Dues question from a prospective member

Hakunamatata

Hakunamatata

Le Meh
Premium Member
Matt in the Hatt said:
The wife and i took the tour the other day and are seriously considering joining ( well she already decided she wants to). How bad are the dues increases year to year?
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I beleieve they vary based on the actual and projected maintenance needs of the property. Older properties will creep up more and more. Newer properties should remain fairly flat initially. I beleive there is a max that they can go up each year. I would do the math and project out what the dues would be in say ten, twenty, thirty years if max increases were taken each year. That is your total exposure. If you can swing that then you are good.

We sold our DVC back during the housing bubble. It wasnt because of the buy in cost. It was the dues that just didnt make it right for us. Looking back I wish it had been right for us, but our future trips are going to be much longer (post retirement) and at Ft Wilderness in our travel trailer.
 
Phonedave

Phonedave

Well-Known Member
Matt in the Hatt said:
Thanks for the info
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As was also said, dues cover actual operating expenses and projected capital costs of running the resort you own at. By law, there is no profit built into the dues.

Resorts should not cost more just because they get older. Money is set aside from the dues every year to build up a reserve for major projects such as re-paving or pool refurbishments. Each year you will get a dues statement that will show you the expenses, as well as certain income that helps reduce your dues.

Some resorts have higher operating expenses than others. Resorts with more "free" amenities are going to cost more in dues. Smaller resorts are also going to cost more - on average. Look at it this way. SSR has pool activities that are 'free'. The cost of those activities (2 CM's, a DJ stand, some hula hoops, etc.) are spread over the thousands of points that are at SSR. They are pretty much the same at Vero beach, but it is a much smaller amount of points to spread the cost over.

Dues go up every year for two reasons. One, things cost more. If you can find a way to beat inflation, then let me know. Two, new costs get added. This is something you do have a voice in. If they want to add a new BBQ pavilion, or a new quiet pool, or something crazy like make housekeeping every day. you end up paying for it. You can voice your opinion in a number of ways about what you would or would not like to see approved (it may have no impact, but you can still voice it)

-dave
 
nickys

nickys

Premium Member
Dues also include the property tax.

Whilst there is a limit on how much the dues can rise each year, that excludes the property tax element, which could soar. If, for example, Disney lost the case on property tax rises, then the dues could rise by more than that theoretical limit.

Plus of course, dues can increase to pay for damage. Hence the dues for Vero and HHI tend to be far higher than those for WDW.
 
TheGuyThatMakesSwords

TheGuyThatMakesSwords

Well-Known Member
Now - one thing to add, if you are going to GO ANYWAY... and that last part is important.

PLEASE compare average yearly DVC dues increases to average RACK RENTAL price increases. I suspect you will find a difference.

All personal opinion - I'm not necessarily right, no one else is necessarily wrong.
 
correcaminos

correcaminos

Well-Known Member
Phonedave said:
As was also said, dues cover actual operating expenses and projected capital costs of running the resort you own at. By law, there is no profit built into the dues.

Resorts should not cost more just because they get older. Money is set aside from the dues every year to build up a reserve for major projects such as re-paving or pool refurbishments. Each year you will get a dues statement that will show you the expenses, as well as certain income that helps reduce your dues.

Some resorts have higher operating expenses than others. Resorts with more "free" amenities are going to cost more in dues. Smaller resorts are also going to cost more - on average. Look at it this way. SSR has pool activities that are 'free'. The cost of those activities (2 CM's, a DJ stand, some hula hoops, etc.) are spread over the thousands of points that are at SSR. They are pretty much the same at Vero beach, but it is a much smaller amount of points to spread the cost over.

Dues go up every year for two reasons. One, things cost more. If you can find a way to beat inflation, then let me know. Two, new costs get added. This is something you do have a voice in. If they want to add a new BBQ pavilion, or a new quiet pool, or something crazy like make housekeeping every day. you end up paying for it. You can voice your opinion in a number of ways about what you would or would not like to see approved (it may have no impact, but you can still voice it)

-dave
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Well said! I think sometimes people oversimplify costs and MFs. I enjoy looking at the costs and percentages of the breakdowns.
Your comment about housekeeping is something I am watching. With these 'security checks' I do worry our housekeeping fees will go up. But we'll have to see...
 
Phonedave

Phonedave

Well-Known Member
helenabear said:
Well said! I think sometimes people oversimplify costs and MFs. I enjoy looking at the costs and percentages of the breakdowns.
Your comment about housekeeping is something I am watching. With these 'security checks' I do worry our housekeeping fees will go up. But we'll have to see...
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Yeah, when they announced those checks, that was one of the things I thought of as well.

Sometimes it amazes me that people will spend a good chunk of money to buy in, and not understand how what they are buying actually works. Every so often somebody comes on and complains that "I pay so much in dues I should have daily housekeeping" or that they are "sick of paying for DVC to build kiosks in the parks" Or "Dues are just a money grab for DVC". That is not how it works.

-dave
 

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