What happens when it ends?

[todd222222]

This has probably been discussed before but.....

so what happens at the end of the term? What condition will the resorts be left in? Will there be some kind of major assessment made at the end of the term to put the building in tip top shape to be resold? Are dues saved each year for major refrub at the resorts end of life? Or are they just going to be run into the ground and torn down at the end?

What happens when major work is done? I can't see them doing one villa at a time, but rather whole buildings (in the case of OKW and SSR), wouldn't there be more points in the system then rooms to reserve?

 

[simzac]

I'm guessing you own at AKV based on your sig. If so, you have 49 years before you will have to worry about that. Maybe there's something else more pressing to get your mind off of this Since no one can see into the future, any answers will be purely speculation. Just focus on your next vacation, that's what I would do.

 

[Chuck S]

No one knows what will happen. Legally, the resorts return to Disney, unless the leases are extended, like at OKW. Disney can then do with them as they please, either rehab them or demolish them.

There is a reserve fund built into due for emergency repairs and scheduled rehabs, so the units should be well maintained up to the last day of DVC usage.

 

[drusba]

Dues you have now include reserves for major rehabs, but not those 30 to 50 years from now. You usually don't reserve that far in the future. However, reserves do look down 10 to 20 years from now with charges being made to accumulate enough annually that which is estimated to be needed for major activities (e.g., roof replacement) that may occur later. Twenty years from now dues will be including reserves for events to occur ten to twenty years after that. Significant rehabs and refurbishing occur at the resorts every 6 to 8 years, sometimes less. So if the property is run and maintained as required, essentially what you will have is resorts in good shape when the time comes to end. There will, of course, be at that time a reserve fund that has actually accumulated amounts to be used after the end date. That end date does not affect reserves you must pay before it. DVC is legally required to accumulate reserves for major rehabs later regardless of end date and those reserves are properly charged to you before the end date. There are accepted formulas that take into account average estimated life of components of a property and average cost for determining reserves that condos and timeshares are allowed (and actually required) to use to determine reserves needed.

When the end date comes, you will simply have no more rights. They may continue the program by offering extensions, like they have at OKW, but that is up to Disney.

 

[disney dumbo]

wouldn't there be more points in the system then rooms to reserve?

That will be quite interesting. I would think in a year there is equal points to equal rooms available. But personal preferances are likely to be similar too. Reservations will be a nightmare! I wouldn't hold out for Christmas!

 

[tomandrobin]

I will be 91 and probably will not care anymore!

 

[DeeCee735]

We'll be in our 80's, kids in their 50's - grandkids - don't have em yet, but hopefully they'll get 20 years + out of our membership.

We bought for us, for now - live for today and all that yadda! Working great so far!

Enjoy....

 

[DISNEY FIX]

I'm going to the big DVC in the sky.











I hope.

 

[TisBit]

I'm going to the big DVC in the sky.

Only if you pay your MF's by there due date!

 

[dianeschlicht]

I'll be 95 when our non-extended OKW contracts end, and I don't intend to be around to care!

 

[DISNEY FIX]

Only if you pay your MF's by there due date!

That's what I have kids for.

 

[todd222222]

Actually I don't own...I rented for our last trip and renting for our next trip. But we are thinking about buying.

It's a hard decision because we would likely stay at value resorts if we don't buy or continue to rent. I'm not "rich" and I want to retire, but my biggest concern with buying are the MF.

My worry, lets say in 20 years (my prime retiring time) they will say...."Ok we need to rebuild the entire building in 10 years"...and our MF go to $30/pt (or more) a year to cover this cost.

I would think that at some point the value of DVC on the resale market would drop to the point that with high enough MF you couldn't give them away.

is there a way to say "Thanks Disney I've had a great time, but you can have it back". I wouldn't think so, but I don't know.

Perhaps I'm over thinking this, but I don't want to leave a money pit to my kids.

 

[dianeschlicht]

It's a hard decision because we would likely stay at value resorts if we don't buy or continue to rent. I'm not "rich" and I want to retire, but my biggest concern with buying are the MF.

My worry, lets say in 20 years (my prime retiring time) they will say...."Ok we need to rebuild the entire building in 10 years"...and our MF go to $30/pt (or more) a year to cover this cost.


Perhaps I'm over thinking this, but I don't want to leave a money pit to my kids.

