Opinions wanted!

[alice99]

I own points at the Bay Lake Towers.

I feel like it it kind of a waste for me to own at this location because we NEVER book at the 11 month window. That's just my style, I don't know what I'm going tomorrow, forget about 11 months from now! The last trip we took I booked 3 months in advance and stayed at OKW (which I loved).

We bought at an "overpriced" location but (almost) always end up staying at SSR or OKW whose points can be purchased at bargain prices right now.

Over the past few months I have contemplated buying points at OKW or SSR for my use...... and renting out the BLT points for a profit.... since I haven't been able to book a trip there anyway. (OKAY, well once in 3 years)

We paid CA$H for the unit (107/pp from Disney), in 2008. We had no loan so NO interest was paid. We own 300 points (in one big contract, a mistake I know, but was inexperienced!).

I am not considering selling my BLT points, because paying commissions and closing costs etc... would put a dent in the budget.

I never intended to do this (renting out on a regular basis)..... but can't shake this idea from my mind.

There are so many experienced people here on the boards... I need to hear all your opinions , pros and cons.

Thanks!

 

[FreeTime]

Not knowing how much you paid, are you paying interest, etc., I can't give you a clear thought. So, you will want to calculate how much it will cost you to sell, how much money you may lose on the interest you already paid, etc. Also, there are times at 3 months out, 6 months out, etc. when nothing is available. I think the biggest question you need to answer is are you able to start planning between 7-11 months?

 

[alice99]

Not knowing how much you paid, are you paying interest, etc., I can't give you a clear thought. So, you will want to calculate how much it will cost you to sell, how much money you may lose on the interest you already paid, etc. Also, there are times at 3 months out, 6 months out, etc. when nothing is available. I think the biggest question you need to answer is are you able to start planning between 7-11 months?

I will edit my opening post to include this info. Thanks! Wasn't thinking about these variables.

 

[DizDays]

I think the bigger question is... if you find you are unable to plan/book at 11 months out, what makes you think you'll be able to do that in order to rent the points? BLT would be a hot commodity but for renting you would need to stay on top of it in the same manner you would need to do in order to book for you. Unless I'm misunderstanding and you're not booking at 11 months because you don't know what your timing looks like that far in advance. I think renting is a feasible possibility.

 

[CarolMN]

Are you having trouble using your BLT points at 7 months to book at OKW or SSR? If not, just keep on doing that. Don't buy more points if you do't really need them for yourself.

Your BLT dues are lower than those of either SSR or OKW and the expiration date is further into the future.

BLT should also sell for more on the resale market than either SSR or OKW.

So I'd just keep BLT. Maybe you will be able to plan more than 7 months in advance in the future.

 

[wdrl]

Without crunching the numbers, I suspect it will make more sense for you to keep your BLT points.

You say that you can't take advantage of the 11-month Home Resort period and you imply that you book trips only 3 months out. But how does buying SSR or OKW points help you in this regard? Granted, there will probably be more availability at SSR or OKW, but there is no guarantee that even those resorts will be available for "last minute" bookings. For example, on 8/1/2011, I tried to add three nights in a studio at either SSR or OKW for 10/9 - 10/12/2011. Although I could get one or two nights at either resort, I couldn't get all three nights. Once you are past the Home Resort window, your BLT points are just as good as SSR or OKW points in booking stays at any DVC resort.

By switching from BLT to SSR or OKW, you will see an increase in your yearly maintenance fees. SSR costs $0.62 more per point, while OKW costs $1.09 more per point than BLT. Over the years, these additional expenses will eat away at whatever money you make by 'downsizing' your DVC holdings from BLT to SSR or OKW.

Keep in mind that BLT's lease goes until January 31, 2060. If you switch to SSR, you'll lose 6 years (SSR expires in 2054). OKW will cost you 18 years of ownership, unless you can find an extended contract.

Do you feel positive that you'll always be able to rent your BLT points? Despite MFs rising every year, the going rate for rentals have hovered around $10 a point for several years. Unless there is a drastic change in the rental market, you might find that your net profit from renting will diminish year by year.

I think you lose little by keeping your BLT points and using them to book whatever is available at 2-3 months. You are paying the lowest MFs of any DVC resort and, as I said previously, outside the Home Resort period your BLT points are no different than SSR, OKW, or any other resort.

 

[alice99]

Are you having trouble using your BLT points at 7 months to book at OKW or SSR? If not, just keep on doing that. Don't buy more points if you do't really need them for yourself.

