hope this doesn't irritate anyone...

[shantay1008]

Okay, I need to consult the Council of DVC Elders. We talk about DVC being pre-paid vacations, but we do have the dues to pay every year, so the rooms aren't completely pre-paid, really, even if you've paid for your membership in full. I would like to state very clearly that I am not complaining about the dues, but am just wondering how to think of them in the most positive light. Maybe just knowing exactly what they pay for will help, or some other mind trick. They'll keep increasing in cost, so I think I'd better develop a good relationship with them (and be able to remind DH why we have to pay them every year).

Again: not complaining about dues, knew that I had to pay them when I signed up...just wondering how others feel about them. Thanks!

 

[JimC]

Consider the purchase as paying for the resort's inital design and construction -- infrastructure, buildings, furnishings, landscaping.

The dues are paying to operate and maintain the resort, including reserves to refurbish periodically.

 

[dianeschlicht]

The maintenance fees also pay for property taxes, transportation, personel, etc, etc.

 

[Beca]

Dues are definitely the most expensive part of DVC. However, we look at it likt this....the initial cost of points for our memebership came out to appx. $1.70 per point, per year. Then, we add in MN fees (about $4.50 per point, per year currently). Or come out to appx $6.20 per point, per year.

If our studio room at BCV is 12 points per night, we are getting a room at our favorite deluxe resort for $74.40 that night (taxes included)....that IS a real bargain...even when you count MN fees.



Beca

 

[ericamanda01]

Beca thanks so much for putting it so simply. DH and I are going over all the information and that was the one thing he was most unsure about!

 

[Caskbill]

You can also think of it as you would your house. Suppose the house you live in now is completely paid for. You would still have utilities, insurance, taxes, and so on. But, even paying those, your monthly expenses would still be less than if someone else owned the house and you were just renting it.

DVC is like that. You've bought the property, and so only have the continuing items like taxes, insurance, etc to continue paying.

Not owning DVC would be like staying in a hotel instead. You're 'renting' instead of owning. The cost of everything is thrown into the room price, including a hefty profit. (DVC is not allowed to make a profit, so maintenance fees have to be only the amount required to cover actual expenses)

 

[simpilotswife]

Whether it's dues or whether it's room costs, the price to stay at WDW is going to increase. Buying DVC at least gives you some control over what you are spending to stay onsite.

 

[LIFERBABE]

We purchased DVC instead of a Orlando Vacation home.

I figured we would have to rent our home to cover the upkeep and mortgage. Knowing that most rental homes sit empty for at least 3 months out of the year total, those 3 months we would have to cover those costs.

We figured at best, we would spend no more than 30 nights per year in our Vacation Home and some of that time would be spent on maintaining and repairing that home.

Instead, we purchased DVC, we still spend about 30 nights per year, no DIY projects, and our 3 months of mortgage reserves covers our DVC Annual Dues. For us, dues are a bargain compared to keeping up a vacation home.

Yes, a home is an appreciable asset, but we wanted a VACATION home and we knew it wouldnt be a vacation for a long time if we purchased and rented it out.

 

[disney junky]

A way that we looked at it was comparing it to what we pay for a vacation condo at Myrtle Beach. Generally for a nice 3 BR 2 BA condo on the beach, we pay about $1800 during the season we can go. That's more than two years of dues for our semi-annual trip during the same time period, in a 2 BR 2 BA at BWV. As far as how I view the initial cost, right now I could sell for at least as much if not more than I paid. There is the cost of that money, but I am not one to factor in every detail. All I know is that I can use it more like a vacation home than I could anywhere else.

 

[shantay1008]

We purchased DVC instead of a Orlando Vacation home.

I figured we would have to rent our home to cover the upkeep and mortgage. Knowing that most rental homes sit empty for at least 3 months out of the year total, those 3 months we would have to cover those costs.

We figured at best, we would spend no more than 30 nights per year in our Vacation Home and some of that time would be spent on maintaining and repairing that home.

Instead, we purchased DVC, we still spend about 30 nights per year, no DIY projects, and our 3 months of mortgage reserves covers our DVC Annual Dues. For us, dues are a bargain compared to keeping up a vacation home.

Yes, a home is an appreciable asset, but we wanted a VACATION home and we knew it wouldnt be a vacation for a long time if we purchased and rented it out.

Could you explain what you mean by "3 months of mortgage reserves [cover] our DVC Annual projects"? Sorry...I'm coming to financial "savvyhood" a bit late. Better late than never, I suppose.

Thanks so much to everyone for your responses, by the way....

 

[LIFERBABE]

Could you explain what you mean by "3 months of mortgage reserves [cover] our DVC Annual projects"? Sorry...I'm coming to financial "savvyhood" a bit late. Better late than never, I suppose.

Thanks so much to everyone for your responses, by the way....

Oops! that should be DVC Annual Dues! LOL!! It was late! And DIY projects is Do It Yourself projects.

No problem shantay, what I meant was that if we owned a vacation home, we estimated that there would be a shortfall of 3 months every year where our home would sit unrented. Those 3 months we would have to cover the costs. I would have to have that money in the bank to cover the expenses, so that is the reserve.

We were looking at mortgage and management costs of about 2,000 per month for a vacation home. So we would need to keep $6,000 in the bank to cover what rentals did not.

Our DVC dues are far less than $6k a year and we get to enjoy our vacation not maintain someone elses.

 

[shantay1008]

Thanks...I get it now. Sorry I quoted you wrong...I was focusing on the three month reserve part.

When we were at SSR in early Feb., my mom met a couple from Alaska who own enough points to stay at WDW for a month every year, so maybe quite a few people have the same strategy as you. I could handle a month at WDW every year.