Buying DVC solely to rent

[crisi]

Big data behavioral analysis has gotten very robust, and very big. Right now, Disney has better things to do with those specialists, but eventually, they are likely to start defining the rules around renting to narrow their currently very broad definition of commercial. Its in their long term best interests to define it as closely as they can get away with, and in the end, Disney tends to do things that are in their best interests.

 

[Ryandb2]

This is exactly the scenario I'd like to get into

I get you really want to do this, and it seems like there is no stopping you. But notice one of the words in his post was "luck". Great timing makes any investment look good. I guess I would ask again, why is this the best possible investment option for you?

If it is just because you want it to be, then fine nothing we say will have any value, just do it and have fun with it. But DVC is not an investment, and just because someone made money on it doesn't make it an investment. Some cars appreciate, some collectibles hold value, but none are investments. Remember the contract explicitly states you cannot do this with DVC, so why are you okay still proceeding?

 

[101Pongo]

...why are you okay still proceeding?

I am not proceeding with anything.

As I've said numerous times, I'm not investing in anything until the foreign exchange becomes favourable. This will take many years. I asked for information to satisfy my curiosity on it. I got the information I needed and when the time comes to look at investing in the US, I will look into this again as well as other investment options.

In all likelihood I will purchase a DVC contract for our personal use and rent out any excess from it. As suggested, I will seek out a better investment option.

 

[Dean]

In all likelihood I will purchase a DVC contract for our personal use and rent out any excess from it. As suggested, I will seek out a better investment option.

This is a different matter and more reasonable when buying DVC makes sense anyway (pay cash, use only at DVC resort, plan 7 months or more out and the like). Being willing and even planning to rent the excess points gives you some options that many don't have (or consider) though one should look for a balance. I wouldn't buy extra points just to rent out but if it gives someone other options such as larger contracts or more home resorts, it can be a great choice. One just needs balance, I wouldn't buy 1000 points to use 100 and rent out the rest but I might buy 400-500 only needing 250-300 to get 2 or 3 home resorts that I wanted and would be difficult to get otherwise, give me cheaper points overall (SSR, BLT & ?AKV) or give me access to cheaper rooms (BLT, VGF, BCV, BWV). IMO most of those looking at small contracts would be better off taking this approach.

 

[mort1331]

Remember the contract explicitly states you cannot do this with DVC, so why are you okay still proceeding?[/QUOTE]

Actually, they do let you rent out points. They just don't want commercial use of it. And it says that.
So in our case, we bought with the intention of using our points for us. We have with purchasing loaded contracts been able to rent out excess for the time being and not have to pay dues out of our own pocket. This will be changing as we are now starting to use larger rooms and extended stays. We have not sold any of our contracts, so there is no realized profits, just paper profits. And if all goes well, we will use our contracts to the end of their life.