Buying more points than you need and renting them?

[justme0729]

I think I have decided that if I'm going to buy DVC, it will be between 110-160 points at Bay Lake Tower. For now, I only need 110-120 points to get a studio every other year and maintenance fees for 120 points would be approximately $710 currently. If I got 160 points (which later I expect to want for 1 bedrooms), I would use 183-241 points every 2 years to book a studio and rent out at LEAST 79 points every 2 years or more every 3 years if David's doesn't accept that small number. My parents also have DVC and would likely rent our points.

The 79 points rented would give us $1106 so averaging to $553 per year. While my maintenance fees would currently be $945, renting some would "lower" (cover costs) them to $392. I wouldn't do this forever.. Just until our family grows to not fit into studios (no kids yet). Do you think it's smarter to buy a larger quantity now and rent some out so my maintenance fees are "lower" and we aren't waiting for prices to rise?

 

[disneynutz]

I think that it's all in the numbers.

Bill

 

[_auroraborealis_]

Be sure to account for taxes on the income.

 

[CraigInPA]

For less than 100 points, you'll be renting them out yourself. The brokers don't generally want to deal with less than 100 point blocks to rent.

And, don't count on renting out your points. I can guarantee you that you'll be staying an extra day or so each vacation to use them.

 

[miTnosnhoJ]

If you think about it, when you rent points out, you are giving away part of their value. DVC points have value based on being able to stay at a deluxe resort in the Disney Bubble. When you rent, you split this value with the renter, so they get a deal and you get partial payment for your points. I would look at renting as something to do when you can’t use your points, but I would not set it up from the beginning where you had to rent. You are just transferring wealth to the renter.

 

[Sharene0724]

Be sure to account for taxes on the income.

Yes this!! Account for this in your numbers before you decide renting is a part of your normal point use!!

 

[wnielsen1]

I think it is smarter to get the larger quantity now because you will end up using them (or grow into them). You probably won't even rent them, although it is nice to have that option if necessary as sometimes life gets in the way of vacations.