How do Dues work?

[heathrow42]

First let me say thank you - I have been reading alot of the DVC posts and FAQ's trying to figure this all out.

I finally 'got' the point system - but I don't understand what the dues are. I found a thread that mentions that annual dues for ssr are $3.80. I am guessing this is per point? If so.. that seems kinda high ($760/yr for 200 points) in addition to the points.

Actually, let me make sure I have it right. If a point is $70 - and you buy 200 points it costs $14,000 - (a cost which if you choose, you can finance over some period of time.) Then you get 200 points each year - but it doesn't cost you 14,000 each year? ..and then if a one night stay is 12 points ... does it mean that 1 night cost $840?

..Just when I thought I had it..

also I found some posts about re-sales that mentioned there were no dues.. ? Are dues just something you are charged for buying through disney?


Thanks for any info-- now the next step will be trying to convince DH -- the only place he will consider staying is the Contemporary tower. When I used the DVC calculator i think it came out, that it just wouldn't be worth it to get DVC and stay at the tower all the time. (is there any kind of reverse calculator? That shows what cost-in-points would be in dollars)

..is it possible to go and see SSR -- I know it's not open yet, but are they letting potential buyers check it out?

Thanks,
--heather

 

[Poorman]

Dues are per year. If you have 200 points X dues per point= dues.

Cost of the points to buy is a one time price.

In a few years you can sell if you find you don't want them,which

is doubtful.

Hope this helps.

 

[PamOKW]

You are correct that the initial investment is "one time only". The dues are yearly and are set in December every year. These cover the cost of running the resorts including the salaries of the workers (maintenance), saving for expected capital expenses like new roofs, painting, paving, etc. (capital), and the the real estate taxes that assessed on each resort (tax). It's just like your home. You buy your house but then those pesky utilities, repairs and tax folks keep knocking on the door for money.

 

[Chuck S]

Let's say you plan to keep your timeshare 38 years. $70 per point/38 years =$1.85 per point per year + dues (which can and do vary annually), but figure, an average of $3.80 per point for THIS YEAR, that is a total of 5.65 per point. So that 12 point room costs $67.80. If you finance, you'll need to add some to cover the finance charges. Depending on your "home" resort, your dues may be more or less than the $3.80 I used for this demonstration.

 

[CarolMN]

The value of DVC is staying at one of the DVC resorts. If you plan to stay only at the Contemporary Tower, then DVC is not for you. You will be much better off (economically) by continuing to pay cash for your stays.

It is true that DVC gives members the option to take a cruise on DCL or to stay at other non-DVC resorts. However, these options are "re-valued" every year. The cost in points can (and has) gone up every year. That is not true for the point cost to stay at one of the DVC resorts. Your purchase pretty much "locks-in" your lodging costs if you stay at a DVC resort. There are a few more details that go with this explanation, but the main idea is that it is not a good deal to buy DVC unless you plan to stay mostly at one of the DVC resorts.

My advice is to get your DH to just try one of the DVC resorts. Perhaps you could rent points and stay in at least a one bedroom unit. Many of us have changed our idea of a "favorite" resort after just one stay in the spacious DVC accomodations.

Good luck!

 

[tjkraz]

Let's look at some actual numbers for comparison's sake. I'll use BCV as an example since all of the data is available.

Let's say you decide you want to spend a week (7 nights) in a 1B resort room at BCV each October. The "rack rate", at $435 per day, comes to $3045 not including tax.

The DVC point cost for this same stay is 214 points.

An initial purchase of 214 points at $85 per point would have been $18,190. You are then responsible for annual dues at $3.97 per point. So after your initial investment, your annual payments would total only $849 for your week's stay. You're "saving" about $2200 PER YEAR in vacation costs when comparing the annual dues to the rack rate for the exact same room.

At $2200 savings per year, it takes you about 9 years to recoup your initial $18k investment, but from that point forward, you get another 30 years worth of vacations for a FRACTION of the cost.

I didn't use SSR in my example because there are no published rack rates. However I suspect it will compare even more favorably for a numbers of reasons:

- Initial point cost is as low as $79 with current incentive.
- Nightly point "costs" are lower than BCV--only 194 points per year for same room in example above.
- First year dues are less: $3.80 per point.
- SSR contracts run 12 years longer than BCV or any of the other DVC resorts.

As CarolMN said, you will not fare nearly as well if you wish to constantly trade into a non-DVC resort like the Contemporary.
Resort location notwithstanding, the DVC rooms are simply the best available on WDW property.

Model rooms are available for viewing at the Boardwalk resort. Here is a link to some photos from the model, as well as current SSR construction photos:

http://disneydoc.homestead.com/SSRModels.html

Speaking as someone looking forward to years and years of family vacations at WDW, my only regret is that we didn't buy sooner.