Why do some home resorts...

[MJ6987]

have higher dues than others? Can anyone explain the rationale?
Thanks,
Matthew

 

[DVC Mike]

The cost to maintain each property can vary, and the maintenance fee per point will also depend upon the total number of points at the resort.

For example, BLT will have a higher points-to-rooms ratio, so the maintenance fees will lower.

 

[dudelydude]

I would never go against DVC Mike, but let me offer something that I recently read. BLT has lower maintenance fees because it is a high rise on a smaller plot of land as opposed to a Saratoga Springs that sprawling over a much larger plot of land. Consider the cost to "cut the lawn," and you may find your answer.

 

[DebbieB]

Also keep in mind that BLT is requiring more points per night, thus spreading the operating expense over a higher total number of points per room.

 

[kim532]

Since I am a DVC owner wannabe and just spoke to a guide on Friday about BLT, I specifically asked about the MF's and why BLT seemed so low. His answer was again lwhat DVC Mike said. That each resort has its own maintenance fees in order to keep the resort running, which includes operations and property taxes, etc.

Since our discussion with my guide was comparing AKV and BLT (the two resorts I am considering), He said at AK you have to pay for the upkeep of all the animals. He said was BLT was designed to keep operatinal costs low. (Didn't think to ask him to elaborate).

Anyway. Hopefull I won't be a wannabe DVC owner for to much longer. Still considering finances and timing.

Kim

 

[Brian Noble]

BLT has lower maintenance fees because it is a high rise on a smaller plot of land as opposed to a Saratoga Springs that sprawling over a much larger plot of land.

Actually, BLT's dues per "2BR week" are actually quite a bit higher. If you work it out, the "average" 2BR at BLT (10% value, 20% MK, 70% lake), in Magic season, it's about 400 points per week. At $3.76 per point, it "costs" about $1,500 for each 2BR, on average.

In contrast, a Magic Season 2BR at SSR is 316 points. At $4.21, it "costs" about $1,330 for each 2BR.

So, it would appear that SSR is less expensive to operate per unit than BLT is.

 

[Deb & Bill]

I thought before they announced THV and BLT, that SSR had the lowest dues of all.

It depends on maintenance needed, services provided such as transportation, dining and staffing. So buses are probably less expensive than boats AND buses or boats, buses AND monorails.

 

[buzz5985]

I purchased a HH resale in fall 2002 and added on at BWV in spring 2003. At the time both were among the lowest MF. Now they are the highest.

Do you think age of the resort factors into things??

Janis

 

[dianeschlicht]

I purchased a HH resale in fall 2002 and added on at BWV in spring 2003. At the time both were among the lowest MF. Now they are the highest.

Do you think age of the resort factors into things??

Janis

I don't ever remember BWV being among the lowest for MFs. Certainly age can play a part of it, but the oldes, OKW, has always had either the lowest or second lowest maintenance fees in the past, and part of that has to do with size. The more units, the more members, the less cost per member.

 

[DebbieB]

I've owned BWV since 1999 and it has always been the highest of the WDW resorts. More than the smaller VWL, BCV, although the gap has been closer recently.

 

[drusba]

Major categories of costs include administration and front desk (much of your resort daily operations and personnel); transportation (share of boats, busses and at BLT monorail); housekeeping; security; and insurance. In all those categories, personnel costs make a huge percentage. Stand alone resorts cover much of those costs on their own; DVC resorts that are also connected to a Disney hotel share a lot of those costs with the hotels based estmiated occupancy of each; property taxes can also vary. However, I do not think that there will be huge differences per occupant between BLT and other resorts, particularly other resorts with a sister Disney hotel in the major categories (they won't be cutting a lot more lawn at BLT than they do at BCV; BLT will have boats, busses AND the monorail, where others have at most busses and boats so contribution to transportation may even be higher at BLT per occupant, a high rise requires devotion to maintenance, security and houskeeping should not be be much different per room from BCV, BWV, VWL or AKV, property insurance and property taxes for a high rise really is not that hugely different from a place with spread out units). Resorts have some unigue variances that are reflected in the difference in dues ammong them -- for example, BWV maintenance includes maintence of the boardwalk, AKV includes animal care, The likely reason for most of the lower costs per point at BLT is that they will be selling a significantly higher number of points per unit than they have at any of the other resorts.

 

[crisi]

Also, when they announce resorts they do an estimated dues calculation. Historically, these have been estimated a little low and for the first few years of operations, newer resorts see slightly higher increases than established resorts. Not huge, and I don't think always, but enough that I suspect Disney would rather sell a resort having estimated dues low and adjust up later (I would) than announce a resort with dues high and increase less.

 

[jlewisinsyr]

Also, when they announce resorts they do an estimated dues calculation. Historically, these have been estimated a little low and for the first few years of operations, newer resorts see slightly higher increases than established resorts. Not huge, and I don't think always, but enough that I suspect Disney would rather sell a resort having estimated dues low and adjust up later (I would) than announce a resort with dues high and increase less.

I don't think anyone knows what the dues for the next X number of years will be, even Disney. Labor contract negotiations, local taxes, etc are all subject to change and until the pen hits the paper, no one really knows what the magic number will be.

From a logistic/safe and sound perspective, if you want the worst case, use 15%, year over year, but understanding Disney cannot just raise your rates, they need to support the increase with expected expenses (they cannot just increase their profit). Also, from a historical perspective, rates increased an average of 3% a year (compared to 7% - 8% for hotel rates in the same period).

 

[crisi]

Exactly, they need to estimate. In the interest of making the pricing attractive, its in their best interest to estimate low - but not too low because they can only make up 15% a year (to date, they've never jumped that much for any resort, even at the new stage). They do a pretty good job estimating, but dues for the new resorts do seem to have an initial creep where they go from "wow! That looks low!" to "oh, that look in line with what I'd expect."

I wouldn't make a purchase decision based on dues being lower for a resort that doesn't yet have a track record established in operating expenses. But I wouldn't make a purchase decision based on a difference in dues - that doesn't seem like a good deal to me.

 

[gmboy95]

I mean dont they have to fix vero beach every time a hurrican blows through????....i assume that makes the price go up, never mind the inherent damage brought on by the salt air