Does this math from guide make sense?

[culli]

I saw this yesterday from a guide.........legit? I seem some holes but thought I would share, and doesn't inlcude the location factor:

Here is an example paying $80 per point BCV and you only get the points until 2042 therefore leaving you with 34 yrs left of membership when you do the following: $80 divided by 34yrs= $2.35 + dues at $5.00 per point = $7.35 per point compare to BLT $96 per point divided by 50 yrs = $1.92 + dues at $3.67 per point = $5.59 per point

 

[DisneyWalker44]

I know some people like to look at it that way - but I don't believe it is a good method. When you just divide price by years, it assumes all years are worth the same. But years *now* are worth a lot more than years in the future.

To give you an extreme example, suppose Disney offered a contract that expired in 5009 and charged $300/point for it. Would you just say that is 3000 years divided by $300 so only 10 cents a point?

However, I do think it was fair for your guide to point out the lower maintenance fees. Over the life of your contract, they will be a lot more than the buy-in price. Due to that, BLT will be cheaper in the long run.

 

[Crystal_27]

I think that my Guide did the same type of equation when we did the tour in March. Basically, it's a way to make you feel better about paying the $94-112/point for the newer resorts through Disney opposed to buying resale at a lower per point cost. Remember, your Guide doesn't get commission if you buy resale so his/her job is to show you how "sweet" buying through Disney really is. And, one major consideration that the "model" does not take into account is that we don't really know what the maintenance fees for BLT are going to do. If they skyrocket to $6.00 next year, then the model completely goes out the window.

That said, it is always recommended that you buy where you want to stay and not really dwell too much on the contract length of the newer resorts versus the more established ones. I mean, are you still going to want to vacation at Disney in 34 years? How about 50 years?? I don't know about you, but when my BLT contract expires, I'll be 79 years old (although I'm still planning on being able to vacation at Disney - LOL).

Anyway, hope that helps!!

 

[dianeschlicht]

It also doesn't take into account the annual increase in dues. Don't expect BLT to always have the lowest. We had the lowest at OKW for years, but no more.

 

[Muhlenberg]

Another factor is your current age. If you're, say, 25, the BCV contract will run out before you do. You'd probably get full use of the BLT contract. However, if you're in, ummm, the down-hill slope like we are (bought last year), that whole picture changes. We put our kids names on with ours so we WILL get full use of the 50 years. At the time, BLT wasn't quite for sale yet, and we bought AKV. Afterwards I was glad I did, as I didn't think the premium $$$ for BLT was worth it to ME. We've also gotten more use out of our AKV points before BLT even opens.

You need to do your OWN calculations, including how you "feel" about where you are buying. Do a comparison chart, look at it, put it down, look at it again, sleep on it, etc. Guides are in business to sell new contracts.

Oh and I plan on going to WDW when I'm 80+...I still take my 84 yo parents.

 

[cheezNE1]

Will the dues for BLT catch up or pass BCV dues ? Will any resort pass another in dues over the years ?

 

[logan115]

I saw this yesterday from a guide.........legit? I seem some holes but thought I would share, and doesn't inlcude the location factor:

Here is an example paying $80 per point BCV and you only get the points until 2042 therefore leaving you with 34 yrs left of membership when you do the following: $80 divided by 34yrs= $2.35 + dues at $5.00 per point = $7.35 per point compare to BLT $96 per point divided by 50 yrs = $1.92 + dues at $3.67 per point = $5.59 per point

Being the sarcastic pain in the ____ that I am, I would asked him to show me why I should buy BCV direct from him at $106 vs $80 resale, or SSR @ $91 vs $70 resale.......

Need to keep things apples to apples.

Chris

 

[twinklebug]

Will the dues for BLT catch up or pass BCV dues ? Will any resort pass another in dues over the years ?

None of us (including Disney) have a crystal ball, Dues are a combination of taxes, operating expenses, insurance and building\maintaining a reserve fund (& probably a few other ingredients I missed). The operating expenses on any one property can change significantly with a disaster (although we'd hope our home resort has good insurance coverage) & can surpass the dues on another resort.

When I bought AKV it was pointed out to me that Disney has no obligation to keep animals on the savanna. Just for example: *IF* Disney decided it was too expensive to keep the animals out there and they could fill AKL without their presence they might ask the AK DVC if they'd like to help foot the bill to keep the animals. Now I can only imagine how expensive that would be, but betting that it's $$$ and it was put to a vote and agreed upon by our voting members to foot part of the cost to keep them, our dues could go up substantially.

Is there a cap on how much our dues can be raised in a year? This I don't know.

Question to those who've owned for awhile... wasn't there a time one of the propertys had it's dues decreased? was it SSR or OKW?

 

[backyardponder]

If your intent is to stay at BLT, then it takes a lot more points to stay there than some other resorts. Some folks are buying BLT for the lower fees and planning on using their points at other resorts.

Based on my age, I bought at BWV. I don't think I'll be visiting WDW when my contract expires and I'm 93!

 

[KLR-wlv]

None of us (including Disney) have a crystal ball, Dues are a combination of taxes, operating expenses, insurance and building\maintaining a reserve fund (& probably a few other ingredients I missed). The operating expenses on any one property can change significantly with a disaster (although we'd hope our home resort has good insurance coverage) & can surpass the dues on another resort.

