Can I rent out banked points? also, $10 per point? c'mon!

[disney4tahiti?]

I have 325 regular points and 325 juicy banked points, can I rent the banked ones out? I just talked to the DVC travel "advisor" and they said banked points can only be gifted, not transferred. When I asked about renting the points to someone else, they said that was against the rules and discouraged me from renting very emphatically ...

And I can see why - I received an offer to rent 80 of my 625 points for a 5 day stay at my home resort of Key West for $10 per point. OK, so I get $800 to put toward my honeymoon, but the retail price of they stay for those dates at OKW would be $1,800. Hmmmmmmmmmmmmmmm....

Why would I sell points at $10 apiece when they are worth $22.50?

I've got to find a happy medium here and find it fast. I've got another offer for these points where a guy taking a special disney cruise wants to buy them all for about the price it would cost to honeymoon in Tahiti. If anyone can make sense of

1) can I rent out / give away via signed agreement BANKED POINTS

2) why is the going rate only $10 per point

please let me know. Thanks!

 

[sajetto]

First, this really should be posted on the DVC forum b/c this is the rent/trade board. As far as your questions, see below


1) Yes you can rent banked points. It says specifically when you signed your contracts that you reserve the right to rent, will, etc your points.

2) I don't know why. Its been that way for quite a while, I suppose b/c its the only way to be sure that you will get something for your points without taking a loss

 

[Tiffer]

They really aren't worth $22.50.
1st b/c of supply and demand. The worth of something is what someone is willing to pay for it. IF the going rate is $10...that's what it's worth.
2nd b/c if someone wanted to pay retail through Disney, they would, and get the advantages that go with it, like daily maid service. Not the limited service, or extra charge service that comes with DVC.
Not to mention the risk of a private transaction, ie deals gone bad, dishonest sellers...etc. Same reason why some people buy cars from a dealer and pay more and others take greater risks and buy on Ebay FOR A DISCOUNT.
3rd as a member, you use it or lose it.

 

[sajetto]

They really aren't worth $22.50.
1st b/c of supply and demand. The worth of something is what someone is willing to pay for it. IF the going rate is $10...that's what it's worth.
2nd b/c if someone wanted to pay retail through Disney, they would, and get the advantages that go with it, like daily maid service. Not the limited service, or extra charge service that comes with DVC.
Not to mention the risk of a private transaction, ie deals gone bad, dishonest sellers...etc. Same reason why some people buy cars from a dealer and pay more and others take greater risks and buy on Ebay FOR A DISCOUNT.
3rd as a member, you use it or lose it.

Tiffer, I'm sorry but we have to disagree. You are NOT a DVC member, but the price per point is worth whatever the member decides it is. Just b/c 50 people are renting at 10 a point doesn't mean the rest will. Many are renting up to $13 per point

DVC is not limited. It is a deluxe room, larger than most suites. Renters are getting an amazing deal by renting points

Risk is risk...you either play with fire or you don't

No it is not use it or lose it if they are not banked points. Most don't even rent their points. If they have any left over they rent them or donate to charity

 

[Tiffer]

True. I am not a DVC member, but I am and educated and intelligent person. And wether it be DVC points, a house or a car, it doesn't matter, it is only worth what you can sell it on the open market for.

You can get an estimate on your house that a professional tells you to list for $300k, but if it sits on the market for a year, and you only get offers of $280k.....than what is it worth? Throw in the fact that you have a specified amout of time in which you must sell your house...then how much is it worth?

You can try to sell your points for $13 per point, and maybe someone will buy them. But it is not as likey that you will sell them as quickly or at all if most others are selling the same thing for $10 sometimes $11 per point. It also depends upon your home resort, time of year/availibility, etc. OKW is not as desireable as say BCV.

You can be as hostile as you'd like but a simple rule of economics tells you that the seller NEVER controls the worth, only the asking price. Buyers as a whole, and what they are willing to pay, determines worth.

 

[sajetto]

You can be as hostile as you'd like but a simple rule of economics tells you that the seller NEVER controls the worth, only the asking price. Buyers as a whole, and what they are willing to pay, determines worth.

Hostile????????? What did I say that was hostile?

 

[Tiffer]

Please accept my apology. I interpreted the "your NOT a DVC member" as hostile. Usually the "NOT" in all caps is interpreted aas yelling or stating something strongly. Ans although that is true, I don't find that to be the most relevant point of the discussion.

Please don't misunderstand. I do agree that it is a great value. But it is mutually beneficial to the buyer and the seller, in most cases. I am just speaking in a purely fiscal sense. I now that donating them to charity gives you a warm and fuzzy feeling inside, (I too give to charity regularly) but from a financial standpoint, that still only gives you a tax credit. Some prefer cash in hand.

I am also not referring to how great it is to stay on Disney property, which I do on at least a yearly basis, becuase that has a personal value to each person. I am just speaking in a general sense that in anything...buyers always determine worth, obviously sellers determine asking price...and as I said pervisouly, that is not to say you won't get it.

 

[bpmorley]

Tiffer, why do you say the points are worth $22.50? If I sold all my points(270) for the year @ $10 I would make an overall profit.

 

[bpmorley]

For the use year that is

 

[Tiffer]

I am not sure I understand your question. I didn't say they are worth $22.50 per point. If you are saying youwill sell your points @ $10.....well then your sayng what I'm saying.

As far as making a profit...more power to you. This is capitalist society after all!

 

[fkj2]

I think potential renters need to remember that owners who rent out their points are not actually "clearing" the price per point that is asked. We have yearly maintenance fees--that have gone up quite a bit over the last few years--and once those are figured into the mix, no DVCer is going to get rich on renting their points. Adding in finance costs for those who have a mortgage would make $10 a point seem pretty close to the margin, at least to me. It works out well under certain circumstances, esp. if for some reason, the owner just can't use their points in a particular year, owners can maybe recoop their baseline costs or a little more, but not that much. Even at $11-12 per point, it's still a great deal for those who want to take advantage of larger rooms/kitchens/washer&dryers, etc.

 

[bpmorley]

I'm sorry, Disney4tahiti said they were worth 22.50. I'm not out looking for a profit. It's basic math that if I sell 270 pts @ $10 per it's $2700. DVC only cost about 13 -1400 per year for 270 pts.

 

[Irish Wake]

"Why would I sell points for $10 when they're worth 22.50?"

Because no one would pay $22.50 per point, $10.00 is about the going rate.

 

[bpmorley]

You're right on that point. NOBODY will pay 22.50 a point. I never bought in to the DVC for money gain. It's something I wanted. Me and my wife are working on our first child. That will most likely put a stop to our travel for a few years. I will be renting those points. Best to get something than just lose them. Has anyone ever questioned why they just can't carry over forever? And why is disney just a 50 year timeshare? most others are for life.

 

[MCazer]

You can rent those points (make a reservation for someone), but you CAN NOT transfer banked points. Found this out the hard way!

 

[lovetoseemickey]

I think you should be happy to get $6500 for the 650 points that your mom gave you.

Is it that expensive to go to Tahiti? I hope you have a great wedding.

 

[bpmorley]

What's to stop anyone from just making a reservation in someone else's name and just getting cash for the points? disney won't know if it's a gift or rental.