Buy points to cover my reservations or more than enough, renting out to cover dues

[kra623]

Now that I have picked the brains of many of the board members, I have one additional question (for now). We have decided DVC is for us, have rented many times and I love to help people save money (really this is my passion in life). So.... the idea of buying more points then I need and then renting to people so they can enjoy great accomdations more economically while benefiting me by covering my dues.

However, I have also read a few posts where people buy a small contract 50 or 100 points and then transfer in when they want to go on a big vacation. As background, we plan to WDW every three years and on off years go to HHI and misc other places.

SO I am looking for people who do either scenario and their take on why it has or has not worked for them.

I feel like I'm a bit all over the place. My head says get the 50/100 point contract and save on annual dues and transfer in when I want a 2 bedroom but my heart says go large and use my points to help others get DVC and help myself by lowering my dues in the long run. I know that renting is not a guarantee and there is risk to it but I think that renting would be something that I'd be good at and I enjoy finding deals for people.

As always, I truely appreciate all of the great people on the boards that take time to help out DVC obsessed people like myself.

 

[papamouse1]

As a DVC owner, I have been pleased with our purchase overall. There have clearly been times when I was disappointed with changes that came about (the reapportioning of weekend/weekday points for 2 years that dropped value of my points the way we use them by 30%), but the changes were always things I enjoyed but was never promised by Disney.

The rule of thumb, as I see it, for owning a timeshare is buy what you are going to use. Don't buy thinking you are going to trade constantly through RCI or buy thinking you are going to just rent it out. What if a couple years into your contract, Disney decides they are losing revenue because of the renting of points? They make it impossible to rent them, then you are stuck with points you don't really need or can afford. If you read the contract carefully, renting of your personal points is already borderline, so not much of a stretch for them to stop it IMO.

Buy what you can/will use and pay for.... that's my 2 cents

 

[Sandisw]

We bought what we needed for our vacation needs so I can't speak directly to your question, but I would like to say that I would be very cautious in buying more than I needed with the expectation that I could rent them out.

Would you be okay covering the extra MF's if those points went unrented? If that works for you, then I might consider it, but if not, I would go with a smaller number of points and then go with the transfer route.

 

[Deb & Bill]

Buy only what you can use each year.

And you may want to reconsider buying only small and getting points from someone else. You are limited to one transfer in or out each UY and not many members want to waste their once a year transfer on a small number of points. They'll transfer 150 or 300, but not 100 or less for example.

Save the philanthropy for someone who can afford it. Even Disney doesn't give away stuff for free.

 

[bookwormde]

If you buy a new contract you will have more into the contract (dues plus amoratization) than you will get from renting the points. Even if you buy the most economical resale (OKW for $40 or SSR for $50) you will have $7/ point into each years points . So if you need 100 points your dues would be about $500. so at a net of $3/pt on a $10/pt rental you would need to by 167 extra points to rent out each year. And that is in a perfect world. If dues keep going up and rentals stay static as they have this would likely not work in a few years.

 

[Tamar]

I'd suggest starting with what you will use yourself. You can always add on if a fantastic deal comes along.

If you choose to spend a chunk of change on extra points, think about how many years of renting it'll take before you even get back your initial investment....

 

[Brian Noble]

If you look very carefully at the numbers, you'll find that the ROI of buying extra points to rent out---especially if you are buying from Disney---to be quite low. In most cases, you'd be better off investing the extra capital elsewhere, and using the proceeds to offset dues.

 

[kra623]

Thanks all for the great responses. As I examine your responses and my vacation needs. I think that what is hard for me and probably for many others is that not all my vacations will be the same, some times I will want a Studio while other trips will require a two bedroom. We are a family of 4. Me (35) DH (35) DD (13) and DD (6 months). However, we have a huge extended family and close friends.

The difference between points for those two reservations are HUGE!! So what do most people do? Remember I don't intend to go every year (at least that's what I say now) So if I buy enough to cover the largest trip then most of the time, I will have an excess of points but on the years, I actually book a big vacation I will utilize them all. So do I buy enough points for an average trip Studio or One Bedroom or do I buy enough to cover the biggest trip?

 

[Tamar]

Thanks all for the great responses. As I examine your responses and my vacation needs. I think that what is hard for me and probably for many others is that not all my vacations will be the same, some times I will want a Studio while other trips will require a two bedroom. We are a family of 4. Me (35) DH (35) DD (13) and DD (6 months). However, we have a huge extended family and close friends.

The difference between points for those two reservations are HUGE!! So what do most people do? Remember I don't intend to go every year (at least that's what I say now) So if I buy enough to cover the largest trip then most of the time, I will have an excess of points but on the years, I actually book a big vacation I will utilize them all. So do I buy enough points for an average trip Studio or One Bedroom or do I buy enough to cover the biggest trip?

Well, once you stay in a 1 bd, you probably won't ever want a studio again.

I'd start out with what you will need for just your family. As mentioned before, you can always add on later. If, however, you buy too many points and they are all in one contract, then you have committed to renting/transfering/hosting others.

 

[disneypoor]

We just bought in to DVC last June, and I went with the number of points I thought would easily cover my family of four and occasionally allow my teenage children to bring friends. However, prior to owning DVC, we stayed in studio type rooms, so I was kind of basing our points on staying in a studio. We have our first stay booked, and it's in a 2 bedroom at BLT with a Magic Kingdom view. I sure hope we can go back after staying in a 2 BR, but I have to admit, I'm worried.

