DVC RESALES
DVC RESALES

Go Back   The DIS Discussion Forums - DISboards.com > Disney Vacation Club > DVC-Mousecellaneous
facebooktwitterpinterestgoogle plusyoutubeDIS UpdatesDIS email updates
Register Chat FAQ Tickers Search Today's Posts Mark Forums Read





Reply
 
Thread Tools Rate Thread Display Modes
Old 02-24-2013, 07:44 PM   #1
Tdisney
Mouseketeer
 
Tdisney's Avatar
 
Join Date: Apr 2006
Posts: 374

Maintenance fees

Can anyone guess as to what the maintenance fees will be near the end of their contract. I am a BCV owner. If we take the history of fee increases to be around 4-5 percent per year, are we looking at around $23 per point in 2042 ?

Seems crazy
Tdisney is offline   Reply With Quote
Old 02-24-2013, 07:55 PM   #2
nabi
Home at Disney often!
 
Join Date: Feb 2013
Posts: 544

Think I saw a thread somewhere that had the forecasted costs for MF's at a 3% growth rate.... from what I recall, getting out in 2042 will be a good thing!
nabi is offline   Reply With Quote
|
The DIS
Register to remove

Join Date: 1997
Location: Orlando, FL
Posts: 1,000,000
Old 02-24-2013, 07:59 PM   #3
DizBub
Totally Addicted
 
Join Date: Dec 2010
Location: Washington, IL
Posts: 2,057

Quote:
Originally Posted by Tdisney View Post
Can anyone guess as to what the maintenance fees will be near the end of their contract. I am a BCV owner. If we take the history of fee increases to be around 4-5 percent per year, are we looking at around $23 per point in 2042 ?

Seems crazy
Yikes! I hope not but by then it won't be my problem anymore.
DizBub is offline   Reply With Quote
Old 02-24-2013, 08:05 PM   #4
Illini Al
Mouseketeer
 
Join Date: Feb 2010
Location: Illinois
Posts: 97

$23 won't sound like a lot in 2042. Milk will be at $10 per gallon, and the very cheapest cars will run around $35,000.
Illini Al is offline   Reply With Quote
Old 02-24-2013, 08:27 PM   #5
Tdisney
Mouseketeer
 
Tdisney's Avatar
 
Join Date: Apr 2006
Posts: 374

there is a huge difference between 3 and 5 percent annually. Almost 10 dollars per point by the end of the contract
Tdisney is offline   Reply With Quote
Old 02-24-2013, 09:47 PM   #6
chalee94
I thought all sand was ground up rocks
He's used to walking n00bies
 
Join Date: Aug 2006
Location: Winston-Salem, NC
Posts: 8,365

Quote:
Originally Posted by Tdisney View Post
Seems crazy
in 1982, tickets to wdw cost $14 per day. if someone had told you then that tickets in 30 years would go for close to $100, would you assume no one could afford to go in 2012?

the real issue is what inflation looks like overall and what wdw hotel rooms go for in 2040.

it sounds weird and it's worth discussing (as some owners will be on fixed incomes by then), but this is really just an issue of how money works relative to typical inflationary patterns...
__________________
-Charles

chalee94 is offline   Reply With Quote
Old 02-24-2013, 09:55 PM   #7
disneynutz


Earning My Ears One At A Time
 
disneynutz's Avatar
 
Join Date: Dec 2006
Location: North Texas
Posts: 18,611

As time goes on IMO the resorts will require additional maintenance and the dues will really increase. Any idea how much it will cost to re-plumb a resort?

BWV has already had some roof work done. At some point it will be cheaper to build a new resort using newer construction standards than to keep fixing the old building.

Bill
__________________

disneynutz is offline   Reply With Quote
Old 02-24-2013, 10:53 PM   #8
Tdisney
Mouseketeer
 
Tdisney's Avatar
 
Join Date: Apr 2006
Posts: 374

That is a good point. At some point when your contract gets closer to the ending date the contract will be worth less and less. I am concerned that at some point maintenance fees will be more then cash reservations and not being able to sell my contract. Also isn't there something in our contract with Disney that puts a max limit on maintenance fee increases ?
Tdisney is offline   Reply With Quote
Old 02-25-2013, 12:55 AM   #9
Lynne M
 
Lynne M's Avatar
 
Join Date: Nov 2001
Posts: 9,135
DISboards Moderator

Quote:
Originally Posted by Tdisney View Post
That is a good point. At some point when your contract gets closer to the ending date the contract will be worth less and less. I am concerned that at some point maintenance fees will be more then cash reservations and not being able to sell my contract. Also isn't there something in our contract with Disney that puts a max limit on maintenance fee increases ?
That cap on MF increases is per year, not for the life of the contract.

MFs are for operational expenses. Housekeeping, landscaping, property taxes,utilities, transportation, etc.

Those are the exact same costs that Disney pays for their non-DVC resorts, so I don't see any reason to assume that the cash reservation rates for comparable rooms would be significantly lower than MFs. That would mean that Disney would eat all of those cost increases for their own resorts, and not pass them on to guests in increased room rates. That the room rates would be less than the operational costs of cleaning the rooms, providing utilities, etc, and not even any profit on top of that. No hotel operator is going to do that.

As far as selling the contract goes, yes, it's going to be worth less and less as the years go buy. That's inevitable in a timeshare with an end date. Most timeshares are worth next to nothing at resale, when I bought DVC I assumed I would get a few bucks, at most, at resale. I wasn't aware that DVC ROFR'd contracts, and that there was sort of a 'floor' for resale prices.

