Point Rental Solution

[sajetto]

And when you do this, you are NO LONGER the member, which takes away your point.........

No, it doesn't B3 you're just having trouble coming up with that comeback.

You conviently took that RENT part out which DVD put there

Who says I'm selling or willing anything. We're talking about renting. If someone rents my points they are in no way the OWNER.

 

[boatboatboat]

Who says I'm selling or willing anything.


ummmmmmmmmmmm you?

I just wanted to let you know that when you joined it did say that you can rent, sell, or will your timeshare.

 

[sajetto]

hold on, I am thinking of a comeback.


this may take awhile...........

The proof is in the pudding.......................

 

[boatboatboat]

when you get home tonight, I suggest you apply some deep heat rub to your shoulder.

you just got wacked with a 14 lb sack of sarcasim........

 

[sajetto]

when you get home tonight, I suggest you apply some deep heat rub to your shoulder.

you just got wacked with a 14 lb sack of sarcasim........

You're real cute ya know I can't help but like your style irritating or not. I think I'm gonna need that heat rub b/c that sarcasim comes from all directions

 

[Lasrnw]

I would like to see the price per point raised with a discount for DVC members! So say $12.00 a point for renters and $10.00 a point fo DVC Members ONLY!!

 

[JodyTG]

Read before you sign.

Page 1 Section 6

"You may rent, sell, transfer, or will your Ownership Interest. DVD has a right of first refusal to repurchase your Ownership Interst on the same terms and conditions, including financing, that your buyer has offered. DVD currently provides no assistance in resale or rental of your Ownership Interest. In the event you attempt to resell or rent your Ownership Interest, you would compete with DVD for buyers and renters at a substantial competitive disadvantage."

The way I understand this...it is saying that IF we rent our points to non-DVC members, we are taking away customers from purchasing DVC and/or renting the rooms from WDW that DVC has put into inventory due to trade-outs and such. Basically it is saying that it's in our best interests NOT to rent to non-members.

 

[LIFERBABE]

The way I understand this...it is saying that IF we rent our points to non-DVC members, we are taking away customers from purchasing DVC and/or renting the rooms from WDW that DVC has put into inventory due to trade-outs and such. Basically it is saying that it's in our best interests NOT to rent to non-members.

I think it is saying, that if you go head to head with Disney, you will lose and DVD won't do a thing about it.

You can rent, but you will be at a competitive disadvantage just like a Town Car Driver and Magical Express. Disney will not even the playing field just so you can play too!

 

[snowbunny]

Who wouldn't be happy saving 20%?

Sigh. Hi boat. The type of person who wouldn't be happy saving 20% is the person who doesn't think that is enough of a savings to justify sending hundreds or thousands of dollars to a complete stranger via paypal, instead of booking through CRO with a credit card that won't be charged until check-in; never having control of their reservation; and having zero ability to cancel in the event plans must be changed without the risk the complete stranger will keep all their money.

 

[boatboatboat]

so what % should ya save bunny?

30?

40?

50?

what discount do you feel is fair?

price the board walk villa at all star sports prices? Motel 6?

 

[snowbunny]

so what % should ya save bunny?

Whatever the market will bear...that's the zone between what the owner wants, and what someone will pay. And it's always going to be a deeper discount than 20% off CRO rates, for the reasons I mentioned.

 

[boatboatboat]

If you were queen for a day what would you do?

let's look at the info.

The TRUE cost of a point to a DVC owner is $11.50 per point per year, after all factors are taken into consideration. Keep in mind to obtain DVC they had to invest 14k dollars.(150 pt contract)

ok.......... let's say a cash room at DVC cost 325 for the night, and would use 17 pts.

If you were Queen for the day, what would you set the price per point at? (what ever the mkt will bear is not an answer, you ARE setting the price).

As someone who didn't have to invest 14k, and doesn't have to pay the 700 dollar taxes and dues each year (150 pt contract), what would YOU feel they should pay for that 325 dollar room?

 

[cobbler]

Gosh I love reading these threads.

 

[Paging Tom Morrow]

The TRUE cost of a point to a DVC owner is $11.50 per point per year, after all factors are taken into consideration. Keep in mind to obtain DVC they had to invest 14k dollars.(150 pt contract)

I would love to see how you factor that cost. I have done it for my recent purchase and the true cost is a net savings for me. I made sure not to ignore the fact that the money I was spending on my DVC points came from our general vacation fund.

