Relying on transferred points?

[FindingFigment]

I'm in the early stages of researching DVC (just started today) and whether or not it would be a good option for me and my family. I've been reading lots of threads here in DIS and I'm actually really interested in resale but the thing that turns me off to DVC membership the most are the annual dues.

We are only 7 driving hours away from WDW so a 3 night stay would be fine some years. But on the years when we'd like to stay a whole week and don't have any banked or borrowed points available, I'd be willing to buy transferred points. So, since I might could get by with just purchasing a resale DVC with 50 points (enough for 3 nights), then it SEEMS like that would also be a good way around having to paying higher dues. But am I missing something? That hardly seems fair to the DVC members who bought in with higher points and are having to pay dues on those points.

I understand you can only transfer once per year. And I believe I read that I'd have to be careful with the use year of the points I'm getting. Is there anything else I should consider? What are the negatives to relying to buying transferred points other than the obvious trust issues that goes with transferring money to a stranger?

 

[vicki_c]

That not all (or maybe even many) DVC owners are willing to transfer their points due to the limitations on that. Renting points seems a more reliable thing to rely on than getting transferred points.

As to whether it's fair to the people owning the points regarding the dues (or however you phrased that), you would be paying them at least as much as they had to pay in dues for the points you are getting, in some cases you might be paying them double given the going rates of $10/pp.

 

[FindingFigment]

That not all (or maybe even many) DVC owners are willing to transfer their points due to the limitations on that. Renting points seems a more reliable thing to rely on than getting transferred points.

Oh really? What kind of limitations do they have to deal with?

I was kinda hoping to not deal with renting. I like the idea of owning the points once they are transferred to me so I can handle the reservations.

 

[simmons_m]

We received a transfer in '09 for our '10 trip. The transfer occured 12 months out, we had our points for the 11month window. It worked very well for us.

 

[bookwormde]

As long as you are willing to pay the price for transfered points $8-10 and take the small risk that exists in buying them (you usually have to put at leat 50% down before the transfer is made) and are OK that you can not borrow them then it is a resonable plan. They also take a littel more "manual work" by the CMs so if you are calling right at 9am at 11 months it does cause a minor delay which might make you miss a very highly sought after reservation (alk club level studio, OKW HH grand villa etc)

bookwormde

 

[CarolMN]

Your plan is a reasonable one, IMO. There are some risks, however.

The main risk is that you will not be able to find someone who wants to transfer the number of points you need at a price you are willing to pay (price is negotiable). Each membership is limited to one transfer per use year, either into or out of their account, but not both in the same use year. So you may have to accept more points than you want to get the points you need.

Other than that, the only major risk is the DVC will change the transfer rules or eliminate transfers between members altogether. (They have changed the transfer rules in the past). However, if your "transfer" plan becomes unworkable, you can always sell or purchase an add on. I think you should go ahead and try it, if DVC otherwise makes sense for you.

Good luck!

 

[lisa3635]

I own 33 points at BLT and have been able to do transfers for my trips the past 2 years. It takes careful planing. I make sure the points I get transfered can be banked. It works out well b/c I can get a transfer from a resort I want to book at 11 months and book then. In September we are staying in a standard view boardwalk studio. I paid $10/pp, so it's costing me $720 for the week and I don't have the risks associated with renting.

I also benefit from getting the DVC annual pass discount even though I only have 33 points.

 

[vicki_c]

Each membership is limited to one transfer per use year, either into or out of their account, but not both in the same use year. So you may have to accept more points than you want to get the points you need.

This is the limitation I was referring to.

 

[CarolAnnC]

Oh really? What kind of limitations do they have to deal with?

I was kinda hoping to not deal with renting. I like the idea of owning the points once they are transferred to me so I can handle the reservations.

Keep in mind it is against DVC rules to exchange money when transferring points. Transfers are only supposed to be done as a gift. Though you can clearly see from reading the internet that money does exchange between parties, they are taking a risk IMHO.

 

[Deb & Bill]

Transferred points retain their use year and resort. You can't borrow transferred points, but you can bank them.

 

[Lynne M]

I get that many people are put off by the dues, but I never really understand why.

Maintenance fees pay the operational costs of the resort that you're a part-owner of. It's really no different than owning a home - you buy a house, you know you're gonna be paying for electricity, heat, a/c, real estate taxes, insurance, etc. That's what the DVC fees are paying for. It's just part of the cost, and there's really no way around it.

If you pay another owner for rented or transferred points, they're doing it to cover their fees in most cases. So, whether you're paying fees on your points or another owners...you're paying.

When considering DVC, you need to not look at MF as some tacked-on, additional charge, and part of the total cost of ownership, just as you would with a house. Look at the total costs, compare with what you'd be spending on a resort stay without DVC, and see if it's a good deal for you.

 

[FindingFigment]

OP here. Thanks everybody for the great feedback. I would probably only want to have points transferred every once in a while. And if in a bind, I wouldn't mind doing a split stay and paying cash for a value/mod hotel so I think I will go for it. Now I just need to give it a try to see if I like it. I've got a ressie at Pop for my solo stay at the end of this month but if I can rent points from someone, I'll check DVC out. Of course, I know my studio options are really limited this late in the game.

