Annual Dues Financials?

[SpaceEngTM]

How much information are members given about how the annual dues are calculated? Is there a financial break down of operating costs sent to each member? And has anyone asked for more information about a particular category? Were your questions answered to your satisfaction?

I apologize if this question has been answered already on this board, I did a quick search and couldn't find it.

Thanks!

 

[BillPA]

Every owner will get a full break down for all resorts they own.

 

[KAT4DISNEY]

It's a pretty high level budget that we see - no great detailed breakdown on the line items.

 

[disneynutz]

We receive what's required and customary, line items like security, transportation, utilities, front desk, etc. No info on how it's calculated, I asked after an association meeting about the line items and how do they determine the electric use by the DVC in a shared building. Do they have separate wiring and meters, I never got an answer.

Bill

 

[SpaceEngTM]

Do you know if there is a requirement for 3rd party audits of their calculations?

That is a very good question you asked about electricity costs between hotel and vacation club units. Too bad they did not answer.

Thank you for your replies!

 

[disneynutz]

Do you know if there is a requirement for 3rd party audits of their calculations?

That is a very good question you asked about electricity costs between hotel and vacation club units. Too bad they did not answer.

Thank you for your replies!

As required there is an auditor and they present a positive review every association meeting.

Bill

 

[Dean]

Do you know if there is a requirement for 3rd party audits of their calculations?

That is a very good question you asked about electricity costs between hotel and vacation club units. Too bad they did not answer.

Thank you for your replies!

They do but all they're saying is the numbers add up, they don't look past the numbers or how they were arrived at or how reasonable the numbers are.

 

[SpaceEngTM]

Not a very useful audit.

 

[Dean]

Not a very useful audit.

No timeshare I know of has an audit of how they perform or follow their rules. They have financial audits and they report the exchange info to the state. Even then DVC uses the generic RCI points numbers which they are allowed to do, even less useful IMO.

 

[SpaceEngTM]

I would think that Disney is better than most, but that may not be saying much with respect to transparency. Thank you for the information. We are starting the process to buy a resale contract and I had a few lingering questions.

 

[disneynutz]

I would think that Disney is better than most, but that may not be saying much with respect to transparency. Thank you for the information. We are starting the process to buy a resale contract and I had a few lingering questions.

We have had DVC executives let go over dues being set too low at Aulani, at the time it was thought that the State of Hawaii was involved. Sales were halted for several months and it seemed that new sales applications had to be filed in States where they wanted to sell.

Bill

 

[SpaceEngTM]

We are hoping to buy an Aulani subsidized dues contract and the broker told us of this issue. I was asking if there was a contract letter to show that the dues subsidy wouldn't go away, he didn't know of any documentation but told me why the subsidy was put in place. The broker also couldn't tell me exactly how the subsidy is calculated and I haven't been able to find that information in searches.

 

[Dean]

I would think that Disney is better than most, but that may not be saying much with respect to transparency. Thank you for the information. We are starting the process to buy a resale contract and I had a few lingering questions.

That would be an incorrect assumption IMO. They are a timeshare, a nice one but a timeshare non the less. There are other good ones and some not so good ones but it really depends on what portion you're discussing. If you want transparency, you should not buy into a timeshare PERIOD IMO.

 

[SpaceEngTM]

I understand what you are saying and appreciate the advice. I am buying to save money on a condo at a place I really enjoy staying. I have no real expectations other than that. But I am trying to determine if there is any nuance of this purchase which will cause me to be very dissatisfied. If I know ahead of time that there is no transparency and I still want to buy, then it shouldn't be a problem.

 

[Dean]

I understand what you are saying and appreciate the advice. I am buying to save money on a condo at a place I really enjoy staying. I have no real expectations other than that. But I am trying to determine if there is any nuance of this purchase which will cause me to be very dissatisfied. If I know ahead of time that there is no transparency and I still want to buy, then it shouldn't be a problem.

I agree, you need to understand what you're getting and what you're giving up. You're giving up a certain amount of control among other things. Just spend a few months getting a feel for the info then you can decide for certain. But your assumption that they're better and more trustworthy because it's Disney would be incorrect but more importantly, many go in with inappropriate or incorrect assumptions and the more you know the better decisions you'll make. The biggest one is whether to buy at all IMO.

 

[disneynutz]

I understand what you are saying and appreciate the advice. I am buying to save money on a condo at a place I really enjoy staying. I have no real expectations other than that. But I am trying to determine if there is any nuance of this purchase which will cause me to be very dissatisfied. If I know ahead of time that there is no transparency and I still want to buy, then it shouldn't be a problem.

Smart of you to check. In reality DVC is a discounted room, the rules and policies can change, the required points for a stay might change, if up at a resort than other rooms have to go down, the total can't increase. IMO many of the perks or membership magic events are there for sales PR, nice if you will use them. Buy where you love to stay, pick the right UY, sell if you need to adjust your holdings and you will be golden.

Bill

 

[DenLo]

We are hoping to buy an Aulani subsidized dues contract and the broker told us of this issue. I was asking if there was a contract letter to show that the dues subsidy wouldn't go away, he didn't know of any documentation but told me why the subsidy was put in place. The broker also couldn't tell me exactly how the subsidy is calculated and I haven't been able to find that information in searches.

I would think it would be your brokers responsibility to investigate and find out the answers to these questions. There is an agreement between DVC and DVD regarding the subsidy as it is mentioned in each annual dues notice. No formula is shown nor is the length that the subsidy will last.

 

[SpaceEngTM]

I would think it would be your brokers responsibility to investigate and find out the answers to these questions. There is an agreement between DVC and DVD regarding the subsidy as it is mentioned in each annual dues notice. No formula is shown nor is the length that the subsidy will last.

Yes, I would think that my broker should find out as well. But he did not seem interested in researching it to find out. I have requested any paperwork the seller has about it.

My very pessimistic side says that we need to not buy unless we are okay with the subsidy going away at some point.

 

[Dean]

Yes, I would think that my broker should find out as well. But he did not seem interested in researching it to find out. I have requested any paperwork the seller has about it.

My very pessimistic side says that we need to not buy unless we are okay with the subsidy going away at some point.

I don't know that there's any legal documentation requiring the fee differential though there may be. IMO it really doesn't matter that much. It shouldn't be make or break for Aulani, put another way, don't buy if this issue puts you over the line making it not reasonable. Fees could go up a lot over the years, esp in HI which is fairly unfriendly to timeshares anyway. But if I were going to buy Aulani, I'd want it to be a subsidized contract. All you really have to do is document what the dues are and that'll tell you if it's a subsidized contract. You may want to put the requirement in your contract offer.

 

[SpaceEngTM]

I agree, we only want a subsidized contract. Why pay more if you don't have to?