Is owning better than renting?

[LKRJHolland]

Is owning better than renting points? If my family and i only take one large vacation a year are the fees really worth it? anyone with any insight on this?

 

[adminjedi]

Well,
Renting, you are not in control of the reservation and always run the risk of a deal going sideways and NOT getting what you pay for.

Owning, you are in control of the reservation.

Personally, we pay less to own that what people charge to rent.

 

[lark]

Is owning better than renting points? If my family and i only take one large vacation a year are the fees really worth it? anyone with any insight on this?

Lots and lots of posts about this.

Looking just at the fees isn't the question.

You also have to think about the purchase price.

As prices head into the $130 or $140 range per point, I wouldn't be able to justify it to myself. I bought BLT for $98 per point. At that price, all things considered, it was worth it to us. But I can see the other side of the argument.

Dues are about $5/point. You can usually rent pretty easily for $11 per point. That's a difference of $6/point. At $100 purchase price per point, it takes over 15 years to make that up. It's much more if you have to borrow to buy your points. When you rent points, you also have more flexibility -- if you want to stay at a different resort, you can usually find someone with points at that resort to make you a reservation during their home preference period. You can't do that if you own. Also, there's no guarantee that dues will remain stable, although the history on them is pretty good. On the other hand, if you rent, you don't own anything. If you own, you may be able to sell your points and get some of your investment back. Can't count on it though. For us, being able to make our own reservations was the tie breaker.

Resale starts to change the math considerably, but it's worth paying attention to the fact that resale points now have some restrictions that might matter.

Ultimately, I think if you can plan ahead, have a preference for one of the resorts, expect to go at least 10 times, and won't be financing your whole purchase, it can make sense. If you will be financing, it has to be more than 10 times.

 

[adminjedi]

When you rent points, you also have more flexibility -- if you want to stay at a different resort, you can usually find someone with points at that resort to make you a reservation during their home preference period. You can't do that if you own.

We like to stay different places for different amenities or theme and that is why we own at several resorts! We have MORE flexibility than renting!

 

[lark]

We like to stay different places for different amenities or theme and that is why we own at several resorts! We have MORE flexibility than renting!

Definitely a nice way to do it if you can. Sounds not quite what OP is thinking though. For a single visit a year, it's tough for an owner to approximate the flexibility of renting if you want different resorts. If your week is about 300 points, I suppose you could buy three contracts of 100 at three different resorts and then alternate with banking and borrowing every 3 years and still maintain home resort priority of 11 months at each. But short of doing something like that, I think it's a more straightforward calculus for someone like the OP. If you travel at times when 7 months is likely to be ok, it probably doesn't matter as much. (Although it seems WDW is more and more busy throughout the year these days.)

 

[taaren]

Overall, if you own you will in the course of 50 years get a better deal than renting, even if (and I don't think they will) renting stays at $11/point. But that comes with a 50 year commitment. But as a PP said, it will take 10-15 years to feel like one is getting a better deal.
Another advantage to owning v renting is that you have a better shot at rare rooms like Standard views or Grand Villas more easily (esp at peak DVC times) since if you want those things as a renter you'd have to find an owner to rent from before the 11 month window, hope they call at 9a to snag the room that you want, whereas if you want it as an owner, you're the one to wake up at whatever time zone it is on the 11 or 7 month window to get what you want or waitlist for it. (For me its 3a ) I doubt most people renting their points would want to waitlist for a room that *might* not come through and tie up their points in case you might hand over the money when a reservation comes available.
For many of us it was wonderful to take the plunge, esp for families like mine that have been going to the parks semi-annually already and will continue to go, and saved up the extra cash to pay for the points outright. But if you're not sure about the resort, or the fees, the impact the initial layout will have on your finances, or really anything, keep on renting until you are sure its a commitment you want to make. 50 years is a long time.
BTW, you said you only make one large family vacation per year. Is it a Disney vacation? Because if it is sometimes Disney, sometimes elsewhere, or only once in awhile Disney, DVC is not for you (unless you really like VB/HH/AHV) since it doesn't trade out well dollar-for-dollar. Or at the very least look at a smaller contract so you could use it every other or every third year.

