Maintenance Fees questions

[Dismrk155]

You can see what the annual dues per point per resort have been from the beginning of DVC until now here at post no. 5 https://www.disboards.com/threads/the-dvc-resource-center-updated-july-2020.3655476/

Lol. My head spins a little. I thought managerial economics was hard.

 

[Sandisw]

holy disney. How many weeks can you stay on 775 points? Let's keep it simple a 1 bedroom at kindani or similar.

I bought them to go monthly now that I am retired for 3 to 4 nights December to April and then a family trip every few years,

But, for SSR average night is around 30 for a 1 bedroom so 20 to 24 yearly!

ETA. About the same for a standard view at Kidani!

 

[Dismrk155]

Not bad. 20 to 24.

 

[TCRAIG]

I wish $500 a year - heck - even $500 a month would be a savings for us - but then again - I have a lotta points...

 

[Dean]

holy disney. How many weeks can you stay on 775 points? Let's keep it simple a 1 bedroom at kindani or similar.

It varies by season/dates but that's roughly 3 weeks at AKV in a Savannah view. DVC is expensive but so is Disney in general. To make DVC make sense you need a certain amount of on property and timeshare experience, value staying on property, be able to plan ahead at least 7 months but preferably 11 months, be OK with the compromises of a timeshare and be able to afford it and the future dues (to me that's pay cash).

 

[LadybugsMum]

When do the updated point charts for the next year typically come out?

 

[Sandisw]

When do the updated point charts for the next year typically come out?

Anywhere from late November through mid January. These would be 2022 charts, 2021 were released late last year

 

[Deb & Bill]

Wow. Much higher than I ever dreamed of. Do you know how much they go up every year?

If you check out this thread, https://www.disboards.com/threads/the-dvc-resource-center-updated-july-2020.3655476/#post-58628435 and go to post #5, there is a history of annual fees for each resort. The number is per point. The DVC Resource Center thread (at the top of each board) has a whole lot of information on DVC.

 

[DebbieB]

Wow. Much higher than I ever dreamed of. Do you know how much they go up every year?

I've owned BWV since 1999. The first year it actually dropped a little! In 2019, it went up 9.4% due to pay raises. Most years around 5%.

 

[CarolMN]

I've also owned BWV since 1999.

Since 1999, the CAGR for BWV annual fees is 2.92%. To compare, The U.S. dollar experienced an average inflation rate of 2.13% per year during this period. IMO, increases in at least BWV annual fees have been very reasonable.

You can calculate CAGR for your resort with the help of online resources. The older the resort, the more reliable the answer as a predictor. Of course, history does not guarantee the future.

Data Sources:

• https://www.disboards.com/threads/the-dvc-resource-center-updated-july-2020.3655476/#post-58628435
• 
  
• https://cagrcalculator.net
• 
  
• https://www.in2013dollars.com/us/inflation/1999?amount=1

 

[LadybugsMum]

Just paid my MF for my direct contract with a gift card that was supposed to be for my Sept trip. No dues until January.

 

[Dismrk155]

I've also owned BWV since 1999.

Since 1999, the CAGR for BWV annual fees is 2.92%. To compare, The U.S. dollar experienced an average inflation rate of 2.13% per year during this period. IMO, increases in at least BWV annual fees have been very reasonable.

You can calculate CAGR for your resort with the help of online resources. The older the resort, the more reliable the answer as a predictor. Of course, history does not guarantee the future.

Data Sources:

• https://www.disboards.com/threads/the-dvc-resource-center-updated-july-2020.3655476/#post-58628435
• 
  
• https://cagrcalculator.net
• 
  
• https://www.in2013dollars.com/us/inflation/1999?amount=1

So maintenance fees go up every year? Are they capped at a certain percentage?

 

[Dismrk155]

Wow. It's higher than my property taxes in New York. The percentages that is. On a $170000 house my property taxes are around $2000. My school taxes would be around $2000 as well. With the star exemption because I'm old...my school taxes are around $900.

 

[Dismrk155]

Is it safe to say that most people who own DVC are well off? If so has anyone thought of buying a condo or house and renting it out thru a rental company?
Were always thinking about this option. Thanks to all who share their knowledge about DVC and fees and the like. Everyone of you helps all of us.

 

[Sandisw]

Is it safe to say that most people who own DVC are well off? If so has anyone thought of buying a condo or house and renting it out thru a rental company?
Were always thinking about this option. Thanks to all who share their knowledge about DVC and fees and the like. Everyone of you helps all of us.

