Investing in timeshares is a topic that sparks many debates, particularly when it comes to Disney timeshares. As an investor or someone looking to make the most out of a vacation property, you may wonder whether a Disney timeshare is a wise decision. Are they worth the money? Do they truly offer long-term value, or is it just another vacation gimmick that may leave you with regret in the future? Over the years, I’ve been intrigued by these questions, and in this article, I’ll dive into a comprehensive analysis of Disney timeshares, weighing their pros and cons and addressing whether they can be considered a good investment.
Before we proceed, it’s important to note that timeshares, including those offered by Disney, are a form of ownership in a vacation property where you buy the right to use the property for a certain period of time each year. Disney’s timeshare program, known as Disney Vacation Club (DVC), offers ownership of properties at Disney resorts across the United States, including Disneyland and Walt Disney World. But is it a good investment?
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What Is Disney Vacation Club (DVC)?
Disney Vacation Club, or DVC, is a vacation ownership program created by Disney. DVC allows you to purchase a “home resort” membership, where you buy points that can be used to book stays at Disney resorts or other affiliated properties. The points system offers flexibility, as you can use your points across various resorts and time periods, based on availability.
When you buy into DVC, you’re essentially purchasing a long-term vacation property that you can use for 50 years (the average contract length). This may sound appealing for Disney fans who want consistent vacation experiences, but there’s much more to consider in terms of the investment side of things.
What Makes Disney Timeshares Different from Other Timeshares?
Disney timeshares are often considered different from other timeshare programs for a few key reasons. First, Disney has built an empire of high-quality resorts and theme parks, making its timeshares highly desirable for Disney enthusiasts. However, the higher upfront costs associated with Disney timeshares are worth considering. Let’s look at a few aspects that set Disney apart from other timeshare companies:
- Premium Location: Disney timeshares are located at prime destinations, primarily in Florida and California, which are sought-after vacation spots. DVC resorts are often close to Disney’s famous parks like Magic Kingdom and Epcot, which can be a huge advantage for families.
- Flexibility with Points: Unlike traditional timeshares, where you may be locked into a fixed week or season, DVC’s point-based system offers flexibility. You can use your points to book various resorts, different room types, and at various times of the year.
- Brand Recognition: The Disney brand carries a lot of weight in the vacation industry. The level of service and the overall experience at Disney resorts is often seen as superior to many other resorts, making it a highly desirable product for people who love the Disney experience.
- Maintenance Fees: As with most timeshares, you’ll also need to pay annual maintenance fees. These can vary depending on the resort and the size of the property you own, but it’s a recurring expense that should be factored into the overall cost of the timeshare.
The Cost of Disney Timeshares
When looking at Disney timeshares, the cost can be significantly higher than some other timeshare programs. On average, you’ll pay between $15,000 and $30,000 for a contract that gives you 100 to 200 points (depending on the resort). The price can vary depending on factors like location, the resort’s popularity, and how many points you purchase.
In addition to the upfront purchase price, you’ll be required to pay annual maintenance fees. These fees can range from $300 to $1,200, depending on the size of the unit and the resort.
To give a clearer picture, here’s an illustration:
| Resort | Purchase Price (100 Points) | Annual Maintenance Fee | Total 10-Year Cost (Without Financing) |
|---|---|---|---|
| Disney’s Grand Floridian | $20,000 | $1,200 | $32,000 |
| Disney’s Bay Lake Tower | $17,000 | $950 | $26,500 |
| Disney’s Aulani | $19,500 | $1,100 | $30,500 |
From this table, you can see that owning a Disney timeshare is not inexpensive. The upfront purchase price is significant, and you’ll need to consider how long you intend to use it before committing. If you plan to visit Disney resorts for a decade or longer, the costs may be justifiable, especially if you’re someone who enjoys the Disney experience regularly.
Is a Disney Timeshare a Good Investment?
