Hard time deciding how many points we truly need.

[Girlstar30]

I would buy for MB but I wouldn’t buy just to rent.

Dont you come out ahead even if you buy just to rent until you need it for like a year? Curious cuz im in the same boat as her

 

[Girlstar30]

I would buy for MB but I wouldn’t buy just to rent.

Or would it make sense to take the mb this year and not go until next year instead of borrowing and going this year?

 

[VGCgroupie]

Dont you come out ahead even if you buy just to rent until you need it for like a year? Curious cuz im in the same boat as her

Renting comes with its own set of problems. Taxes. Buying to specifically rent right way could be a problem with DVC. Since we dont know what they look at, could they potentially look at a brand new contract and see bam 3 rentals right away and flag that? Possibly. Nobody knows for certain.
Lastly, why buy something now thats so expensive when it's not needed? The MB check comes to you without tax implications and its fully within the rules of DVC.

Buying with assumption of renting is just not something I personally think should be done.

 

[Girlstar30]

Renting comes with its own set of problems. Taxes. Buying to specifically rent right way could be a problem with DVC. Since we dont know what they look at, could they potentially look at a brand new contract and see bam 3 rentals right away and flag that? Possibly. Nobody knows for certain.
Lastly, why buy something now thats so expensive when it's not needed? The MB check comes to you without tax implications and its fully within the rules of DVC.

Buying with assumption of renting is just not something I personally think should be done.

Do you think that most people that do mb, borrow and go on a trip anyways, I am curious if id be the only one

 

[Brian Noble]

The biggest problem with buying to rent is that the ROI is not very good---and that is especially true for a developer purchase.

Take RIV for example. If you buy 200 and stack all available discounts, you can get it down to around $205/pt (it's a little more than that, but we'll be generous). Suppose you hit paydirt and get $21 for them, minus the $9.50 in Dues nets 11.50. And that sounds great, except that it is less than a 6% return, and it is a lot of work. Of course, it's less work if you use a broker, but now you are getting a payout of maybe $17, and that $7.50 net is an ROI of about 3.65%. You can match that in one year in a money market fund, with no work and essentially no risk.

 

[VGCgroupie]

Do you think that most people that do mb, borrow and go on a trip anyways, I am curious if id be the only one

I did MB and I did not end up borrowing any points.

 

[VGCgroupie]

I did MB and I did not end up borrowing any points.

Also I would add its important to time your direct purchase with MB correctly so you get the most for your money, all the more reason to wait and not buy right away if you don't need it right away. Buy right before your UY switches over.

 

[AstroBlasters]

Renting comes with its own set of problems. Taxes. Buying to specifically rent right way could be a problem with DVC. Since we dont know what they look at, could they potentially look at a brand new contract and see bam 3 rentals right away and flag that? Possibly. Nobody knows for certain.
Lastly, why buy something now thats so expensive when it's not needed? The MB check comes to you without tax implications and its fully within the rules of DVC.

Buying with assumption of renting is just not something I personally think should be done.

I’ve purchased loaded resale contracts and rented out the banked points plus current year points that I wouldn’t use to help offset the cost of purchase.

I also didn’t get to finance the resale purchase at 0% for 6m.

With direct, the cost of points will likely be higher in the future whereas with resale at least you have the chance the price could be the same or less.

Of course, I’ve also gone in with the plan of renting out the bonus points and ended up just using them for an extra trip or a YOLO room…. so….

 

[VGCgroupie]

I’ve purchased loaded resale contracts and rented out the banked points plus current year points that I wouldn’t use to help offset the cost of purchase.

I also didn’t get to finance the resale purchase at 0% for 6m.

With direct, the cost of points will likely be higher in the future whereas with resale at least you have the chance the price could be the same or less.

Of course, I’ve also gone in with the plan of renting out the bonus points and ended up just using them for an extra trip or a YOLO room…. so….

A current member who uses points as you do I can see no big deal buying contract and boom renting. I was more speaking on first time members, sometimes it's hard to remember whose scenario I am responding to since there are various threads and commenters.

 

[TinkAgainU]

To confuse the issue further. Are you certain you Never want to stay in the Disneyland Hotel? Their duos might be okay when you are older and want to go as a couple, and talk of the New Park next to DLH in 10 years might make that a nice option. I'm not thrilled with the extra taxes and Resale restrictions, but tossing it out as a thought. VGC is just very limited in number of rooms... if only getting 30-50 points Direct might makes sense for the flexibility.

 

[Sandisw]

A current member who uses points as you do I can see no big deal buying contract and boom renting. I was more speaking on first time members, sometimes it's hard to remember whose scenario I am responding to since there are various threads and commenters.

I honestly don't see DVC looking at this situation, even for a first time buyer, as an issue at all. It is not about renting....we can do that...it is about renting to a degree that DVC concludes you own for something other than vacation purposes.

Renting a handful of reservations isn't going to trigger a review...especially since there is no way for DVC to know whether the reservations are for family and friends