How can I justify DVC when dues can increase 15% each year?

[onvaca]

Did I read this correctly in the contract? If dues start at around $600 it could cost a fortune after just a few years. I realize 15% is high but there doesn't seem to be a dollar cap or any protection against this going to the moon.

Does anyone have more details on the ongoing cost associated with dues increases?

 

[RobDoc]

Since 1991, dues have increased an average of 3% per year. The last few years they have even decreased at OKW and BWV.

The documents you are reading speel out in some detail the provisions and limits available (worst case scenario) , but they do not always paint the actual picture.

If those possibilities worry you and the actual record of DVC for the past 10 years does not dissuade those concerns, then DVC may not be the program for you.

You might want to compare the room charge increases you have paid at WDW resorts during that same time. They have NO contractual restrictions on them and have risen much more than the 3% average. The difference there is that you can always change your vacation plans and just say no if you feel the rates are too high to go to WDW.

No right or wrong answer- just your own personal comfort zone. Enjoy!

Doc
doc@wdwinfo.com

 

[PamOKW]

15% is the worst case scenario set by FL law. It will never go up more than 15% in one year.

No one can predict the future but there are two factors to consider.

1. Disney has been in the resort business quite a few years and are pretty adept at running their business. There is a slim chance of a big surprise. They are currently funding reserves to pay for anticipated upkeep of the resorts.

2. You can look at the dues history to date. In the very first years of OKW costs went up about 5% per year. Since 1997 they've stayed almost constant, in fact, 2001 dues are slightly less than 1997!

1993 2.5629
1994 2.6986 5.29%
1995 2.8393 5.21%
1996 2.9883 5.25%
1997 3.1448 5.24%
1998 3.2743 0.94%
1999 3.164 -0.32%
2000 3.1623 -0.38%
2001 3.1272 -1.16%

 

[spiceycat]

when I brought I asked that question - the sales person then told me Disney probably (not would) go up around 6% (if that much) each year. so far dvc has gone up less and last year went down. my other timeshares kept going up and up, and they don't give me free transportation.

 

[ronw]

This initially bothered me as well but as folks have pointed out the increase so far has been modest. I feel as long as they are still building resorts they will wnat to keep the dues history looking reasonable.

 

[Dumbo]

My annual dues at Boardwalk Villas has gone down every year since I bought. Can someone please tell me which WDW resort hotel lowered it's price the following year?

Dumbo

 

[bicker]

How can you justify buying a house when the property taxes can go up much more than 15% per year?

Brian Charles Kohn
"in my own words"
Some Imagination, huh? - Mickey Mouse

 

[Towncrier]

Why should I invest in the stock market when it can go down 60% in one year!!!

Seriously, we too were concerned about the possibility of 15% annual increases in dues. I figured that, by 2042, we would be paying something close to the national debt for dues. I just figured that if the dues got too high, we would sell our interest in DVC for $1 per point. At that price, DVC would most certainly buy it back from us and we'd be out from under the dues.

 

[Jimbo]

but I think that our dues can only be used for maintenance of the property and for taxes. It's not like it can be used as a profit generator for Disney. And Disney does a pretty efficient job of running a resort, so I'm not especially worried.

 

[DeeP]

This has nothing to do with DVC dues, but Towncrier, where did you get the Mickey plush that is in your signature? He is adorable, I would love to get one.