Is Buying into DVC While You're Young a Good Investment?

Absolutely! And we plan on traveling as well, (I spent 2 weeks in Europe by myself) and this does not mean we won't do those things. We just know we want to make this commitment to ensure we will have plenty of time to enjoy our membership as well.

We are also prepared to rent out points and just pay on it but, I am hoping to use the "free" points at VGC and RIV later this year! :)

VGC is very hard to get into at the 7 month mark. Especially for a studio. Don't be surprised if you cannot get in there for this year. Most VGC owners use their VGC points as "Exclusive Use" points which makes it even harder to get in there. I am one of those types of owners. I bought there (and added on again later) after having problems getting in there at 7 months a couple times and waitlists not coming through. Just don't want you to get your hopes up for VGC too much.
 
Congratulations on you recent purchase! My wife and I were 25/23 when we first bought into DVC. We have loved every minute of it! Knowing that we were doing Disney again at some point in the next few years helped us enjoy the trips much more. Some things to keep in mind with respect to VGC. You probably won't ever get the studios, HOWEVER, you can probably get a 2-bedroom if you book at 7 months. We would booked the 2-bedrooms with our SSR points a couple of times and just asked some friends/family if they wanted to come with us. It was super fun for them and we loved having them along with us. You can even ask them to split the cost to recoup some of the money.
 
I'm in a very similar situation right now, 26, been dating my current girlfriend for 7 years. We don't have any plans to get married right now but I would likely be buying in on my own anyway. We're both Disney nuts and I really liked what we saw of the Riviera on our last trip. Topolino's was great and the views up there are spectacular. I know people have complained about the non-Disneyness of the resort but I actually like that it feels a little more grown up. I actually grabbed a tower studio for one night cash at the end of March just to check it out. Super excited for that!

Just wondering how you guys are feeling about the purchase so far? Unfortunately, we missed the window for the 188 per point price but 195 isn't a deal breaker. I think I would be able to put at least 50-70 down up front and pay it off aggressively since I don't really have any other major bills at the moment.
 


We are not necessarily long vacationers (4 to 5 days max) and we have a lot of flexibility to travel during slower times of the year. We are definitely coming back to WDW but, does paying more now and accumulating points while we pay it off seem worth it?
I know you are getting a ton of advice from everyone here. You are very young and haven't even started your relationship with your future husband. Buying in is a commitment. One thing i would strongly recommend is looking at the resale market. You can buy in for your desired 100 points at a fraction of what Riveria is at. If you haven't noticed the points cost at Riv is super inflated compared to most of the other resorts so it cost more points to stay there. I would look and see that your money would be better spent at a resort which has a lower resale buy in and lower point charts. CCV is actually a good option.

Starting off resale is a good stepping stone to see if DVC is a good fit for you. As for buying as only being engaged i would only put it in your name. Things can go south and then it turns messy when you have to separate. Or just wait until you are legally married and buy in both your names.

Just as life advice think of these other life decisions -(I didn't read through all the posts so i could be off on your situation)- do you have a home yet? if not that might be priority #1. If you don't have a home yet then put DVC on hold and make that your priority. Once you get a home - a home costs a lot with maintenance, updates and unexpected repairs.

When you have kids (which are very expensive) could you still afford the cost of ownership - MF and possibly a loan? These are other factors in life to put on the table.

I would definitely avoid the substantial purchase of Riveria direct. 100 points will run you just about $20,000. If you are taking out a loan then your costs are actually higher. Look at some other options: 100 its at AKL resale could be +/-$11000, SSR even less. Even Poly you could get into for about $14000. So you could get into DVC at less of a risk. And if at some point you need to sell in 5-10 years your resale will likely retain a good portion of its value. Riv has resale restrictions which have devalued it on the resale market.

There is a ton to consider but i think your first priority is to get married, establish your life together, put down roots with a home and get financially comfortable. Then look at buying into DVC.
 
I asked my wife to marry me 22 years ago at WDW. We stayed at the Boardwalk. During our stay, the DVC rep got our attention. We purchased during that stay and the room points paid for the hotel bill. Those points are now worth almost 3X what we paid for them. Got married 6 months later, still married.
 


