That's why I said fed rates, states vary and the deductibility of such state & local taxes is limited. But it's no more than 24% fed tax until your taxable income exceeds $315K ($340K before exemptions) and even then the 32% would only apply to the marginal amount. US of course. For me personally I want 20% return on a high risk depreciating asset. I just talked to someone recently that has almost 3K points and basically only uses them to rent so they may be able to meet the criteria to treat it like a condo and depreciate it. Still not a great choice in my mind but we've all done worse and if they get out when prices are up it'll work out even better. But the reality to someone that earns more and/or lives in a high income tax state is their costs are high no matter what unless they just spend everything. Even if they invest in things with deferred taxes, rates will almost certainly go up enough such that the fed taxes in 10-20 years on any gains will eat about as much as just paying taxes on it now with the added state taxes, generalizing of course. If we want to use these arguments to decide where to invest, I'm with you, look at all the variables that apply to your situation, make you're best assumptions, hope for the best and plan for the worst. Unfortunately many use these arguments to just spend the money and it doesn't measure up when it's used that way. I'd say invest AND budget for vacations, DVC should come out of the vacation budget and be looked at as money down the drain, anything above that is gravy.