Susan

 

[Deb & Bill]

Thanks all for the great responses. As I examine your responses and my vacation needs. I think that what is hard for me and probably for many others is that not all my vacations will be the same, some times I will want a Studio while other trips will require a two bedroom. We are a family of 4. Me (35) DH (35) DD (13) and DD (6 months). However, we have a huge extended family and close friends.

The difference between points for those two reservations are HUGE!! So what do most people do? Remember I don't intend to go every year (at least that's what I say now) So if I buy enough to cover the largest trip then most of the time, I will have an excess of points but on the years, I actually book a big vacation I will utilize them all. So do I buy enough points for an average trip Studio or One Bedroom or do I buy enough to cover the biggest trip?

If all the extra points to "treat family and friends" is difficult to use for regular trips, you let the family and friends rent their own points for a separate villa or seek a transfer for you. It's hard to be generous when it is so expensive. Most of the time they think timeshare and FREE. They don't realize how much it is costing you.

 

[lovin'fl]

Well, once you stay in a 1 bd, you probably won't ever want a studio again.

I'd start out with what you will need for just your family. As mentioned before, you can always add on later. If, however, you buy too many points and they are all in one contract, then you have committed to renting/transfering/hosting others.

I agree! I'd go with enough points for a 1BR. We are a family of 5 who stay in a 1BR most trips.

 

[kra623]

We just bought in to DVC last June, and I went with the number of points I thought would easily cover my family of four and occasionally allow my teenage children to bring friends. However, prior to owning DVC, we stayed in studio type rooms, so I was kind of basing our points on staying in a studio. We have our first stay booked, and it's in a 2 bedroom at BLT with a Magic Kingdom view. I sure hope we can go back after staying in a 2 BR, but I have to admit, I'm worried.

Susan

This is exactly what I fear will happen with me. I have found that I am disciplined in most areas but in the areas of vacations and remodeling the sky is the limit. So... I think I will wait and see what the reallocation looks like for 2013 and then get enough points for a 1 Bedroom at the majority of the resorts during the times I travel. Thanks for all of the responses.

 

[papamouse1]

Thanks all for the great responses. As I examine your responses and my vacation needs. I think that what is hard for me and probably for many others is that not all my vacations will be the same, some times I will want a Studio while other trips will require a two bedroom. We are a family of 4. Me (35) DH (35) DD (13) and DD (6 months). However, we have a huge extended family and close friends.

The difference between points for those two reservations are HUGE!! So what do most people do? Remember I don't intend to go every year (at least that's what I say now) So if I buy enough to cover the largest trip then most of the time, I will have an excess of points but on the years, I actually book a big vacation I will utilize them all. So do I buy enough points for an average trip Studio or One Bedroom or do I buy enough to cover the biggest trip?

This is an issue for al lot of DVC owners us included. The best way I can explain it is find the middle ground that is comfortable. For example, we are hopefully going to Grand Californian over Thanksgiving this next year... that will will be a boatload of points. So we borrow points from next year and either skip next year or we go to AKL and stay fewer days in value studio for almost no points... we also will stay the first few days in a studio, then move into a 1BR later in the week to take advantage of washer/dryer, etc. We also try to book studio on weekends, then move to bigger on weekdays when points lower. It all balances out with your ability to bank/borrow points, you just have to be willing to plan out in advance and be flexible. It does sound like a good middle ground for you would be enough points for 1 BR during what you think is your most favorable season of the year.

Well, once you stay in a 1 bd, you probably won't ever want a studio again.

I'd start out with what you will need for just your family. As mentioned before, you can always add on later. If, however, you buy too many points and they are all in one contract, then you have committed to renting/transfering/hosting others.

Well said. We originally bought 200 point contract. when they made the 2 reapportioning changes in points, suddenly we didn't have enough point to vacation as we like to, so I picked up a small 50 point contract last year and all is good.

 

[Brian Noble]

some times I will want a Studio while other trips will require a two bedroom. We are a family of 4.

Everyone is different. But, personally, I do not consider it a vacation if all four of us have to sleep in the same room.

 

[DenLo]

I would buy the number points you think you need for your family. I would not buy extra to rent out even if you plan to use the money to pay for your annual dues. There's no guarantee that you will be able to rent the points.

I would also be careful about using your points for only for rental purposes. Because renting your points for commercial purchases is expressly prohibited. And if you only use those additional points for rental purposes, you might violate the renting rules. It normally takes 20 or more reservations in a 12 month period to be defined at commercial renting. It's doubtful you would own that many extra points, but it's something to consider.

 

[kra623]

Everyone is different. But, personally, I do not consider it a vacation if all four of us have to sleep in the same room.

The fact that we can get our own room while on vacation is the factor that is convincing my DH to let me get DVC. He loves going to Disney as a family but does not enjoy everyone in the same room.

 

[kra623]

Everyone is different. But, personally, I do not consider it a vacation if all four of us have to sleep in the same room.

I would buy the number points you think you need for your family. I would not buy extra to rent out even if you plan to use the money to pay for your annual dues. There's no guarantee that you will be able to rent the points.

I would also be careful about using your points for only for rental purposes. Because renting your points for commercial purchases is expressly prohibited. And if you only use those additional points for rental purposes, you might violate the renting rules. It normally takes 20 or more reservations in a 12 month period to be defined at commercial renting. It's doubtful you would own that many extra points, but it's something to consider.

You're right, I know I would need to consider the rules if I bought extra. I can't see me ever having enough points to make 20 rentals. I was thinking more like 1 but now I am thinking that I will follow the advice of the boards and stick for just enough for us which some years will probably mean that I have extra since I'm going to base my points on a 1 bedroom at possibly base it on HHI which is steep in the summer time. Which brings up a whole new issue because I'd probably need to own there...... Ohh the choices