P.S. I'm not opposed to paying MF, I just don't want to pay then on the other 50 points that I won't need on some years. Like I mention earlier, there will be some years when I would only need 3 nights. And I know me, if I had more, then I'd use more even if I didn't need them. So, this would also be a way to keep me from splurging unnecessarily.

Thanks again everyone!

 

[Sandisw]

OP here. Thanks everybody for the great feedback. I would probably only want to have points transferred every once in a while. And if in a bind, I wouldn't mind doing a split stay and paying cash for a value/mod hotel so I think I will go for it. Now I just need to give it a try to see if I like it. I've got a ressie at Pop for my solo stay at the end of this month but if I can rent points from someone, I'll check DVC out. Of course, I know my studio options are really limited this late in the game.

P.S. I'm not opposed to paying MF, I just don't want to pay then on the other 50 points that I won't need on some years. Like I mention earlier, there will be some years when I would only need 3 nights. And I know me, if I had more, then I'd use more even if I didn't need them. So, this would also be a way to keep me from splurging unnecessarily.

Thanks again everyone!

One thing that we have considered doing is when we did get a transfer, get one that was enough to cover more than just that one trip. This way, you are getting a little more (which might be easier as owners are more likely to deal with a bigger transfer than a smaller one).

So, say you decide you would need 200 points (on top of the 50 that you own) to do this years week, but then the following year, would only want to travel for a short 50 point stay.

Instead of getting a point transfer for just the 200 you are short, get the entire 250 and then bank your own points. The next year, you would be traveling on your own banked points and could bank again.

We almost did this for 2011 but ended up adding on a 30 point contract instead as we realized that having those extra 30 each year was worth it.

But, in the future, if I really need more, I will plan on a bigger transfer as our plans (since the kids are getting older) will be up and down so what we own, 210 points, will be enough for most years.

 

[AllieV]

I own 33 points at BLT and have been able to do transfers for my trips the past 2 years. It takes careful planing. I make sure the points I get transfered can be banked. It works out well b/c I can get a transfer from a resort I want to book at 11 months and book then. In September we are staying in a standard view boardwalk studio. I paid $10/pp, so it's costing me $720 for the week and I don't have the risks associated with renting.

I also benefit from getting the DVC annual pass discount even though I only have 33 points.

I was thinking of buying a small contract for these very reasons (until I have enough saved to buy a regular, larger contract). I'd buy transfer points from Disney and still get discounts. I just saw, though, that Disney charges $15 per point -- renting is better!

 

[Deb & Bill]

I was thinking of buying a small contract for these very reasons (until I have enough saved to buy a regular, larger contract). I'd buy transfer points from Disney and still get discounts. I just saw, though, that Disney charges $15 per point -- renting is better!

No, you don't "rent" points to add to your own. You would have to "rent" a reservation from another member. You would have no control over that reservation. But "renting" a reservation from a member would still work if you don't mind having no control over the reservation (even if you are a member - those aren't your points).

You would need to transfer points from another member and you would be limited to one per UY per contract. Then, those points become yours and you use them to make your own reservation.

DVC has just offered the ability to add a few extra points each year at 7 months out (these points have no resort attached to them, so they cannot be used 7-11 months out).

 

[AllieV]

No, you don't "rent" points to add to your own. You would have to "rent" a reservation from another member. You would have no control over that reservation. But "renting" a reservation from a member would still work if you don't mind having no control over the reservation (even if you are a member - those aren't your points).

You would need to transfer points from another member and you would be limited to one per UY per contract. Then, those points become yours and you use them to make your own reservation.

Yeah, I've been renting from a member for about 8 years now and each year the cost of renting the points goes up (though still less than one of the "commercial" renting sites). I just saw a 60 point contract for sale and thought, wow I could get in now, get the benefits of the discounts, then buy/transfer the additional points I need for a few years. But not at $15 per points. I could buy a transfer from a member, but I've read some horror stories on here.

 

[LauraLea]

The points DVC members can rent from Disney for $15 are limited to:
* a one time buy per use year.
* only available to purchase at the 7 month window.
* limited to only 25 points.

So buying a small contract to supplement with these points would not make much sense.

Laura

 

[sweetdana]

Figment, I do this very thing.

I bought 160 points, and planned to perm go to Disney 4 nights in a studio and 4 nights in a 1 bedroom every yr.

Currently I go 3-5 times a yr, due to 1 DD6. I do not believe when she is 11 or 15 this will be the case. I use alternatives to buying more points, maybe or may not I go 2-3 times a yr later.

Last 2 yrs I transferred in points, have added nights on and added 3 trip with transf. points.
I have also rented last min trips and used CRO sales like AP disc. I love not being tied down to 300 points worth of MF, and still have some garenteed Disney time.
I will 90% get a transfer for 2012 as well, the resort will be where ever I want to go in 2012, and easy done.