Expiration years

[lborne]

I've read most of the FAQs, but have one more question.

Is the cost of buying points related to expiration year? Since some resorts expire in 2042 and BLT expires in 2060, does the BLT points cost more? And will points for a property that expires in 2042 be very cheap on the resale market in say 2035, or 2040? In summary, how does the expiration date come into play?

Secondly, do maintenance fees increase the same over all properties? Right now BLT is the cheapest, but will it eventually catch up, or will it always be cheaper?

Thanks

 

[tjkraz]

Right now supply and demand appears to play a larger role than expiration date. For example, Beach Club Villas points are selling in the mid-$80s for contracts that end in 2042. Saratoga Springs is selling for $10-15 less despite having 12 additional years of ownership. The primary reason is higher demand/limited supply for BCV. BCV only has about 200 units vs. 800+ at SSR.

But as time goes on prices will invariably fall. Come 2030, I think it's a given that SSR will demand a higher price with 24 years remaining vs. 12 years at BCV. And yes, contracts will only be worth a fraction of their current value as the ending date nears. There may be someone willing to pick-up a BCV contract in 2040, but they aren't going to pay more than a couple dollars per point for two years of use.

The entire history of maintenance fees is around here somewhere. Generally speaking expect 3-4% AVERAGE annual increase. Dues pay for the projected operating costs of the resort so typical economic influences will apply. A couple years ago when oil was doubling in price, the transportation line item went up substantially. The country controls property taxes. Insurance premiums have gone up...particularly after a hurricane or 9/11.

I wouldn't expect BLT dues to catch up with the others. The reason BLT (and the Grand Californian) have lower dues is because the nightly point costs are so much higher. Higher nightly costs means more points in circulation. More points means each point shares a lesser part of the financial burden. BLT is also a 15-story high-rise tower, which reduces costs for things like landscape and even property taxes. But the point situation is the primary reason the dues are lower. Expect them to also rise at the 3-4% level, but there's no reason to believe BLT dues will simply catch-up with the others.

 

[drusba]

End date means the contract expires and thereafter you have nothing. Its current impact on price is unclear. BLT costs what it does because it is the latest on the block and price likely reflects latest building costs, Disney's latest price increases, and just its ideal location. The 2042 resorts at WDW are much less expensive on the resale market but price reflects market conditions and desires -- e.g., one reason they cost less is because sellers paid much lower prices than Disney's current price and can make a profit at the lower price; in the other direction, the current economy has lowered prices from what they were last year.

It is probable that some buyers are now considering end date as a factor in their decision but what impact, if any, it is having on resales is unknown. Obviously as the resort gets closer to its end date, it will become a major factor in any decision, e.g., in 2035 a buyer is not going to pay any premium just to get 7 years of use. It is possible that Disney may at some point offer extensions like it has done at OKW which had the 2042 end date but now has 2057 for those who purchased the extension.

Dues generally go up some annually and the percentage annually can differ among the resorts so possible BLT could approach the dues of other resorts. However, the BLT dues reflect a built in factor that likely will keep them lower than others. The points needed to reserve per night are much higher than any other resort. Thus, they are selling far more points per unit than what was sold at any other resort and thus the total dues get spread out over a greater number of points per unit, which likely will keep the amount per point continuosly lower than other resorts.

 

[chalee94]

The entire history of maintenance fees is around here somewhere.

http://personalpages.tds.net/~rb/DIS/DVC/DVCDuesHistory.htm

 

[lborne]

Thank you to all for your very informative replies.

 

[twoexcitedtosleep]

Subscribing.