Dave Ramsey on DVC

[HIRyeDVC]

You can see the portion of your annual dues that is going to property taxes on your annual dues statement. SSR is $1.3576 of the $7.8622 2023 annual dues. I didn't watch the video but I don't see how the dues could double or triple due to taxes (doubling of dues would require a 679% increase in property taxes).

I was thinking more about its impact to added tax like the 15% transit tax they have over at Anaheim and VDH and not so much the existing property tax.

 

[Disney_escape]

DR is 50% entertainment and 50% real, people like to see that their personal situation is not as bad as some. His plan is for people that have dug a hole so deep that the sun isn't visible. For people that actually live with in their means, his rules are actually negative in many cases. As an example -Have you seen (or been) that person trying to rent a car with a Debit card instead of a credit card? DR says no need for a credit card. Personally, I think if you have control of your expenses, you can do quite well playing the different credit card deals and never pay a penny to the card companies in fees or interest. And if a bank will loan you money on a house @ 2.25% interest, how can he say with a straight face to wait and pay cash?

For the other video, and all the people that say DVC is bad or a trick because you have to pay dues and those dues keep going up. That is the case for everything in life, and at least with DVC you know where it goes and is tracked by many owners (props to all the owners who go through annual reports with a fine tooth comb and find things). If you own a second home (or primary for that matter) the taxes, insurance go up every year, the lawn and cleaning crew raise their fees every so often, the furniture and linens wear out, electric, cable, internet go up, and things brake. And people fail to see or mention that hotel rooms of all levels will probably be double in 20 years- that is how inflation works - And if my dues double that is way better than a Disney hotel room doubling.

Like everything in life, not everything is for everyone. If you enjoy the Disney bubble then DVC could be a great deal. If you are someone who loved the 'Disney Dining plan' DVC is probably good for you, it hurts once and then you only pay the dues (or the tip with DisDining).

When I bought my first ATV a friend said just be prepared to spend 25-30% of the cost yearly on everything you break on it...forever. He was right.

 

[Brian Noble]

When I bought my first ATV

Reminds me of this definition:

Boat (noun): A hole in the water into which you pour time and money.

 

[RoseGold]

In other videos about timeshares (I haven't watched this particular one), DR has mentioned Marriott and Hilton as similar to Disney in that they have resale value - but none of them are great investments which is where he is coming from.

That isn't what he said in the video. He said they all go to zero. There are plenty of non-zero timeshares, and he knows that.

But I suppose all human creation returns to zero at some point?

 

[Kaleidodad]

Reminds me of this definition:

Boat (noun): A hole in the water into which you pour time and money.

Also, BOAT = Break Out Another Thou$and!

 

[HIRyeDVC]

Reminds me of this definition:

Boat (noun): A hole in the water into which you pour time and money.

Also, BOAT = Break Out Another Thou$and!

This is true, if owning a boat is beyond your means. My friend has a boat here in Hawaii. It costs a lot of money to own it. But the joys it brings him. To be able to sail to the outer islands and the rest of pacific. To go fishing outside the territorial seas. I've seen some spectacular sights from his boat otherwise never to be seen without one. If one can afford it, it can bring joy and happiness beyond measure. Same can be said about DVC IMO.

 

[john7994]

I was thinking more about its impact to added tax like the 15% transit tax they have over at Anaheim and VDH and not so much the existing property tax.

really like those signature banners - tastefully done without taking up half a page. Well Done You!

 

[HIRyeDVC]

really like those signature banners - tastefully done without taking up half a page. Well Done You!

Thanks! Thought I'd do something different from the pack.

 

[john7994]

Thanks! Thought I'd do something different from the pack.

really like the almost retro vibe/feel of them ...

 

[mz-s]

That isn't what he said in the video. He said they all go to zero. There are plenty of non-zero timeshares, and he knows that.

But I suppose all human creation returns to zero at some point?

Oh really? What will a Beach Club contract be worth on Feb 1 2042 for example?

Yes we all go to zero in the end and that is where I part ways with the laser focused wealth guys like Ramsey. It’s not all about building wealth, at least not monetary wealth. Familial wealth and cultural wealth with travel, time together, etc is valuable as well.

 

[AnnaKristoff2013]

That isn't what he said in the video. He said they all go to zero. There are plenty of non-zero timeshares, and he knows that.

But I suppose all human creation returns to zero at some point?

I challenge you to find a timeshare that doesn’t effectively go to zero when it is 50 years old. Disney is just honest about it.

 

[longboard55]

first one up is of course Old Key West and points are still double the original cost. I was anti time share as anyone, but Disney works. I know people are also happy with Marriott

 

[mz-s]

first one up is of course Old Key West and points are still double the original cost. I was anti time share as anyone, but Disney works. I know people are also happy with Marriott

Total cost of ownership terms, still a loser I’d guess though right?

 

[Disney_escape]

This is true, if owning a boat is beyond your means. My friend has a boat here in Hawaii. It costs a lot of money to own it. But the joys it brings him. To be able to sail to the outer islands and the rest of pacific. To go fishing outside the territorial seas. I've seen some spectacular sights from his boat otherwise never to be seen without one. If one can afford it, it can bring joy and happiness beyond measure. Same can be said about DVC IMO.

Agree with all of that.

 

[RoseGold]

I challenge you to find a timeshare that doesn’t effectively go to zero when it is 50 years old. Disney is just honest about it.

He's all about being a landlord, which is pretty much my nightmare. By this logic, all real estate in general goes to zero as well? Heck, money goes to zero, doesn't it?

 

[Epcot Forever Forever]

Dave is personal finance for people who need the basics. Many of the things he says are suboptimal for segments of the population but he wants the simplest path for his audience so they do not get analysis paralysis.

For example, "debt bad" works better than "you can probably invest if the interest rate is below 4% and you are controlling yourself" because the latter has too much nuance.

Yes. My friends decided 10 years ago to focus on paying off all student loans because of Ramsey, instead of using their plenty sufficient monthly cash flow to buy a house at cheap early 2010s prices (over the protestations of their good friend)

4 years later they paid off their loans and started saving to get a 20% down payment together, again, over the protestations of their friend who pointed out that housing prices were skyrocketing in the area and would continue to. Well, risk averse advice said save 20%, so they did.

Eventually they bought a house for 70% more than they would have paid 5 years earlier, a very foreseeable outcome in 2013. I feel bad for them that they got such bad advice, but what’s crazy is the bad advice was the standard Ramsey style risk averse financial advice!

 

[disneyfan123]

This is true, if owning a boat is beyond your means. My friend has a boat here in Hawaii. It costs a lot of money to own it. But the joys it brings him. To be able to sail to the outer islands and the rest of pacific. To go fishing outside the territorial seas. I've seen some spectacular sights from his boat otherwise never to be seen without one. If one can afford it, it can bring joy and happiness beyond measure. Same can be said about DVC IMO.

This! If your goal in life is just to amass as much money as possible, than any vacation (never mind DVC!) isn't "worth it". I don't think money is what life is all about though; it's meant to be used. Be responsible with it, but depriving yourself of the things that bring you joy, just so your bank account is bigger, isn't really living imho.

 

[Brian Noble]

A boat is a hole in the water for money and time whether or not it's within your means. It just hurts less if it is. (My parents have owned a few.)

 

[DonMacGregor]

I actually have a boat. A real boat, with a stick in the middle that pieces of cloth hang off of. Doesn't cost me a penny beyond registering it every other year and the odd purchase of polish or varnish. Costs less than a car.

 

[tom1944]

I considered buying a boat but decided on DVC instead.