk opened. We toured it and just weren't in a good place then. But we didn't even know we could finance directly with Disney or we would probably have jumped in anyway lol.
    My dues on all my points is around 2k a year but when I look at what I would pay cash it's close to 10k a year for the amount of days we travel. So it still makes sense over time.
     

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