newbie needs help with ???

[kgkmom]

Hi folks!

I've tried to figure out how this all works, and am still very confused! Tell me if I'm missing something-

-you buy an interest in a DVC resort, with a minimum of 150 points, and this is a *one* time purchase? $13K up front (or financed) for example?

-each year, you are given a new balance of points. These new points do *not* have to be paid for? This is where I'm confused. Are the points simply renewed or is there a fee for the points each year?

-in addition, there are yearly dues, which vary by resort. Is there a maintenance fee on top of this or is the maintenance fee the dues?

-what exactly are you paying yearly? For points and dues, or just dues?

-if you add on points, does this automatically increase the amount you receive yearly, or does the amount go back to your original purchase amount?

I've tried looking at several different sites FAQ's but haven't found the very basic info I'm looking for. Thanks for your help!

 

[CarolA]

I will try to respond to a few of your questions

1. The points cost $84 a point right now if you don't use MB. That is a one time fee. So once you pay (or finance) that you will receive 150 points each year. No new charge for points.
2. There is a manitnenace fee each year ranging around $4 for point. That is it. No other fees so you are just paying that each year.

Hope that helps.

 

[sparkspeak]

Originally posted by kgkmom
-you buy an interest in a DVC resort, with a minimum of 150 points, and this is a *one* time purchase? $13K up front (or financed) for example?

Right

-each year, you are given a new balance of points. These new points do *not* have to be paid for? This is where I'm confused. Are the points simply renewed or is there a fee for the points each year?

You get 150 points each year.

--in addition, there are yearly dues, which vary by resort. Is there a maintenance fee on top of this or is the maintenance fee the dues?

Yearly dues include annual maintenance, capital reserves and estimated property tax.

-what exactly are you paying yearly? For points and dues, or just dues?

Just dues. Dues are charged per point of ownership. If you own 150 points, you pay 150 times your resort rate. [e.g. 2003 WLV = $4.0542, per point +/- actual real estate tax adjustment.]

-if you add on points, does this automatically increase the amount you receive yearly, or does the amount go back to your original purchase amount?

If you buy 50 more points, you will receive 200 annually. You will also pay dues for 200 points annually.

 

[JR]

If you buy add-on points you will receive the additional each year in your use year month. In other words, if you buy 150 now and add 50 points later you will receive 200 points from then on at no cost.
What will change is your maintenance annual fee as it is based on the number of points you own. There is no additional fees than the maintenance fee. If you set up an Electronic Fund Transfer from your bank you can pay this monthlly.
FYI - We own 460 points at OKW and 150 at BCV, our fee this year is $176.70 each month.

We have been owners since 1977, have added points four times since initial purchase and have never regretted it!

One other charge you may incur is if you use your points at other that a DVC resort or the Disney Cruise line there is a $75.00 charge.

JR

 

[spiceycat]

add on - will increase your points from now on - unless of course you sell them - they also increase your MF

after the original purchase - the real estate - is paid off - you only pay maintence fees - mf - these are the dues that are due every year - DVC evens has a program that can draft your checking account every month (no extra fees for this)

I shouldn't call them MF - they are also insurance, MS, taxes and transportation as well as operating fees.

 

[CarolMN]

Just to clarify a bit:

Annual dues are often referred to as maintenance fees. Different name but same thing.

After the initial purchase price is paid, the only expense is the yearly fees (aka annual dues or maintenance fees). Annual dues are based on the number of points you own and the amount per point varies depending on the resort.

 

[Caskbill]

We have been owners since 1977

Wow, I'll bet you were really getting anxious waiting for OKW to finally open in 1992.

Just kidding. I'm sure JR meant to say 1997.

 

[Dean]

Think of it like a regular timeshare where you get a week every year. Instead of the week, you get the points to use in a flexible way.

 

[kgkmom]

Thanks everyone! This really helps clear some things up. I love the built in flexibility of the program, and the fact that I can take my DD to WDW for *our* vacation, and send my husband to HH for his!

Thanks again!