dvc dues

[drusba]

I asked the guide at the D to Dreams event today why BLT dues are so much cheaper and he said it is because there is NOT a restaurant and went on to say that the operating costs of restaurants are great......

Another guide created myth. Restaurants are profit making organizations that cover their own operating expenses. BLT dues are less mainly because the points per night are the highest, by far, of any of the WDW resorts and that means DVD is selling far more points per unit than others and thus spreading the operating costs over more points per unit.

 

[DenLo]

Currently it's BLT, but that might because of subsidizing with new resorts.

Here is the history of all DVC resorts dues for the past 18 years.

Here is the history of DVC annual fees at all of the resorts:

Year OKW BWV VB VB(sub) HH VWL BCV SSR AKV BLT

2009 4.73 5.21 6.41 4.97 5.36 5.04 5.00 4.34 4.85 3.67
2008 4.56 5.04 6.04 4.71 5.16 4.87 4.80 4.21 4.71
2007 4.40 4.85 5.63 4.39 4.98 4.73 4.63 4.12 4.62
2006 4.24 4.69 5.27 4.12 4.34 4.61 4.48 3.98
2005 3.86 4.41 4.87 3.84 3.86 4.35 4.27 3.83
2004 3.68 4.25 4.67 3.67 3.70 4.22 4.18 3.80
2003 3.49 4.11 4.37 4.37 3.69 4.05 3.97
2002 3.22 3.92 4.17 3.33 3.49 3.80 3.77
2001 3.13 3.83 3.98 2.70 3.32 3.63
2000 3.16 3.94 4.07 2.87 3.25 3.62
1999 3.16 4.02 3.99 2.82 3.18
1998 3.17 3.94 ---- 2.76 3.20
1997 3.14 3.84 ---- 2.90 3.16
1996 2.99 3.70 ---- 2.82 3.16
1995 2.84
1994 2.70
1993 2.63
1992 2.56
1991 2.51

FYI, the developer subsidy on BLT is IIRC 5 cents.

Given the higher points per night ratio and other assumed savings (1 building, few in-building services, less grounds to landscape, etc), it's quite possible that BLT dues will remain low relative to other properties.

Even without the 5 cent subsidy BLT's MF is lower. However, no one knows how much this new resort will go up next year. Since it is the first high rise resort you can't really look at the history of another resort for comparison. But it would be a reasonable assumption that the MF increases would be similar to the other resorts as costs will go up across the board.

However you will be paying more points per night at BLT. So it's not just the MF cost that will affect you over the years.

 

[Doctor P]

I asked the guide at the D to Dreams event today why BLT dues are so much cheaper and he said it is because there is NOT a restaurant and went on to say that the operating costs of restaurants are great......

That makes absolutely no sense. BWV, BCV, and VWL have no restaurants either if you count the same way as you would to say BLT has no restaurant.

 

[PamOKW]

Great chart and graph. Does anyone know why the dues were steady in 99-01, but have risen at a "healthy" clip since? It's way out of line with inflation.

The increases started post-9/11 when several factors happened all at once -- invested monies saw the first big drop in return rates, decreased tourism brought down the share of money from Disney renting units, health insurance costs for WDW castmembers rose significantly, other insurance costs also went up and there were increased Security costs. Things were just starting to come back in balance last year when the bottom fell out again -- not sure what we'll see this coming year in dues increases.

 

[Ka-chow!]

The increases started post-9/11 when several factors happened all at once -- invested monies saw the first big drop in return rates, decreased tourism brought down the share of money from Disney renting units, health insurance costs for WDW castmembers rose significantly, other insurance costs also went up and there were increased Security costs. Things were just starting to come back in balance last year when the bottom fell out again -- not sure what we'll see this coming year in dues increases.

Some increase in security costs after 9-11 is understandable in 02 or 03, but not 6 years later. Health insurance rates have risen for all government and private sectors - my toothpaste isn't twice as expensive. I'm not so sure about the other points. You are probably right but I think it has more to do with lot more DVC units now than then rather than a tourist drop.
It seems Disney can keep pushing their costs along. Good for shareholders, not so good for everybody else.

 

[sleeping beauty 1]

When at a DVC event in July we were told that that the BLT dues were cheaper because it was a high rise -- less land cost compared to the other resorts that were spread out.

It does make sense with the same rooms you would have less land to maintain.

 

[Plutofan]

It depends on what the original contract had, I believe it carrys over to the new owner.

I does not carry over to the new owner. The subsidized dues only exist with the orginal purchaser. Once the contract is sold the new owner pays the higher dues.

 

[mom2cobysyd]

Our guide also told us that the dues were cheaper at BLT because of it being a high rise and there is less ground maintenance, etc. than other DVC resorts.

 

[Sandisw]

I does not carry over to the new owner. The subsidized dues only exist with the orginal purchaser. Once the contract is sold the new owner pays the higher dues.

I am not sure this is true. I have read posts on here from the sales people at TSS and they have indicated that the subsidized dues to transfer.

 

[Plutofan]

I am not sure this is true. I have read posts on here from the sales people at TSS and they have indicated that the subsidized dues to transfer.

