Going Rate for points??

[DiznyMagic]

What is the going rate for renting points?

This year we are unable to use our points and I posted them for $11 points - didn't think that was unreasonable but I have definitely noticed a trend... $8 to $9 pp. I thought that was low considering what we pay PP when you first sign up but hey I know I've been out of the loop. Needless to say I have a lot of competetion and the first year I am having a hard time getting rid of my points - any insights on those who have are more up to date?

Thanks!

 

[DeeDeeDis]

We needed to rent out some points this year and went for $10.00 a point, rented more than i wanted to within 4 hours

 

[DiznyMagic]

We needed to rent out some points this year and went for $10.00 a point, rented more than i wanted to within 4 hours

Two years ago we rented them out for $10 pp and last year I had some left over and they went quickly at $11 so I kept it at that but no takers. I had another member commenting on the same thing.

 

[joeytdog]

From a renters perspective....

3 years ago I paid $13pp (through another site)
2 years ago I paid $12pp (through a member on DIS)
Last year (for this years trip) I paid $11pp (from a DIS member)

I think $11pp is fair, but honestly, I cant see paying more than $10pp for next years trip.

 

[Quilter007]

I needed more points for 2 nights, but at $8 a point, paying cash for the DVC rate was less expensive. I'm new to DVC -- so I don't know if that calculation was true for prior years, but I'm wondering if perhaps the cash rate is lower than in the past.

 

[Deb & Bill]

There are a lot of developer points out there that expire Oct 3. And a few members who had to cancel trips they can't afford to take.

$11 a point is not unreasonable.

 

[joeytdog]

I needed more points for 2 nights, but at $8 a point, paying cash for the DVC rate was less expensive. I'm new to DVC -- so I don't know if that calculation was true for prior years, but I'm wondering if perhaps the cash rate is lower than in the past.

Really? That is surprising. A one bedroom usually is $500 a night (one bedroom at BWV) and points are like 30 a night so at $10pp that is still $200 cheaper

 

[poohbear7]

For Dec and some other times with the DVC discount I have paid $285 plus tax for a 2 bedroom for a Friday night. Sometimes just over $200+tax for a 1 bedroom.

 

[DiznyMagic]

Thanks - I'm glad to here I wasnt overcharging.

I thought maybe the economic times is making it more difficult or perhaps Disney is offering better deals although in the past those deals do not include the accomodations that we as DVC members can get.

I'll stick to my $11 pp and if worst comes to comes bank them and hope that economy gets better so we can travel next year!

 

[DiznyMagic]

The upside is that it will force us to take a vacation one way or another because honestly I dont know if would let go of my points for less than $10 per point and that would only be the ones expiring.

 

[YoMickey]

I rented points to in-laws for $10pp. That was a favor. Based on my own personal calculations I figure $11 to $11.50 to be about break even. The room they used was a two bedroom villa at the Beach Club. It cost 250 points or $2500. The room rents from the resort for $1035 per night plus another 12.5% in various taxes and fees. At that rack rate the same room would've cost them $5796.00

So you be the judge. I thought it was a fair price to cover my dues, lost investment opportunity, and also forfeit the use of our points for a year. So in essence it cost me money to rent at $10 pp as it does anyone else who rents at that price. Unless of course they are going to expire, there's just no reason to rent at that low a price. just my $.02

YO

 

[DiznyMagic]

My thoughts exactly!

 

[Quilter007]

I needed 100 points (2-bed weekend) -- at $8/point that's $800. It was so close to the cash price ($400/night) that I chose cash -- especially when I started looking & seeing $10 to $11 a point.

Don't get me wrong, I'm happier if the rental price is higher just in case I ever need to rent or sell. I just wasn't willing to deal with the hassle for small savings. (Yes, I'm the one who doesn't send in paperwork for a $5 rebate either -- I just give the stuff to my little brother & let him send them in.)

Hey if it's any consolation, I used my left-over DPs to give an employee a couple nights @ DL instead of selling them. I do think the left-over DPs are probably the reason for extra points available for rent -- although they weren't there the week I was looking!!!

 

[BUDDYBEAR]

$ 10.00 a point i think is the right cost

 

[DisneyWalker44]

I think $11pp is fair,

It's not a matter of what is or isn't fair. There is no right or wrong answer. You might get $10, $11, $8 or $14. It all depends upon supply, demand and how much work you are willing to put into it.

 

[DebbieB]

For Dec and some other times with the DVC discount I have paid $285 plus tax for a 2 bedroom for a Friday night. Sometimes just over $200+tax for a 1 bedroom.

Through member services? That is way more than 25% off. Rack rate during value season for OKW or SSR is $390 for a 1 bedroom and $545 for a 2 bedroom, plus tax. Those prices are close to 50% off.

 

[nfreier]

From a renter's perspective, I was not willing to pay more than $10.00 a point. Especially since Disney was offering 3 nights free if you booked through them including park passes.

 

[IndependentW0N]

Another renter's perspective here:

If I rent I cannot take advantage of deals like free DDP or the buy 4 get 3 free a few months ago. From my point of view, this drives down the cost I am willing to pay per point down. I agree with $10 seeming like the maximum reasonable for renters. I know it may be higher to recoup costs for the owner, but there is an opportunity cost for renters who give up typical resort rooms. Comparing with rack rate is not always what renters are doing. We often compare a standard room package with a dvc rental. There's no way I'd ever pay rack rate.

But, any way you look at it Disney's worth the money, in my eyes.

 

[rstamm]

I rented points to in-laws for $10pp. That was a favor. Based on my own personal calculations I figure $11 to $11.50 to be about break even. The room they used was a two bedroom villa at the Beach Club. It cost 250 points or $2500. The room rents from the resort for $1035 per night plus another 12.5% in various taxes and fees. At that rack rate the same room would've cost them $5796.00

So you be the judge. I thought it was a fair price to cover my dues, lost investment opportunity, and also forfeit the use of our points for a year. So in essence it cost me money to rent at $10 pp as it does anyone else who rents at that price. Unless of course they are going to expire, there's just no reason to rent at that low a price. just my $.02

YO

When I looked into buying BLT I looked at my points divided by 50 years and adding in the MF to figure my PP value.

I got it at $96 a point over 50 years is $1.92 MF $3.67 For $5.59 a point.

I first bought 200 points and thought about renting points if needed but if I can buy them at $5.59 why would I rent at $10 so I added on another 100 points.

I have just bought in so maybe I am not looking at all the angles but the way I see it my points are worth $5.59.

 

[Chuck S]

I don't rent my points, I do agree $8 is probably little low, considering not only the actual costs of ownership but the time required by the owner to call MS, set the reservation, and wait on payment.

However, that said, if I was in a position that I HAD to rent points, I could live with $8 because my buy-in costs were about 1/2 of what they are today. Estimating about $5 for current dues and a little over $1 per year buy in , I would still make enough to cover that actual expense. For many new owners, that would be iffy, considering buy in costs are now more than $2 per year over the life of the contract.

I'm sure the downturn in prices for rental have something to do with the current economy, a lot of people couldn't afford to go to Disney right now, even if the room was provided for free. I have some dear friends that I love to travel with, and they have been to OKW with me as my guests...but they are struggling now, just had a baby, and have had to move back in with his Mom...there is no way we'll be able to travel together for a few years. And they are actually in better shape than a lot of people...its just they both lost their jobs (he is working again) and with the new baby, they incurred debt quickly...at least they didn't have a house foreclosed upon..they were renting. And they were able to pay their rent but couldn't meet other general living expenses.