DO you think this MF increase will cause more people to sell

[bullpup12564]

Is this increase at OKW high enough to cause people to sell? Does anyone know if the end of the year brings more resales on the market. I guess time will tell.

 

[Chuck S]

I don't know. I know our dues will be approx $1465 for 345 points, but that enables us to stay about 5 weeks total in a studio or 2 1/2 weeks in a 1 bedroom, and I know we couldn't stay at a regular resort for that.

 

[JimC]

Welcome to our forum

I believe year end brings more selling and more aggressive selling because owners would like to avoid the cash outlay at the start of the new year. I don't know if this year's increase would alter what I suspect is just a normal seasonal adjustment in activity.

Tom, our forum sponsor, might be able to give us all a more definitive and certainly more authoritative reply.

 

[dianeschlicht]

I can't see why the dues increase would cause folks to sell. It's still the least expensive vacation accommodations for us.

 

[RobDoc]

I don't expect any increase in OKW resales because of the 2006 maintenance fees - they are still lower than all resorts except SSR (which is still subsidized by DVD).

 

[crisi]

If the resale market heats up, it will be difficult to tell what the drivers are. I suspect the lack of cheap airfare and gas might be a bigger factor than the dues increase - although they will combine to make it more difficult for people who own on a tight budget to travel. With OKW a lot of us have long suspected that there are more resales because of the timing - OKW owners bought a little earlier than the rest of us and - for some of them - their families have outgrown WDW - or they've perhaps reached the "move South" age. So there is the timing issue as well.

 

[lovewdwdvc]

I was worried that the longer that we owned DVC, the more points that we could need as we hope that we have DIL and Grandkids to fill the villas in the future.

 

[lark]

I think any time you raise the price of something, it affects buying and selling, unless the thing was already dramatically underpriced (or overpriced). I would think any change in dues would, in the short term, very modesly affect new purchases and slightly increase resales.

From an economics perspective, every year you don't resell your DVC, it's the equivalent of making a new decision to buy. Since the prices are close to fixed for selling, with ROFR setting a floor, every year you don't sell, you're deciding, "I want DVC more than I want x dollars." Increases in MFs change that analysis.

But ultimately, I think the key consequence of raising MFs will be to raise the market for rental points. I think as MFs for some of the resorts get closer to $5/point, you're going to see $11 as the new rental standard. If rental amounts don't increase, the MFs start to make DVC less and less attractive. Paying $92 for points that effectively have a value of $5/year gets to be a harder and harder sell -- that's an 18 year break even window.

 

[DVCajun]

From what I understand, most OKW owners aren't there because of the lower MF's, they're there because they like the location. Crazy fools.

(just teasing)

 

[spiceycat]

From what I understand, most OKW owners aren't there because of the lower MF's, they're there because they like the location. Crazy fools.

(just teasing)

some people don't know what they are missing....

 

[crisi]

But ultimately, I think the key consequence of raising MFs will be to raise the market for rental points. I think as MFs for some of the resorts get closer to $5/point, you're going to see $11 as the new rental standard. If rental amounts don't increase, the MFs start to make DVC less and less attractive. Paying $92 for points that effectively have a value of $5/year gets to be a harder and harder sell -- that's an 18 year break even window.

I doubt it - at least for the OKW owners. For most OKW owners, their buy in was so low that it doesn't matter if they pay $3.50 a point in dues or $4.50 a point in dues. For them there is still a tidy profit in $10 per point rentals.

Its the people who bought at $85 a point and are paying $4.50 dues that have a high "cost of goods sold" and can't afford to rent for $10.

The problem with the rental market is that someone who bought resale this year for $85 and is carrying some sort loan and pays MFs at BWVs is competing on the rental market against someone who bought at $62 at OKW. That's a significant difference in cost for the member.

 

[vascubaguy]

I don't expect any increase in OKW resales because of the 2006 maintenance fees - they are still lower than all resorts except SSR (which is still subsidized by DVD).

I know this is off topic, but isn't the subsidizing by DVC down to only $0.08 per point at SSR? I guess every little bit helps though.

 

[lark]

I doubt it - at least for the OKW owners. For most OKW owners, their buy in was so low that it doesn't matter if they pay $3.50 a point in dues or $4.50 a point in dues. For them there is still a tidy profit in $10 per point rentals.

Its the people who bought at $85 a point and are paying $4.50 dues that have a high "cost of goods sold" and can't afford to rent for $10.

The problem with the rental market is that someone who bought resale this year for $85 and is carrying some sort loan and pays MFs at BWVs is competing on the rental market against someone who bought at $62 at OKW. That's a significant difference in cost for the member.

Yes -- I agree. I didn't really read carefully enough to see the OP's question was limited to OKW.

 

[cobbler]

I know this is off topic, but isn't the subsidizing by DVC down to only $0.08 per point at SSR? I guess every little bit helps though.

Yes it is down to that this year. Which is a decent drop to what it was last year. I think I remember reading (could be wrong) somewhere in the .45 range.

So being that the dues only went up slightly is good.

Thanks tjkraz for that lecture/lesson in the subsidizing

 

[Disney Doll]

From what I understand, most OKW owners aren't there because of the lower MF's, they're there because they like the location. Crazy fools.

(just teasing)

"Size does matter".

 

[DrTomorrow]

Back to the OP's question:

The dues increase may cause a few fanatical DIS DVCers to contemplate selling (after running a spreadsheet on the value of renting vs. owning). However, I suggest that 95% of all DVC owners won't even read that little dues folder that comes in the mail and have no idea what their per-point dues even are....

 

[Pa@okw95]

Back to the OP's question:

The dues increase may cause a few fanatical DIS DVCers to contemplate selling (after running a spreadsheet on the value of renting vs. owning). However, I suggest that 95% of all DVC owners won't even read that little dues folder that comes in the mail and have no idea what their per-point dues even are....

I am one of them-what kind of dues incrrease are we talking about here??

 

[dianeschlicht]

I am one of them-what kind of dues incrrease are we talking about here??

Up about 9.8% to $4.24 I believe.

 

[ahutton]

From what I understand, most OKW owners aren't there because of the lower MF's, they're there because they like the location. Crazy fools.

(just teasing)

Some of us are there because at the time it was the ONLY DVC!!! I mean, we're talking 1992/93!!

 

[joksten2000]

Cost of doing business. I don't expect the overhead to go down, it's my home and i want it maintianed very well. I'm the one that chose to purchase a 1,000 points, a nice chunk of money every year but it's built into my budget.