Maintenance fees!

[Pluto777]

For ME, now that I am a "DVC mogul" who owns 2 contracts a BIG factor in deciding what more contracts to consider buying are the MF's. I've seen some low priced initial buy in prices at HHI and VB, but then I worry about just HOW HIGH those MF's can go. I would like to start a thread where some of the brainiacs on this board think MF's are going on the DVC resorts... Thoughts?

 

[wnielsen1]

You know where management fees are going? HIGHER.

Management fees are only one part of the equation. Some people tend to gravitate towards the properties with lower management fees and then buy more points because the point chart for that specific property requires more points per night.

 

[Pluto777]

You know where management fees are going? HIGHER.

Management fees are only one part of the equation. Some people tend to gravitate towards the properties with lower management fees and then buy more points because the point chart for that specific property requires more points per night.

I agree with that statement, as I said, I KNOW MF's are only 1 part of the story, however that is the part I wanted to focus on. Some type of analysis on where MF's are likely going: Will they continue to jump higher at beach type resorts? (HHI & VB) or have they peaked and now do for a 'settling down'? Are the ****** resorts with more units protected against higher MF's or are they too old and will require higher MF's?

 

[BillPA]

I general dues/fees will go up at all DVC location. The off site locations, HHI, VB.. will go up quicker because they are much more exposed to the weather. I would not buy at HHI or VB unless you will be staying there most of the time. They are great resorts, but expensive on the dues side.
And it is getting much more difficult to book many location at WDW at 7 months.
The dues cost at HHI are 31.7% higher than SSR and 30.4% higher than BLT. VB is 45.5% higher than SSR and 44.08% higher than BLT.

 

[disneynutz]

In addition Aulani, HH, VB, can be subject to storm damage and special assessments should damage occur. I believe that HH owners borrowed money from Disney to cover their insurance deductible due to recent damage and they are currently paying Disney back. It's not just normal dues to consider.

Bill

 

[Pluto777]

I general dues/fees will go up at all DVC location. The off site locations, HHI, VB.. will go up quicker because they are much more exposed to the weather. I would not buy at HHI or VB unless you will be staying there most of the time. They are great resorts, but expensive on the dues side.
And it is getting much more difficult to book many location at WDW at 7 months.
The dues cost at HHI are 31.7% higher than SSR and 30.4% higher than BLT. VB is 45.5% higher than SSR and 44.08% higher than BLT.

Yes I was aware of this. The question of course is do you think that gap of MUCH HIGHER MF's on Aulani, HHI and VB remain that high, come back towards even or get even worse IN THE FUTURE?

 

[disneynutz]

Yes I was aware of this. The question of course is do you think that gap of MUCH HIGHER MF's on Aulani, HHI and VB remain that high, come back towards even or get even worse IN THE FUTURE?

They will always be high.

Bill

 

[com_op_2000]

Yes I was aware of this. The question of course is do you think that gap of MUCH HIGHER MF's on Aulani, HHI and VB remain that high, come back towards even or get even worse IN THE FUTURE?

OP, to me you are trying to predict the future. Will there be additional storms/hurricanes at those locations, you tell us; how many in the next 10 years, what will the strength of each be, how much damage will the resort incur, etc? Will there be a fire at one of the resorts, that will cause some of the rooms to be unavailable, and have additional insurance claims? Will one of the resorts be considered libel in a lawsuit for some act or employee negligence? Any other consideration that might cause an unexpected expense there by causing an increase in MFs?

 

[Pluto777]

OP, to me you are trying to predict the future. Will there be additional storms/hurricanes at those locations, you tell us; how many in the next 10 years, what will the strength of each be, how much damage will the resort incur, etc? Will there be a fire at one of the resorts, that will cause some of the rooms to be unavailable, and have additional insurance claims? Will one of the resorts be considered libel in a lawsuit for some act or employee negligence? Any other consideration that might cause an unexpected expense there by causing an increase in MFs?

Well assuming no fires, no attacks by a giant octopus, just normal 'by the beach' insurance costs..

