Ongoing costs of DVC ownership

[Cheltenham]

I have been researching DVC before purchasing. I understand there is an annual maintenance fee per point, which has generally been increasing little over 3% a year. Is there any limitation on how much this can increase each year? How is the increase determined? Also, if the resort encounters some huge un-budgeted expense, can it be passed onto the DVC owners as a special assessment - as they do, for example in some condos?
Thanks.

 

[TSMIII]

I have been researching DVC before purchasing. I understand there is an annual maintenance fee per point, which has generally been increasing little over 3% a year. Is there any limitation on how much this can increase each year?It's capped at 15%, IIRC How is the increase determined?It's a function of the costs associated with running the DVC component at the resort you own at as well as running the program (Member Services, Member Accounting, etc.) Also, if the resort encounters some huge un-budgeted expense, can it be passed onto the DVC owners as a special assessment - as they do, for example in some condos?Yes, though as far as I know they've not ever done this. I recall talk of HHI owners having their dues increased to pay back a loan for something, maybe one of the owners from there can elaborate on that for you.
Thanks.

You can try to search the forum for additional answers and someone may have a POS readily at hand to quote from regarding the limitations on increases. Also, if you can find a post with an example of the maint. fee statement from one of the resorts you can get an idea of the various cost components.

 

[Cruella 66]

This is our 3rd year owning and our dues for BLT went DOWN about $5 a month this year...so no, it hasn't been increasing 3% a year. Cindy

 

[drusba]

Cap is 15% per year, it has never reached that for any one year, and dues charged must be based on reasonable estimate of actual costs (there are accepted accounting guidelines and rules for estimating dues for a timeshare that Disney follows). DVD, which retains ownership of a percentage of the units, has its choice annually under the law to either (a) actually pay all dues relating to its ownership interests or (b) not pay such dues but instead guarantee that the budget and dues statement you receive at the beginning of the year that is applicable to the calendar year are the dues you will pay for the year and there will be no special assessments during the year. The exception to (b) is for disasters (which are likely covered by insurance and thus may not need any special assessment). Disney has annually chosen option (b) and as a result, we have not had any special assessments during a year after the dues statement was issued.

 

[backyardponder]

WebmasterDoc has posted this over the years. It looks like I missed the 2011 update, but you might find it helpful...

Year OKW VB(s) VB HH - BWV VWL -BCV SSR AKV -BLT VGC

2010 4.87 5.18 6.61 5.57 5.36 5.20 5.15 4.46 4.95 3.78 3.94
2009 4.73 4.97 6.41 5.36 5.21 5.04 5.00 4.34 4.85 3.67 3.82
2008 4.56 4.71 6.04 5.16 5.04 4.87 4.80 4.21 4.71
2007 4.40 4.39 5.63 4.98 4.85 4.73 4.63 4.12 4.62
2006 4.24 4.12 5.27 4.34 4.69 4.61 4.48 3.98
2005 3.86 3.84 4.87 3.86 4.41 4.35 4.27 3.83
2004 3.68 3.67 4.67 3.70 4.25 4.22 4.18 3.80
2003 3.49 3.37 4.37 3.69 4.11 4.05 3.97
2002 3.22 3.33 4.17 3.49 3.92 3.80 3.77
2001 3.13 2.70 3.98 3.32 3.83 3.63
2000 3.16 2.87 4.07 3.25 3.94 3.62
1999 3.16 2.82 3.99 3.18 4.02
1998 3.17 2.76 ---- 3.20 3.94

 

[LisaS]

DIS'er robinb maintains a set of DVC dues tables on this webpage: http://personalpages.tds.net/~rb/DIS/DVC/DVCDuesHistory.htm

It hasn't been updated for 2011 but otherwise is a great reference to see the dues increases both in dollars and percentages over the years.

 

[Cheltenham]

DVD, which retains ownership of a percentage of the units, has its choice annually under the law to either (a) actually pay all dues relating to its ownership interests or (b) not pay such dues but instead guarantee that the budget and dues statement you receive at the beginning of the year that is applicable to the calendar year are the dues you will pay for the year and there will be no special assessments during the year. The exception to (b) is for disasters (which are likely covered by insurance and thus may not need any special assessment). Disney has annually chosen option (b) and as a result, we have not had any special assessments during a year after the dues statement was issued.

