DVC as an investment??

[MarkC]

I realize this has probably been discussed in the past, but here goes again. We have just purchased a BCV resale. I bought it since we love staying there, and I know my kids and grandkids will continue to use it for years. We bought it to vacation at Disney and for our own enjoyment. However, I note the prices continue to rise over the years. I would be interested in hearing from any long time members who may have purchased years ago, and since sold their timeshare for more than they paid for it. I realize there is a time value of money, but if you are staying at a deluxe resort for several days a year, that use would have to be figured in as well. I know Disney keeps raising prices of new sales, and as long as they raise motel rates this has to affect the value of timeshares as well. The only negative may be trying to sell in the last year or two of your contract, since there would be limited use. But even there it may have value because room rates will have skyrocketed during that time, and some people may want that right to re-up at renewal if Disney allows that to occur. Just wondering if anyone else has any experience with this. I know some of you are probably going to blast me for this, so fire away.

[mprewitt]

Past performance is no guarantee of future results.

It may well be that some bought into DVC at a lower per-point cost, sold it a few years later and made some cash.

However, we don't know if that will hold true, or for how long.

I don't view DVC as any kind of investment. If, however, I sell some points in the future and make a "profit", I would be pleased.

I view DVC as in investment in my fun factor!

[dixielandings]

I have thought of our DVC purchase as just that, a purchase, like if we bought a car. It's not so much a monetary investment as a purchase based on the assumption that we will keep vacationing in future years. If something happens and we are forced to consider selling our membership, I will not expect to make a profit - much like with a car.

[dlpmikki]

I agree with both responses so far - to me DVC is an investment inus, not one for monetary gain.

Yes, as we bought at $51, if we sold now there would be a paper profit but we have been paying annual dues for 15 years (and enjoying amazing holidays!)

[Lucille]

I absolutely consider DVC an investment - an investment in my family's happiness. :mickey::mickey:

[Ian]

You definitely shouldn't buy into DVC with the intention of making any money off of it. I suppose it theoretically could be a nice side effect at some time in the future, but that definitely shouldn't be a prime consideration.

The truth is that yes ... in the past ten years folks that bought in early on have been able to sell their points and make a pretty nice profit (although how good of a profit as compared to what they could have gotten elsewhere is debateable).

But as time passes and the contract lengths become shorter and shorter the value of the points will start to decrease as opposed to increasing. Yes, you'll have gotten some vacation benefits out of it over the years, but I doubt it would be anything to offset what you could have made on the money in a true investment.

Like Lucille, we bought into DVC as an investment in our family. I think it will benefit us financially over the years, too, but the primary reason is to ensure us 40 years worth of togetherness in the place we all love.

[Sharon1026]

I suppose you could make a profit, however you've been paying dues the entire time.

If you bought 100 points and paid about $400 a year in dues, then each year the points would have to go up about $4 a point for you to "stay even" with you your investmment. I doubt if anyone has really made money in this regard. Someone said they bought at $51 a point 10 years ago. Let's say it's worth $90/pt for resale. That's about a $40 increase over 10 years, which ends up being the $4/year raise to recoup their dues. If they sold, they would get out about what they put in minus any real estate commissions. Not a bad thing to get your money back, but not a great deal, either.

If you buy now and hold for another 10 or 20 years, your contract will have less years on the back end, so it may not be as desirable then either if disney introduces new dvc resorts down the road.

So will you make money if you sell? No, if you take dues into account. However, you may be able to get a portion of your principal back.

:stitch2:

[Maleficent's Dad]

I absolutely consider DVC an investment - an investment in my family's happiness. :mickey::mickey:

:ditto: :exactly:

Investment for my family's happiness is a great way to put it. I know that "down the road," my kids (and perhaps their children) will be able to enjoy it for years to come.

It IS an investment in terms of "saving money on vacations," if you plan to always visit WDW! :mickey:

[disneycouple2004]

I absolutely consider DVC an investment - an investment in my family's happiness. :mickey::mickey:

:ditto::D:thumbsup:

[MarkC]

I figured this would bring about some interesting responses. If you look at my signature line, you can see we've visited about 14 times in 12 years, so I'm actually doing this to save money and stay at the Beach Club, our favorite place. We're also using a Disney Visa to pay our maintenance fees, so our cost from now on should be $0. I did not buy this as an investment, and I'm not planning on selling. However, in 10 years I could stay there about 60 nights and then more than likely sell it for more than we paid for it. My main point is if you are going to vacation at Disney a lot, it is well worth looking into DVC. I wish we would have bought this 5 years ago, but didn't know about it or have the money. What we'll eventually pay in the price per night will be ridiculously low compared to paying rack rates.

[mprewitt]

My main point is if you are going to vacation at Disney a lot, it is well worth looking into DVC. I wish we would have bought this 5 years ago, but didn't know about it or have the money. What we'll eventually pay in the price per night will be ridiculously low compared to paying rack rates.

I wholeheartedly agree with you!

[NewmanFamily6]

One of the first things our guide told us on the DVC tour was not to look at it as an investment. I look at it as owning one week of magic :magic: a year with my family. I feel blessed to be able to have that because DH's fam,ily never vacationed when he was a child.