- Joined
- Feb 6, 2000
I don't believe that it was "inevitable" that value would start to fall further then the economy called for if Disney had not intentionally devalued it.
Of course there will be a market after 3/20. But Disney's stated mission was to make that market far less valuable.
And yes annual dues have been skyrocketing. Look at the numbers:
Old Key West Resort, the oldest of the DVC resorts had dues of $2.51 in 1991 and in 2008 had dues of $4.56. That means it has averaged a 3.57% increase, compounded annually.
BoardWalk Villas went from $3.70 in 1996 to $5.04 in 2008, an average annual compounded increase of 2.61%.
Villas at Wilderness Lodge went from $3.62 in 2000 to $4.87 in 2008, an average annual compounded increase of 3.77%.
So on average dues have increased 3.3% a year. Over a 10 year span that is a 33% increase! What offset that impact to me was the basically stable value of my ownership. Disney has now acted to remove that stability.
The market for re-sale is obviously not so small that Disney didn't find it attractive to them to devalue re-sales.
As was pointed out Disney did not use ROFR because it would have cost them money. By not doing so Disney allowed a wider spread between the secondary market and direct sales. Then Disney decided that spread was to wide and hurting direct sales so they decided to devalue the secondary market.
If the posts here are accurate Disney is researching ways to further reduce the value of ownership.
I never said that Disney had to "prop up" re-sale values. But I don't want to see my ownership value go the way of many, many, many other timeshare re-sales that have been devalued to pennies on the dollar.
I would hardly call those percentages for dues increases "skyrocketing" considering what happened to Florida insurance rates during that time frame after several active hurricane seasons, and the increases in health care cost for employees.
The bottom line appears to be that IF you feel this change will dramatically impact what you perceive as the value of your ownership, the time for you to sell would be NOW.