Buying cheaper deals to rent them?

[DianaMB333]

Hi..
Has anyone done the math on buying a bulk of SsR (example) to rent and pay the dues for expensiest resorts for own use?
Is it reasonable?
Thanks

 

[heynowirv]

Hi..
Has anyone done the math on buying a bulk of SsR (example) to rent and pay the dues for expensiest resorts for own use?
Is it reasonable?
Thanks

Personally I consider it blasphemy. when we bought into DVC the kids were tweeners and we had some great memories. That's why we bought DVC. The thought of buying to rent never entered our minds.

 

[Breesus]

Yes and if I remember correctly, you have to rent 60% of SSR points every year to cover the yearly dues on the entire SSR contract. The remaining 40% could be used to cover dues of other contracts.

 

[_auroraborealis_]

Given the current state of the rental market and the new awareness of the risks, this is problematic.

Also, it is basically using the points as commercial rental which is against contract.

 

[DVC Doctor]

Hi..
Has anyone done the math on buying a bulk of SsR (example) to rent and pay the dues for expensiest resorts for own use?
Is it reasonable?
Thanks

Sure it is reasonable, go for it and let us know how is goes

 

[pamkat1820]

This is a tough call right now with what is going on. We purchased our resale contract with banked points with the intention of selling the banked points as a cushion for the year. That blew up in our face so just be careful.

 

[Deb & Bill]

You didn't know that Disney created this virus just to stop point renting? They did. I swear they did.

 

[bookwormde]

One thing that often is left out of the calculation, is that based on the last I have seen from the IRS, if it is a personally owned timeshare the income from renting is taxable but the MF are not deductible so a very significant hit, assuming following the law.

With this added into the mix for most by the time you figure MF and deduct eventual loss in resale value of 2042s and then take the tax hit there i little if any profit left when the rental market is not strong ($16-18)

 

[CraigInPA]

I've done the math. At the current prices, the return on investment is rather small once you add the maintenance fees, the apportioned up front cost, and the taxes as your yearly basis. You'd be better putting that money into another investment medium.

 

[linzjane88]

I have tried a few different calculations on my great big book of spreadsheets and unless you bought resale CHEAP cheap, it was hardly any profit after factoring in everything. It did not seem worth the hassle. That's not to say I don't re-run the numbers every so often because, really, I would love to have an extra 500+ points at my disposal.

 

[DianaMB333]

Thanks for the inputs... It seems that Addonitis needs to be more rational..

 

[Prince John Robin Hood]

It can be done but it's unlikely the rate of return would be worth it. A low cost mutual fund should end up being a much better investment over time.
If you are doing it with the intent of using some points and renting some, then that's not a bad idea. Just realize that eventually you'll probably just use and not rent