When I bought AKV it was pointed out to me that Disney has no obligation to keep animals on the savanna. Just for example: *IF* Disney decided it was too expensive to keep the animals out there and they could fill AKL without their presence they might ask the AK DVC if they'd like to help foot the bill to keep the animals. Now I can only imagine how expensive that would be, but betting that it's $$$ and it was put to a vote and agreed upon by our voting members to foot part of the cost to keep them, our dues could go up substantially.

Is there a cap on how much our dues can be raised in a year? This I don't know.

Question to those who've owned for awhile... wasn't there a time one of the propertys had it's dues decreased? was it SSR or OKW?

I believe Florida law is a 15% cap per year on dues increases - someone will correct me if I'm wrong...

All the resorts have had artificially low dues the first year or two they open I believe. It's a selling point, no doubt - I would expect the dues to average out to the other resorts in a couple years.

 

[rpk1951]

I will be in my 90's when the BCV contract expires and have already planned a 90 year birthday party with the family. Now I just need to last that long.

 

[JasonDVC]

I can't wrap my head around why BCV dues are the highest. It's the one of the smallest resorts and doesn't have much in terms of amenities or landscaping (that I'm aware of) whereas AKV for example has animals and a larger parcel of land, SSR has a huge piece of land and beautifully kept landscaping. Can someone explain this please.

 

[White_Sox_Fan]

I believe that BLT will always have relatively low dues because it is a highrise vs the other resorts. SSR is the next lowest and that is probably due to the fact that it is the largest resort and it does not have any common interior spaces. I think that if you were to buy BLT you's be getting a decent deal since your dues cost per point is much lower than anyone elses and probably will remain so.

 

[Muhlenberg]

I get wrap my head around why BCV dues are the highest. It's the one of the smallest resorts and doesn't have much in terms of amenities or landscaping (that I'm aware of) whereas AKV for example has animals and a larger parcel of land, SSR has a huge piece of land and beautifully kept landscaping. Can someone explain this please.

It COULD be that because of fixed expenses being divided by fewer points, the dues end up being higher. I don't know that for a fact, though.

 

[White_Sox_Fan]

It COULD be that because of fixed expenses being divided by fewer points, the dues end up being higher. I don't know that for a fact, though.

Good catch, I actually made this point a while ago and forgot. The dues are diluted somewhat by the higher point levels required per room night. In otherwords if you had two resorts with equal cost and one charged 10% more points per room, the dues for that resort would be lower per point. The total cost to stay per night would be the same between the two resorts but, if you could trade into the other resort and use less points per stay your stay would cost you less. This is the same situation BLT owners are in if they stay at a non-home resort. They pay less points per night at lower dues per point.

 

[Mtnman44]

Regarding dues vs. purchase cost:

Keep in mind that yes, compared to the purchase price, over the whole contract the dues are more than than the purchase.

However, if you are deciding between two different resorts, then only the difference in dues really matters. For example:

If resort A dues are 4.50 per point and resort B dues are 5.00 per point, your chosing one resort over another is only a difference of .50 per point. Thus, over a 50 year, 200 point contract, the differece would theoretically only amount to $5,000. A difference yes, but not one that exceeds the cost of purchase and certainly not enough to make dues a factor in a resort A vs. resort B decision.

Now if you are deciding wether or not to buy DVC at all, THEN dues figure into the decision in a major way.

 

[ssawka]

Another factor is your current age. If you're, say, 25, the BCV contract will run out before you do. You'd probably get full use of the BLT contract. However, if you're in, ummm, the down-hill slope like we are (bought last year), that whole picture changes.

You are failing to consider the resale factor. When two different resorts have similar expiration dates, this is not a huge factor, but if you compare BLT, which expires in 2060 with one of the 2042 resorts, it does.

Let's say you want to go to Disney for the next 20 years, and then you want to sell. Which contract would get a higher resale price? One with 13 years remaining or one with 30 years remaining?

 

[culli]

WOW, just checked back in and saw the responses. I understand all the comments and told him we are at BCV due to the booking window and that is where we want to stay the most. I'm also a bang for the buck guy and would also like the MK location. This was a hard call between the two so I let fate intervene....if I get ROFR up by Disney I will go with BLT. Win win for this one. As far as DVC goes 96 for BLT from Disney seems good.......wasn't that long ago BCV resale was at that price.

I just posted to show the math that a guide gave me and over the years have seen dozens of formulas used to justify or debunk the value of DVC. One of the first I have seen to compare two resorts buy in and MF.

I wonder with DVC selling contracts in 25/50pt increments, i.e. I buy 150pts but do 3 50pt contracts if this won't stregthen the ability for people to buy and sell resale?

 

[White_Sox_Fan]

If you buy direct from Disney your first contract must be for the minimum buy-in, 160 points. From there you can break it up any way you want. We purchased 225 direct from Disney and split it into 175/50.

 

[ssawka]

If you buy direct from Disney your first contract must be for the minimum buy-in, 160 points. From there you can break it up any way you want. We purchased 225 direct from Disney and split it into 175/50.

This is not true any more. We just put in for 250 points direct from Disney, and they let us split it 150/100.