- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Disney Vacation Club
Posted on 4/7/16 at 5:49 am to LSUFanHouston
Posted on 4/7/16 at 5:49 am to LSUFanHouston
quote:
You would need to apply valuation discounts because of that.
Would you discount 50%?
I still think it is hard for a timeshare to hold up even at a big valuation discount. The secondary market sort of proves that timeshares do not hold their value.
If people want to do this, fine by me. BUT this is NOT AN INVESTMENT BY ANY DEFINITION. It may be fun and I can't put a price on that so go for it if it is what you desire.
Posted on 4/7/16 at 7:22 am to makersmark1
I don't think anyone thinks it's an investment, more along the lines of will the long term commitment and prepayment save you good enough money to lose flexibility and options?
If the post above is true and it saves you around 25% on a $4-5000 hotel for a week that's not bad.
If the post above is true and it saves you around 25% on a $4-5000 hotel for a week that's not bad.
Posted on 4/7/16 at 10:56 am to makersmark1
quote:
Would you discount 50%?
Not sure what exact number I would use. On one hand, you have more flexibility with DVC than you do with a traditional timeshare, since you can vary the week of use.
On the other hand, DVC comes with an expiration date, where traditional timeshares do not.
Traditional timeshares lose their value when newer complexes are built and people want to spend their time at the better, newer places.
With DVC, you basically are paying for a depreciating asset, as the value effectively is reduced with every passing use, as there is a finite number of years it can be used.
I don't know of anyone that looks at it as a financial investment with the idea of a massive financial return. You could get a financial return in the form of discounted future vacations.
You are basically locking in most of the future cost of your hotel stay for future vacations. Your future cost each year is the cost of assessments, plus an amortized amount of the purchase price. If you buy 150 points at 80 a point, before closing costs, it is $12,000. If there are 40 years left on the contract, that's an additional $300 a year. If your annual costs are $6 a point, that's $900/year, so you are looking at roughly $1200 a year the first year with a 3-4% increase each year.
You also have to consider that the point values needed for a stay change (increase) over time. 116 points currently gets you a week in the summer at Animal Kingdom Lodge in a standard view deluxe studio room. But in the future, the dates of each season can change - which may effect how you can use your points, effecting value of them.
Our family goes to Disney most years, but we never pay $1200 in hotel costs on a trip, so, the club does not make sense to me.
Back to top
![logo](https://images.tigerdroppings.com/images/layout/TDIcon.jpg)