That can't happen. There is an annual cap on how much they can increase maintenance annually. They have never reached that cap, and I wouldn't expect they ever would. The most we have seen is near 5% at some resorts, but even that is rare. Here is the dues history for all of the DVC resorts from begining to present: The costs listed are per point at each of the resorts (across top) by year (down left side)

Year OKW BWV VB VB(sub) HH VWL BCV SSR AKV

2008 4.56 5.04 6.04 4.71 5.16 4.87 4.80 4.21 4.71
2007 4.40 4.85 5.63 4.39 4.98 4.73 4.63 4.12 4.62
2006 4.24 4.69 5.27 4.12 4.34 4.61 4.48 3.98
2005 3.86 4.41 4.87 3.84 3.86 4.35 4.27 3.83
2004 3.68 4.25 4.67 3.67 3.70 4.22 4.18 3.80
2003 3.49 4.11 4.37 4.37 3.69 4.05 3.97
2002 3.22 3.92 4.17 3.33 3.49 3.80 3.77
2001 3.13 3.83 3.98 2.70 3.32 3.63
2000 3.16 3.94 4.07 2.87 3.25 3.62
1999 3.16 4.02 3.99 2.82 3.18
1998 3.17 3.94 ---- 2.76 3.20
1997 3.14 3.84 ---- 2.90 3.16
1996 2.99 3.70 ---- 2.82 3.16
1995 2.84
1994 2.70
1993 2.63
1992 2.56
1991 2.51

I would think that at some point the value of DVC on the resale market would drop to the point that with high enough MF you couldn't give them away.

is there a way to say "Thanks Disney I've had a great time, but you can have it back". I wouldn't think so, but I don't know.

Disney keeps the resale value high with ROFR. Instead of giving it back, you SELL it back if you find a buyer for it and if DVC thinks your price is too low, they will buy it back from you by excersising ROFR.

 

[TisBit]

It's a hard decision because we would likely stay at value resorts if we don't buy or continue to rent. I'm not "rich" and I want to retire, but my biggest concern with buying are the MF.

My worry, lets say in 20 years (my prime retiring time) they will say...."Ok we need to rebuild the entire building in 10 years"...and our MF go to $30/pt (or more) a year to cover this cost.

I would think that at some point the value of DVC on the resale market would drop to the point that with high enough MF you couldn't give them away.

is there a way to say "Thanks Disney I've had a great time, but you can have it back". I wouldn't think so, but I don't know.

Perhaps I'm over thinking this, but I don't want to leave a money pit to my kids.

This is not new to DVC, but would be the same in all of the Timeshare industry. One of the points to DVC is that Disney projected the life of the Buildings at approx. 50 years....so they would not need to rebuild, but merely maintain them during that time. After 50 years, yes maybe there would be major rebuild done and than the building resold.

Remember, Disney is in the business of DVC, so letting MF's go to high will hurt that business. They want to continue to build and sell DVC...everywhere not just WDW. If they didn't live up to their end of the bargain, DVC would flop as a whole.

Yes, you could just stop paying MF's and ultimately lose your rights to the DVC membership.

 

[SSRFred]

I consider the fact that it does end a big plus. In 49 years, that original cost is going to seem very small in comparison to the annual dues. If my grandkids want to buy into Cinderella's DVC Tower or whatever it may be, let them. At least they won't have to pay my dues.
Disney will continue to maintain the grounds until then. I wouldn't worry about unreasonable increases unless the property is prone to heavy maintenance needs such as that at a ski resort.

 

[kikiq]

We'll be in our 80's, kids in their 50's - grandkids - don't have em yet, but hopefully they'll get 20 years + out of our membership.

We bought for us, for now - live for today and all that yadda! Working great so far!

Enjoy....

Exactly my thoughts!

 

[GoofyGrumpy]

Disney will continue to maintain the grounds until then. I wouldn't worry about unreasonable increases unless the property is prone to heavy maintenance needs such as that at a ski resort.

I worry a bit more about hurricanes doing a number on Vero Beach. Already they are the highest MFs.

 

[pinnocchiosdad]

This has probably been discussed before but.....

so what happens at the end of the term? What condition will the resorts be left in? Will there be some kind of major assessment made at the end of the term to put the building in tip top shape to be resold? Are dues saved each year for major refrub at the resorts end of life? Or are they just going to be run into the ground and torn down at the end?

What happens when major work is done? I can't see them doing one villa at a time, but rather whole buildings (in the case of OKW and SSR), wouldn't there be more points in the system then rooms to reserve?

This will all be for your childrens children to worry about.

 

[SSRFred]

I worry a bit more about hurricanes doing a number on Vero Beach. Already they are the highest MFs.

They are high partly for that very reason, insurance costs.

 

[wildernessDad]

At that point, it's pretty much over for me as well, so it really does not matter to me.

That thought encourages me to vacation as much as possible with the time remaining...