What is your dues threshold?

[SugarSweetLee]

Curious...most dues are in the single or low double digits currently. Do you have a personal dues threshold that will make you want to tap out and sell your contract after the annual fees rise to XX/pt?

Have you thought about a limit on how much you want to spend per year after all the initial buy in costs?

 

[Sandisw]

I don’t have one.

 

[davidhr]

If all the resorts I own maintain the yearly increase average at or below 5% I’m fine.

I can’t set a value because inflation is a thing. In 20 years the dues will be crazy if you compare just the number to today.

 

[intamin]

I've thought about it considering we own a good chunk of points and it has made me think about the future.. but I also know that rack rates will rise at a faster rate so whatever it is I'll pay it until it's no longer reasonable to own a DVC contract.

 

[tx911]

Curious...most dues are in the single or low double digits currently. Do you have a personal dues threshold that will make you want to tap out and sell your contract after the annual fees rise to XX/pt?

Have you thought about a limit on how much you want to spend per year after all the initial buy in costs?

I don’t think about it much now, although I would certainly like to stay in 4 digits!

It will become a big factor once I don’t have an income.

 

[FrancisK7]

Until 2042 I don't have one. At that point my kids will all be adults and perhaps parents as well, but the dues vs availability and how many resorts we have access to will certainly impact our perception of the dues at that point.

 

[Noodlez]

I always pay, or have the money ready, for the next years dues in advance. I 'estimate' it will be 10% each year, and so far have been happy!

I get how inflation works, but it always seems drastic if you look over a long period, so I don't panic about what potential dues could possibly be in 20 years, any more than I knew what my income now would be 20 years ago.

 

[crackerjack21]

My mental threshold is $5k/year for all contracts in today’s dollars and we assume that goes up each year. Right now we are at 2.8k and looking to add which will bring us to $4k next year. I suspect I’ll have to adjust my mentality in the future lol, but $5k feels like a reasonable number for what we want to do right now. When our house is paid off in 2 years then all bets are off!

 

[davidhr]

My mental threshold is $5k/year for all contracts in today’s dollars and we assume that goes up each year. Right now we are at 2.8k and looking to add which will bring us to $4k next year. I suspect I’ll have to adjust my mentality in the future lol, but $5k feels like a reasonable number for what we want to do right now. When our house is paid off in 2 years then all bets are off!

Well….

 

[Brian Noble]

Do you have a personal dues threshold that will make you want to tap out and sell your contract after the annual fees rise to XX/pt?

No because inflation is a thing. I expect them to rise a little bit faster than inflation give or take.

 

[Girlstar30]

Whatever I can afford Right now im at under $500 a month and id love to keep it that way as long as possible, another contract would put me over that but it would still be under $600 so im good with that. I own the resorts with low mf (except akv which is mid) thank God

 

[VGCgroupie]

For me it's really a how much am I spending on dues vs rack rates w/ discounts. If the spread isnt big enough than I am no longer comfortable. If dues rise to $18 per point but reservations are equivalent to $25 per point in cash then I would be uncomfortable and look to exit.

 

[Cfabar1]

I've never wanted my DVC membership to be a burden - and I don't want to be tied down to DVC. I think about $4k of today's dollars is my ceiling. We spend money on cruises, other family travel, and there's only so many weeks off from work sadly too... Plus we live close enough we can visit a park for the day. We're in a park at least once a month without staying on property... Plus we enjoy some of the offsite options.

And at some point do we upshift/downshift in work/personal life? That could persuade us to buy more points or sell some of our contracts...

So many unknowns in life....

 

[Wedgeout]

My dues threshold is staying on my tightrope sweet spot, maintaining a good balance buffer so not to ever fall into the alligator pit below.

 

[airjay75]

For me it's really a how much am I spending on dues vs rack rates w/ discounts. If the spread isnt big enough than I am no longer comfortable. If dues rise to $18 per point but reservations are equivalent to $25 per point in cash then I would be uncomfortable and look to exit.

I think this is the way to look at it. I think a quick proxy is what are the major brokers willing to pay you to rent your points. Right now, it's probably $16-$18 per point, and then they rent it for about $25 per point, give or take. And, they can do that because the cash rate is well above that, so if you rent through them, you're getting a big discount. If dues start to get close to (looking at you, VB) or exceed the amount you can rent your points through a major third party broker, we're approaching problem territory.

That said, as I type this from my RIV balcony with a view of the MK fireworks (saw Epcot earlier in the French pavilion), the one thing I am reminded of every time I come to the House of Mouse, it is just how much worldwide appeal this place has. Whether it was visiting each waterpark, MK, Disney Springs, or Epcot, I don't think the appeal of a deluxe DW resort is going anywhere anytime soon. Of course, none of us know what the future holds, but DW is as close as one can get to an American icon. By some accounts, the MK is the most visited tourist attraction in the world. No, DVC is not an investment, but I think one could make the case that, when kept for a long enough period of time, even with the resale restrictions, it is close to being a stable cash asset.

Ok, back to my glass of wine with sprinkle of pixie dust .

 

[Mouseforward]

I look at what percent the rack rate is rising, verse the percentage increase in dues.

 

[airjay75]

I look at what percent the rack rate is rising, verse the percentage increase in dues.

That would be excellent. Wish there was a good resource to track that (maybe there is, I just don't know).

 

[Mouseforward]

That would be excellent. Wish there was a good resource to track that (maybe there is, I just don't know).

I make it personal - I go early may , early dec so I check the rack rate for the weeks I go and keep a log.

Just look year over year.

 

[Mouseforward]

That said, as I type this from my RIV balcony

I realized the one time I am not on the forum is when I am actually in WDW - most other days I check the boards during those inevitable meetings that could be emails.

 

[airjay75]

I realized the one time I am not on the forum is when I am actually in WDW - most other days I check the boards during those inevitable meetings that could be emails.

I've been checking it a lot less than typical, that's for sure . But I can't resist these few quiet moments at the beginning and end of the day when the kids are asleep.