50% Borrowing Rule

[Marionnette]

Very good point. Question...could someone buy points from another owner to complete a reservation? You mentioned the limits on buying extra points directly from DVC, but do those restrictions hold true when buying points from other DVC members? I really appreciate all your knowledge when it comes to the finer details of DVC...I am still a "rookie". LOL.

Hopefully the 50% borrowing restriction gets lifted next year, although I do 100% understand why it's in place and am OK with it at this time. We are planning to book Aulani for my daughter's HS graduation and we will need to borrow 50% plus another 12 points (based on current point charts, so that may change a little). We don't need to book the room until Sept 2022, so I am not worried at all right now. Although, it sounds like I can always buy the 12 points directly from DVC for $19 per point.

Members can transfer points but you are limited to one transfer (either in or out but not both) per UY per membership. Technically, members are not supposed to receive compensation for their transfers but DVC turns a blind eye as long as money is not mentioned during the phone call with Member Services. There is no limit to the number of points that can be transferred during that single transaction.

 

[CarolMN]

Question...could someone buy points from another owner to complete a reservation? You mentioned the limits on buying extra points directly from DVC, but do those restrictions hold true when buying points from other DVC members? I really appreciate all your knowledge when it comes to the finer details of DVC...I am still a "rookie". LOL.

Not really sure what you are asking. The only way to " buy points" from another Member is to either accept a point transfer (the sending Member cannot transfer borrowed points) or have the other Member make a reservation for you. The other Member is subject to the 50% borrowing rule to make that reservation.

As the receiving Member for a transfer, you would be free to use the points to make or complete a reservation, subject to the 11 & 7 month booking rules. You could bank the points you receive, but not borrow them, so the points you receive must be valid for the dates of your desired reservation without borrowing them. There is no cap to the number of points that can be transferred, but you can only do one transfer per use year, either into your account, or out of it, but not both in the same use year.

 

[Sandisw]

Very good point. Question...could someone buy points from another owner to complete a reservation? You mentioned the limits on buying extra points directly from DVC, but do those restrictions hold true when buying points from other DVC members? I really appreciate all your knowledge when it comes to the finer details of DVC...I am still a "rookie". LOL.

Hopefully the 50% borrowing restriction gets lifted next year, although I do 100% understand why it's in place and am OK with it at this time. We are planning to book Aulani for my daughter's HS graduation and we will need to borrow 50% plus another 12 points (based on current point charts, so that may change a little). We don't need to book the room until Sept 2022, so I am not worried at all right now. Although, it sounds like I can always buy the 12 points directly from DVC for $19 per point.

That would be the transfer and it is still allowed with only the one in or out per UY. So, owners can certainly do that to get more.

So there are ways that don’t just involve the OTU at 7 months from DVC.

 

[DVCSunDevil]

Not really sure what you are asking. The only way to " buy points" from another Member is to either accept a point transfer (the sending Member cannot transfer borrowed points) or have the other Member make a reservation for you. The other Member is subject to the 50% borrowing rule to make that reservation.

As the receiving Member for a transfer, you would be free to use the points to make or complete a reservation, subject to the 11 & 7 month booking rules. You could bank the points you receive, but not borrow them, so the points you receive must be valid for the dates of your desired reservation without borrowing them. There is no cap to the number of points that can be transferred, but you can only do one transfer per use year, either into your account, or out of it, but not both in the same use year.

Got it. That's exactly what I was looking to understand. I had a brain fart and forgot that when you buy/rent points from another member that they are the ones responsible for making the reservation for you, so that wouldn't really work in the instance of only needing 15 points to complete a reservation. It sounds like receiving transferred points is what would need to be done, so it sounds like I would need to find another member willing to use their one transfer to send me points (although from checking these boards it doesn't seem like transfers are that common to where members would need to do more than one in a UY anyway). It's probably all moot anyway since the 50% borrowing rule will hopefully be gone by the time I need to make the reservation, although it's always good to have a better grasp on the rules.

 

[DVCSunDevil]

That would be the transfer and it is still allowed with only the one in or out per UY. So, owners can certainly do that to get more.

So there are ways that don’t just involve the OTU at 7 months from DVC.

Is there an acronym list somewhere on these boards that you can direct me to? I would like to bookmark it. I searched "acronyms" and I couldn't really find anything, but I know I saw a comment several months ago that had a link in it. It took me a while to figure out what OTU was. Haha.

EDITED: Never mind, I just found it. Thanks

 

[tjkraz]

Im not sure they care about the competition considering the blanket statement of 50% borrowing let a lot of rooms go to waste during the reopening.

"A lot" is very speculative.

At most it was an 8-10 month problem since villas are now routinely filling even with the restriction in place. If DVC could go back to summer 2020 and know how many rooms would be sitting vacant thru the fall, maybe they would allow additional borrowing 60 (?) days before arrival to try and fill more rooms. But that would have been a hard exception to later take away, and for the next couple years it would do more harm than good. In the foreseeable future, there will likely be many owners looking to add nights on short notice using current and banked points, with little need additional borrowing.