Question re: DVC inflation...

[Tony]

OK, we're thinking of taking the plunge, but would like to ask about inflation.

Typically, how much do the annual dues increase each year? We'd be looking at buying resale at the BCV, but any general idea would be appreciated.

Also, do the number of points per night increase year on year? I can understand that they may adjust seasons from time to time, but do rates go up a point or two each year too?

Many thanks

Tony

 

[Bexx]

Here is a dues history which you might find useful.

Points will never go up over the years. As you say, there might be a seasonal adjustment, but if they up the points needed for one night, they have to reduce the amount somewhere else, as the total is fixed. I believe they tweaked the difference between weekend and weeknight points some years back, but nothing has changed since I joined in 2001.

 

[Kevin Stringer]

Hi Tony

I don't know the exact percentage increases for annual dues, but it's only a couple of percent per year.
By far the biggest factor in the cost of annual dues is the exchange rate. It's so good at the moment that it cost us less this year than last. In fact our costs in Sterling have actually reduced for the last 3 years. Of course, this is bound to change at some point in the future.

The total number of points allocated to a resort cannot change, but they can rearrange them if they want. For example they might increase the points required for a one bedroom in December, but they would then need to reduce the points from somewhere else.
In reality I can only remember this happening once. If you see the point charts over the years, they hardly change at all. This is what makes the DVC so attractive. We will be paying the same number of points in 2042 (when our contract ends) as we are paying now.

Kev

 

[Tony]

Thanks all.

I'd worked my calculations on 4% inflation for the annual dues and that looks to be a little on the high side but it works for me!

 

[crux]

From what I remember there is a limit of 15% that the annual dues can increase by in a single year, but it has only been between 2% and 4% since we joined. Also, DVC are not allowed to make a profit on the dues, they can only cover the costs incurred.

As Kevin pointed out the biggest change on what we've actually paid has been down to the exchange rate. We appear to be paying less and less each year due to the low dollar/high pound.

Ian

 

[mikki.young]

Since I joined DVC the exchange rate has varied between $1.4 and $2 to the £. This can make a huge difference to the dues! I opened a dollar account and buy dollars when the rate is good so I don't get hit so badly by the rate movement. As people have said it is good at the moment but that may not last.

I see my dues per point have gone up by $2 roughly since I joined and while that seems a lot it is 15 years and has not normally seemed a huge increase.

 

[Ali and boyz]

Since I joined DVC the exchange rate has varied between $1.4 and $2 to the £. This can make a huge difference to the dues! I opened a dollar account and buy dollars when the rate is good so I don't get hit so badly by the rate movement. As people have said it is good at the moment but that may not last.

I see my dues per point have gone up by $2 roughly since I joined and while that seems a lot it is 15 years and has not normally seemed a huge increase.

Can I ask you how easy it was to open a US Bank Account and also how you go about it
thanks

 

[Ali and boyz]

bumping up so I can find out about the bank account

 

[mikki.young]

Sorry Ali - not popped in here for a bit. See you asked the question on the other forum where I obviously did look! Sorry about that

 

[guru]

DVC is a good idea if you want good quality accommodation every time you visit orlando. We have been maybe 15 times now and only just bought into DVC. Based on the Annual Dues average costs over the last five years we figure we would have saved maybe £250-£300 each time we visited and been able to enjoy 5 star accommodation every time. We wish we had done it sooner, so highly recommend it.

 

[TinkTatoo]

Can I ask you how easy it was to open a US Bank Account and also how you go about it
thanks

We opened a US bank account with Wachovia and it was really easy. Went in with my passport and $100. I have a check book and a visa debit card, there's online banking so I can check the account and I transfer over money when the rate is good. We use the account when we need spending money for holiday and to pay our DVC dues.

 

[jjpenguin]

Regarding the Dues increase, I wouldn't be surprised if they really went up this year because of the increase in gas prices in the US.

 

[Halo]

Just another couple of points to make regarding dues:-

Dues for properties currently being marketed (i.e. SSR and AKV) are artificially low due to a support mechanism by Disney which makes them more attractive to purchasers. To gauge likely increases more accurately look at the older properties. Once a resort such as SSR is sold out its dues can be expected to rise.

What costs is elevator maintenance. This is I believe the biggest factor in determining why some resorts are less expensive than others in terms of dues. It accounts for why OKW is consistently less expensive than other resorts.