2009 MFs For All Resorts - Update Page 4

[JimC]

Why is BLT's MF's so much cheaper than other DVC resorts?

We would need to see the details, but I suspect it is a combination of a new resort (lower maintenance costs) and 2009 only a partial year for operating, reserves and taxes.

 

[RobDoc]

We would need to see the details, but I suspect it is a combination of a new resort (lower maintenance costs) and 2009 only a partial year for operating, reserves and taxes.

In addition to those reasons, the higher point costs for BLT stays will also keep the fees lower. The "footprint" for the tower stucture will keep landscaping and some of the exterior maintenance and Capital Expense costs lower.

The BLT dues will also be prorated based on the opening date - so actual fees for 2009 will only be about 1/4 of the $3.67 ($1.22) per point for Use Years of Feb,Mar,Apr,Jun, Aug and Sep - and even less for those with October ($0.92) and December ($0.31) Use Years. With the lower maintenance fees, BLT owners will pay a proportionately lower cost to stay at their Home Resort than other owners reserving at 7 months. The cost for a weeknight Studio in September, 2009 for a MK view (17 points) will cost a BLT owner only $62.39 per night based on the maintenance fees and $80.24 for an OKW owner or $88.53 for a BWV owner staying at BLT. Costs for BLT owners using their prorated 2009 points will be a real bargain!

These figures do not include any computation for purchase price - just the raw maintenance fee costs for the stay.

 

[senecabeach]

Why is BLT's MF's so much cheaper than other DVC resorts?

I discussed this with my guide and his thought is that there is no "extra" services required...i.e....trsansportation, more busses...etc and beleives that it will remain the least expensive.

 

[Plutofan]

 

[1-407-WDWJUNKIE]

Also, it takes more points for the same stay at BLT, so the MF's are spread across a greater point total.

A Boardwalk view in a 1 BR in Adventure Season costs 200 points, or $1042 in MF's.

A Bay Lake View 1 BR costs 222 points, or $814.74, while a MK View is 270, or $990.90 - which is pretty close to the BWV 1 BR. Keep in mind BLT is partially subsidized for 2009 too.

So the cost per point is lower, but not so much the cost per room.

It turns out the cheapest cost of ownership may be to buy points at BLT and use them at OKW - you get low MF's and points per room.

 

[BWV Dreamin]

I think this is all relative. While BLT maybe the lowest MF's now, remember OKW was the lowest, then SSR, etc. I don't see how one can compare MF's at new resorts to those that have been in existence for 16 + years. The cost was ALOT cheaper at OKW plus low dues. BLT is ALOT more expensive per point, with just being a little cheaper than SSR in relation to MF's. I'm not getting all caught up in this. It all equals itself out either by price per point or MF's.

 

[JimC]

I discussed this with my guide and his thought is that there is no "extra" services required...i.e....trsansportation, more busses...etc and beleives that it will remain the least expensive.

BLT will pick up a share of the CR costs associated with monorail and bus service. It would be most helpful if a BLT owner would post the budget for that resort.

 

[CarolAnnC]

I discussed this with my guide and his thought is that there is no "extra" services required...i.e....trsansportation, more busses...etc and beleives that it will remain the least expensive.

Once BLT is fully up and operational (like the older resorts) there will be an increase in MF's. True the landscaping may be somewhat less on a stand alone building, but as you can see with BWV and BCV there are other costs involved. There will be subsidization needed for the transportation such as busses and boats (just as BWV and BCV do) and the interior maintenance such as interior hallway carpets that need replacing at times.

 

[LisaS]

It is most helpful if we all report using a similar format. See below:

AKV
Operating $2.8288
Reserves $1.0339
Taxes $0.9927
Total $4.8554

It would be useful to include the increase percentage as well as Mickey'sApprentice did in the initial post:

This assessment is 3.4% higher than 2008, which is higher than the compounded annual growth (average) rate of 2.7%

 

[Mickey'sApprentice]

It would be useful to include the increase percentage as well as Mickey'sApprentice did in the initial post:

Lisa:

OKW and BWV both went up about 3.4%; AKV went up about 3%, and BCV went up 4%.

(I don't know the average increase.)

I guess animals don't ask for a pay raise during times of inflation. Hmmm.

 

[LisaS]

Lisa:

OKW and BWV both went up about 3.4%; AKV went up about 3%, and BCV went up 4%.

(I don't know the average increase.)

I guess animals don't ask for a pay raise during times of inflation. Hmmm.

I maintain a dues history spreadsheet so I like to see Disney's published figures to see if mine match the official numbers. My calculations for the annual increase percentages usually match but for some reason my compounded annual growth figures do not match Disney's. I like to record their figures in my spreadsheet since I'm not able to duplicate their calculations.

