Buy vs Transfer Strategy

[mfortis]

Howdy,
I currently own 240 (resale) points at Animal Kingdom Villas and I am getting add-on'itis.
I thought about getting points directly from DVC, but the prices are sky high compared to the resale market. I just wanted to get the member benefits by going thru them directly. Plus you get instant points, no worry about ROFR and they will line up your use year. Even the resale market is crazy, especially for place like VGC or VGF.
But then I started thinking of other ways I could 'add-on' points. I figure I can just transfer points into my account every year 'renting' them from other DVC members.
These are the benefits I see from transferring points every year:

• No high upfront cost (if cash purchase) or having to finance at a high interest rate
• I can choose a different resort to transfer from every year. Allows me to use 11 month booking at VGC, VGF, etc.
• I can still bank the points I rent.

The downside is:

• Still no direct member benefits
• Price per point is a little higher renting than buying ( I used a complicated math algorithm , lol).

Am I onto something or am I just making sh1t up? Can anyone see more pros or cons?

 

[Marionnette]

Con: Transferred points cannot be used online for booking during the 11-7 month home resort window. You have to call.

Con: Modifications to any reservations made during the 11-7 month window cannot be made online while still in that time frame.

Con: It's not always easy to find another member who has the home resort and number of points you need.

Con: Only one transfer (in or out) per membership, per UY

Pro: No need to budget for annual dues to pay on those points

Pro: No need to vacation or rent out points that you will not be using

 

[mfortis]

Con: Transferred points cannot be used online for booking during the 11-7 month home resort window. You have to call.

Con: Modifications to any reservations made during the 11-7 month window cannot be made online while still in that time frame.

Con: It's not always easy to find another member who has the home resort and number of points you need.

Con: Only one transfer (in or out) per membership, per UY

Thanks for the reply.
Are the first 2 cons due to technical reasons? (Just saw the DVCfan podcast from a month ago about how crappy the DVC website can be. And how calling member services can take hours)
The 3rd con I think it is just a matter of trolling the Rent/Trade board. Listings come and go quick.
For the fourth con, that is the use year for the contract I own, correct? So if my use year is December, then I could only transfer once from December 1, 2021to November 30, 20222.

 

[Marionnette]

The 3rd con I think it is just a matter of trolling the Rent/Trade board. Listings come and go quick.

The 3rd con is based on the fact that an owner may not want to transfer only some of their points, while you may not need all of them. Finding an owner that has the right number of points and the right resort could be a challenge.

The first two cons have nothing to do with website quirks (like online borrowing issues). It applies to everyone.

The fourth con applies to both you and the person transferring points to you. They can transfer points out only once per UY as well. If you only want 50 points and they have 400 that are available to transfer, they may not want to use up their one and only transfer for you. OTOH, if you want a large number of points, you won't be able to transfer smaller quantities in from multiple owners in order to get the number you need.

 

[Sandisw]

To add, when you transfer in points, you have to be sure that they are eligible for the trip that you want because you can not borrow them to make a reservation. You also have to use up your own banked and borrowed points before you can use transferred points when making trips 7 months or less...so it is not as easy as it sounds if it is going to be a regular thing.

For example, with your Dec UY, say you decide you want points for a trip in June 2023....you cant get Dec 2023 UY points into your account, because those points would need to be borrowed for a June 2023 trip as it falls into your 2022 UY.

The once in and out goes by the UY of the points that you receive. In the example above, if you got Dec 2023 UY points, it would count as your 2023 UY transfer. You could not be able to transfer in any other 2023 UY points, even if those points were valid during the calendar year of 2024.

As already mentioned, the online system is not set up to override home resort priority for those resorts one does not own...that is because OTU points purchased through DVC...which can come from any resort...can only be used at 7 months or less, and it appears the system was set up to ensure those points can't indirectly be used during the 7 to 11 month period.

So, it resorts in calling...which means an hour later than the online system. If you are trying for a hard to get room with the transferred points, that wait might cost you what you want.

I think its a great strategy for getting more home resort points to carry one over for a few years that you could be short...we did that with BLT points years ago...I transferred in 100 (needed around 30 or so) and ended up covering the difference a few years.

But, I never did it with a resort we did not own. IMO, if you want to do it as a long term strategy, I would buy and go with smaller amounts until you can get to the number of points you want to have regularly.

 

[PinkPixel]

To add, when you transfer in points, you have to be sure that they are eligible for the trip that you want because you can not borrow them to make a reservation. You also have to use up your own banked and borrowed points before you can use transferred points when making trips 7 months or less...so it is not as easy as it sounds if it is going to be a regular thing.

For example, with your Dec UY, say you decide you want points for a trip in June 2023....you cant get Dec 2023 UY points into your account, because those points would need to be borrowed for a June 2023 trip as it falls into your 2022 UY.

The once in and out goes by the UY of the points that you receive. In the example above, if you got Dec 2023 UY points, it would count as your 2023 UY transfer. You could not be able to transfer in any other 2023 UY points, even if those points were valid during the calendar year of 2024.

As already mentioned, the online system is not set up to override home resort priority for those resorts one does not own...that is because OTU points purchased through DVC...which can come from any resort...can only be used at 7 months or less, and it appears the system was set up to ensure those points can't indirectly be used during the 7 to 11 month period.

So, it resorts in calling...which means an hour later than the online system. If you are trying for a hard to get room with the transferred points, that wait might cost you what you want.

I think its a great strategy for getting more home resort points to carry one over for a few years that you could be short...we did that with BLT points years ago...I transferred in 100 (needed around 30 or so) and ended up covering the difference a few years.

But, I never did it with a resort we did not own. IMO, if you want to do it as a long term strategy, I would buy and go with smaller amounts until you can get to the number of points you want to have regularly.

1) If you make a reservation with the transferred points after calling MS, can you then modify at 8 am without calling?

2) My scenario is I want VGF 2 bedroom, I own 25 points at SSR Oct UY and I transfer in VGF points. I want to book in 2022, and transfer in GFV points from another member from a different UY. What do I do? Is this a crazy question?

follow up to add:
do I, walk a SSR reservation and then all transferred posts are free? Cancel SSR reservation and bank those points after confirming a transfer point reservation at GFV?

 

[Sandisw]

1) If you make a reservation with the transferred points after calling MS, can you then modify at 8 am without calling?

2) My scenario is I want VGF 2 bedroom, I own 25 points at SSR Oct UY and I transfer in VGF points. I want to book in 2022, and transfer in GFV points from another member from a different UY. What do I do? Is this a crazy question?

follow up to add:
do I, walk a SSR reservation and then all transferred posts are free? Cancel SSR reservation and bank those points after confirming a transfer point reservation at GFV?

You must call to use transferred points within the home resort period so once you get VGF points, if you want to use them before 7 months then you have to wait until MS opens 9 am to book with them. As you must call. They don’t work online during that timeframe.

The system does allow modification at 7 months or less to use transferred in points via online systems.

I am not sure what you mean by free points.

But if the goal is to get VGF points so you can book during the home resort period at VGF because you don’t own there and SSR points not good until 7 months, then you need them first to secure thst room.

Points just need to be valid for the trip so you don’t need the same UY for the transferred points, but just make sure they are valid for the trip, even if your booking window opens in 2022