I think a large range of people own DVC. We have considered a condo to rent when not there but DH is not a fan of wintering in Florida so more likely will be a beach condo to add to DVC, now that we are retired,

But, because of our older dog, that won’t happen for a few years, so I’ll go monthly to Disney during winter months until then!

 

[CarolMN]

So maintenance fees go up every year? Are they capped at a certain percentage?

Wow. It's higher than my property taxes in New York. The percentages that is. On a $170000 house my property taxes are around $2000. My school taxes would be around $2000 as well. With the star exemption because I'm old...my school taxes are around $900.

Yes, maintenance fees generally increase each year and must reflect only the costs to operate the resort. They can't increase more than 15% a year per the POS. The limit does not apply to the property tax portion of the dues. AFAIK, there is no limit to property tax increases, We have never seen an increase anywhere near 15% in one year for any of the DVC resorts (including the taxes).

FWIW, I don't think an average increase between 2-3% each year (including the taxes) is unreasonable. The maintenance cost plus taxes for our home in Minnesota goes up more than that every year and I can't believe that the maintenance costs plus taxes for the people who live in New York go up less than 2-3% per year, either.

 

[tjkraz]

Wow. It's higher than my property taxes in New York. The percentages that is. On a $170000 house my property taxes are around $2000. My school taxes would be around $2000 as well. With the star exemption because I'm old...my school taxes are around $900.

A better comparison would be: what do you pay on your house for property taxes, utilities, housekeeping, maintenance, insurance, pool & other recreation, money set aside for new furniture, roof replacement, etc.

If so has anyone thought of buying a condo or house and renting it out thru a rental company? Were always thinking about this option.

There are people who do it. You probably need to have a good piece of property, willingness to keep it up to date and sufficient finances to weather economic hardship. There are literally hundreds of for-rent houses and condos in Florida. Owning one doesn't guarantee anyone will ever want to stay there. And when tourism disruptions occur--like a recession or Covid--you still need to pay mortgage, taxes, utilities, etc.

 

[Dean]

Yes, maintenance fees generally increase each year and must reflect only the costs to operate the resort. They can't increase more than 15% a year per the POS. The limit does not apply to the property tax portion of the dues. AFAIK, there is no limit to property tax increases, We have never seen an increase anywhere near 15% in one year for any of the DVC resorts (including the taxes).

FWIW, I don't think an average increase between 2-3% each year (including the taxes) is unreasonable. The maintenance cost plus taxes for our home in Minnesota goes up more than that every year and I can't believe that the maintenance costs plus taxes for the people who live in New York go up less than 2-3% per year, either.

And since they can adjust over more than 1 year there really isn't a true cap just like there isn't on reallocation as DVC has already proven.

 

[chalee94]

So, I own SSR, BLT, and RIV. I pay the per point for each of those contracts based on the specific resort.

Of course, owning 775 now...

The jealousy burns!

...my bill is between $4 and $5k a year.

OK, it's better now.

 

[chalee94]

Is it safe to say that most people who own DVC are well off? If so has anyone thought of buying a condo or house and renting it out thru a rental company?
Were always thinking about this option. Thanks to all who share their knowledge about DVC and fees and the like. Everyone of you helps all of us.

DVC is fairly scalable. If you purchase a small 50 pt contract, your upfront cost and your dues are smaller. But you would be stuck in a small hotel-room-sized studio for fewer nights. So it depends on what you are trying to do. But for onsite, it can be a good deal for some Disney fans who will pay a premium to stay on property.

IMO, you would need to be a lot more well off to roll the dice on purchasing a condo or house. HOA dues can run over $500 per month, the rental company will be taking a significant percentage of revenue and it's a brutally competitive rental market. But you can do searches on the DIS to research the possibilities if it sounds like your thing.

Besides DVC, I also have a $1 ebay timeshare with low annual dues that I can easily trade for weeks at local Marriott and Sheraton timeshares. Discounted rental weeks are usually easily available through the timeshare company (Interval International) and if you don't own a timeshare at all, you can often still find great deals on resorts like the nearby Sheraton Vistana and Wyndham Bonnet Creek - skyauction is one method. Just an idea if you don't mind offsite but prefer larger condo-style accommodations...

https://www.disboards.com/threads/should-we-try-sheraton-vistana-resort-villas.3758641/