I didn't read the entire thread so forgive me if there are duplicate thoughts here...

You are so me 10+ years ago. I am a Disney nut (I even wanted to be an animator when I grew up... still do actually haha) and my now hubby and I had these discussions multiple times over. I think the question about it being a good investment... the simple answer is yes, most likely. The flip side to that is that it is also a risk. I would caution you for the same reason that we have held out so long.

You mention children in your future. You didn't indicate though if you have student loans or a house. While I understand the rationale that finances can go the wrong way for anyone at any point in time, in your case you are pretty much guaranteed to move into a more expensive time in your life simple by adding kids into the equation. One of our big factors in deciding to wait was we have what I not so lovingly refer to as "our three mortgages" (daycare, student loans and our actual mortgage). I was shocked how much daycare cost us and even with just one kid in it now, it is still a substantial part of our monthly budget. It is also mostly paid with taxable income because daycare tax breaks are limited. Your mileage will vary depending on cost of living in your area but obvious point is kids=expensive. I would definitely research and factor in future kid costs into your long term budget.

One of the good things about DVC is that your annual dues 5 years from now are going to be the same regardless of whether you purchase now or in 5 years. Yes, the initial buy in price is almost certainly going to go up but that is a fraction of the cost, especially when considering a 50 year deed. To throw some numbers at you... 100 points at Riviera. If you keep it the length of the contract, assuming an average 4.51% annual dues increase (which my understanding is the average), the life of the contract costs you $167k, with 18.8k of that being the initial buy in price (these are last years numbers). This does not factor in interest on a loan.

Say you buy 100 points Riviera for $19,500 with 20% down and a 10% interest rate over 10 years (my understanding is that is the best deal available through Disney). Your loan will be for ~$15.5k and over 10 years you will pay over $9k in interest. So $28,500 for those 100 points. That is up 195/point to 285/point. If you pay it off in 4 years through a consistent extra payment (my calculator is showing $650/mo instead of ~$200/mo) your total interest paid drops down to $4.1k. Assuming you are paying extra, in four years will Disneys cost per point go up ~$40 to break even on that interest? Certainly possible, especially if you are not buying the featured resort. Now if you are paying cash for deluxe resorts, I would venture to guess that you will spend more money that way than financing. How that compares to paying cash for value/moderates I am not sure since we do not stay there but I do know that in the calculators I have run, if you rent points (assuming inflation on rental point prices since they will also go up), it is about an 8 years breakeven point for me to buy DVC versus rent points (not factoring in any financing).

Without knowing financial details I would suggest either renting for the next few vacations while you settle into the next phase of your life, buying resale if you are determined to buy now, or as someone else suggested, practice saving for a year or two and then buy with less or no financing.

I think everyone has specific circumstances that make it a good or a bad buy. The best thing you can do is what you are doing now... researching and going into it with full knowledge of what you are committing to. Good luck with your researching!
 
I'm in a very similar situation right now, 26, been dating my current girlfriend for 7 years. We don't have any plans to get married right now but I would likely be buying in on my own anyway. We're both Disney nuts and I really liked what we saw of the Riviera on our last trip. Topolino's was great and the views up there are spectacular. I know people have complained about the non-Disneyness of the resort but I actually like that it feels a little more grown up. I actually grabbed a tower studio for one night cash at the end of March just to check it out. Super excited for that!

Just wondering how you guys are feeling about the purchase so far? Unfortunately, we missed the window for the 188 per point price but 195 isn't a deal breaker. I think I would be able to put at least 50-70 down up front and pay it off aggressively since I don't really have any other major bills at the moment.

Well, considering I got a email from DVC saying they "accidentally" shredded my notarized document so I need to get it re-notarized, not amazing. They sent me a $25 gift card but now we are almost 3 weeks later and nowhere closer to closing.

On the bright side, I was able to secure a 3 night stay at Grand Californian in a one bed so I am excited for that!
 
Be careful when choosing a certified financial planner to help you manage your money. Many say you don't need it, but they don't know your current situation, income and expenses. Only a counsellor can tell you how you should manage your money so that you have enough to live on and pay your debts.
 

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