DVC Down the road...advice?

[BestDadEver]

Hmm, I don't think I mentioned that.

It is quite the learning curve, the boards have become an excellent source of information for me. I don't think I will go on the DVC tours because I'm sure the guides work hard to make sales commission and I plan to buy from a resale.

IDK i got that feeling .

Either way I think you should at least take the tour with the guild they give you free stuff sometimes , and the info is good . I dealt with 3 different guides and never felt they were working on commission and they aren't push form my experience . In all my experience they tell you what it is give you reasons to buy , then answer your questions .

 

[Deb & Bill]

The biggest question to ask yourself is what would happen if Disney changed the rules on renting out your points?

Could Disney change the rules on renting points? Would we be grandfathered in?

DVC has changed rules in the past, like banking rules and waitlist rules, and no one was grandfathered on those rules. Perks change all the time; some disappear all together.

 

[disneynutz]

IDK i got that feeling .

Either way I think you should at least take the tour with the guild they give you free stuff sometimes , and the info is good . I dealt with 3 different guides and never felt they were working on commission and they aren't push form my experience . In all my experience they tell you what it is give you reasons to buy , then answer your questions .

The more seasoned Guides get the big picture and let the program sell you. Disney has spent millions of dollars building just the right environment to get you to buy and the Guides are put through some intensive training on what to say and when to say it. Disney knows people and how to get them to spend money. So much so that they made a business out of training other companies in the Disney way!

Bill

 

[davedmaine]

I never considered investing in something that will end up costing me $100k (other than my education, woohoo!) So I decided if I buy enough points initially at a discounted rate, rent approximately half of my points throughout the years and sell them back 30 years out, it will only be a minimal cost on my investment minus the cost of tickets, transportation and food.

-I'm planning to buy in 2018 and sell in 2048. The purchase will be contingent on my 5 year plan going smoothly.
-I don't want to spend more than 20k on my initial investment and preferably less.
-I want enough points to be able to cover the cost of annual dues by renting and have enough left over to have a week long vacation every other year.
-Assuming I sell 30 years out, it needs to be at a resort that will have a good number of years left on the contract.

Any advice? Holes in my plan?

Thanks!

A lot of holes.

 

[Missyrose]

IDK i got that feeling .

Either way I think you should at least take the tour with the guild they give you free stuff sometimes , and the info is good . I dealt with 3 different guides and never felt they were working on commission and they aren't push form my experience . In all my experience they tell you what it is give you reasons to buy , then answer your questions .

They work on commission, all of them.

 

[BestDadEver]

They work on commission, all of them.

I know that where did I say they didn't .

 

[BestDadEver]

The more seasoned Guides get the big picture and let the program sell you. Disney has spent millions of dollars building just the right environment to get you to buy and the Guides are put through some intensive training on what to say and when to say it. Disney knows people and how to get them to spend money. So much so that they made a business out of training other companies in the Disney way!

Bill

I didn't know they train other companies . But I agree and often say they are marketing genius .

 

[Missyrose]

I know that where did I say they didn't .

I dealt with 3 different guides and never felt they were working on commission and they aren't push form my experience

Just wanted to make sure people who were new to the process understood that while you may never have felt like they were working on commission, they were.

 

[Dean]

I never considered investing in something that will end up costing me $100k (other than my education, woohoo!) So I decided if I buy enough points initially at a discounted rate, rent approximately half of my points throughout the years and sell them back 30 years out, it will only be a minimal cost on my investment minus the cost of tickets, transportation and food.

-I'm planning to buy in 2018 and sell in 2048. The purchase will be contingent on my 5 year plan going smoothly.
-I don't want to spend more than 20k on my initial investment and preferably less.
-I want enough points to be able to cover the cost of annual dues by renting and have enough left over to have a week long vacation every other year.
-Assuming I sell 30 years out, it needs to be at a resort that will have a good number of years left on the contract.

Any advice? Holes in my plan?

Thanks!

It's hard to know what 5 years from now will bring but basing answers on doing the same thing today, there is too much risk and too little return to make that plan reasonable. I think one of the biggest risks is the assumption that a given contract will have significant value late in the process, that is extremely unlikely to be the case. Plus the buying to rent model is unlikely to have enough return to make the process worth it. IF, big if since we don't know your situation nor do you for 5 years from now, DVC makes sense for you in 2018, there would likely have been changes from today's answers. It's extremely likely your best bet it to buy the number of points you need at a resort that works for you and assume you can't sell in 30 years. IMO, if this model of DVC doesn't work for you DVC is not a reasonable choice for you to buy anyway.

 

[BestDadEver]

Just wanted to make sure people who were new to the process understood that while you may never have felt like they were working on commission, they were.

For them to not understand that they would have to be new to reading ,not DVC .

 

[Dean]

For them to not understand that they would have to be new to reading ,not DVC .

There have been many posts over the years suggesting that the guides were NOT on commission thus it is a valid reminder.

 

[Mickey'sApprentice]

I see where you are coming from. I think that while putting the numbers together...I would also evaluate the scenario of you buying as few points as you could possibly get by with and keeping it until the resort runs out in 2042.

For instance, the buy in for visiting 5 days in a boardwalk standard studio in January would be 50 points, or 25 points if you went every other year. You could get 25 points for $2200-$2500 and the maintenance fees would currently be less than $150 per year.

