Aus DVC Rent/Sell and ITINs

[Chol]

Hi All

I'm sure there are not tons of Australian DVC owners out there but I have seen a few on the boards and had a question about renting or selling out a contact. For those who rent out, have you had to apply for an ITIN? It looks like rental companies make it mandatory. Has anyone actually sold a contract or looked into what it would take to sell if you wanted to one day?

Chol

 

[ColinA]

I often rent out DVC points. Never had a problem. It is not like I make money out of points renting as I still pay the dues.

No need to worry about selling as I will be hanging onto my DVC points.

 

[Chol]

I take it you're renting out directly to people, as the rental sites appear to want an ITIN. Not sure if they all do. Do you need to do anything at tax time? Sound relatively straight forward

 

[ColinA]

I rent out direct. In the early days I listed on the Disboards rent/trade section. Most of the people now are return renters from the US or Canada. I do not declare as income at tax time and never had a problem. It is straight forward. I do a contract and they pay by paypal.

 

[Chol]

Thanks @ColinA We have been once a year for a few years now and are renting points for the first time this year. The dues appear much cheaper than the rent p/p once you get over the buy-in so I've been looking at options. The fx rate is bad right now but I think a small resale contract with a lower dues resort may actually work.

 

[ColinA]

Thanks @ColinA We have been once a year for a few years now and are renting points for the first time this year. The dues appear much cheaper than the rent p/p once you get over the buy-in so I've been looking at options. The fx rate is bad right now but I think a small resale contract with a lower dues resort may actually work.

You need to factor in the cost of the points, the dues per year, the life of the resort and also the points used per night for the stay. All our points are Boardwalk and the points used for a standard view are much less than some of the newer resorts.

From the figures I worked out recently it still makes sense to buy resale rather than renting. Only just!

We first bought 20 years ago and fortunately not long after bought a lot of points resale when the price was around US$67 per point and the Aust dollar was above the US

 

[Chol]

'Only just' sounds like taking a lot of lock in for a small gain I really need to work out the premium I'm paying for all the flexibility of renting vs. owning. Out of interest did you use one of the calculators other members of the board have put up?

 

[ColinA]

'Only just' sounds like taking a lot of lock in for a small gain I really need to work out the premium I'm paying for all the flexibility of renting vs. owning. Out of interest did you use one of the calculators other members of the board have put up?

Last year when I did the figures the cost to buy Boardwalk worked out at $13.50/point. I was doing rentals at $15.00/point so I say only just. If you were renting through a broker there is a much wider difference.

To do comparisons between resorts and room views and size I use one of the brokers sites as the points calculators. PM me if you want to know more.

We like the idea of owning as it feels like it is ours and you are not depending on a broker or an owner on the rent/trade section to try to secure the booking. A DVC broker only depends on mostly members points to make the booking.

 

[Chol]

Thanks ColinA. I may PM you once I've got up to the minimum posts We are going through waiting for an owner to rent out points right now so I agree would still be really nice to have our own. 11 month booking window is easy for us due to planning far in advance anyway. But having enough points for the rooms that are not so hard to get I think is important, it seems the cheap studios are just too difficult to bank on thinking you'll get one year after year in Oct-Nov season at least.

 

[ColinA]

At The Boardwalk standard view studios and 2 bedrooms are nearly impossible to book. Standard view 1 bedrooms which we get are very easy. Garden/pool are easy, just takes more points.

Which resort are you trying to get a booking at?

 

[Chol]

We waiting for Bay Lake Tower week of 19 Oct for proximity to MNSSHP. Uber surge pricing was insane last year at closing but found it dropped by 1:30am and caught one from the Polynesian.

We tried Boardwalk for our last few nights (Halloween weekend) but no studios available so we got an AKL Savanna view instead.

 

[Lewdannie]

It would be my dream to buy into the proposed (but yet to be approved) DVC tower at the Disneyland Hotel