Your BLT dues are lower than those of either SSR or OKW and the expiration date is further into the future.

BLT should also sell for more on the resale market than either SSR or OKW.

So I'd just keep BLT. Maybe you will be able to plan more than 7 months in advance in the future.

Without crunching the numbers, I suspect it will make more sense for you to keep your BLT points.

You say that you can't take advantage of the 11-month Home Resort period and you imply that you book trips only 3 months out. But how does buying SSR or OKW points help you in this regard? Granted, there will probably be more availability at SSR or OKW, but there is no guarantee that even those resorts will be available for "last minute" bookings. For example, on 8/1/2011, I tried to add three nights in a studio at either SSR or OKW for 10/9 - 10/12/2011. Although I could get one or two nights at either resort, I couldn't get all three nights. Once you are past the Home Resort window, your BLT points are just as good as SSR or OKW points in booking stays at any DVC resort.

By switching from BLT to SSR or OKW, you will see an increase in your yearly maintenance fees. SSR costs $0.62 more per point, while OKW costs $1.09 more per point than BLT. Over the years, these additional expenses will eat away at whatever money you make by 'downsizing' your DVC holdings from BLT to SSR or OKW.

Keep in mind that BLT's lease goes until January 31, 2060. If you switch to SSR, you'll lose 6 years (SSR expires in 2054). OKW will cost you 18 years of ownership, unless you can find an extended contract.

Do you feel positive that you'll always be able to rent your BLT points? Despite MFs rising every year, the going rate for rentals have hovered around $10 a point for several years. Unless there is a drastic change in the rental market, you might find that your net profit from renting will diminish year by year.

I think you lose little by keeping your BLT points and using them to book whatever is available at 2-3 months. You are paying the lowest MFs of any DVC resort and, as I said previously, outside the Home Resort period your BLT points are no different than SSR, OKW, or any other resort.

Thanks so much..... this makes sense to me also.

I was concentrating on what I "lost" by purchasing a premium priced location..... then using them for a resort that is priced as a bargain. I anticipated staying at BLT, but that really has not happened.

In fact, we did 2 trips with 2 days notice, so we ended up completely off property!

I think the bottom line is I need to get more disciplined and start booking 11 months out.....

Almost all of the DVC trips I've taken have had a waitlist involved, because of my planning style.

Thanks for the great advice. I will stick with what I have and try to be a better planner.

I really don't NEED any more points!

 

[wdrl]

I really don't NEED any more points!

What has NEED got to do with more points???

Hopefully, in the future you'll be able to plans trips a little further out. We really like BLT -- our third trip home is coming up next month.

Good luck in getting what you want.

 

[GoofItUp]

I can completely understand the idea of renting your points out. If you post them for rent a little before the 11-month for Christmas, Easter, or other popular times, you can probably rent them quickly for as much as $12/point. Then stash the cash for when you are ready to go on vacation. At that point, either rent distressed points or use the cash to stay off-site or at another Disney property if DVC has no availability. You could come out ahead money-wise if you were disciplined and careful about it.

 

[alice99]

I can completely understand the idea of renting your points out. If you post them for rent a little before the 11-month for Christmas, Easter, or other popular times, you can probably rent them quickly for as much as $12/point. Then stash the cash for when you are ready to go on vacation. At that point, either rent distressed points or use the cash to stay off-site or at another Disney property if DVC has no availability. You could come out ahead money-wise if you were disciplined and careful about it.

YES,

This was my idea from the time I got this recurring , nagging thought in my head. But, instead of renting distressed points, just to purchase bargain resale points. SSR is at bargain prices right now.

Though , renting distressed points , which really is perfect for my last minute style... is a great idea also, I never thought of it.
In the past year. twice we stayed off property, because we waited so long nothing was available (OK, those trips were booked 2 days in advance)

We rented out last years points and half of 2012's points with the idea that the $$ would pay for a different vacation during Summer 2012.... my husband would rather go on a cruise.

Then in 2013 try for a GCV unit. I know I will have to be RIGHT ON that 7 month window if I want to be successful.

I really appreciate the advice from all, I am seeing some different perspectives, which is what I was looking for.

 

[alice99]

What has NEED got to do with more points???

Hopefully, in the future you'll be able to plans trips a little further out. We really like BLT -- our third trip home is coming up next month.

Good luck in getting what you want.

Thanks again, enjoy your trip next month!