does anyone have success with less than 150 DVC pts and being a regular renter?

[KANSAS]

If you are in the category, what can you share with us.
Obviously you got involved with a resale, rather than the original 150 Dvc pt minimum if you had purchased retail.
I am looking for responses from regular renters of points, with small dvc pt contracts, bought as resales.

I sometimes think, this would be a great way, to get involved with DVC.
purchase a 50 PT Old Key West Contract resale at $70 per point and closing costs and you are now a dvc member for $4000,instead of $12000.


you now can rent points for $9-$10 per point, but pay no annual dues,so your real cost is around $6 per point. If you rent 100 hundred points a year, for $600 per year. You now have access to 150 DVC Pts per year, for much less capital and annual dues, than 99% of al l people that purchased an original 150 DVC PT contract retail.

I would think this is a great idea for a studio family, but maybe it could work for 1 bedroom familys.

If you are in this cateogry, is it alot of worK?

do you spend all your time, worried about getting enough points, from the same dvc resorts, to accomplish your 11 month window option?

or do you just book at 7 month window??

read this question carefully? is is true, that if you rent a DVC members point, the use year of his or her points, is not that important, because when transferred into your account, it becomes your use year.
i.e. I have an august use year and today is August 1,2003.
if your points are 5 months into your use year, I actually have one year to use them, when transferred into my account, instead of the 7 months, when they were in your DVC Account?

Thanks for all the input, that anyone can share??

 

[lenshanem]

Interesting.
I own at BCV, but as most know I've struggled with wanting VWL.
I'm eyeing some smaller VWL resales. Course hubby would be the last to know...
If what you are saying is true, if I'm short a few VWl points to book a trip I can rent the extra and ahve them put into that account. I shoudln't ahve to woory about the use year at that point, cause thsoe extra poinst I rented would atek on my vWL use year? (And woudl you ahev to rent VWl points specifically?)
What hapens if the use year is different for VWl than my BCV use year? Guess it doesn't matter? I wodul request it to go into my VWl contract instead of the BCV contract? If I bought a VWl resale wodul i ahve two different membership numbers?

 

[KLR-wlv]

First off - use years do not change once transferred to your account - they retain the use year of the owner you rented from, not yours. I am assuming you saying "now you can rent" to mean that you can have them transferred to your account and control things a bit easier - because anyone can rent - dvc member or not.

I have 150 pt contract I bought from Disney - so I'm not quite what you asked for - but we often rent. We have been to Disney world 5 times on points in the past 2 years, as well as Hilton HEad and Vero BEach a couple of times. The 150 pts just haven't been enough for all those trips! While you do "save" renting - the rental price will surely go up in time. While dues will increase, you have to figure that once you are only paying dues on your points, rather than continuing to pay rental rates, you will eventually come out worse renting. But yes - in the short term it might be better. I figure right now our kids are young and we currently live within an easy days drive to Orlando, so going a couple times a year is desireable. In a few years if we move and going there involves airfare and car rental - I doubt we would go as often.

I think no matter how you look at it, DVC makes good financial sense in the long term. And right now, I could sell my contract for what I bought it for, making it a decent investment. So if you want to supplement your points in the short-term, your plan might work to your advantage. And you can always buy another contract if you feel you don't want to deal with renting...I know for us, 150 isn't near enough for the amount of vacations we take. I could easily spend 450 a year...that's the one problem with DVC - once you start going through the infinite possibilities, you are only limited by the amount of points you own, so it's a bit of an addiction!

Good luck

 

[KANSAS]

lenshanem

These are great questions? I hope someone will answer them!

 

[KANSAS]

KLR
What is the basis, for your belief, that the cost of renting points will go up, over the next few years.
Please correct me if I am wrong, but I have been told that our annual dues, have gone up, over the last 10 years, but not the standard rental rate per point.

 

[mydogdrew]

Kansas,
I would doubt that that rental rates would increase much more than the % increase in maintenance costs going forward. There are just too many folks willing to rent at $10. I am closing on a 50pt VWL contract this week ($70 + all 2002 and 2003 pts). I plan on following your strategy as we plan on visiting every other year or so. I am a bit concerned about what could happen to maintence fee well into the future. A $4 maintence fee today is $10 in 20 years at 5% annually (not a prediction, just a risk assessment). Anyway, I am sold on DVC but like the small contract flexibility. Run the numbers and you will find that your contract costs you ~ $8 per point all in. I am willing to pay the extra $1-$2 per point for my rental needs for the flexibility. Keep in mind that many people have seen the value of their investment increase as more people research resales so my strategy probably does not work if you plan on visiting often.

 

[spiceycat]

I think rental points use to $6 a point, then $8, now $10 - but that is because of what DVC currently values them (they use to give $10 a point for your first years point).

some members were trying to get it up to $12 a point - but as long as someone is willing to sell them for $10 a point - that is not going to happen.

I think it depends upon what DVC does once SSR opens - if they have a buy back (they generally do) - what they set the point value as - well probably determine the rent price.

 

[lenshanem]

mydogdrew,
Do you mind me asking what the closing costs ended up costing you? So it passed ROFR then?
Thanks.

 

[mydogdrew]

We paid $375 and agreed to reimburse the 2003 dues. Passed ROFR in 2-3 weeks. It comes out to $4075 but we get all 2002-2004 points. I figure the extra points are worth $500 so we paid ~ $72 all in. My broker said Disney has not taken a contract in the last two months! We probably paid too much but these small contracts sell very quickly and this was the only way to get in for short $. Based on broker input I would think that 150 pt contracts on-site would pass ROFR at $65 with normal points. You can get a small VB contract for $58-$60 and they will pass ROFR but I wasn't comfortable having off site as home base (although I would consider as an add on if we eventually go that route). Keep in mind that the larger contracts are more difficult to sell. My recommendation is that regardless of contract size negotiate price and don't worry about ROFR. Best of luck.

 

[lenshanem]

Thansk mydodrew and congrats.
Who did you use for the resale?
Is the closing cost based on the amount of poinst youa er buying? Seems I'v read on here of much higher closing costs.
Thanks!

 

[mydogdrew]

jaki@atimeshare.com. $375 would be the minimum based on points. I think it runs $500-$600 for larger contracts.

 

[steverog]

I was told by MS transfer points changed to the use year of the account you were transfering into. Obviously someone has the wrong information.

 

[Dean]

Originally posted by steverog
I was told by MS transfer points changed to the use year of the account you were transfering into. Obviously someone has the wrong information.

There are actually two pieces of info. The written rules say that transfers retain their original use year and home resort. DVC's computers cannot handle that info at this time so they become the use year and home resort you transfer them into. That will change at some pointe, when is the question.