12/22/2023 0 Comments Dvc calculator 2019![]() Our second and third favorite times to go to the world are early February and late October. Is there enough availability at 7 months that home resort isn't worth paying up for and better to go for the cheapest per point price? We really like the first week of December and I understand that is a popular time for DVC. Is there much of a resale market for the newer resorts? We like being on the monorail, but again, that may change as our kids get older, right now they still need mid day naps and location becomes more important. Maybe this isn't something I really want to know.the per point calculation is much less anxiety provokingĪ side question on resale. At the end of 50 years what is the total amount I have given to Disney in each scenario? The sobering thing was both calculations were in the $380,000 range. When I did my single scenario rough calculation I did it as you would a mortgage amortization. It is an easier way to get the "feel" of the number and makes for easy comparison to current per point rental prices. Interesting aproach to do per point cost. The break even there was if my initial investment could earn a minimum of 3.85% after tax/inflation. I had done a rough calculation but that was with purchase through Disney (didn't have the resale numbers) and compared to rack rates for DVC 2 bedroom and found the rack rates slightly favorable. If you think your long-term rate of return will be lower, you should buy. If you think your long-term rate of return on investing the DVC purchase price is larger than the rental ROI, you should rent. Lots of other timeshares provide a much better return-usually because their resale markets are significantly lower.Įdited to add: computing the ROI is another quick and dirty way to figure out if you want to rent or buy. Okay, but not great given that renting timeshares turns out to be time-intensive. After dues you net about $6.16, which is a pre-tax ROI of 8.8%. One of the interesting outcomes of this analysis is that the ROI on being a "DVC landlord" is pretty iffy. The rental market for OKW points (non-distressed) is right around $11-$12, so owning even under slightly pessimistic assumptions wins. Total cost per point for this year is $10.52. Amortizing $70 over 27 years at 5% (probably too high, but.) is $4.68 per point per year. OKW is currently running about $65-$70 resale for an "even" (not loaded, not stripped) contract. I'm considering doing a calculator like this but don't want to move forward if one already exists, obviously. And if youĬould play with your return on investment rate and inflation rates and duration (for DVC resale contracts which would be less than 50 years) that would be even better. The beauty of a calculator would be the ability to plug in all the various permutations and compare them direct from Disney, resale, rack rates, point rental etc. At the end of 50 years in which scenario have I given Disney less money? This would assume I have the cash flow in the early years to not touch the original $20,000 and pay the higher yearly cost of out of pocket direct rental of the DVC room.Īm I correct that the graphs in Gregg's sticky don't factor in an alternate investment use for the DVC purchase money? ![]() Or if I didn't purchase DVC and invested the initial capital yearly expenses equal to rental of the exact same room/duration I would have gotten with $20,000 worth of points (adjusted up each year at the rate of inflation, or at historical rates of increase if available). And I have either yearly expenses equal to yearly DVC dues (adjusted up each year at the rate of inflation, or at historical rates of increase if those are available). I spend 1 week per year for the next 50 years at DVC (or whatever my $20,000 worth of points would get me). Is anyone aware of an existing calculator for DVC purchase that factors in the "time value of money"? For example, lets say I have $20,000 now that I can either invest in future vacations by purchasing DVC, or invest in the conventional sense by putting in an extra taxable investment account (above and beyond my normal 401 K contributions).
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