 

[castleri]

Is owning better than renting points? If my family and i only take one large vacation a year are the fees really worth it? anyone with any insight on this?

It might depend on what you consider one "large" vacation a year and where you would be staying. We have done a week a year and consider our purchase one of the best things we have done. We would not have stayed in anything above a moderate if not for DVC. You really need to look at what you spend renting points and compare it to what the cost would be for the same number of points direct from DVC or resale. I did basic math and divided my cost for the points by the years I would have them and then add the maintenance fees for the year. I know there are other factors like interest lost on the initial purchase money if I had left it in the bank etc. I just like the simple way and it comes out to $6.38 a point for the BCV contract this year. I bought presale so my cost was about what resale is now for some contracts. If you don't want to be bothered with remembering to book at 11 months or bank within the guidelines if you need to then maybe renting is the best way to go. Also if your vacation choices change over time you do not have to worry about what to do with your Disney points if you just rent every year. There is no right or wrong answer to this question. For me owning my points is the best choice. It is not the same for other people. Some buy points on a purely spur of the moment emotional decision and then regret it later when the maintenance fees become more than they thought or they can't travel as often as they had hoped for a variety of reasons such as job loss or illness or children's schedules. It is good that you are asking the right questions and ultimately it will be up to you to weigh all the advantages and disadvantages from your own situation and make a choice bassed on that. Good luck with your decision and may you have many happy trips to WDW whatever you decide.

 

[Cruelladeville]

I have owned since 1996 when prices were $47.50 to buy in to BWV, so I ended up with 4 contracts, one a resale from OKW. I usually end up with at least a few points to rent out, which gives me money for things that I couldn't afford, yet I still can have enough points to vacation. This year my tax bill was unexpectedly high, and I owed nearly $3000, paid for by renting out one contract, and I still have enough points to vacation in October and December this year. That, for me, is the best part of owning--getting money when I need it, and still being able to vacation. You can run the numbers to realize that if I rented that contract every year(which I didn't), it would have paid for itself. I use my contracts to stay in a grande villa(OKW) every other year, and have several vacations a year(BWV), and money, if I need it. That's why I liked buying rather than renting points. And I will still own the contracts for another 30 years, which means I will have lots more vacations!

 

[disneynutz]

As a renter, you aren't locked in to having to use or forfeit your points each year. That could be a big plus after a few years when you want to take a break from Disney.

As a renter you also aren't at the mercy of Disney changing the rules and policies.

Bill

 

[Cruelladeville]

You're right, disneynutz, I'd forgotten about disney's changing the basic rules of our contracts. That sure is a negative, isn't it?

 

[Deb & Bill]

If you find a good member or two to rent from and can do it almost anytime you want, renting should work out just fine.

If you want to own and plan on your own schedule, you might want to buy.

Looking back now, we probably would have just found someone to rent from. It would have saved us a lot of money in the long run.

 

[Brian Noble]

It depends on a number of things---not the least of which are your assumptions about the rate of return you expect on the assets you would otherwise use to purchase DVC. If you want to use the 10-year T-bill rate (just over 3% as of the close of business today) then buying an OKW resale @$50 is less than renting. If you want to use the long-term rate of return of the equity markets, then it's just a smidge more. But, owning carries with it a lack of flexibility. If you decide later you don't want to keep going back, you can just stop renting. But if you own, you have to sell, and that has friction.

 

[wolfe98pr]

Is owning better than renting points? If my family and i only take one large vacation a year are the fees really worth it? anyone with any insight on this?

It's all about the control. after the amount of time passes to pay it off, its sooooo worth it!! You can rent points to cover annual dues and then you still ahve the option to use or rent. Sometimes the cash comes in handy, sometimes the time away does. Options are endles, my thoughts are, not a bad investment at all.
I've even traded points and went to Europe, another awesome option!!

 

[mikron]

Same as owning your home or renting. When you want to move on you sell and get money back. You can will to family etc. We have owned since 2004 and have rented to cover dues each year.

