DISPOP said:
We did rent ours last year for $10...we had a ton of responses. Maybe we should have gone to $11. As to why we would rent points: here was our scenario.
Priced a
DCL 7 day cruise for $3100.
Same cabin level/date thru DVC was 430 points.
Rented 300 points for $10.
Got the same cruise and "saved" 130 points.
We have been members since 2000 and have only rented our points once. We love the one and two bedroom condos and use them yearly. However, if you consider DCL or the other resorts, you are better off financially to rent the points and pay cash rather than book using points.
Another main advatage with "actively renting points" especially if you bought more points than you intend to use is the "tax" advantage of being in the business of renting points. Your intention is not to break you agreement from Diney in renting for a profit but a quick bit of math (sans maintenance fees over the life of contract!) gives insight into the 10 per point rental fee bside the excellent expample DISPOP gave.
a 45 year contract at current rate of 92 PP = out to a little over 2 dollars a point invest over that span - so clearly selling your points for any particular year at 10PP is a profit. this is however to your advantage because this is exactly how the IRS views this transaction which leads intothe second hidden advantage of renting your extra points.
If you actively pursue seeking rentals for extra points in any given year then you are using your points for the purposes of making a profit and by doing so you meet the minimum guideline for the IRS to consider this a "business" now that being said there are two other advantages in this business:
1. Most of your annual dues, taxes and excahnge memberships fees are covered as full write offs against any rental fees you obtain in any particular year. This is a direct advantage and essential reiburses you for most of the annual cost for maintenance fees - it's not a 100% re-imbursement but it is close.
2. Anytrips you make to the resorsts can be considered for "business" purposes as long as you are there for a "legitimate" business purpose - Well staying at the resort to "greater increase" your knowledge of the resort to better service your rental clients would certainly qualify would it not? also you just have to attend those pesky "condiminium meetings in November or December don't you! this nets you a 50% discount on your travel realted expenses INC. Food especially if you tell your waitress about the great benefits of renting DVC points from you ; . ) wink wink nudge nudge!!
so in summary, you can recoup most if not all of your annual maintenance fees - wirte off those fees on your taxes, travel to WDW and other "tradeable" locations as basically "familirization" trips and you can do this year after year.
Now let's also say that some years you intend to use most of those points! so why not hold a small percentage in reserve with the active intent to sell them at $15 a point? you know this will not net you an offer and if you do get an offer - well what a bonus for that year - you make a loss for the year - write everthing off and hope to make a profit the next year. and according tho the IRS you only are required to ahow a "profit" every three years.
I can rent 200 Points at $10 PP generate 2K in cash to cover almost 2 years of maintenance fees still go to WDW on my other block of points and otherwise maximize my enjoyment, and I am not seen as goughing any one for the points renting or seemingly making an intent to make a profit because I am seeking only to rent my points at what the "market wil bear" at any particular time.
Thanks,
whiles
)