 

[Pluto777]

Should we not assume that Disney knew what they were doing when they planned seaside beach resorts regarding possible floods etc?

 

[disneynutz]

Should we not assume that Disney knew what they were doing when they planned seaside beach resorts regarding possible floods etc?

We can assume that Disney does make mistakes to a degree. HH and VB are DVC resorts so Disney doesn't pay anything to run, maintain, or repair them. The owners are the ones who really made the mistake IMO.

Aulani is a different animal, those costs are shared with DVC and Disney. IMO based on occupancy and sales results/rates, Aulani has also been a disappointment and will not be repeated.

Bill

 

[SL6827]

Aulani is a different animal, those costs are shared with DVC and Disney. IMO based on occupancy and sales results/rates, Aulani has also been a disappointment and will not be repeated.

So is Aulani only part DVC or what? What mistakes did Disney make with this property? You have gotten me curious. Give me the low down if you don't mind. Thanks!

 

[thelionqueen]

So is Aulani only part DVC or what? What mistakes did Disney make with this property? You have gotten me curious. Give me the low down if you don't mind. Thanks!

Aulani has been for sale for a very long time (nearing 8 years I think) with no sell out date in sight! That's the first and foremost fact that sticks out to me.

 

[Pluto777]

Anyone know what the MF's are on Aulani now (for 2018)? I believe they are quite high, which is a big part of why I didn't consider it...

 

[SL6827]

So Disney has lost money on Aulani then? What happened?

 

[wnielsen1]

So Disney has lost money on Aulani then? What happened?

I don't know if they have lost money, but certainly the rate of return has not been up to Disney's expectations. The property has been sold as a DVC for 8-9 years. It is nowhere close to being sold out.

 

[disneynutz]

So is Aulani only part DVC or what? What mistakes did Disney make with this property? You have gotten me curious. Give me the low down if you don't mind. Thanks!

Aulani is like BCV and other resorts, part DVC, part Disney resort for cash guests. The timeshare rules are different there and so are the taxes. DVC guests have to pay a cash tax during their stay. Also the dues rate was an issue. Three DVC executives including the head of DVD/DVC were fired over a too low of dues rate that was reportedly uncovered by the state. Disney now pays the original owners a dues difference for the life of the contract since they had to increase the dues. The location and resort competition are reasons reported for below par performance.

Other remote resort locations were planned and abandoned, NY was one of them. IMO WDW and DL are the way to go due to the added extras available.

Bill

 

[SL6827]

Aulani is like BCV and other resorts, part DVC, part Disney resort for cash guests. The timeshare rules are different there and so are the taxes. DVC guests have to pay a cash tax during their stay. Also the dues rate was an issue. Three DVC executives including the head of DVD/DVC were fired over a too low of dues rate that was reportedly uncovered by the state. Disney now pays the original owners a dues difference for the life of the contract since they had to increase the dues. The location and resort competition are reasons reported for below par performance.

Other remote resort locations were planned and abandoned, NY was one of them. IMO WDW and DL are the way to go due to the added extras available.

Bill

Wow, thanks, sounds interesting and all. With three heads that were fired, it must have been bad. So I am assuming the people who bought in first got in on a better deal than those who bought later, regarding the dues. I was thinking it was all DVC, and I wouldn't be to thrilled to be paying a cash tax there as a DVC owner, that sounds awful.

 

[wnielsen1]

It's really too bad because other potential DVC projects, such as NY or DC were scuttled - likely because of Aulani. It seems that while most DVCers want to visit these places, not many of them want to own them as a home resort.

 

[keaster]

Wow, thanks, sounds interesting and all. With three heads that were fired, it must have been bad. So I am assuming the people who bought in first got in on a better deal than those who bought later, regarding the dues. I was thinking it was all DVC, and I wouldn't be to thrilled to be paying a cash tax there as a DVC owner, that sounds awful.

The transient tax is not very much. For one week in a 2 bedroom pool view in March 2017 we paid $159.32 for the stay.