So...let's say you purchase 50 points and to make things simple...you use one year's points (i.e., 2013) and then rent out the next year's points (2014) and so forth.

You would be out $4500 as the purchase and then would be out $300/yr. in maintenance fees. You would then be able to turn around and rent next year's 50 points for a minimum of $11/point...or $550 which would nearly pay your 2013 and 2014 maintenance fees. You've paid an extra $2000+ for the right to zero out your maintenance fees. Pretty smart.

With renting...you also have to ask yourself if you would ALWAYS be able to rent out the extra points? What will happen if you rent the extra points and the renter trashes the room? What if Disney discontinues renting? Does the increased points requirement for a newer resort and the higher price justify the price?

 

[BestDadEver]

There have been many posts over the years suggesting that the guides were NOT on commission thus it is a valid reminder.

That is 100% false . Show me one time . Please .

 

[Dean]

http://www.disboards.com/showpost.php?p=39535337&postcount=16

That is 100% false . Show me one time . Please .

http://www.disboards.com/showpost.php?p=37960000&postcount=28
http://www.disboards.com/showpost.php?p=33387519&postcount=73
http://www.disboards.com/showpost.php?p=28145578&postcount=1
http://www.disboards.com/showpost.php?p=25885623&postcount=78

I'll stop there. You might want to stop and think before calling someone a liar given you only have a year of experience here.

 

[BestDadEver]

http://www.disboards.com/showpost.php?p=39535337&postcount=16
http://www.disboards.com/showpost.php?p=37960000&postcount=28
http://www.disboards.com/showpost.php?p=33387519&postcount=73
http://www.disboards.com/showpost.php?p=28145578&postcount=1
http://www.disboards.com/showpost.php?p=25885623&postcount=78

I'll stop there. You might want to stop and think before calling someone a liar given you only have a year of experience here.

Well thats great where is the post where I say anything about them not working on commission .

I apologize as I thought you directed that comment directly at me .

 

[minnienmickey]

I see where you are coming from. I think that while putting the numbers together...I would also evaluate the scenario of you buying as few points as you could possibly get by with and keeping it until the resort runs out in 2042.

For instance, the buy in for visiting 5 days in a boardwalk standard studio in January would be 50 points, or 25 points if you went every other year. You could get 25 points for $2200-$2500 and the maintenance fees would currently be less than $150 per year.

So...let's say you purchase 50 points and to make things simple...you use one year's points (i.e., 2013) and then rent out the next year's points (2014) and so forth.

You would be out $4500 as the purchase and then would be out $300/yr. in maintenance fees. You would then be able to turn around and rent next year's 50 points for a minimum of $11/point...or $550 which would nearly pay your 2013 and 2014 maintenance fees. You've paid an extra $2000+ for the right to zero out your maintenance fees. Pretty smart.

With renting...you also have to ask yourself if you would ALWAYS be able to rent out the extra points? What will happen if you rent the extra points and the renter trashes the room? What if Disney discontinues renting? Does the increased points requirement for a newer resort and the higher price justify the price?

Reducing the points definitely puts it in simpler terms for consideration.

 

[MoreTravels]

You are also taking a liability risk for renting. All you need is ONE bad renter, causing damage or room charges for thousands of dollars... You will be fully responsible. Imagine, you rent your points to a stranger, which smokes cigarettes inside the room, burning down part of villas, let's say Saratoga Treehouse because its made of wood and easy to catch fire. Will you be happy to get approached by the Disney legal team for your renter's action? Is it worth the headache? Yes the condo fee may have fire insurance but it may still have deductible or exclusions. Now your risk just goes a lot higher because you are dealing with a high number of strangers. Right?

 

[ELMC]

I don't think the OP said she wanted to go in on DVC as an investment. Correct me if I am wrong, but what I understand you wanted to do was if you needed 100 points each year, instead buy 200 points and rent half the points out so that the rental money will cover your maintenance fee's each year. So you are "breaking even" on the hotel cost. Then when you sell down the line, you hope to recoup as much as your buy-in as you can. So your overall "cost" was as low as possible. There is nothing wrong with this thinking.

She is talking about buying more points than she needs for the sole purpose of renting them out for financial gain. That is the dictionary definition of an investment. Now there's nothing wrong with this thinking as you said. But we really should call it what it is.

 

[ELMC]

People think that your doing it for investment cause you specifically mentioned making a profit when it was sold .

No, we think she is doing it as an investment because what she is doing is an investment.

 

[minnienmickey]

You are also taking a liability risk for renting. All you need is ONE bad renter, causing damage or room charges for thousands of dollars... You will be fully responsible. Imagine, you rent your points to a stranger, which smokes cigarettes inside the room, burning down part of villas, let's say Saratoga Treehouse because its made of wood and easy to catch fire. Will you be happy to get approached by the Disney legal team for your renter's action? Is it worth the headache? Yes the condo fee may have fire insurance but it may still have deductible or exclusions. Now your risk just goes a lot higher because you are dealing with a high number of strangers. Right?

True, but I can imagine I would make precautions to avoid having such renters, and would cover those concerns in a rental agreement that works in my favor in case of such events.