I believe it is true since I purchased a vero contract and wanted the reduced dues but did not get them.

 

[wdrl]

I believe it is true since I purchased a vero contract and wanted the reduced dues but did not get them.

In BLT's case, the subsidy of $0.0506 is part of the 2009 budget for all BLT owners. DVD makes no promises or commitments about continuing the subsidy in future years.

Vero Beach and its maintenance fees situation is unique and not applicable to BLT's situation. As I understand it, when VB was first designed, it was going to be a much larger resort. As such, the MF were calculated based on many more rooms and points being sold, and the early contracts that were sold reflected this formula. When DVD scaled back the size of the VB resort, the previously sold contracts had locked in the lower MF formula. Contracts sold subsequently use a different formula yielding a higher MF. If a VB contract is sold, the MF formula does not change. Hence, the VB-subsidized and VB-non subsidized contracts.

 

[Maistre Gracey]

I asked the guide at the D to Dreams event today why BLT dues are so much cheaper and he said it is because there is NOT a restaurant and went on to say that the operating costs of restaurants are great......

This is hogwash. Disney restaurants not only pay for themselves, but they turn a profit.

One reason BLT's fees are low is it takes more points to stay there. Look at the "fees per night", rather than the "fees per point". Same can be said for VGC.

MG

 

[nunzia]

...aren't MF at VGC lower than BLT for now?

 

[BUDDYBEAR]

Great charts thanks

 

[DenLo]

...aren't MF at VGC lower than BLT for now?

VGC is $3.82 per point and BLT is $3.6709. Like BLT VGC requires a lot of points per night, in fact even more points per night on average than at BLT. The old adage of location, location, location applies to both resorts. However, most people will have shorter stays at VGC than those staying at BLT, so in the end will use less points per stay at VGC than at BLT.

 

[nunzia]

VGC is $3.82 per point and BLT is $3.6709. Like BLT VGC requires a lot of points per night, in fact even more points per night on average than at BLT. The old adage of location, location, location applies to both resorts. However, most people will have shorter stays at VGC than those staying at BLT, so in the end will use less points per stay at VGC than at BLT.

Ah, thanks. I didn't realize BLT was under 4.00 also.
I see their point usage as pretty close, depending on the view at BLT. But yes, more people will stay longer at BLT than VGC. I'm liking the point structure at OKW for longer stays

 

[disneyman0943]

ok lets say i am purchasing AKL and i am doing the basic 160 points, paying 10% which i understand is $1792 plus matenance fees. what will my up front cost be at time of purchase and what will monthly cost be.....i have been getting alot of answers without getting alot of answers if that makes sense....i am a bottom line kinda guy. i wanna know what it is with both the 10.25 and the 14%...can someone please help!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[chalee94]

ok lets say i am purchasing AKL and i am doing the basic 160 points, paying 10% which i understand is $1792 plus matenance fees. what will my up front cost be at time of purchase and what will monthly cost be.....i have been getting alot of answers without getting alot of answers if that makes sense....i am a bottom line kinda guy. i wanna know what it is with both the 10.25 and the 14%...can someone please help!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

step 1: go to dvcnews. AKV for 160 pts starts at $100 per pt after promotional "rebates." you can apply at least some of those $1920 in "rebates" to the down payment but i would suggest that if you don't have at least $1600 of your own money to put down, you wait till you do. (i'm not crazy about the idea of financing DVC in the first place, but suit yourself.)

step 2: go to a mortgage calculator online. plug in whatever variations suit you. $14,400 financed for 10 yrs at 10.25% will cost you about $192 per month (with $123 of that first payment being interest.)

step 3: go back to page 1. AKV dues are $4.85 per pt for 2009 (and most likely higher for 2010.) if you let DVC draft your bank account every month, you will probably pay around $68 (corrected) per month for 2010 - or if you'd rather pay with disney visa, you'll probably owe around $800 in january for 2010.

so under those assumptions, it's $192 for the loan plus $68 for maintenance fees = $260 a month (with the MF portion rising every year.) if the assumptions change, the numbers change.

 

[disneyman0943]

how did you come up with the 14,400

 

[Sandisw]

ok lets say i am purchasing AKL and i am doing the basic 160 points, paying 10% which i understand is $1792 plus matenance fees. what will my up front cost be at time of purchase and what will monthly cost be.....i have been getting alot of answers without getting alot of answers if that makes sense....i am a bottom line kinda guy. i wanna know what it is with both the 10.25 and the 14%...can someone please help!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Right now, AKV for 160 is $112.00 per point for a total of $17920. You are requires to put down 10% deposit of $1792. There is also an incentive of $12.00 off per point for an additional discount of $1920. Closing costs run around $350.00 (estimate). MF"s are $4.85 (2009 rate) per point.

So, your financed amount would be around $14558. That would put monthly payments at or about 198.89 (10.75%) + 65.00 MF's for a total of $263.89 or 228.70 (14.25%) + $65.00 MF's for a total of $293.70

Now, they used to allow people to use the incentive as part of the down payment, but I don't believe if that is still the case.