Maintenance Fees?

[ChiTownZee]

How much will maintenance fees be for the new beach club? How do they compare to the current resorts?

 

[CarolMN]

Look for the post by PamOKW in this thread:

http://www.disboards.com/showthread.php?s=&threadid=165704&highlight=dues

She's listed the 2002 dues for all of the DVC resorts. It's the 3rd post in the thread.

Good luck with your decision.

 

[ChiTownZee]

So the dues rise every year? Those dues are a lot of money so that doesn't feel like 'locking in a price'

 

[PamOKW]

The dues cannot go up more than 15% due a cap placed by Florida law. However, DVC dues have stayed pretty steady for quite a few years. This year's increase was the first in quite some time. In fact, in some recent years dues went down slightly.

The dues cover operating costs, capital expenditures and real estate taxes. These are all variables that go up with inflation and increased costs.

Taking OKW as an example --

In 1997 dues were $3.1448 per point. In 2002, they are $3.2163. That's an increase of $.07 or 2% over a 5 year period.

 

[CarolMN]

FWIW, the 15% cap is per year.

Keep in mind, that DVC members do not pay the 11% FL tax on their accomodations. Also, WDW hotel rates seem to increase every year. IIRC, the resort rate percentage increases have been larger than the maintenance dues percentage increases.

As Pam said, the increases in dues have been minimal so far. I remember that the BWV dues have decreased from the previous year at least once since we joined in 1999.

DVC is not for everyone. I'm sure you will want to do all the math for your own situation. Good luck with your decision and feel free to ask any other questions that you may have.

 

[Granny]

I struggled with the 15% cap myself at first....that can really add up over 40 years of increases!!!!

But then I found out that DVD cannot make a profit (by law) on the maintenance fees. They must reflect actual costs. So Disney cannot jack up maintenance fees to help profits.

As has been pointed out, the increases have been very modest over time...much less than the resort room increases.

 

[Caskbill]

Yes, dues do go up. What doesn't go up?

In 1993 our OKW dues were $2.56 and for 2002 they're at $3.22. That's a 26% increase. But put it into perspective.

26% over 9 years is less than 3% a year. In 1993 a 1-B/R OKW villa, mid season (Dream season) was 20 points/night. In 2002, that same room is still 20 points/night. So in 9 years, at an increase of $0.66/point in dues, that villa now costs me $13.20 more per night.

Just compare that increase to the increases on any of the hotel rooms at WDW, and don't forget the 11% tax. Show me any other hotel room that has gone up in price only an average of $1.46 per night per year, for the last 9 years.

More likely they've gone up 8 to 10% a year, or more. So a hotel room that was $129/night last year going up 10% could be about $141/night this year, plus tax. Or a total of $13.32 per night increase in just one year. That's more than DVC went up over 9 years!

Even going up only 5% (dream on ), a $129/night room last year would be $135/night this year, or with tax, $7.16 more per night. More than half of what DVC went up over a 9 year span, in just one year.

It's all perspective.