 

[DVC Mike]

It is most helpful if we all report using a similar format. See below:

AKV
Operating $2.8288
Reserves $1.0339
Taxes $0.9927
Total $4.8554

BLT
Operating $2.0339
Reserves $0.8090
Taxes $0.8280
Total $3.6709

 

[BobNed]

Thanks to Mickey's Apprentice and Jim. Pease continue to report the 2009 fees as they become known.

Here is the history of DVC annual fees at all of the resorts:

Year OKW BWV VB VB(sub) HH VWL BCV SSR AKV BLT

2009 4.73 5.21 ---- ---- ---- ---- 5.00 ---- 4.85 3.67

OKW is actually 4.74

 

[tjkraz]

I discussed this with my guide and his thought is that there is no "extra" services required...i.e....trsansportation, more busses...etc and beleives that it will remain the least expensive.

Naah! If that were the case, VWL and BCV would be similarly low as they were also add-ons to existing resorts.

When DVC adds-onto an existing resort, the primary beneficiary is Disney. Until now the CR's budget has been getting hit with a full share of the operating costs for the monorail, resort landscaping, front desk, housekeeping, etc. When BLT opens, DVC members will begin paying their share of those expenses. Disney's portion will be significantly reduced--which is to be expected since the percentage of cash guests using those amenities goes from 100% to....something less than 100%.

Also, it takes more points for the same stay at BLT, so the MF's are spread across a greater point total.

A Boardwalk view in a 1 BR in Adventure Season costs 200 points, or $1042 in MF's.

A Bay Lake View 1 BR costs 222 points, or $814.74, while a MK View is 270, or $990.90 - which is pretty close to the BWV 1 BR. Keep in mind BLT is partially subsidized for 2009 too.

So the cost per point is lower, but not so much the cost per room.

It turns out the cheapest cost of ownership may be to buy points at BLT and use them at OKW - you get low MF's and points per room.

Yup. There's the reason. Higher points charts means more points in circulation. More points in circulation means each point shares a lower portion of the dues burden.

Let's say you have a $4.5mil budget and 1 million points sold. Dues are $4.50 per point.

But if you increase the point charts by 20% (as is the case with BLT when you compare to other resorts), you have the same a $4.5 mil budget spread over 1.2 mil points. Now the dues are $3.75 per point.

Sure there will be variations based upon the amount of land, amenities offered, construction style and materials, etc. But the higher points is still the primary reason why BLT dues are so much lower than BWV, BCV, etc.

The fact that BLT is a newer resort really doesn't have any bearing. Members will begin contributing to a capital reserves fund immediately. Assuming the budget leaked back in February held-up, more than $.80 per point of the 2009 dues is going toward the reserves. By comparison, $.78 of my BWV dues for '09 is for the reserve fund.

Here's a link to a PDF of that February '08 budget projection for BLT:

http://dvcnews.com/PDFs/KingdomTower/CR_2009Budget.pdf

The total dues of $3.67 per point noted in that document is the same figure DVC is using today.

 

[DVC Mike]

VWL -
Operating $3.2891
Reserves $0.8008
Taxes $0.9477
Total $5.0376

 

[RobDoc]

OKW is actually 4.74

OKW is actually $4.7340. I'll leave it in the chart as $4.73 - no need to round it up!

OKW
Operating $3.1547
Reserves $0.6383
Taxes $0.9410
Total $4.7340


With Mike's VWL report, the chart has been updated with that info. We still need VB, HH and SSR.

 

[dianeschlicht]

No reports yet from the off-site DVC's yet?

 

[AnnaS]

I don't own at VB - but I see VB and VB(sub) - why are there two different fees for this? Just curious.

TIA.

 

[RobDoc]

I don't own at VB - but I see VB and VB(sub) - why are there two different fees for this? Just curious.

TIA.

Early buyers at VB were promised developer's subsidy since the resort was originally planned to be much larger. The subsidy was based on the planned amenities for the resort. By 1999 the decision had been made not to expand the resort so buyers at that time did not get the same subsidy, but DVC has continued the promised subsidy for those early buyers. I understand that the subsidy is not carried forward to subsequent resale buyers for those early contracts.

Every DVC resort has had some form of subsidy at one-time or another. There is a subsidy in place for BLT built into the 2009 dues - I think that is $0.05 per point. This is in place so that early buyers will not have to pay all expenses for the resort while it is still being sold - the developer (DVD) shares in those expenses.

 

[Coach81]

Any word on SSR yet?