Riviera Dues

[we"reofftoneverland]

I agree with previous posters that RIV is a risk. We were pretty tempted a couple of weeks ago but got scared about the resale restrictions. We wanted to buy 100 point RIV contracts to give to each of our kids down the road, but of course we started thinking things like, what happens if one of us dies or something else catastrophic happens and we want/need to sell those contracts before ever handing them down to the kids? We would lose money. With resale we would not lose money— might even gain money. Plus, the member fees are REALLY high at RIV because you are subsidizing the gondola for all the people who use it for “free.” If you look at the details on member fees at RIV, their transportation costs are much higher than other resorts.

 

[Sheriff1]

Yes, it really was. They said that legal had reviewed and said they shouldn't/couldn't be including it. It was a nice quick way to add a few dollars to each transaction of course.

Thanks everyone!

They said they still had to charge closing costs, but they could increase the developer credit accordingly which was $372.1(!!) per 50 point contract, plus the $8 per point incentive.

I hope not to sell, but feel slightly better about the resale aspect having 3 50pt contracts rather than one 150pt contract. I'm hoping that smaller contracts would hold a bit more value than the large ones, maybe for people who would a small contract to just stay at RIV for F&W - but honestly who knows. I think if the dues were a bit more even I would be completely sold on RIV, it has the feel I would want - but those dues!! The Skyliner cost impact does worry me.

 

[Lorana]

Thanks everyone!

They said they still had to charge closing costs, but they could increase the developer credit accordingly which was $372.1(!!) per 50 point contract, plus the $8 per point incentive.

I hope not to sell, but feel slightly better about the resale aspect having 3 50pt contracts rather than one 150pt contract. I'm hoping that smaller contracts would hold a bit more value than the large ones, maybe for people who would a small contract to just stay at RIV for F&W - but honestly who knows. I think if the dues were a bit more even I would be completely sold on RIV, it has the feel I would want - but those dues!! The Skyliner cost impact does worry me.

I share your reasoning here, having also bought into Riv with small contracts. I suspect it will hold its value, especially as we get closer to 2042. The skyliner access to Epcot and HS is a huge selling point, and I think there will be a market of people who want to add on small # of points to Riv just to use at Riv for F&W and/or for Studios, enough to keep value of small contracts fairly high.

 

[Turn the Page]

I agree with previous posters that RIV is a risk. We were pretty tempted a couple of weeks ago but got scared about the resale restrictions. We wanted to buy 100 point RIV contracts to give to each of our kids down the road, but of course we started thinking things like, what happens if one of us dies or something else catastrophic happens and we want/need to sell those contracts before ever handing them down to the kids? We would lose money. With resale we would not lose money— might even gain money. Plus, the member fees are REALLY high at RIV because you are subsidizing the gondola for all the people who use it for “free.” If you look at the details on member fees at RIV, their transportation costs are much higher than other resorts.

I'm curious about this. I know RIV dues sudsidize Skyliner maintenance ND that is why they are currently so high. Does the same hold true for DVC properties serviced by the monorail? If not, why?

 

[KAT4DISNEY]

I'm curious about this. I know RIV dues sudsidize Skyliner maintenance ND that is why they are currently so high. Does the same hold true for DVC properties serviced by the monorail? If not, why?

Every DVC resort pays for transportation costs and if the transportation is a monorail or a skyliner then that will be part of it. Others it's only buses or it's buses and boats. Some places like PVB and VGF have monorail, boat and bus services.

 

[we"reofftoneverland]

I'm curious about this. I know RIV dues sudsidize Skyliner maintenance ND that is why they are currently so high. Does the same hold true for DVC properties serviced by the monorail? If not, why?

yes, like kat4disney said, all resorts pay transportation costs, but RIV transportation costs are high.

 

[Turn the Page]

Every DVC resort pays for transportation costs and if the transportation is a monorail or a skyliner then that will be part of it. Others it's only buses or it's buses and boats. Some places like PVB and VGF have monorail, boat and bus services.

Yes, I understand that. My point is that the dues for RIV are sky high due to subsidizing the Skyliner. The monorail surely must have higher maintenance costs than the Skyliner (doors falling off and such) but the dues for villas at monorail resorts are so much lower.

 

[we"reofftoneverland]

Yes, I understand that. My point is that the dues for RIV are sky high due to subsidizing the Skyliner. The monorail surely must have higher maintenance costs than the Skyliner (doors falling off and such) but the dues for villas at monorail resorts are so much lower.

No, for some reason RIV transportation costs are higher. It makes no sense to me either, and frankly I think RIV is paying a higher rate than other resorts that use it. It is a shady area if you ask me. I still like RIV and am a bit tempted to buy, but it is a bummer. The member fees +resale restrictions are what give me pause. Everything else I like at RIV (well ok, there could be more public common space and a larger lobby lol).

 

[KAT4DISNEY]

Yes, I understand that. My point is that the dues for RIV are sky high due to subsidizing the Skyliner. The monorail surely must have higher maintenance costs than the Skyliner (doors falling off and such) but the dues for villas at monorail resorts are so much lower.

I don't believe the Riviera subsidized the building of the skyliner. That's a stretch even for Disney to justify. Yes, their transportation costs are high and it's hard to say how they are dividing it. Riviera is a stand alone DVC on a brand new type of transportation. It may turn out that the estimated costs were too high. Or it might turn out that Skyliners cost a lot to operate (which I don't particularly believe). The monorail serves 3 hotels and 3 DVC as well as the TTC so MK parking. It's costs may just be spread out more so lower cost per room/point.

 

[Doberge]

Remember that Riviera is a standalone DVC resort that can't spread transportation and common space costs with a hotel side. Using BCV as an example, BC uses shared buses that costs are spread to hotel side and YC or wherever else bus is shared. Riviera uses dedicated busses so that alone increases costs. Using OKW and Saratoga as other resorts with dedicated busses, neither of those has to budget for skyliner costs. And skyliner costs to Riviera are disproportionately higher to Riviera compared to dvc monorail resorts that spread costs over both hotel and dvc sides of Poly, GF, and Contemp/BLT.

I don't see dues decreasing for 2021 because Disney is able to build a nice reserve if indeed it's overcharged in 2019 and 2020. A quickly built reserve would, in theory, slow future rate increases.

 

[Sandisw]

Yes, I understand that. My point is that the dues for RIV are sky high due to subsidizing the Skyliner. The monorail surely must have higher maintenance costs than the Skyliner (doors falling off and such) but the dues for villas at monorail resorts are so much lower.

The cost given for Skyliner was estimated and IMO, until we have actual costs, they may very well have budgeted high, At the time, they also said buses would be going to Epcot and DHS regularly and prior to the shut down, those had been reduced,

So, I am waiting to see what happens in the next few years with that line item to see how close they were to actual operating expenses,

Someone mentioned that the typical increase for the first few years of a New resort tend to be lower In comparison. So, it is possible that the gap will close somewhat, We shall see.