What do you estimate the maint. fees will be per point near the end of DVC I contract

[JABEAR]

Just curious if there is a max amount that they will be able to charge for the last few years of the contract. What is your estimate conservative and not so conservative?

 

[tjkraz]

There's a max of 15% per year. But, since the dues are almost entirely based upon the operating costs of the resort, you can probably expect a 3-4% annual increase over the life of the contract. That's just the cost of doing business.

The most damaging thing Disney could do would be to schedule additional maintenance in the waning years of the contract, but they already maintain a reserve fund for that purpose.

Anyway, annual increases on that order will probably see the dues reach the $17-18 per point range in another 50 years (for SSR). While that may sound a bit shocking, Disney has been increasing cash rates at its hotels 4-5% per year. A $300 room in 2005 will cost over $2000 per night in 2054 assuming a 4% annual rate increase.

 

[TLinden16]

While that may sound a bit shocking, Disney has been increasing cash rates at its hotels 4-5% per year. A $300 room in 2005 will cost over $2000 per night in 2054 assuming a 4% annual rate increase.

I better start saving for my 2054 trip now. Ouch!

LOL

Karen

 

[JimMIA]

Bear in mind also that everything else will be going up at about the same rate -- salaries, food prices, etc. So maintenance will probably be relatively what it is today, compared to all of the other things we spend money on. It will be a much higher number, but probably very close to the same % of your income.

 

[CarolMN]

Bear in mind also that everything else will be going up at about the same rate -- salaries, food prices, etc. ..(snip)......

Hmmm. If I'm still alive by then, I will be on a fixed income (if I have any at all ). But no real worries - I'll probably have to sell or give away my membership before the end of its term anyway.

Best wishes -

 

[pumpkinboy]

What do you estimate the maint. fees will be per point near the end of DVC I contract?
Just curious if there is a max amount that they will be able to charge for the last few years of the contract. What is your estimate conservative and not so conservative?

I was gonna say that such worries would be my heirs' problem, but then realized that I'd only be in my 70s at that point. Since my Grandma lived to 104, I guess I might have a decent chance of fully enjoying the last few years of our DVC membership. I guess I'll just have to save a little more and/or make sure our DD goes into something lucrative so she can support us (yeah, right).

 

[bavaria]

There's a max of 15% per year. But, since the dues are almost entirely based upon the operating costs of the resort, you can probably expect a 3-4% annual increase over the life of the contract. That's just the cost of doing business.

The most damaging thing Disney could do would be to schedule additional maintenance in the waning years of the contract, but they already maintain a reserve fund for that purpose.

Anyway, annual increases on that order will probably see the dues reach the $17-18 per point range in another 50 years (for SSR). While that may sound a bit shocking, Disney has been increasing cash rates at its hotels 4-5% per year. A $300 room in 2005 will cost over $2000 per night in 2054 assuming a 4% annual rate increase.

While this makes perfectly good sense, I am going to offer up a different opnion. I for one don't think that we will be carting around wheelbarrows of money to pay for our WDW vacation in 2054, like what happened in Germany in the 1920's.

Seventeen years ago, hotel rooms in my current place of residence sold for $250-300/night. This year, they sell for..... $250-300/night. Consider the price of clothing - I can buy a blazer from the same designer for about the same price as I paid 10 years ago.

Now, someone will come along and point out that a room which costs $350 today at CR was $35 in 1972. And if I had finished my first cup of coffee, I would be able to do the math and calculate that year over year increase... But look at all the swings in the economy from 1972 until 2005. Consider your salary then vs now (ok, I didn't get a salary in kindergarten, but hopefully you understand my meaning!)

Yes, I agree that we will see price increases, but I don't think that it will be an increase to that amount. Other economic factors come into play.

Now, if I'm wrong come 2054, please feel free to come by my studio at OKW and debate it with me!