Best resort to buy to rent points?

[Slow&Steady]

Thinking about buying more points so I can rent them out to help cover dues every year. Just wondering the most in demand resorts on the rental market. Any suggestions or ideas will be most appreciated.

 

[RoseGold]

I wouldn't do this at all with the way Disney's decisions in general seem to going. I view this as very risky.

If I were going to, I would pick Poly1. Good resale value right now and good demand for lots of studios. And it might work in Poly2.

 

[Ruttangel]

If you are going through a broker then you may find that everything apart from SSR/OKW is in demand.
If you want to rent at high demand times such as Thanksgiving or Christmas then Monorail resorts will do well.

One of the few remaining resorts that doesn’t seem to get ROFR is PVB so I would try and get that a loaded contract at a reasonable price.

 

[GoingSince1990]

A HUGE demand for BCV rentals at DVC Rental Store recently. I've also seen VGF, BWV, PVB and VGC come up fairly regularly.

 

[DVCjj]

I definitely agree it's BCV. My funny part is I own BCV but my often travel partner, adult DD, adores BWV so I struggle to rent DWV points instead. DH likes BCV best so I have to keep those points. Sure gets tricky sometimes. Both great resorts Location, location, location.

 

[pianomanzano]

Buying points just to rent out to cover dues doesn’t make much financial sense. You’d have to consistently rent points out at 25+/pt to make enough money after recovering the contract costs, dues on those points, and taxes paid on the rental income to cover the dues for your other points. Why not just invest the money you would put towards an additional contract and take money out to pay for dues? Find some discount gift cards to further decrease the cost of dues.

 

[badeacon]

PVB and BCV by far most demand for rentals. PVB would be by far the most economical to buy for rental.

 

[Nursemanit]

Not RR

 

[dvc lover 1970]

Too risky at this point in time. I would only purchase what you want to use. If you really want to buy extra, I would probably buy either BCV or PVD. I think of the two BCV is probably the one that your really need to own to book. I doubt Poly towers will be part of the same association. but if it is, then poly points become more desirable.

 

[badeacon]

Too risky at this point in time. I would only purchase what you want to use. If you really want to buy extra, I would probably buy either BCV or PVD. I think of the two BCV is probably the one that your really need to own to book. I doubt Poly towers will be part of the same association. but if it is, then poly points become more desirable.

I'm not sure I agree that if Poly tower is different , then Poly less desirable. To me a lot of the demand rental is for studios so PVB1 should be just fine.

 

[Sandisw]

I'm not sure I agree that if Poly tower is different , then Poly less desirable. To me a lot of the demand rental is for studios so PVB1 should be just fine.

Except if Poly tower is different, those points will be good to book both and PVB resale bought today will only be able to book the studios.

So, once there are options at the Poly, more renters could want to book there as well and demand may change

To what degree we don’t know.

 

[badeacon]

Except if Poly tower is different, those points will be good to book both and PVB resale bought today will only be able to book the studios.

So, once there are options at the Poly, more renters could want to book there as well and demand may change

To what degree we don’t know.

The op was asking about rentals and my experience with renting is a strong demand for studios and PVB 1 has a lot of studios. If someone wants studios,I don’t see how poly tower will affect PVB1.

 

[Nursemanit]

A direct quote from the lady who manages my rentals - " I can rent anything but a 1br - no one wants a one bedroom" She said to reserve 2 studios and they will rent much faster. Its not the resort but the point chart and location.

Most people will not spend $2000 more a week for a WD and Kitchen- much better ways to spend. For me as a solo traveler that buys a first-class ticket upgrade, car service to both airports, and multiple signature meals and drinks. For a family of 4 2k pays for meals.

The pecking order is

BCV
PVB / BWV
BLT
CCV
AKV/BR
OKW(pref)
SSR

 

[Sandisw]

The op was asking about rentals and my experience with renting is a strong demand for studios and PVB 1 has a lot of studios. If someone wants studios,I don’t see how poly tower will affect PVB1.

We don’t know though if people renting Poly would choose other options once they exist.

Right now, if a renter wants to stay at Poly, they have to rent studios. But, if there are options for other sizes, some of those renters may want to book larger rooms instead.

So, we have no idea how many renters would shift if they have a chance. That doesn’t mean there won’t still be people who want to rent PVB, but right now, they are pretty much the only option if that is a resort of choice.

 

[badeacon]

We don’t know though if people renting Poly would choose other options once they exist.

Right now, if a renter wants to stay at Poly, they have to rent studios. But, if there are options for other sizes, some of those renters may want to book larger rooms instead.

So, we have no idea how many renters would shift if they have a chance. That doesn’t mean there won’t still be people who want to rent PVB, but right now, they are pretty much the only option if that is a resort of choice.

Studios are what are in demand by the renters have I rented to, BCV, AKV, GFV not just PVB. I doubt they will shift when Poly tower opens.

 

[MICKIMINI]

I would agree that Poly is best for your situation as long as you have the cash to make the purchase. A long expiration and always desirable monorail location is ideal. Patience and persistence in getting what you want for the future will pay off for you.

Deals do often get better towards the end of the year. I would look for a well priced, loaded contract (international seller would be ideal) that already has banked 2021 ($0 MF's) points. From there, I'd negotiate for 2022 ($0 MF's) and somehow sweet talk the seller into paying closing costs.

Those initial two years of points renting at say $20 PP would do a lot to offset your initial cost. Here is a for instance (don't forget your tax liability):

100 Poly at $155 or $15,500
No closing costs
$0 for 200 ('21 & '22) points

Rent 200 points at $20 PP for $4000

Net cost $11,500 or $115 PP

Assuming you rent at $20 PP minus $7 MF's and $3 taxes (?) and net $10 PP or $1000 per year, your contract will be paid off (to yourself) in 11.5 years. I'm not sure if that is what you were hoping for, and of course rental prices will likely increase, but my guess is you are at 10 years or so to break even. If you can afford a larger contract at a smaller price, the numbers will change in your favor of course.

Good luck!

 

[Brian Noble]

Thinking about buying more points so I can rent them out to help cover dues every year.

Every time I do the math, this isn't a particularly attractive option compared to:

Buying points just to rent out to cover dues doesn’t make much financial sense. You’d have to consistently rent points out at 25+/pt to make enough money after recovering the contract costs, dues on those points, and taxes paid on the rental income to cover the dues for your other points. Why not just invest the money you would put towards an additional contract and take money out to pay for dues?

this. The long-term rate of return in e.g. investing in an SP500 index fund is comparable if not better to the rate of return for renting DVC points, and dropping the money you'd use to buy DVC in an index fund and using proceeds to help pay for dues is a lot less work than renting.

 

[RAD]

I’ve rented out my BWV points a number of times and it’s never take more then 3 days to rent them out.