Aulani Dues to be subsidized for 50 years for early purchasers!

[been2marceline]

As one of the PP mentioned, no way , no how will Disney corporate pay for this, they will figure out a way to make someone else pay for this.

I would never consider buying Aulani unless I got the same dues rate as the original buyers.

Hopefully it is the state of Hawai'i that saw through this scam and put a brake on the sales..

 

[angelmav]

As one of the PP mentioned, no way , no how will Disney corporate pay for this, they will figure out a way to make someone else pay for this.

I would never consider buying Aulani unless I got the same dues rate as the original buyers.

Hopefully it is the state of Hawai'i that saw through this scam and put a brake on the sales..

I think this is exactly what happened, it was the state of HI that put a halt to this. From everything I have read, when similar concerns were broached in FL over some of these practices, the state just looked the other way. Seems like DVC was playing a bit of a game with too low of a MF to get people in the door before slamming them with the increases. It must have been a pretty significant difference too, which for me would make me very wary of approaching Aulani in the future.

 

[DVCconvert]

For years DVC would ROFR any contract submitted for review from VB which had a subsidized dues status - I expect they'll do the same in this case, thereby greatly minimizing the issue moving forward.

 

[fdwang]

AFAIK, the subsidy will go with the contract to the new owners. Vero Beach contracts work that way. So I think Disney will exercise ROFR on those contracts, just like they did for most of the VB subsidized dues contracts that came up for resale.

Does that mean that disney will ROFR contracts for above purchase pricing? IE, over 140.00 a point? It would make sense considering how much they would lose in the long run over the subsidy.

 

[chalee94]

Does that mean that disney will ROFR contracts for above purchase pricing? IE, over 140.00 a point? It would make sense considering how much they would lose in the long run over the subsidy.

not exactly. (well, not until direct contracts are selling for $250+ per pt...maybe around 2028.)

remember that ROFR only applies to contractual transfers to a willing buyer. there is no (nonfraudulent) willing buyer who will pay more for your resale than they would pay disney directly...

 

[JWG]

I think the point is, we should expect to see a higher number of ROFR'd contracts for those pre-July 9, 2011 contracts. Disney will buy at whatever the resale price is (guaranteed lower than direct purchase) and then have the ability to reallocate those points to new sales at the higher direct purchase price and eliminate a contract with subsidized dues.

If they let it go, the purchaser gets to retain the dues subsidy. If Disney purchases and sells, they get to sell for the real dues amount.

This all depends on how well Aulani sells. If it isn't, a dues paying member at some level may be better than more points in inventory. Who knows.

 

[CarolAnnC]

For years DVC would ROFR any contract submitted for review from VB which had a subsidized dues status - I expect they'll do the same in this case, thereby greatly minimizing the issue moving forward.

Well, you just never know. I was lucky enough to purchase a resale at Vero which is grandfathered in on the dues (subsidized). It was a great deal at the time with lots of banked points, too.

 

[lilpooh108]

Can someone explain the two tier MF situation at Vero?

 

[paulh]

just wondering how many points they have sold at Aulani that would qualify for this and how many there will be on the higher rate
this way we can judge how its been selling
Paul

 

[TisBit]

I have not heard anything about how this will affect the transient tax. Please correct me if I am wrong, but is my understanding that dues are part of the calculation of the tax. So will the early Aulani owners pay tax at the lower rate they bought at or will they get stuck with a higher tax rate based on the new dues structure. The whole subsidy concept makes it sound like early Aulani owners will have their dues rate raised to the new rate and Disney will pay the difference between the new and old rate. So will Hawaii calculate the tax rate for the early Aulani owners using the new higher dues rate and will Disney also subsidize the difference for the higher tax? In my opinion, early Aulani owners should not have their tax rate increased due to Disney's mistake. It is only fair.

My understanding is the transient tax is based on the number of points it would cost for that room. It is not "directly" tied to MF's themselves, but rather a calculation that will reflect the MF's as well. Owners will have to pay this tax for every stay as it is not included in their MF's.

With that being said, DVC is trying to help offset the problems with the MF calculations. Legally, what they HAVE to do is up in the air and would come down to a lot of investigation. If a timeshare were to mess up MF's due to clerical/accounting errors, this would not be illegal. If they intentionally did it to defraud customers that is a different story.

The whole this is "unfair" to owners for any impact is just not a valid argument. If they have to pay a couple of extra dollars a year in the transient tax oh well. If they don't want to and want to back out of their contracts that can easily be accomplished due to the circumstances.

 

[Donut23]

As one of the PP mentioned, no way , no how will Disney corporate pay for this, they will figure out a way to make someone else pay for this.

I would never consider buying Aulani unless I got the same dues rate as the original buyers.

Hopefully it is the state of Hawai'i that saw through this scam and put a brake on the sales..

You are sooooooooooo right.

The extra costs to Disney will be well hidden.....but somebody else is going to pay for them. It's the Disney way!

 

[mommacat56]

I thought the transient tax was set by the number of points a reservation used, not based on the MFs. So unless DVC reallocates the point charts, the tax should be the same...Yes?

 

[wdrl]

I thought the transient tax was set by the number of points a reservation used, not based on the MFs. So unless DVC reallocates the point charts, the tax should be the same...Yes?

The Hawaii Transient Accommodations Tax formula is one-half of the year maintenance fee times a tax rate of 7.5% times the number of Vacation Club points for the length of the stay.

If Aulani's MF increase, then the resulting TAT amount will increase as well.

 

[joksten2000]

A small increase in everyone's MF's will cover the gaff. It seems beyond belief that this mistake was made. Makes me think there's more going on than they are saying. To fire so many people over something that could be fixed by raising everyone's MF's by .001 percent, we would have never known

 

[lah3hh]

This is truly the right thing to do for the folks who bought already, only one thing....I wish I was one of them!!!! Just told the DH, see we should have bought Aulani early but he was like....Noooooooo, now he regrets too!

I am a proud graduate from the School of Positivity and truly feel....everything is going to work out. DVC will be (in my still is) the shining star of Disney and I am proud to me part of the Club!

 

[DVCconvert]

Well, you just never know. I was lucky enough to purchase a resale at Vero which is grandfathered in on the dues (subsidized). It was a great deal at the time with lots of banked points, too.

Me too! In fact I bot mine just this year...but over time DVC has ROFR'd most of them - I have "standing orders" into 3 dvc brokers that I want to buy these and all have told me that they either hadn't seen in "in years" or that they're as scarce as hen's teeth.