The value of a timeshare is in its use, not in its resale price. I've more than gotten my money's worth out of what I spent on DVC over the years, so even if its resale price were $1, I'd be OK with that.

Last edited by Lynne M; 02-25-2013 at 09:05 AM.
Lynne M is offline   Reply With Quote
Old 02-25-2013, 05:10 AM   #10
luckyman_apd
DIS Veteran
 
luckyman_apd's Avatar
 
Join Date: Nov 2010
Location: NJ
Posts: 1,328

Quote:
Originally Posted by disneynutz View Post
As time goes on IMO the resorts will require additional maintenance and the dues will really increase. Any idea how much it will cost to re-plumb a resort?

BWV has already had some roof work done. At some point it will be cheaper to build a new resort using newer construction standards than to keep fixing the old building.

Bill
What buildings do you know that need full plumbing replacements at 40 years old? My old house was over 80 years old and the only things it "needed" replaced over the years was a roof, windows, and siding. Everything else was cosmetic to the different owners. I'm not saying repairs won't be needed, but I think you are being a bit extreme. After all, the CR was the first resort built, and it is still going strong withou need for major repairs over the years.
__________________
Coronado Apr 2009, BLT Feb 2011, SSR June 2011, DLR June 2012, BLT Nov 2012, OKW Mar 2013, SSR Aug 2013, BLT Dec 2013, BLT/BCV July 2014, SSR Sept 2014
MeDWDD(9)DS(5)
luckyman_apd is offline   Reply With Quote
Old 02-25-2013, 07:41 AM   #11
CMOORE185
HH 240 Points, SSR 260 Points
 
CMOORE185's Avatar
 
Join Date: Mar 2009
Location: Bartlett, Illinois
Posts: 1,082

Quote:
Originally Posted by luckyman_apd

What buildings do you know that need full plumbing replacements at 40 years old? My old house was over 80 years old and the only things it "needed" replaced over the years was a roof, windows, and siding. Everything else was cosmetic to the different owners. I'm not saying repairs won't be needed, but I think you are being a bit extreme. After all, the CR was the first resort built, and it is still going strong withou need for major repairs over the years.
Excellent point, but my guess is if CR needed major repairs the cost of a room increase would be spread over all the non DVC resorts.
In the case of DVC if one of the resorts needed major repairs only the owners of that resort would see the increase in MF's. the rest of owners would be unaffected.
__________________
CMOORE185 is offline   Reply With Quote
Old 02-25-2013, 11:09 AM   #12
Tdisney
Mouseketeer
 
Tdisney's Avatar
 
Join Date: Apr 2006
Posts: 374

Lynne, what is yearly cap ? Is it a percent or dollar amount ?
Tdisney is offline   Reply With Quote
Old 02-25-2013, 11:49 AM   #13
tjkraz

DVC Owner SSR
 
tjkraz's Avatar
 
Join Date: Feb 2002
Location: Ohio
Posts: 13,243

Quote:
Originally Posted by disneynutz View Post
As time goes on IMO the resorts will require additional maintenance and the dues will really increase. Any idea how much it will cost to re-plumb a resort?
That's that the reserves are for. As of 12/31/12, OKW had over $20 million sitting in the bank for future repairs. BWV was over $35 million. AKV $19 million...each with millions more added every year.

Quote:
Originally Posted by disneynutz View Post
BWV has already had some roof work done. At some point it will be cheaper to build a new resort using newer construction standards than to keep fixing the old building.
"Already"? These resorts aren't roofed with black 30-year Owens Corning shingles. It's all part of maintaining the facilities...and it's been budgeted from Day One.

As for it being cheaper to rebuild than repair...not during the 50 year lifespan of our DVC contracts.
__________________
-- Tim

DVC owner at SSR, BWV and VGC
tjkraz is offline   Reply With Quote
Old 02-25-2013, 12:11 PM   #14
WebmasterDoc
Administrator
 
WebmasterDoc's Avatar
 
Join Date: Aug 1998
Location: South Carolina
Posts: 31,421
DISboards Administrator

Quote:
Originally Posted by Tdisney View Post
Lynne, what is yearly cap ? Is it a percent or dollar amount ?
I think the annual cap is 15% (not counting Property Taxes). A larger increase would require a vote by the owners - there has never been an increase that large at any DVC Resort.
__________________
Doc
WebmasterDoc is offline   Reply With Quote
Old 02-25-2013, 12:15 PM   #15
disneynutz


Earning My Ears One At A Time
 
disneynutz's Avatar
 
Join Date: Dec 2006
Location: North Texas
Posts: 18,611

My plumbing post was meant as a "food for thought" example. We don't know what products were used during construction and when they may need to be replaced. Iron pipes tend to get plugged over time and millions of buildings have been re-plumed with copper. Other products have had design failures that have required re-plumbing. Replacing the HVAC systems will be expensive.

Are the reserves enough to cover all expenses?

Bill
__________________

disneynutz is offline   Reply With Quote
Reply



Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

DVC-Resales.com | 1-800-550-6493 (Contact The Timeshare Store) | DVC Resale Listings

facebooktwittergoogle plus youtube itunesDIS Updates
GET OUR DIS UPDATES DELIVERED BY EMAIL



All times are GMT -5. The time now is 06:16 AM.

Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

Copyright © 1997-2014, Werner Technologies, LLC. All Rights Reserved.