In my last article I told provided an overview of the Disney Vacation Club, a commercial if you will. But just how does this program work? What are some of the ins and outs? I thought it might be good if I expanded on a few topics. First of all remember that this is like a real estate interest/transaction. You own a piece of the Magic so to say! But while you are buying a deeded and transferable interest, it is not a real estate investment, but a prepaid vacation plan with points that are not good forever. There are legal concerns to consider. For example you can deduct the real estate taxes that are included in the annual dues each year, and I recently found out that there is a fee to re title to add or remove names to the deed.
DVC is a timeshare. Timeshares come in many varieties, from fixed week ownership, floating week ownership, flex week ownership to point based systems. The basic difference revolves around when an owner may plan or take a vacation. With week based systems, an owner has a defined timeframe for their vacation each year. Vacation times may rotate or be flexible but there defined times a owner can vacation. With point based systems, like DVC, an owner can use the points as they want based on the amount required per night and availability. I mange my vacation point allotment like I do my checking account!
DVC is also affiliated with RCI, a major timeshare exchange company, via their Worldwide Collection offering DVC Members the option to trade vacation weeks with an RCI owner opening up even more vacation opportunities. There is also the option to use the points at other Disney Resorts with the Disney Collection and with the Concierge Collection members can choose from a plethora of vacation opportunities like sea side escapes or ski adventures. It seems the experiences are endless.
One of the biggest questions asked over and over is “is the membership worth it’. There is as much written saying it is as there is saying it is a risk. I believe the math calculation is a little hard to do, figuring in everything to correctly come up with an answer. I did find the following which I found insightful and could agree with. Based on a calculation referenced on DVCNews.com, if 160 vacation points were bought in 2011, it would take 8 years to break even; at 11 years you would be saving money. The calculation was based on a purchase of 160 points and 9 vacation nights each year in a deluxe studio room. Purchase prices and dues were also included. The cash room rate used included a discount as well. Of course there are other things to consider which are different for each Guest. But based on this calculation, it appears that a DVC interest can save money. There are many variables and personal factors to consider. Mousesavers.com gives another breakdown and scenario to study. Be sure to check all the facts and information before you decide to purchase.
Next time I will tell you about some of the terms used when owning a DVC membership. Until then keep sharing the magic!!!