Year Fund - Vacation Expenditure + Savings on Dues + Lost Interest on Investing = Remaining Fund
2006 $13,050 $3,060 $750 $300 $11,040
2007 $11,040 $3,060 $750 $239 $8,219
2008 $8,219 $3,060 $750 $155 $5,314
2009 $5,314 $3,060 $750 $68 $2,321
2010 $2,321 $3,060 $750 $(22) $(761)
2011 $(761) $3,060 $750 $(115) $(3,935)
2012 $(3,935) $3,060 $750 $(210) $(7,205)
2013 $(7,205) $3,060 $750 $(308) $(10,573)
2014 $(10,573) $3,060 $750 $(409) $(14,042)
2015 $(14,042) $3,060 $750 $(513) $(17,615)
2016 $(17,615) $3,060 $750 $(620) $(21,295)
2017 $(21,295) $3,060 $750 $(731) $(25,086)
2018 $(25,086) $3,060 $750 $(844) $(28,990)
2019 $(28,990) $3,060 $750 $(962) $(33,012)
2020 $(33,012) $3,060 $750 $(1,082) $(37,154)
2021 $(37,154) $3,060 $750 $(1,206) $(41,421)
2022 $(41,421) $3,060 $750 $(1,334) $(45,815)
2023 $(45,815) $3,060 $750 $(1,466) $(50,341)
2024 $(50,341) $3,060 $750 $(1,602) $(55,003)
2025 $(55,003) $3,060 $750 $(1,742) $(59,805)
2026 $(59,805) $3,060 $750 $(1,886) $(64,751)
2027 $(64,751) $3,060 $750 $(2,034) $(69,845)
2028 $(69,845) $3,060 $750 $(2,187) $(75,093)
2029 $(75,093) $3,060 $750 $(2,345) $(80,497)
2030 $(80,497) $3,060 $750 $(2,507) $(86,064)
2031 $(86,064) $3,060 $750 $(2,674) $(91,798)
2032 $(91,798) $3,060 $750 $(2,846) $(97,703)
2033 $(97,703) $3,060 $750 $(3,023) $(103,786)
2034 $(103,786) $3,060 $750 $(3,205) $(110,052)
2035 $(110,052) $3,060 $750 $(3,393) $(116,505)
2036 $(116,505) $3,060 $750 $(3,587) $(123,152)
2037 $(123,152) $3,060 $750 $(3,786) $(129,998)
2038 $(129,998) $3,060 $750 $(3,992) $(137,050)
2039 $(137,050) $3,060 $750 $(4,203) $(144,313)
2040 $(144,313) $3,060 $750 $(4,421) $(151,795)
2041 $(151,795) $3,060 $750 $(4,646) $(159,500)
2042 $(159,500) $3,060 $750 $(4,877) $(167,437)

I don't see how you view it as a "true cost". The 13k investment plus maintenace fees is significantly less than what I would normally spend on vacations over the same time period and the interest I would earn on the inital invested sum of money.

This savings doesn't account for other benefits I receive at DVC, i.e. discounts on food and tickets.

Please respond, I'm interested in seeing your mathematics. Thanks!

 

[DVC Sadie]

The TRUE cost of a point to a DVC owner is $11.50 per point per year, after all factors are taken into consideration. Keep in mind to obtain DVC they had to invest 14k dollars.(150 pt contract)

I would love to see how you factor that cost. I have done it for my recent purchase and the true cost is a net savings for me. I made sure not to ignore the fact that the money I was spending on my DVC points came from our general vacation fund.



I don't see how you view it as a "true cost". The 14k investment plus maintenace fees is significantly less than what I would normally spend on vacations over the same time period and the interest I would earn on the inital invested sum of money.

This savings doens't account for other benefits I receive at DVC, i.e. discounts on food and tickets.

Please respond, I'm interested in seeing your mathematics. Thanks!

ITA, Our DVC points also come from a percentage of our yearly vacation fund.

 

[boatboatboat]

sure

let's keep it simple.

fair enough?

Let's look at a current SSR contract shall we.

14k for 152 pts.

So you have 14k to work with. Two options, invest the money, or buy DVC.

14k will earn at 8% (75% of mkt average the last 50 years) $1120 dollars.


Rather then getting 1120 dollars of investment income from your 14k, you buy 152 DVC pts (you with me so far?).

So each year rather then getting 1120 dollars from your investment , you get 152 DVC points

1120 divided by 152=$7.36 per point.

add your resorts dues to $7.36 and tell me what you get.

you TRUE cost= investment income lost+dues/taxes.

Now i fully understand you DID GET THE 152 pts, and you DID get a WDW vacation, and that is great. But it DID cost you not only the dues/taxes for that year, it also cost you what you would have "gained" from investment income from your 14k.

A person could simply invest 14k, and take the 1120 dollars and rent 112 pts@10 a pt each year from a DVC owner, and STILL have the 14k in the bank.

A one bedroom at BWV for may 28th-june 2nd=110 pts.


So you have your 5 days in WDW at BW, and STILL have your 14k in the bank, and simpy use the "gain" to fund/rent pts for your vacation each year.


To not factor in lost investment income is not sound money management.


