What other costs are there besides the initial purchase price?
Aside from the initial buy-in cost (which is a one-time cost), DVC members must pay annual dues (also commonly called “maintenance fees”) on their ownership interest. Maintenance fees are expressed on a per-point basis, and vary by resort.
Let’s say you purchased 100 points from Disney at the Polynesian resort. Assuming $176 per point, your up-front cost was $17,600 plus approximately $425 in closing costs. However, you will pay $51.13 per month in dues.
One of the obligations of being an owner is to help pay the operating costs and upkeep of the resort. Annual dues cover operating expenses (housekeeping, transportation, maintenance, utilities, Front Desk services), administrative expenses (Member Services, member mailings, insurance), refurbishment expenses (updating and maintaining the interior, exterior, and common areas), and real estate taxes (property taxes).
You can choose to pay your dues annually or spread payments out monthly with no finance charge.
Dues vary by resort and are expressed in terms of a set dollar amount per point (shown below).
Annual dues are due by January 15 each year and are calculated based on the calendar year and not your Use Year. The amount you pay in annual dues is determined by your home resort(s) and the size of your ownership interest(s). Payment may be made in either one lump sum or in monthly installments (debited to a US checking or savings account each month).
Annual dues cannot be increased by more than 15% from the proceeding year without the approval of a majority of owners.
When considering the purchase of one particular resort over another, keep in mind the overall cost (both the initial purchase cost and the annual dues), as a resort which appears less expensive due to a lower upfront purchase cost can actually cost you more if the annual dues are significantly more.
To learn about historical annual dues and how much they’ve increased, read this:
|Next: What is a Home Resort?|