Am I missing anything?

[Sandisw]

Okay, all this talk about adding on, resales, etc., has given me a case of addonitis.

Yesterday, contracts came for sale that would fit what I want (not need) as they are my UY and resort.

In talking to DH about it, he asked if we really needed more points and of course, we don't necessarily need them, but I want them.

Then I thought about transfers and how long would it take me to break even if instead of buying right now, I simply got yearly transfers in for the # of points I am considering. With transferring, I would not be paying MF's (like if I own) so my real cost would be less.

For example, if buying would cost me $6500, it would take me about 13 years to "break" even, if I got a transfer every year for the same points that are in the contract.

With this plan, I won't have to upfront the money, but also won't end up owning more points that I might really need 5 years from now. And, I have the flexibility to get points with a different UY or resort, as long as I know they are good for when we are traveling.

In addition, with this plan, I can always change my mind and add on in the future, especially if the ability to transfer in goes away. The most I lose is the cost of the transferred points.

What do you think?

PS: Mods, please edit if I didn't do a good job with keeping this generic enough.

 

[FindingFigment]

I think your thinking is right on target. Right before I pulled out of "buy mode", I was actually considering jumping up to 200 point contracts so that we could bring friends or family and get 2 BR's. But after things happened and I could no longer buy, it hit me that if I bought say 130 points and then transferred in the extra, then our needs might change 5-7 years down the road and I might not need the other and wouldn't have to worry about being stuck with too many points.

So, I think if you really see yourself using the extra points for 15+ years, then buying is better. But if not, trading is cost effective and much easier to opt out of on the years when you don't need it. It's easier to NOT transfer in than to have to rent/transfer out extras you don't need.

 

[Sandisw]

I think your thinking is right on target. Right before I pulled out of "buy mode", I was actually considering jumping up to 200 point contracts so that we could bring friends or family and get 2 BR's. But after things happened and I could no longer buy, it hit me that if I bought say 130 points and then transferred in the extra, then our needs might change 5-7 years down the road and I might not need the other and wouldn't have to worry about being stuck with too many points.

So, I think if you really see yourself using the extra points for 15+ years, then buying is better. But if not, trading is cost effective and much easier to opt out of on the years when you don't need it. It's easier to NOT transfer in than to have to rent/transfer out extras you don't need.

Thanks! Just getting someone else's take on things is good. And, you are right, I don't want to be stuck with points that I don't need on the years that its just DH and I going.

If I find that after a few years of this, its not working, I can ALWAYS buy in more points.

The contracts I am looking at are not priced in a way that is "too good to pass up" so its not like I am giving up some great deal either.

 

[AlwaysDreamofDisney]

I agree that the frenzy had me interested too! But we decided that the extra costs weren't where we wanted out money to be. Decided against adding on and will most likely skip a year when the time is needed or we will look into renting points for the year(s) we don't have enough points of our own to stay.

This way there are more funds to invest for college and trust funds for the kids.

 

[DizGirl20]

Hi Sandi - Thank you so very much for posting because this same exact thought just came to me as well this morning. I have been looking like crazy for the right resale but can't find the right amount of points/UY (which means we may have to consider a direct purchase). In the meantime, we got a new driveway this week and need to get the house painted (in addition to a few other home improvements) that we really should be spending our money on. So I was thinking the same thing - why not "rent" some points? The only drawback I see is that eventually I want to split my points b/w my 2 kids and with what we own right now that is not possible. Sooner or later we will have to buy more points but I guess not right now. I think. Hmmmm. I need to do a better job convincing myself! We need to start a support group for those with addonitis!

 

[disneydenisel]

I have constantly had addonitis, especially whenever I go onto these forums .

So you are saying that if you had points transferred in from other owners for 13 years, you would break even with the cost to buy the same amount of annual points now?

If you were to buy the points now and use them for 13 years, then you could sell them at some price after 13 years, and then would that mean that you would actually get some of your money back, making it not break even? Does that make sense?

 

[Sandisw]

I have constantly had addonitis, especially whenever I go onto these forums .

So you are saying that if you had points transferred in from other owners for 13 years, you would break even with the cost to buy the same amount of annual points now?

If you were to buy the points now and use them for 13 years, then you could sell them at some price after 13 years, and then would that mean that you would actually get some of your money back, making it not break even? Does that make sense?

Yes, it does make sense. I am not one, however, to consider resale value at anything other than $0 since there are too many factors out of my control that affect that.

Basically, I am saying is that if I take the buy in cost plus MF's for 13 years and compare that to what it would cost me to just transfer in those same # of points, it is the same. I don't start losing with this strategy until year 13.

Of course, if there is a year where I really don't need those points, I don't have to get the transfer and it pushes it out farther. At this point, I am just not sure that I will still need these extra points for more than 5 years down the road.

My oldest, DS 22, will probably get his own contract within that time frame. If he owns his own points, I certainly won't need as many any longer.

Obviously, if I find that I really do want and need those points and it is looking like I can use them forever, then I would probably buy. But, I think I have realized that it just does not make sense for me to spend $6500 right now (plus some sort of 2011 MF's), when I can just pay less $700 to get myself enough points for next year and re-evaluate then.

Thanks everyone for your insights as well. Just bouncing things off of people sometimes helps a decision to be made. I am, and always have been, a person who has no trouble just "jumping right in" when I want something. At times, its worked out great but of course, other times, not so much so I am trying really hard, given my LOVE of DVC of trying to make a more rational decision for my needs instead of just an emotional one.