Thanks for the information.
Doesn't this mean that the DVC members are effectively covering the dues for the units owned by DVD?

 

[drusba]

Thanks for the information.
Doesn't this mean that the DVC members are effectively covering the dues for the units owned by DVD?

Possibly, possibly not. Disney does not have to pay dues up front. However, total budget and dues per point at beginning of the year are calculated by including Disney's ownership share (essentially its points). Basically, Disney gets a pass if actual costs during the year do not exceed dues collected from members, but if such costs do exceed that amount Disney pays all the excess when needed towards end of year. How well a deal it has been for Disney is unknown but my guess is they make out some years and others not. One risk they have is members who default on paying their dues (which can ultimately result in the foreclosure of the member's ownership interest if it is not cured). In other words, the total collected from all members is actually less than the total billed to all members and Disney pays excess costs over the total collected. I am pretty sure member defaults have been a more significant problem for Disney than usual during the last few years because of the economic crash.

 

[CarolMN]

The DVC Resource Center right here in this forum (STICKY near the top of the Forum) is full of DVC facts and other good-to-know info - including an up-to-date history of the dues (which includes 2011).

Check out post #2 for the dues and the rest of the thread to see what's there. You'll be glad you did.

 

[disneynutz]

Dues aren't the only yearly expense. Don't forget your travel, food, admission, and miscellaneous expenses. For our party of 2 adults it's about $1500 depending on where we eat and the costs increase every year. If we eat every meal at Disney restaurants and/or use the DDP, the cost would be more like $2500.

Bill

 

[DebbieB]

This is our 3rd year owning and our dues for BLT went DOWN about $5 a month this year...so no, it hasn't been increasing 3% a year. Cindy

That probably happened because in the year you buy, you have to catch up after closing on the dues. Dues are calculated from the day you buy but are not due until after closing. So for example you may have to pay 5 months worth of dues in 3 months. So the following year the monthly amount may go down because you are paying 1/12 each month. But the annual dues rate did not go down.

BLT dues have gone up about 3% annually:

2009 $3.67
2010 $3.78
2011 $3.89

The other possibility is that there was a property tax refund that was divided out.

 

[Garthilk]

Going to be interesting, as the dues keep increasing. Wonder just how much of a value things are going to be when the dues get up to $10 or $20 per point. I mean it's easy to continue the trend of 4% increases per year and blame it on inflation or increased healthcare costs, etc.

 

[CarolMN]

Going to be interesting, as the dues keep increasing. Wonder just how much of a value things are going to be when the dues get up to $10 or $20 per point. I mean it's easy to continue the trend of 4% increases per year and blame it on inflation or increased healthcare costs, etc.

You really have to compare it to the cost of a room and I'm sure that cost will continue to go up at least as fast as the dues.

 

[chalee94]

Going to be interesting, as the dues keep increasing. Wonder just how much of a value things are going to be when the dues get up to $10 or $20 per point. I mean it's easy to continue the trend of 4% increases per year and blame it on inflation or increased healthcare costs, etc.

you used to be able to stay at the poly for $30 per night. i can't believe people still go to wdw any more...

if dues go up, it won't happen in a vacuum. here's a thread with a perspective check for you:

http://www.disboards.com/showthread.php?t=2149578

 

[Sandisw]

That probably happened because in the year you buy, you have to catch up after closing on the dues. Dues are calculated from the day you buy but are not due until after closing. So for example you may have to pay 5 months worth of dues in 3 months. So the following year the monthly amount may go down because you are paying 1/12 each month. But the annual dues rate did not go down.

BLT dues have gone up about 3% annually:

2009 $3.67
2010 $3.78
2011 $3.89

The other possibility is that there was a property tax refund that was divided out.

BLT did have a property tax adjustment that was reflected in a credit to the 2010 dues.