point rental History

[Boston5602]

Hey Everyone,

I'd like to ask , does any one know or remember when did people start renting points out in general and here on the disboards? I ask cause when I buy I plan on going to Disney as far as I can see but since we are talking decades I want to know if renting will more or less likely to be around say 20 or more years from now ? I know no one can see the future and all that but just trying to find the history on renting points. Thanks everyone for your time.

 

[PamOKW]

I first became aware of people putting reservations up for rent when some folks tried to capitalize on 12/31/99 reservations. At that time, most people looked at renting as a violation of the "commercial use" rule -- much discussion has been held on that point and it's pretty moot at this point for the average person renting unused points. The growth of the DIS boards and E-bay and people being comfortable dealing with strangers over the internet really spurred the growth of people willing to rent. The DIS has really been the vehicle to make rentals happen. If people had to rent using classified ads in newspapers I don't think it would be anywhere near as pervasive as it is now.

If the DIS shut down tomorrow would renting end? Probably not -- it would move to E-Bay or possibly to some other site. I thinking renting is probably here to stay just as people will probably always be renting shares in other vacation homes.

 

[Dean]

Hey Everyone,

I'd like to ask , does any one know or remember when did people start renting points out in general and here on the disboards? I ask cause when I buy I plan on going to Disney as far as I can see but since we are talking decades I want to know if renting will more or less likely to be around say 20 or more years from now ? I know no one can see the future and all that but just trying to find the history on renting points. Thanks everyone for your time.

I believe I rented my first reservation in 1996 but I'm not totally sure about when the Rent/Trade Board came about, maybe 1998. I'm sure Doc will know.

 

[RobDoc]

The "Rent/Trade" Board was already in place by fall 1998 (I think it was started earlier that same year). I've been a mod there since May, 1999. We've seen the common rental rates rise from about $8 ( ... and many would rent in the $6-7 range at that time ) to the present levels since that time.

Actually, there has not been much upward change in rental rates compared to purchase costs and annual fees during these last 7 years.

 

[boatboatboat]

there has not been much upward change in rental rates compared to purchase costs and annual fees during these last 7 years.

why is that? I was looking around at buying some more pts. I bought 6 years ago for about 65 a pt (re-sale), that first year I rented some pts out for 10 bucks each. I am looking to add on and re-sale is now aprox 85 per pt, but the rental rate is still 10.

I am sort of wondering, when one takes into consideration the dues, and the lost investment income you could get from your purchase price, if the folks who are non dvc members but rent pts, aren't the smart ones.

 

[keys2kingdom]

I am sort of wondering, when one takes into consideration the dues, and the lost investment income you could get from your purchase price, if the folks who are non dvc members but rent pts, aren't the smart ones.

BINGO!!! Maybe renting points is "Disney's Best Kept Secret".

 

[Caskbill]

I am sort of wondering, when one takes into consideration the dues, and the lost investment income you could get from your purchase price, if the folks who are non dvc members but rent pts, aren't the smart ones.

Statistically, anyone who purchased several years ago and has used their points, is ahead of another person who may have only rented points for the exact same vacations.

As for lost investment income, that's a very relative term. If someone purchased DVC in summer 2001 (prior to 9/11) they are way ahead. The fall in the market after 9/11 meant a heavy loss for a number of years.