Rental Rates/Concerns

[Dean]

Originally posted by Crissup
At least you didn't claim loss in investement income from spending the money on DVC instead of investing. People who use that argument always get me irritated since I financed my DVC by *not* going to the casino as often. Thus, I never would have had any investment income in the first place.

Maybe not for you but I pulled mine out of savings to pay for something I wouldn't have spent otherwise. So I will definitely include lost income on the investment as part of the equation when calculating the cost of DVC. Sorry if it offends you, but our situations are different.

 

[Crissup]

Originally posted by Dean
Sorry if it offends you, but our situations are different.

Gee, Dean. Where did I say it offended me? I reread my post and try to find that comment. It does irritate me that I have have people get downright nasty in the past and absolutely insist that *every single member of DVC* has to include loss in investment income in their calculations and God help the member who doesn't include that in their calculations.

Anyway, off to find that part where I said I was offended.

 

[Dean]

Originally posted by Crissup
Gee, Dean. Where did I say it offended me? I reread my post and try to find that comment. It does irritate me that I have have people get downright nasty in the past and absolutely insist that *every single member of DVC* has to include loss in investment income in their calculations and God help the member who doesn't include that in their calculations.

Anyway, off to find that part where I said I was offended.

I guess I took your statement "People who use that argument always get me irritated" as the same as offended. Sorry if that wan't the case.

 

[rinkwide]

Originally posted by Dean
...I will definitely include lost income on the investment as part of the equation...

That's fine in theory but how do you figure out what percentage rate to use?

 

[Dean]

Originally posted by rinkwide
That's fine in theory but how do you figure out what percentage rate to use?

Obviously there are many variables and no guarantees. Each person must look at their situation and decide what return is reasonable. However, if one were to buy DVC as an investment ONLY, I'd say 10% above return of principle, as this would be considered a high risk investment. For my situation I think more in the 5-6% range as a minimum since I only rent out points occasionally.

 

[PamOKW]

LOL! This thread is like a bad penny that keeps turning up! It's been a year and a half since it first started.

 

[AFMom]

Sorry about getting this one going (lol)- I guess it's a pretty hot issue! I just know that with a husband in the Air Force, and last minute deployments possibly screwing up our vacation plans (not to mention possibilities of moving overseas!), the ability to rent out points for $10 or so made DVC a possibility for us - so I'm certainly going to defend that option for my own good. DVC certainly was not looked on as an investment for us - but we are using a money market account to pay for it - and we had to earn every penny of it. Anyway - good to hear a debate - they're always fun!
:thewave:

 

[Crissup]

Originally posted by Dean
I guess I took your statement "People who use that argument always get me irritated" as the same as offended. Sorry if that wan't the case.

Sorry about the flare up. After 13 years on the Internet, I normally look at that stuff and just laugh it off. Guess I was just in a touchy mood yesterday.

 

[Dean]

Originally posted by Crissup
Sorry about the flare up. After 13 years on the Internet, I normally look at that stuff and just laugh it off. Guess I was just in a touchy mood yesterday.

The written word is so difficult to convey the true meaning, smiles, pats on the back and the like. I find it amusing at times people arguing back and forth when it's likely if they were sitting at a bar they'd be laughing and going at it just like comparing their favorite football teams. All the time arging over who was buying the next round. Well, it's on me if I see you at WDW or a DVC.

 

[kathleena]

Awwwww.

Just say it:

"I love you guy!!!!!!!!!!"

 

[lochbox1]

My husband and I considered a DVC purchase for months and saw that points sold strong at $10. Now it appears that the market has eased and are not nearly picked up so quick.

BCV points are snapped up quickly, however, others such as SSR , OKW, VWL sit around longer and in some cases must be reduced to $9pp to make a sale.

Have others noticed it too?

 

[Desperado]

It may be a simple case of increased supply driving the price down. More DVC members, same number of people willing to rent points (just a guess) = lower $$ per point.

Interesting observation.

 

[Dean]

Overall it appears the choices of cheaper points are much less at present. I think more people have just found this website.

 

[tjkraz]

Ought to be interesting to see what happens to point rentals.

It does appear that more and more people (members) are trying to rent points. AT the same time, stories of people being defrauded are beginning to pop-up. After all, we're talking about a process that requires an awful lot of mutual trust. Wasn't going to take forever before people started exploiting that trust.

Almost makes you wonder what it will inevitably take before rental prices start to creep upward.

 

[SoCalKDG]

To bad we don't have a holding company that keeps the owners money until after the reservation is used(or expired) by the renter. This way if an owner cancelled the reservation, no money is ever seen by the owner, its just returned to the renter. At a charge of a 1/2 to 1 dollar per point to the renter.

 

[RoutemanDan]

I think it's just you.

Right now on the rent and trade board there are 3 rentals going for $12 pp,1 for $11 and countless for $10.

I see 1 for $9.
For me,I see just the opposite.

 

[Dean]

Originally posted by SoCalKDG
To bad we don't have a holding company that keeps the owners money until after the reservation is used(or expired) by the renter. This way if an owner cancelled the reservation, no money is ever seen by the owner, its just returned to the renter. At a charge of a 1/2 to 1 dollar per point to the renter.

Companies like Timeshare Transfers will hold money in escrow for sales for a cost of $100. I bet they'd do the same in this situation. I wonder if a renter would be willing to pay an extra $100 for that service and protection. The only problem would be if TT were to have a problem like bankruptcy or go out of business in the interim.

 

[mydogdrew]

I have been renting some banked points I received with a recent contract and have been watching this issue over the last year. I would say there has been trend downward slightly. I would attribute this to the many new owners increasing the supply of rental points and the corresponding smaller pool interested in renting points (many former renters do become owners). There will need to be a new crop of renters coming along to offset all the new owners or we will see a continued decline.

 

[Pluto4Pres]

I think a lot of the $9 points were originating from late notice cancellations. They were offered cheaper because they were expiring within a few months. A great deal for the renter if they have the ability to plan on short notice.

 

[mikesmom]

I'm thinking we're not seeing the ones that are possibly going for more money. I see a lot that just say "sent you an email". They could possibly be doing transactions off the boards 'cause they don't want to get flack for renting higher.

The trend I've also noticed is folks asking for impossible-to-get ressies (first week of December, middle of the F&W fest) and getting responses of "I have points" from folks that have very little posting history here. They may be new SSR owners that don't realize that having points is not nearly the same as having ressies. Who knows where those transactions are going.