To evaluate whether a Disney timeshare is a good investment, it’s important to first understand that timeshares are not typically seen as a financial investment like stocks or real estate. The idea of investing in a timeshare is more about ensuring future vacation experiences, and in some cases, selling the timeshare later on. That said, let’s break down the pros and cons to get a better perspective on whether it’s a good investment.
Pros of Disney Timeshares:
- Guaranteed Vacation Access: One of the main advantages is that you have guaranteed access to Disney resorts for many years to come. If you love Disney and visit the parks frequently, this is a major benefit.
- Fixed Vacation Costs: After paying the initial upfront cost and yearly maintenance fees, you don’t have to worry about fluctuating vacation costs or hotel rates.
- Use Your Points in Other Disney Resorts: With DVC, you can use your points not only at the resort you purchased but also at other Disney properties, like Aulani in Hawaii or Disney’s Vero Beach Resort.
- Possible Appreciation: While timeshares are generally not an appreciating asset, DVC has been known to have some resale value. If you buy into a popular resort, there’s a chance that your points could appreciate in value over time, allowing you to sell them or transfer them to someone else for a profit.
Cons of Disney Timeshares:
- Upfront and Maintenance Costs: As mentioned earlier, the initial investment for a Disney timeshare is high, and the ongoing maintenance fees add up over time. These costs can be burdensome if you don’t visit the resort regularly.
- Lack of Liquidity: Selling a timeshare can be tricky. The resale market for Disney timeshares is competitive, and you may not get back the full value of what you initially paid. Additionally, the resale value often depreciates over time.
- Limited Flexibility: While the points system provides flexibility, it’s important to note that there are still limitations. Disney resorts may have limited availability, especially during peak seasons. You may not always be able to book a room exactly when you want.
- Commitment: Owning a timeshare is a long-term commitment. If you have a change in life circumstances, such as a move, a change in travel preferences, or financial difficulties, the timeshare might no longer be as attractive.
Example of Financial Breakdown
To determine if Disney timeshares make sense financially, let’s take a look at a hypothetical scenario. Assume you buy 150 points at Disney’s Bay Lake Tower for $18,000 with an annual maintenance fee of $950.
Initial Investment:
- Purchase Price: $18,000
- Annual Maintenance Fee for 10 Years: $950 x 10 = $9,500
- Total Cost for 10 Years: $27,500
If you stay at the resort for 10 years, it’ll cost you $27,500, or $2,750 per year for 150 points. Compare that to booking a hotel room or renting a vacation property for the same period. A typical hotel room near Disney World can cost $200 to $500 per night, depending on the time of year. Assuming you book a room for 10 days per year, here’s how the costs would break down:
| Hotel Stay | Cost per Night | Total Cost for 10 Days per Year | Total 10-Year Cost |
|---|---|---|---|
| Budget Hotel | $250 | $2,500 | $25,000 |
| Mid-Range Hotel | $350 | $3,500 | $35,000 |
Looking at this breakdown, the cost of a Disney timeshare ($27,500 over 10 years) compares favorably with staying in a budget hotel over the same period ($25,000), especially since you get a guaranteed stay at a Disney resort with amenities. However, the flexibility and comfort you get with a Disney timeshare may be better than a budget hotel, even if the cost is slightly higher.
Conclusion
Whether a Disney timeshare is a good investment depends largely on your personal preferences, vacation habits, and long-term financial outlook. If you are someone who visits Disney resorts frequently and enjoys the idea of guaranteed vacation access, then a Disney timeshare may be a great way to save money in the long run.
However, if you’re not sure you’ll use the timeshare consistently or you find the upfront and maintenance costs to be too high, then a Disney timeshare may not be the best option for you. Ultimately, I believe that Disney timeshares can be a good investment for those who are committed to regular Disney vacations, but they are not a typical financial investment in the sense of appreciating in value or offering immediate returns.
If you decide to purchase one, it’s crucial to weigh all costs, including maintenance fees and the resale value, and make sure that this long-term commitment aligns with your future travel plans. If you’re unsure, it may be wise to explore other vacation options that offer more flexibility and lower costs.