 

[joeytdog]

I will chime in with my .02 cents, and thats all it is, MY .02 cents

I am a "serial renter" having gone 4times in 5 years for stays of 6, 7, 8, and 9 nights repsectfully in one bedrooms at BCV, BWV, and BLT

The reason we did not buy initailly and also currently is that we would have to finance. I would say, based just on MY calculations and research, and I dont want to turn this into a boring math thread that the breakeven is 7 years on a cash purchase and 14 years on a finance purchase.

I would say given the ages of our children, ages 6 and 7, that renting is a better option for US right now. Maybe down the road if I have the money, I would cash buy but for now I am MORE THAN comforatbale renting as we go year after year.....

Hope that provides some perspective....

BTW, we have NEVER had probelms renting and often use the same source for our rentals.....

 

[CWLGamer]

Just a quick question from a newbie to DVC...

My wife and I are thinking about buying into DVC at some point. We have no children but are planning a family within the next few years. We are both in our middle 30's. We believe we would like around 75 points to begin with and buy more as time progresses. What success has anyone had with purchasing from a reseller vs. buying directly from Disney? I know it is somewhat less expensive - but do you get all the same benefits, etc??

Thanks for the input!

 

[BWV Dreamin]

To answer your question, yes, there are differences in resale vs. direct purchase (from Disney) as of March 21, 2011. Resale points have lost the ability to be used for cruises, Adventures By Disney, and RCI trades. There are rumors that more restrictions may follow against resales points in the near future.

Just a quick question from a newbie to DVC...

My wife and I are thinking about buying into DVC at some point. We have no children but are planning a family within the next few years. We are both in our middle 30's. We believe we would like around 75 points to begin with and buy more as time progresses. What success has anyone had with purchasing from a reseller vs. buying directly from Disney? I know it is somewhat less expensive - but do you get all the same benefits, etc??

Thanks for the input!

 

[Mass Daddero]

I'm in the middle of this decision, too. For me, the fundamental consideration is whether we want to tie up a lot of our money, now and in the future, in a particular type of vacation. Disney's great, but so are foreign travel, camping trips, rafting, national parks, skiing, beach houses, and more. Disney points are not a good way to buy those things. When our kids were young, Disney made huge sense for us. We went to WDW five out of six years. I wish I'd bought DVC when our girls were five and eight. Now that they're 11 and 14, and a bit more adventurous, I'm not sure we'll be coming back to WDW as often.

DVC or no DVC, Disney vacations are expensive, and I'm talking about all the things that aren't accommodations. Travel, food, park tickets, souvenirs, etc. A lot of financial justifications about DVC focus on the difference between buying points and paying rack rates. For us, the difference between taking a lot of Disney vacations and not taking a lot of Disney vacations is more relevant, and probably much greater.

If you're positively, absolutely going to take 10 to 15 trips to Disney whether you're in DVC or not, buy DVC. Otherwise, I'd lean toward renting.

 

[lark]

Just a quick question from a newbie to DVC...

My wife and I are thinking about buying into DVC at some point. We have no children but are planning a family within the next few years. We are both in our middle 30's. We believe we would like around 75 points to begin with and buy more as time progresses. What success has anyone had with purchasing from a reseller vs. buying directly from Disney? I know it is somewhat less expensive - but do you get all the same benefits, etc??

Thanks for the input!

I think if you want only 75 points, resale may be your only option. I don't think disney sells new contracts that low -- at least not usually. I seem to remember that some people were able to buy smaller contracts at AKV directly from disney, but usually the entry point is 160 points.

There are some limited restrictions for resale points. They don't affect many/most users. But if you're thinking you might like to use your points for non-DVC vacations, it's something to think about. While future additional restrictions on resale points are possible, last time disney "grandfathered" old resale purchases -- in other words, they announced the rule only prospectively and give a short period of time for pending sales to be completed under the old rule.

So, if you bought resale now or before any future rule change, there's a good chance you'd be ok -- although there's no set in stone rule that says disney can't retroactively change benefits, other than a strong suspicion held by many that they wouldn't ever do that.

 

[Deb & Bill]

Same as owning your home or renting. When you want to move on you sell and get money back. You can will to family etc. We have owned since 2004 and have rented to cover dues each year.

Resales are selling at less than most people bought them for. So you won't be making a profit anytime soon on selling your DVC points.