Purchasing resale...and then reselling later?

[DizBub]

Perhaps renting would make more sense than buying?

Renting gives you more flexibility:

Maybe but I personally don't think so.
For one thing if you rent you do not have control over your reservations, the owner of the points does.
We have rented a couple of times and gotten good deals but I have lived in fear that if we should have to cancel it would be a nightmare. For us and the owner.
Another factor is that rental prices are going up much faster than MFs.

Renting is better for people that are short term DVC fans (i.e. less than 5 years of visits).

I agree with this. Renting from DVC members is really much less expensive than getting a cash reservation from Disney. But if you know you are going to go back year after year I still think buying into DVC, especially through resale, is the least expensive option in the long run.

If you are an owner you can get a good discount on Annual Passes and get Tables in Wonderland and partake in various DVC discounts.

Our last trip was a month ago. Not counting the cost of the room (AKV value studio) our out of pocket costs were $560. That was the gas to get there and back, 1 night in a hotel on the way down, all our food and we did some shopping. Not bad for a 8 night trip. We had APs and TIW and did use the DVC discounts at several places.

 

[cropper]

what about considering the type of room you are getting? We are spoiled with the kitchen in the 1BR & 2BR. I don't think we could ever stay in a regular hotel room again.
No way could I ever afford the cash price for those rooms.

 

[Dean]

DVC for sure is a depreciating assett when looked at beginning to end, but so far, it has not behaved like that at all. OKW was about $50pp at the lowest in 1991 and then had at least 10 years or so of free tickets, now the resale price is in the $60s. So anyone that bought and still owns today has really made a great buy.

The resale market has always been strong except between 2007-2012 when it really dipped. Also, VB and HHI has always lagged the other resorts in terms of price.

We, for sure, can't say exactly what will happen, except the Disney developer prices will probably continue to go up.

Obviously it depends on what points you pick along the way however, when you include inflation in the mix, OKW is still less now than pre construction. Still, it is like buying a new car vs a newer used one, there are ways to minimize your losses. The initial buy in for OKW was $48 pp preconstruction. We do know that DVC will continue to decline relatively speaking with some up and downs and then be worth nothing once you get within a few years of the end.

 

[Dean]

what about considering the type of room you are getting? We are spoiled with the kitchen in the 1BR & 2BR. I don't think we could ever stay in a regular hotel room again.
No way could I ever afford the cash price for those rooms.

But there are other ways to get either the amenities (off site) or DVC rooms (rent privately, exchange, cash with discount).

 

[cropper]

But there are other ways to get either the amenities (off site) or DVC rooms (rent privately, exchange, cash with discount).

Prefer to stay on-site...but what is 'exchange' or 'cash with discount' for a DVC room? We tried to stay an extra night without points once in a 2br and it was something like $750/night

 

[Dean]

Prefer to stay on-site...but what is 'exchange' or 'cash with discount' for a DVC room? We tried to stay an extra night without points once in a 2br and it was something like $750/night

I think these are some of the mistakes many make who are thinking about DVC. IMO, preferring to stay on site isn't enough. The real question whether one is willing to make a 40-50 year commitment and whether the added cost of DCV and on site is reasonable. Put another way, is it worth paying tens of thousands extra to stay on site at DVC? One of the issues that many simply don't realize or ignore is there are MANY ways to potentially get into DVC or to get similar amenities such as off site at top timeshares. One can almost always get a discount through CRO of at least 10% and often much more. One can always rent with planning and enjoy much of the DVC savings inherent to the program. In the last 13 years I've only stayed for a full stay on points once with 2-3 weeks a year and as many as 9 villas at one time. Otherwise I used points for a 5 night BWV BW view stay for my daughter and short stays using my points. I've downsized significantly.

 

[DVC Dude]

Another factor is that rental prices are going up much faster than MFs.

Well....from 2001-2011 the rental price was $10 and it was rare to see it higher than $11. During that time, the annual dues went up substantially.

Then in 2012 the prices began to go to $11 and in 2013 it is common to see $12pp

So, your statement only applies to the past three years and who know if it will continue or not.

Rental prices are 100% determined by supply and demand and NOTHING else.

I have seen distressed points rent for $5pp and when there is a glut of renters the prices drop to $10.

If there was a sudden flood of rental points, the prices would go down.

During the recession, many people did NOT go to Disney and tried to rent their points and the newbies were happy just to cover their annual dues.

 

[Deb & Bill]

Well....from 2001-2011 the rental price was $10 and it was rare to see it higher than $11. During that time, the annual dues went up substantially.

Then in 2012 the prices began to go to $11 and in 2013 it is common to see $12pp

So, your statement only applies to the past three years and who know if it will continue or not.

Rental prices are 100% determined by supply and demand and NOTHING else.

I have seen distressed points rent for $5pp and when there is a glut of renters the prices drop to $10.

If there was a sudden flood of rental points, the prices would go down.

During the recession, many people did NOT go to Disney and tried to rent their points and the newbies were happy just to cover their annual dues.

The stimulus for raising the price of point rental was the brokers. They needed to pay the member at least as much as they would make on their own, yet make some money for themselves. Prior to the new broker model, there was no reason to raise the price. If a single member raised their price for a general public rental, someone else would undercut them. Unless they had a private rental process and plenty of interested non-members (and there were a few of them).

 

[Dean]

Well....from 2001-2011 the rental price was $10 and it was rare to see it higher than $11. During that time, the annual dues went up substantially.

Then in 2012 the prices began to go to $11 and in 2013 it is common to see $12pp

So, your statement only applies to the past three years and who know if it will continue or not.

Rental prices are 100% determined by supply and demand and NOTHING else.

I have seen distressed points rent for $5pp and when there is a glut of renters the prices drop to $10.

If there was a sudden flood of rental points, the prices would go down.

During the recession, many people did NOT go to Disney and tried to rent their points and the newbies were happy just to cover their annual dues.

Rental prices have never tracked well for retail costs, resale costs or dues. Ignoring the decreases directly associated with economic factors (recession, 9/11) they've been pretty steady overall. Starting back as early as 96 I've never rented for less than $10.50 pp and have been at $13 pp for quite some time even when others were taking as low as $8 for non distressed points. Certainly other factors will have an effect but timeshares are far more than math, actually the psychology is a larger factor than the math itself in many if not most situations.