Maintenance Dues out of this world

[Disney Lover JJ]

I was just wondering if everyone else has the same concerns I do about maintenance dues...I'm looking to buy into the DVC and the initial price per point is more than OK for me (let's consider 25,000 for 250 as an example) but if I buy into the SSR that means that I will have to pay 48 years of dues...and at $4 a point (and it will continue to increase) that's an additional $48,000..bringing the total to at least $73,000. That is a lot of money for something that I will loose on Jan 31st 2054. What do you all think?

 

[MissD]

I've decided that will be my children's concern--since in 2054, I'd be 96 and DH would be 102

In the meantime, we're going to enjoy every minute of our DVC!

 

[1000th happy haunt]

The question you need to ask youself is how much you would spend on hotel accommodations if you don't buy into DVC.

My husband is thrilled that we don't have to pay for a hotel at WDW any more.

 

[LisaS]

Unless people take the time to calculate out the real cost of DVC, they miss the fact that the dues are the largest expense over the contract's lifetime. That's why every so often someone new posts that they are looking to get into DVC for the lowest cost and ask "shouldn't I just buy VB since those resales are typically the lowest cost per point?", ignoring the fact that VB has the highest dues and so will actually cost you more over the contract's lifetime.

But if you normally go to WDW once or twice a year and stay in deluxe resorts, even with the dues, you will break even with DVC in 7-10 years. After that, your accommodations are costing you just the cost of your dues.

 

[DizGeek]

I was just wondering if everyone else has the same concerns I do about maintenance dues...I'm looking to buy into the DVC and the initial price per point is more than OK for me (let's consider 25,000 for 250 as an example) but if I buy into the SSR that means that I will have to pay 48 years of dues...and at $4 a point (and it will continue to increase) that's an additional $48,000..bringing the total to at least $73,000. That is a lot of money for something that I will loose on Jan 31st 2054. What do you all think?

Eeek! I think you just helped me with my "should I buy DVC" decision!

Thanks!

 

[allflgirl]

I made all these calculations myself BEFORE I bought into DVC at SSR. As one of the previous posters mentioned, you will recoup your initial investment if you go to Disney once a year at around 7 - 10 years. After that, it's only the cost of the dues you're paying for your yearly trip. This is the way I look at it:

I have 150 points at SSR - $3.97 per point for maintenance fees for '06.

Conservatively - at 10 years I'm only paying dues for my yearly 10 night stay (studio for only Sun - Thurs nights) at that point maybe around $5.92 (4% increase every year) = $888.00 for my yearly dues.

Right now, even when I stay off property, I stay at only 4* & 5* resorts costing on average $160 - $225 per night. In 10 years that should be around $235 - $333 per night PLUS tax which is another 11.5% on top of that. Staying 10 nights with tax could be as much as $3,700 compared to $888.00 with DVC.

It's that initial lump sum that was hard to swallow for me. Now if the maintenance costs are around $30 per point in 10 years, I'm out and will probably have a hard time selling my contract. I don't see that happening with DVC's past history.

 

[HUFF590]

I've decided that will be my children's concern--since in 2054, I'd be 96 and DH would be 102

In the meantime, we're going to enjoy every minute of our DVC!

Great answer I think Ill do the same

 

[HUFF590]

Ok before DVC we where spending around 2000 a trip for a week(stop) now everybody is different but that was my case, DVC was and is my best option.

 

[allflgirl]

I've decided that will be my children's concern--since in 2054, I'd be 96 and DH would be 102

In the meantime, we're going to enjoy every minute of our DVC!

I like that idea. Now, I've got to get me a few children.

Julia

 

[crisi]

Conventional wisdom is that resort rates will continue to outpace maintenance increases. During some years that may not be true, but its probably true over time (I'm expecting bargains for resort stayers next year with gas price hikes, but we will get passed along the increases for running the resort). And if they do hold true, a 5% increase on $4 in dues is less than a 5% increase on a $400 hotel room.

The bigger risk is that you won't continue to USE your points. If you continue to go to WDW, this is a good deal. If you go for another three to five years, then have a job loss in a down economy and reselling is tough . . . .

 

[tmt martins]

I agree and since they are the numbers you are using that comes out to about $1520 per year for those 250 points.

You could get 5 full weekday weeks out of that in a Studio or 2 full weeks .

So that would be $300 per trip to $700 per trip and there's no way you will ever beat those prices in 20 to 48 years.

 

[JandD Mom]

Your numbers are correct, but here is what I considered in taking the plunge...

If we don't use it, we can sell it back. If membership costs $15,000 now, and it doesn't appreciate, if you decide to sell it in 10 years, you will get the $15,000 back.

Then you have gone away for only the cost of your annual dues, which this year would have been $595.50. Could you have paid cash with Disney and rented a villa for the same amount of time for the same money?

This does not take into account the possibility that you could rent your points that you don't use for more than the annual fees.

Remember, currently, DVC buys back resales fairly aggressively to support its price structure. Some of the gurus here think that as long as DVC is going to build more resorts, they need to buy back the resales to support the high prices. As a result, DVC is one of the only timeshares on the market that to date holds its value or increases in value.

 

[MissD]

I like that idea. Now, I've got to get me a few children.

Julia

If I'd known about DVC first, I'd have fewer children and more points..
The maintenance on the points is much lower!

 

[rigs32]

If Dh and I choose to buy in, our plan is to buy enough points so that if we cannot afford the fees each year, we can rent enough points to cover the fees and still have enough for five days in a studio. Since we can stay at SOG, we realized it doesn't make sense to buy in for our family.

If they ever create a DVC at AKL with a savannah view, we make have to rethink that.

 

[Granny]

If I'd known about DVC first, I'd have fewer children and more points..
The maintenance on the points is much lower!

This may be the most insightful thing I've read recently on these boards!!!

 

[solgent]

I was just wondering if everyone else has the same concerns I do about maintenance dues...That is a lot of money for something that I will loose on Jan 31st 2054. What do you all think?

I think that other people have boats or RVs for vacations and those don't last forever. There are annual costs of storing and operating those things in addition to the initial purchase price.

Other people have vacation houses. These don't have an expiration date, but the initial cost is much higher, and you have to maintain and pay taxes on and worry about them. (See the thread on the Budget Board about buying a vacation house in the Orlando area.)

So, I'm satisfied with the deal I get from DVC.

One thing that we did was get a Disney Visa card. You get one percent of your purchases as a reward, and we use it for dues. At our level of spending this doesn't cover all the dues but it reduces them, and it feels like free money. (We always pay the balance in full.)

 

[Anthony1971]

My last trip will be when I am 82
by that age I will not remember how much I spent on dues
just hope I know where I am
besides I will probably be living with my child and my dues would be magically paid for the last?????

 

[MissD]

This may be the most insightful thing I've read recently on these boards!!!

Thanks
My moments of insight seem to be rare these days

 

[HUFF590]

My last trip will be when I am 82
by that age I will not remember how much I spent on dues
just hope I know where I am
besides I will probably be living with my child and my dues would be magically paid for the last?????

Wow I just thought about that Ill be 92 my son 72 his son 54 we might all be to old to enjoy it

 

[Buckalew11]

If you never go to WDW or on a vacation again, do you know how much $$ you'll save?
If you don't have children, look how much $$$ you will save! And if you have them but they don't go to college, think of the $$$ you'll save.

I just don't think you can look at it that way. I think you have to live life while you are here and enjoy it. I'm paying elementary school tuition--when DD graduates, I'm gonna have a lot of $$ in her education. I don't even want to add it all up because to me, it is worth it.