Anne
Well-known member
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). I spend 1 week per year for the next 50 years at DVC (or whatever my $20,000 worth of points would get me). 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). 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). 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.
Am I correct that the graphs in Gregg's sticky don't factor in an alternate investment use for the DVC purchase money?
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. And if you
could 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.
I'm considering doing a calculator like this but don't want to move forward if one already exists, obviously.
Am I correct that the graphs in Gregg's sticky don't factor in an alternate investment use for the DVC purchase money?
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. And if you
could 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.
I'm considering doing a calculator like this but don't want to move forward if one already exists, obviously.