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Old 02-11-2012, 11:48 AM   #1
phoebec
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Does DVC make sense for us?

We are a family of 5. We plan on going to Disney every other year. We like the mods (which limits us to POR right now). As the kids grow, it won't work for us anymore. My question is, does it make sense to do DVC if we are not going to go every year? I'm not sure if after the yearly fees and the investment if we would save money over the long haul. Especially since you can't use promotions like free dining. Any experience with every other year or advice/input?
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Old 02-11-2012, 12:11 PM   #2
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It might actually work out best for you if you go every other year having DVC! I have a family of 5. With grown children we need a 2 bedroom when the five of us go. I've been in a studio with 4 adults and a baby/toddler and it was too squishy! So now when I go with My DD and my DSis, DNiece and DNephew, we get a bigger room or 2 studios. Only you can decide financially what your family can afford, but for me, the way I look at it, I am paying the same price for my room (in a deluxe hotel) now as I did in 2007! My dues have not increased by much over the past five years either. I did not have the money to pay outright for my DVC and I did finance it, but I knew my job was stable enough to make the monthly payments. I pay extra on it every year, so it will take less time to pay it off. Some years I pay more than others, it just depends on finances for that year, but it will not be 10 years! I was hoping for 5, but it looks like 7 now since we decided to pay down some of my husband's business debt that had a much higher interest rate. So my 5 year plan is out (unless I hit the jack pot before August! ) but after some recalculations, I know it will be by 7 years. And at that point I am Still paying the pretty much the same price for my deluxe hotel as I did in 2007. Do you see where I am going with this? Each year the price of every thing goes up. But my DVC is stable. The small increases in cost due to taxes on my maintenance fees is worth it to me!
My DS is getting married next year and I will be able to send him and his bride to Disney for a vacation if they choose! My DH and I will be going to Hawaii some time in the next year! I want to travel and be able to take my grandkids on vacation and not worry about what the cost of the room is going to be.
To me "free dining" doesn't add up. You pay rack rate for the room and they feed you? After doing out the math, and how much I would actually eat while I'm there, it is still cheaper for me to pay out of pocket. Even with 5 adults on my last trip in January, with alcohol included at almost every sit down meal, I spent less than $2000 on food for a week long trip and we had at least one table service meal every day.
There is a lot to consider. Don't just look at how you will use it short term. Think long term! It is an investment. with your decision!! If you have any questions please feel free to ask!
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Old 02-12-2012, 03:38 AM   #3
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I think you need to crunch the figures and see what you're spending now and compare it to the investment you'd make. Don't forget to add on money for paying for rooms outside of the DVC, as they go up every year. Only your annual dues go up each year with the DVC.

It does make sense if you don't go every year, although we bought in with the intention of using our points every other year. We now use them at least once a year, as the DVC is a bit like chocolate - very addictive!
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Old 02-12-2012, 07:20 AM   #4
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We now use them at least once a year, as the DVC is a bit like chocolate - very addictive!
Very Addictive indeed! One of these days I'll be able to buy more points!
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Old 02-12-2012, 08:38 AM   #5
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Thanks for the advice! We'll have to really start considering it. As the kids get bigger, 5 of us in one room isn't going to cut it. We would probably look at buying in a year or two. Definitely something to start planning/saving for. Are there any other fees besides the dues? How do the taxes work? I'm assuming there is something similar to "property tax"? If you finance is the interest deductible similar to a mortgage?
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Old 02-12-2012, 09:31 AM   #6
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Thanks for the advice! We'll have to really start considering it. As the kids get bigger, 5 of us in one room isn't going to cut it. We would probably look at buying in a year or two. Definitely something to start planning/saving for. Are there any other fees besides the dues? How do the taxes work? I'm assuming there is something similar to "property tax"? If you finance is the interest deductible similar to a mortgage?
A portion of your annual dues is used to cover property tax. There isn't an additional fee. As the DVC guides will tell you "consult your tax professional", but in many situations the interest on your DVC mortgage will be tax deductable.
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Old 02-12-2012, 12:42 PM   #7
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As I have to many people, I strongly recommend the Passporter DVC guide. It helped me a great deal in understanding what DVC ownership means and the ins and outs of making it work for you. Having all the information gathered together is a tremendous aid in helping to formulate questions for this forum and for the DVC reps ("guides").
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Old 02-13-2012, 02:40 PM   #8
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Are there any other fees besides the dues? How do the taxes work? I'm assuming there is something similar to "property tax"? If you finance is the interest deductible similar to a mortgage?
There are no fees besides the annual dues (with one exception, which I will explain). Your points entitle you to accomodation only. Of course, whatever you choose to buy is an additional expense that you will need to pay out-of-pocket (e.g., park tickets, meals, merchandise, etc.). The one exception to this that I referred to earlier: if you use your points to stay at Aulani (the new DVC hotel in Hawaii), you must pay a transient accomodations tax, based on the value of the points you use to stay there.

Generally speaking, for most taxpayers the interest paid on your Disney mortgage are tax deductible on Schedule A. The same goes for the property taxes that you pay through your annual dues. But as Holly says, you might want to check with your tax professional to be 100% sure this applies to you.

Good luck with your decision!

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Old 02-18-2012, 07:29 PM   #9
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Thumbs up I Think It's Worth It

Quote:
Originally Posted by phoebec View Post
We are a family of 5. We plan on going to Disney every other year. We like the mods (which limits us to POR right now). As the kids grow, it won't work for us anymore. My question is, does it make sense to do DVC if we are not going to go every year? I'm not sure if after the yearly fees and the investment if we would save money over the long haul. Especially since you can't use promotions like free dining. Any experience with every other year or advice/input?
We live in California and so we don't get to WDW every year. We too are a family of 5 (DD ages 12, 5, 1) and going to WDW is still a very special trip. I feel we're getting our money's worth with DVC. Since our initial purchase of 150 points we added another 105. We try to visit WDW every other year, but visit Disneyland at least once a year. On our most recent trip to WDW (Oct. 2009) we used it for a 7-day DCL trip with a 5-night stay in a 2 bedroom villa; all on points. This year we're traveling as a party of 9. I've reserved a 2-bedroom and a 1-bedroom for 10 nights at BWV, all on points. The rack rate for these two rooms is a combined $1500/night. Multiply by 10 nights and you're at $15,000 for the room only. I could never afford that with 5 airline tickets, park tickets, food, etc.

As others have said, only you can decide if it's the right fit for your family budget. But, if it is, I think you'll find that it's worth it.
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Old 02-21-2012, 06:39 AM   #10
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We are a family of 5, and we would never be able to go to WDW as often as we do if we were not DVC members! One resort room would not be enough. As it is, we are outgrowing the 1BR DVC accommodation. If we stay in a 1BR, it has to be at BLT or Kidani, where at least you get two full baths, which really helps with 3 kids!! (OKW also has larger 1 BRs, but we don't particularly like that resort).

We go at least once a year, however I think it would be worth it to us if we went even a bit less often than that, since the 2BR DVC suites are significantly more points. I'm sure we wouldn't have a problem using our points As it is, we are looking to purchase more points as soon as we can

It is an investment though, and the maintenance fees, like everything else in life, get more expensive over the years. I try not to get too jealous with the "free" dining though, as it isn't "free" since you are paying rack rate to get it. But DVC may not be ideal for everyone, so it is good that you are seeking out opinions.

Good luck with your decision!
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