 

[arthur06]

I am debating almost weekly on adding on. I have all my 2010 and 2011 points used, we have a Dec UY. We have a trip planned in April for 6 days and one in Sept for 8 days. I think that we might take a DL trip next year, if we can get GCV, and borrow from our 2012 UY. Even though I am borrowing, I am still getting the trips I want.

I hate to say it, but if we had to take a year off to get caught back up a bit, we sure could.

 

[JimMIA]

I think your basic logic is sound, but of course DVC could institute additional limitations on transfers. When I joined in 2004, we could do unliimited transfers; now we can do only one per year.

A couple of years ago, Wyndham eliminated transfers between owners entirely. Of course, if DVC did that, you still have your fall-back plan of adding on.

 

[jake&samsmom]

When I joined in 2004, we could do unliimited transfers; now we can do only one per year.

A couple of years ago, Wyndham eliminated transfers between owners entirely.

Wow, I didn't know that. I learn something new here all the time!

 

[DizGirl20]

I think your basic logic is sound, but of course DVC could institute additional limitations on transfers. When I joined in 2004, we could do unliimited transfers; now we can do only one per year.

Can you please clarify this? Meaning you can only "rent" or "transfer" in points from another member only once per year? Just want to make sure I am on the same page with my thoughts. Thanks.

 

[ToddyLu]

I really like the rationalization threads...it helps me remember that maybe the here and now is what is important. We have a May trip for 8nights. I used my points, bought 9 points from DVC then added a night buy renting a villa from a dear friend. Then we are going in Oct on our points with my parents. We will not need extra points until 2012. That gives me several moer months to decide what our habits will be now that we have utilized all our 2008 buy in points, then points through 2011. We also have a DEC UY so if we go before 12/1/12, will will borrow our 210 points. The tricky part comes in when I decide to add a night because I have to "just have another night in the World" or perhaps fly in a day early and need the extra night.

So for now DH and I are good until the fall of 2012.

But I still look at the resales regularly and buy points in my head---or points for family, people at work, good friends......

 

[Sandisw]

I think your basic logic is sound, but of course DVC could institute additional limitations on transfers. When I joined in 2004, we could do unliimited transfers; now we can do only one per year.

A couple of years ago, Wyndham eliminated transfers between owners entirely. Of course, if DVC did that, you still have your fall-back plan of adding on.

Which is why I am thinking that in the short run, it is hard to see that this has many pitfalls.

Plus, the resort I am looking at is still comanding some of the highest prices vis resale (though it is getting lower) so I am thinking that the urgency is not there.

I know that if they cancel the transfer option, I will be forced (don't you like how I use the word forced!!!) to add on but as long as transferring is an option, I think I feel comfortable not rushing to buy one of those contracts this month!

Now, if next month, or in 6 months, resales take a nose dive and all of a sudden I can pick things up for a really great deal, then I know the plan will change!!!

 

[Sandisw]

Can you please clarify this? Meaning you can only "rent" or "transfer" in points from another member only once per year? Just want to make sure I am on the same page with my thoughts. Thanks.

DVC members are allowed only one transfer in or out of their membership each UY. So, in my case, I can only seek one transfer in for each UY.


Renting a reservation is a different situation and there is no limit on how many reservations you can rent from or to someone else. Of course, if Disney sees that you are renting to many, like 20 or so, they could consider it "commercial renting", which is against the rules.

 

[DizGirl20]

Oh no I would never rent my points! I would consider renting from someone else though if I needed more points. That's what I thought you meant by transferring. Guess I am lost here.

OK so what do you mean by "transferring"?

 

[bobbiwoz]

Oh no I would never rent my points! I would consider renting from someone else though if I needed more points. That's what I thought you meant by transferring. Guess I am lost here.

OK so what do you mean by "transferring"?

Transferring means that you are bringing into your membership points from another's membership. You could bring in points from resort X, that you do not own and use them at the 11 month window for the resort they are from, or you can use them at the 7 month window at any DVC resort. Or you could be bringing in points from resort Y that you do own and use them with your own points at 11 months out.

DVC only allows 1 transfer (either in or out) per UY.

Bobbi

 

[DenLo]

Just a FYI, it's against DVC rules to pay for transferred points. Many do it but it's still against DVD's rules. DVD would have the right to take away your membership for violating the rules.

From the Home Resort Rules and Regulations:

Club Members are expressly prohibited from receiving compensation for engaging in any Transfer activity.

 

[Sandisw]

Just a FYI, it's against DVC rules to pay for transferred points. Many do it but it's still against DVD's rules. DVD would have the right to take away your membership for violating the rules.

From the Home Resort Rules and Regulations:

Good point--so, this might be something that would work in short term, to delay purchasing immediately, but in the long term, DVD could flag an account that is receiving transfers every year.

Thanks as this is not something that I thought of at this point.

 

[JimMIA]

Just a FYI, it's against DVC rules to pay for transferred points. Many do it but it's still against DVD's rules. DVD would have the right to take away your membership for violating the rules.

From the Home Resort Rules and Regulations:

I'm not sure what the sanction would be, but I seriously doubt they could "take away your membership" for a violation of the rules.

 

[Sandisw]

Thanks everyone for the thoughts and ideas. It has definitely helped me to realize that I don't need to rush to buy points this week, but can put it off until next year or the year after when I know for sure that I do want more points.

Of course, if DH came home today and said "Just go and buy it", I think I would!!!!