Dean
DIS Veteran<br><a href="http://www.wdwinfo.com/dis
- Joined
- Aug 19, 1999
- Messages
- 39,228
Here's the original thread that is applicable. The structure is based simply on buying and renting as the model. Regardless of the reasons, that's what's said and that's what's used to attempt to justify the purchase. Seems pretty clear to me that this is a buy and rent out the points discussion based on the OP. That info has essentially no meaning for a buy and use discussion.Actually, none of what you said is true. Go back to the original post and read it again. It was just about making back the cost of the initial purchase.
Let's say I buy a Saratoga Springs 200 point contract for $11,000. This year the maintenance fees are $4.81 per point. So if someone paid $4.81 per point and sold them for $12...they'd realize a $7.19 profit per point. Selling all 200 points would net a profit of $1438 for the year.
Assuming a $11,000 cost to buy the contract....if I sold all 200 points each year and got a similar $7.19 per point profit...it would take me basically 7.6 years to recoup the contract cost. Am I looking at that correctly? Would anyone else like to share how long it took you to recoup the initial investment? I realize I didn't factor in what I'd lose by taking that $13,000 and investing it instead. I'm just curious to know if having that initital investment recouped in 7 years is a good deal...bad deal...or great deal.
I stand by my general statement, I think in general that those who post such thread's and truly want a full range of info and feedback are in the minority. Certainly there are those that truly want feedback. Often they qualify the type of feedback they want in the OP. You're free to disagree and free to characterize how you will.I don't understand why you would assume such negative and condescending things about people you don't know. The OP actually asked for feedback and suggestions. I think most people who post this sort of thing would like to know if they are on the right track or not. Whether they get good advice or not is an entirely different matter.
Then it should make sense to buy a few thousand points and rent them out. I do believe there are situations such as where one needs more points later but less now or when there are more points than the buyer will use but this is not the discussion here. One is not going to consistently get $12 pp in today's dollars after expenses at a property you can get for the lower costs likely at all and certainly not without booking high demand times first then offering them for rent. To me the reward vs risk is simply not there and I do not think it a viable long term model.I don't know, if you're willing to put up with the hassle of renting the points, $12 off your per point cost is pretty nice. Or $24 depending on how loaded it is. Even subtracting MFs for the current year, you're reducing your out of pocket by a bunch.