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View Full Version : $ to purchase up/why not $ to rent?


chip1
07-01-2003, 09:32 AM
...just curious ~ if our price to purchase DVC points continually increases, why doesn't the price/point to rent increase as well? I know it's an individual's choice what they decide to charge for renting their points, but if I charge $11 or $12/pt. who is g oing to rent from me when they can get them cheaper elsewhere?

vernon
07-01-2003, 09:59 AM
Apples and oranges IMHO .

As you may be aware Disney is discounting room rates to a massive degree. It's possible to book a 3* hotel off site for less than $50 a night. Room rates are at an 5 year low.

DVC points are a long term investment and even with lower room rates, IMHO they still look a good LONG TERM investment.

What points rent for is and should be closely related to what the rental cost for similar rooms are. DVC points are a completely different animal and reflect peoples long term views of what their accommodation costs are likely to be over the next 40 years.

To paraphrase your question, who's going to run the risk of renting points from an unknown DVC owner, when they can rent direct from Disney (with no risk) for a small premium???

WebmasterDoc
07-01-2003, 10:03 AM
That's the reason DVC has all of the language in our contract emphasizing that renting, while allowed, is not a simple proposition.

In addition to rental competition from other owners, you are also competing with Disney itself for that same market.

At this moment in time, with Disney heavily discounting many dates for it's rooms (DVC rooms included), members are finding that it is a competitive market. When you add in the daily housekeeping (or lack of), cancellation/refund policies, and weekend rates- renters, at this time, do have competitive options to consider. Most informed renters are aware of their options and members wishing to rent are finding the need to be flexible to satisfy their personal comfort level to rent to a stranger.

chip1
07-01-2003, 10:11 AM
points well taken ~ thanks.

jaysue
07-01-2003, 12:37 PM
Some other possibles:

Economy is weak, unemployment is going up so there maybe a higher supply of rental points available

Interest rates are lower, so some people might look at renting their points as:

Capital Cost of points X some expected % return
+
Mtce Costs

So for example if you bought at $70 pp and wanted 6% back for $4.20 a point + mtce at OKW (for arguments sake) of $3.49 makes a $7.69 price

We did not buy DVC as an investment, we purchased because we love disney but there are people who buy thinking to rent and the above thinking might hold water with them

Thanks
jaysue

Granny
07-01-2003, 06:14 PM
I haven't rented any points to anyone, but I do think that the reason that the rental price per point hasn't moved much is tied more to the slow rise in maintenance costs.

I think a substantial number of people that rent their points are really looking to cover their costs of not using the points. And for any given year, that's the maintenance cost.

If maintenance costs shoot up, I'm sure you'll see point rental costs shoot up as well.

Just my opinion.

nuthut
07-01-2003, 06:20 PM
It's very easy to get more than $10 a point for your points. find your renters at places other than this board. My going rate is $12.50 and have been renting points for 6 other members, too. Just about sold out for next year. Ask your friends and co workers if they want to save money on their disney vacation. They will jusy keep coming back for more points.

jaysue
07-01-2003, 07:44 PM
OK everyone the old point pusher of prices is here again

JLS
07-01-2003, 09:53 PM
Regarding Nuthut's comments, I would feel more than a little bit badly about renting to my so-called "friends and co-workers" for $12.50 per point, while convincing them what a great "deal" they are getting, when I know good and well that those people could rent for $10 per point from a member of the Dis. I personally think that is taking advantage of friends and co-workers. If a perfect stranger offered to pay me $12.50 for my points, I might be more inclined to do it under the Let the Buyer Beware theory, but I would never charge a knowingly inflated price to friends and coworkers!!! Geez!

dilettante
07-02-2003, 12:10 AM
Originally posted by Granny
I haven't rented any points to anyone, but I do think that the reason that the rental price per point hasn't moved much is tied more to the slow rise in maintenance costs.

I think a substantial number of people that rent their points are really looking to cover their costs of not using the points. And for any given year, that's the maintenance cost.

If maintenance costs shoot up, I'm sure you'll see point rental costs shoot up as well.

Just my opinion.


Well said. Putting aside economics-the market will clear at the most efficient price, etc-when I can't use the points myself, I'm thrilled to cover a couple of years dues by renting my points out. If greed is your motivation, then you'll probably keep pushing to get more than $10/point.

Peterd
07-02-2003, 01:21 AM
Ten dollars a point is a joke! If that's what you want to offer your' points to someone, more power to you. If that's what the Dis rent boards say you should get for them, and you believe them, go for it.The people that seem to have the most problem with people offering the points for more than the Dis 10 per point seem to be the people looking to rent your points.

Some of you want to trash someone like Nuthut about selling rooms for more than $10 per point. I would never offer my points for anything close to that. I usually give a resv. to a close friend for free or sell rooms to another friend who already has a room at a moderate for the same price. I'll tell them call the BW or BC and ask what a price would be including the 13% tax, and offer them half price. Upgrade, they get a great deal and They jump at it.

We do a famliy thing every year, and a year and a half ago, I bought points from another member for 13.5 a point for them, and it was a deal.

Let's consider the prices here, a standard room at the BW would cost you

9 points a night in Nov.
10 per point $ 90 per night
5 nights $450 for five nights.

Disney charges (if available) $275 to 300+ a night plus 11 to 13%tax.

Allstars, with the double beds $75 to 100 plus tax.

So $330 disney price to $90 to you renters. I would offer $150 to someone a night, seems like a deal to all my coworkers.

.......And the whole Disney is not sold out thing, and your' points should be cheap, nope. When we went in Feb, sold out, when we went in April at BC, DVC rooms sold out, other rooms NOT. When we go in Nov, Vets week, Soaps week, always sold out.

I do think if Disney ever gets word of a site like this, they may have a problem with the renting thing. You would think how can they justify charging the rates for the moderates and the Allstars, and then someone could come here and "rent" points to stay at a deluxe for LESS than than a moderate or Allstars, maybe even the campground.

If Any of you renters want to rent your points for more than the $10 Dis price, let me know, I have a couple hundred coworkers in line waiting to buy rooms at half price.
My price.....case of bud, and knowing that your points are going to good use.

Hey, and if you want to sell your points for 10 or less, Don't go postal, just keep selling like you do, noone is telling you what to do, your choice. That's why there are the priceline web sites out there.
cdm

Peterd
07-02-2003, 01:33 AM
I accidentalllllllllllllllly double posted, and when I went to try to delete it, it said I couldn't, and called me fat and some other things, so all I could do was edit it, and say "you're my boy blue".

vernon
07-02-2003, 03:20 AM
Peter, I don't think people have " a problem" with anyone renting their points out for what they can get for them. IMHO the "problems" many people have with nuthut are

1) his constant attempts to "rabble rouse" and talk up the price other people charge in order to maximise his business ( and the impression I get is that it is indeed a business).

2)It is also his tactic of booking popular dates (tying up dates) then auctioning them on ebay. I and others think this is a "sharp practice" , one that does a disservice to us members as, if this practice became more widespread, it could either prove an inconvenience in us booking the dates we want or could lead to Disney putting rules in place that would restrict the more public spirited way the rest of us rent out points when we need to.

3) His apparant need to regularly visit here to "crow" about his success

The combined result of which tends to wind people up and result in a less than warm welcome.