BTW, 14k @8% and left to grow in a variable annuity (no taxes on gain until cashed in) will grow to 304k in 40 years. Amazing .........

So if you hadn't bought DVC and had simply left your 14k invested you would have 304k at the end of 40 years. FYI that = 50 dollars per point cost over the 40 years. YIKES!

 

[DVC Sadie]

sure

let's keep it simple.

fair enough?

Let's look at a current SSR contract shall we.

14k for 152 pts.

So you have 14k to work with. Two options, invest the money, or buy DVC.

14k will earn at 8% (75% of mkt average the last 50 years) $1120 dollars.


Rather then getting 1120 dollars of investment income from your 14k, you buy 152 DVC pts (you with me so far?).

So each year rather then getting 1120 dollars from your investment , you get 152 DVC points

1120 divided by 152=$7.36 per point.

add your resorts dues to $7.36 and tell me what you get.

you TRUE cost= investment income lost+dues/taxes.

Now i fully understand you DID GET THE 152 pts, and you DID get a WDW vacation, and that is great. But it DID cost you not only the dues/taxes for that year, it also cost you what you would have "gained" from investment income from your 14k.

A person could simply invest 14k, and take the 1120 dollars and rent 112 pts@10 a pt each year from a DVC owner, and STILL have the 14k in the bank.

A one bedroom at BWV for may 28th-june 2nd=110 pts.


So you have your 5 days in WDW at BW, and STILL have your 14k in the bank, and simpy use the "gain" to fund/rent pts for your vacation each year.


To not factor in lost investment income is not sound money management.


BTW, 14k @8% and left to grow in a variable annuity (no taxes on gain until cashed in) will grow to 304k in 40 years. Amazing .........

So if you hadn't bought DVC and had simply left your 14k invested you would have 304k at the end of 40 years. FYI that = 50 dollars per point cost over the 40 years. YIKES!

The above reasoning may be applicable to you but it makes no sense to us. We spend a lot of money on vacations every year, some at WDW and some in other places. We would spend the money anyway so we don't count it as having it earn interest for years. It earns interest until we spend it for out yearly trips. Most people do not put all of their vacation money into a long term investment portfolio but rather spend a certain amount yearly.

 

[Dean]

The real solution would not to allow renting of points at all, making the member's name a must on the reservation and the member present. When I joined I became a member of a club not something that allowed anyone to use it. It was suppose to be for members.

This may have been your personal agenda, but has never been DVC's agenda nor could they legally or by their own rules. Plus remember that by DVC's rules and definition, anyone that accepts value for a stay is a RENTER. That means your brother who pays you for his portion of the room makes you a renter the same as EVERYONE else that rents.

The inclusion in the POS about renting at a competitive disadvantage is there because the state of FL says it must be there. The reason is very simple, that it has been, and still is in other countries, common for sales people to tout renting for profit to convince you to buy. Anyone who rents is competing with Disney and CRO in addition to a number of off site options.

 

[Dean]

The way I understand this...it is saying that IF we rent our points to non-DVC members, we are taking away customers from purchasing DVC and/or renting the rooms from WDW that DVC has put into inventory due to trade-outs and such. Basically it is saying that it's in our best interests NOT to rent to non-members.

Actually it's not that uncommon for renters to buy plus you are likely to get the referral if they haven't contacted DVC previously. I'd guess it increases DVC's sales rate rather than decreasing it, but it's only my guess.

 

[boatboatboat]

The above reasoning may be applicable to you but it makes no sense to us.

I don't know why?

We spend a lot of money on vacations every year,

ok

We would spend the money anyway

You "would", but you don't have to. So when you look at the TRUE cost you need to factor in everything. It's like the person who buys a new boat and takes out a ten year loan. They brag how they talked the dealer into selling it to them for only 30k, and how they only spent 30k, and how the boat only cost 30k., then you ask them what their payment is, and you do the math on your own and figure out the 30k boat COST 63k. when you take the mthly payment times 120 mths (10 year loan)

so we don't count it as having it earn interest for years.

you should

It earns interest until we spend it for out yearly trips.

MY point EGG-ZACT-LEE, ONCE IT STOPS earning, it is gone forever and affects your cost

Most people do not put all of their vacation money into a long term
investment portfolio but rather spend a certain amount yearly.

I agree with that, but even if they do not do that, they still must factor in the TRUE cost of what the money spent, would have done if invested.

What really compounds my computations, is if someone borrows money to purchase a DVC time share. If that is done, the #'s look even worse. Then not only didn't you invest the money, you PAID someone else 10%, to allow you to use/spend money you don't even have.

IMO borrowing money to purchase a time share is very foolish. Rather then make payments for 10 years, save on your own for 7 years and pay cash. Rather then paying 10% intrest for 10 years, SaVE the payment and invest it for 7 years. The total money spent on your part will be much less.