Renting Points to pay Maintence Fees?

[Disney Fanatic]

Just wondering if anyone can give me their 2 cents on my thoughts about buying 150 points and renting out 75 per year to pay the annual maintenance fee?

I thought this may be a good way to help pay the annual dues and wonder if Disney could ever stop you from renting your points?

Thanks for any feedback

 

[sjdisneywedding]

I dont know if I would do that every year. why pay for 150 points if you are only going to use 75 a year? The renting will definately cover the maint fees but its not going to give you much more than that.

so you are going to pay close to $7000 for the extra 75 points(plus potential interest) just to rent them to cover a few hundred dollars in maint fees

once in awhile might be ok, but not every year.

 

[maja36]

I think there's nothing wrong with it, in fact, you should rent them for $11 to $12 to maximize how much you can get. the other 75 points is great for 1 week trip.

We were going to do that, but then with 2 little kids the idea of a 1 bedroom seems much more suited to our needs so we'll use all 150 points, and the 1 year between trips allows us plenty of time to find ways to save money.

 

[castleri]

If you can afford to buy the points either through Disney or resale it could be a good strategy and then a few years from now you may be in a position to use all the points and not have to rent them to pay the yearly fees. You then won't be in the position of many who say " I only wish I had purchased sooner". While I never purchased as a "financial investment" I feel I was blessed to have been able to buy when I did and now have the opportunity to have great prepaid accomodations, the ability to provide wonderful memories for family and know that if I want to I can rent points out to pay the yearly fees, or help with airfare etc. That same amount in the bank these days does not give me the same return. If it is a struggle to purchase the points you may want to rethink your strategy. This year I will be renting points to help pay for a trip to Disneyland in July and a cruise in December. Next year I hope to use them all at WDW. That's one of the best things about it - all the options. - I hope they never stop the ability to rent out points. I don't see where it would be to their advantage to do so-it seems many people have purchased DVC after staying on rented points.

 

[goodcook5]

the real value comes in several years when you will have paid off your contract andtravel paying only maint. fees. Your strategy will get you through to those years and still allow you to use some of your points now for immediate gratification of that disney fix. Sounds good to me. With prices going up you can lock in a price now.

 

[Dean]

It really depends. I wouldn't do it with the idea of doing it every year, but if you think you'll need more points later and 150 is the lowest amount you can buy, it'd be hard to argue with it. If all you really need is 75 every year, just buy a smaller contract resale or likely better for many, just rent when you want to go. The issues of buy a smaller package for a higher per point cost or rent would depend on how much use you'll get from the other perks like the AP/PAP discounts and whether you need high demand options. You should also try to predict your needs 20 years from now, not 10 or less.

 

[crisi]

I've never rented points, but do keep in mind that renting them will mean some hassles on your part. Some people who do rent have posted that the hassles make it "barely worth their time." Also, rent you collect will (I am not an accountant or an attorney), I believe, need to have income taxes paid on it. Its also not risk free...if Disney releases great specials you may find your points harder to rent.

I'd make sure that you understand what being a DVC landlord will entail before you commit.

 

[ColoradoBelle1]

I only needed 75 points myself, but a resale came by that was too good to pass up. Buying more points than you need for your use now, if the price is right, makes a lot of sense to me.

It isn't an 'investment' strategy to rent out points in this way...it is just good business sense. i believe that with ROFR and the Disney name, that for at least 10 years, the resale of your purchase will either stay the same or go up enough to recapture initial purchase price.

Renting at a low of $10.00 per point, gives you 'double your money' insofar as maintenance point costs...so renting half pays the maintenance (and a wee bit more) of the half you use. After the initial investment...you are getting your vacation 'free'. And then as another poster said, down the road you might find that you prefer to use all the points.

My strategy seems to be very much like yours. I investigated the rental price that Disney 'rents' DVC for, and even at it's best promotion code...it is still twice what $10 a point comes out to. So I think you are protected there, especially since we arent' talking a kazillion points...you could rent out easily 100 points with one reservation.....a couple phone calls, a standard contract and Paypal and you are done.

I think some of the responses come from people who can't imagine not using all their points to gratify the Disney addiction. I think more along the lines of having my cake and renting it too!

I am a new member, making my first visit in May. I never impulse buy...I read these boards religiously and applied my own investment theory to the purchase. I think your thinking is right on target. Good luck!

 

[jnrrt]

We are doing this, sort of. We really only intend for now to go once a year, in a one-bedroom, and will probably never stay on weekends. However, the relatives we visit on the weekends are elderly, and we're not sure how many more years we will be visiting them. Also, our kids are little and a one-bedroom is perfect for now, but I'm sure a two-bedroom will be really nice when they're bigger. So we bought enough to cover future vacations when we'll need more points so we don't have to hassle with buying it all again, and we're planning to rent out the extra now.

Of course, we have the best of both worlds in that somehow we know lots of people who are dying to rent points, and are thrilled to rent from someone they know (and we are thrilled to rent to someone we know as well - obviously we'll have to make sure that everything is clear before we do so, but anyway...), so finding renters we trust won't be a big issue. I just thought we'd rather have enough points that we could do what we wanted to in the future, and rent when we didn't need them.

And it's paying off this year, since we've decided to take the whole family at once and got a GV - something we could not have splurged on if we hadn't bought the extra now.