annual Dues

[KANSAS]

I am looking for the long time DVC members, to help me resolve this issue

If I am paying about $1400 in annual dues, on 350 BCV points, that give me one week in the summer.

I and other DVC members, are paying $70,000 per year, to maintain that 2 bedroom BCV unit.

50 weeks times x $1400 per week

is it possible that the cost to maintain that 2 bedroom unit, its taxes, insurance,etc is really $70,000 per year

The $74 per point i paid, times 350 points, was for the purchase of the unit, right?

The $3.50 per point, is for ongoing costs, right??

I realize you are also paying for membership services and also paying for the overall mainteance of your DVC BCV Resort, but that is shared with hundreds of other BCV DVC owners

Please tell me what I am missing???

 

[RobDoc]

The annual maintenance fees include all membership services (MS reservation service, administrative costs for the program, costs of planning, etc.).

Property taxes and insurance costs are paid from the Maintenance Fee.

It also includes routine housekeeping maintenance for the villas we use.

In addition it pays for landscaping, pool maintenance, front desk staff, recreational staff and expenses, all exterior maintenance, roadways, utilities, security and all transportation expenses for the resort.

Also included is a Capital Reserve- which covers future replacement costs for appliances, carpeting, wall coverings and exterior maintenance (siding, roof, walkways, roadways, bridges, lighting (both street and exterior building services) and many other items I'm forgetting at this time. This Reserve is what will likely protect us from the large assessments found at many other timeshares when a major expense appears as time goes on.

By law, DVC cannot make a profit from our Annual Fees except what is allowed by FL statutes governing Timeshares in the state.

Sounds like a bargain to me!

 

[PamOKW]

I'm not really sure that the way you have figured the cost per unit works out correctly. I think we need to figure out the total dues income and then divide it by the total number of points and then figure out points per unit per year.....but I'm not going to do that.

There are a lot of costs beyond just the physical needs and taxes. Primary is the costs for the "people". Every CM from the front desk, to the housekeepers, to MS needs to have their payroll and their benefits paid for. Medical insurance costs is one of the reasons we got a big bump last year. You are also paying toward the future capital costs on a regular basis rather than being hit every time a new roof or new appliances are needed.

 

[JimC]

I believe Florida has some of the stricter timeshare and condominium laws in the country regarding their operation, particularly when the developer is in control. The reserves, I believe, are also required under Florida law. Even if they were not requied, it is the proper way to operate a timeshare or condominium project.

I must agree with Doc about it being a bargain given the level of service and the high standards of maintenance DVC maintains.

 

[KANSAS]

Thank you everyone, for all your responses.

I guess, it costs $70,000 per year, to maintain my 2 bedroom unit AT BCV
when all costs are figured in.

I did not realize, that disney, cannot profit, from annual dues, by FLORIDA STATE LAW

 

[KANSAS]

WEB DOC

when you mentioned admisntrative costs for the DVC PROGRAM and costs of planning,etc

am I paying the salary and benefits, for the DVC GUIDES, offices,etc.

when you mention cost of planning,etc

what could this include??

I am more at peace, to know, that people, so much more knowledgable, with the DVC, are comfortable with the annual dvc dues, that we are charged.

Thank you again for all responses

 

[cewait]

If it helps any, the real dues paid on the 2 bedroom unit are only $63,000. ($3.77 x 16,715). The 16, 715 is the number of points to occupy the unit for 365 day. I think that others have covered the what am I paying for with my dues issue well.

I never really thought of what the rolled up dues were for a unit until now. What a great exercise.

 

[KANSAS]

i was close with my $70,000 estimate, glad to know the exact cost to own and maintain my unit is $63,000.



does this mean, that if u wanted to own, your DVC 2 bedroom unit for an entire year.

IT would cost you at least $16,715x $84 per point, or $1,404,060

than if this is true.

Why do I have clients, in condos in NY,NY that have paid about $650,000 for those condos

They pay their own taxes, insruance and mainteance,etc on their condos and their homeowner dues, are about $5,000 per year

so maybe total costs a year, of $25,000 per year and this is a high estimate,
4 their condo taxes, insurance, mainteance,etc.

not $63,000 per year

This is why I feel our annual dues, are dramatically too high.

I not that I am going to really get scolded by the DVC experts on this board. I admit to not being one.

 

[cewait]

I think the disconnect here is that these are not condos, they are timeshare units. By that very nature, administrative costs are higher. Actually, the OKW costs are a little cheaper than those quoted me from Marriott. Shhh, don't tell Eisner

THere is no way these units would sell for the cost of cumulative DVC points (OR other compnies 52 week total) However, the financial risk are being born entirely by DVC. In the case of a condo association, the developer's risk stops upon sale. You the owner are then responsible to keep the room full (or not full) As I see it, that is the biggest reason timeshare units are more costly and not for everybody.

 

[KANSAS]

cewait

THank you for your response

can you please tell me, what type of adminstrative costs, am I paying for?

am I paying my DVC guides salarya, benefits,office space,etc

What could planning costs include?

 

[cewait]

You have got to be an auditor in the real world

Not being intimately involved with day to day operations, I am assuming that planning costs include large capital projects, such as remodelling, bringing units up to ADA spec, new fire code spec. Also, being a part of Disney inc, I am sure that corporate planning charges hit as well as WDW planning amd capital carrying charges. After all, if I were the AK manager, I would be looking for every resort to pick up some of the costs associated with constructing the new Mt Everest Ride. All resorts will profit to some degree

 

[KANSAS]

I am a certified public accountant.

 

[cewait]

Knew I was close

What part of KS?

 

[Chuck S]

Guides and showroom costs are paid through the developer, they are basically "sales", not DVC dues. Member Services (reservations), Member Accounting, Housekeeping, Landscaping, Engineering (maintenance), Front Desk, and Management costs are paid through dues. Not to say that there may not be someone padding their salary at the top, but those costs would be available for scrutiny in the budget. Overall, there are a lot more personnel required to run a quality timeshare resort than a full time "condo" in New York.

 

[KANSAS]

CEWAIT
wichita,ks

where are you from??

 

[KANSAS]

chuck S

THank you for your response

I think that the key to my thread, lots more costs to running a timeshare.

 

[cewait]

Richmond (Houston), TX But I was born in Pratt and then lived in Olathe in the early 1990's

Have several relatives in Wichita.

 

[DVCTX]

I think I have some of the figures you have been asking for....

This is the 2003 budget for OKW. I assume the other resorts are similar

Resort Admin & Front Desk - $2,590,819
Annual Audit - $ 9,981
DVC Reservations - $ 40,689
Fees to Division - $ 54,162 ( goes to Florida regulators)
Housekeeping - $ 5,040,282
Income Taxes - $ 308,104
Insurance - $ 836,140
Legal - $ 5,000
Maintenance - $ 2,675,843
Mgmt Fee - $ 1,940,315
Member Activities - $ 640,606
Security - $ 421,320
Transportation - $ 2,750,838
Utilities - $ 1,328,048

Total $ 18,642,145

In addition the 2003 assessment for reserves are

Roof Replacement & Repair - $ 254,428
Paving - $ 207,810
Interior Refurbishment - $ 2,417,576
Common Element Renovation - $ 87,582

Total Reserves for 2003 - $ 3,048,705

Total for 2003 to run OKW - $ 21,690,850

Larry

 

[KANSAS]

dvctx

thank you so much, this was so interesting

 

[KANSAS]

larry
what was $2,000,000 management fee 4??