Renting points Question

[hmire]

I know many of you have posted about renting out some points to cover MF if I would not be going to Disney one year. Do points rent out easily??

 

[Deb & Bill]

I know many of you have posted about renting out some points to cover MF if I would not be going to Disney one year. Do points rent out easily??

Only buy the number of points you need. DVC has already made comments about commercial renting and it is prohibited in the Public Offering Statement. What is commercial renting? Even DVC isn't quite sure. A few years ago they said if you made 20 reservations a year, that would be considered commercial.

But they could go with anyone who regularly rents out a reservation to someone other than their direct family.

DVC doesn't want owners competing with their reservations.

 

[luckyman_apd]

I can't speak about that as I am just buying myself. I would say if you know people who go to WDW and they are interested in your points and there trip aligns with the year you aren't going, then yes it can be easy. I know David's Rentals will rent out your points for you. The current rate is $13 per point thru them with you getting $10 of it. You have to have at least 95 points available for rent, and it's better for you to have them available for them at least a year in advance for them to be able to rent them for you. Otherwise, you will get less for them.

When researching listings for myself, I've pretty much planned the next 6 years of WDW trips with our membership, this way I know how many points a year we will need, with banking and borrowing. The last thing I want is points going unused, or being forced to take another vacation because we have to use the points. Renting them out for me would be a last resort. Things change, and plans change. I can forsee a year we planned on going and something happens and maybe we can rent if we need to, but I made sure not to "overbuy" and get the points I needed, or under. I think right now it is easier to rent points if need be, than to buy in for too many.

 

[hmire]

No just wondering about this. If for some reason we can't go on a vacation for whatever reason, I was wondering if renting out some points just to cover MF for that year. Hopefully I don't need to ever do this...

 

[luckyman_apd]

No just wondering about this. If for some reason we can't go on a vacation for whatever reason, I was wondering if renting out some points just to cover MF for that year. Hopefully I don't need to ever do this...

I "hope" I never have to either. This is why I wasn't sure at first whether to go for 100 or 125. I decided on 125 because I worried about staying in Studio's all the time. Anymore than 125 and I will certainly be over what I need. Plus, our 7 day planned stays can easily become 8 or 9 days if we need to. I have summers off, and my wife has plenty of vacation time to take each year.

If you know many people with kids, and find yourself in a year where you find you want to take a break, just ask around and see if anyone is interested in staying at better accomodations for the money. That's how I got hooked. We rented from someone last year and were blown away by a 2 br BLT for slightly more than it cost us to stay at 2 rooms in a moderate. That's what made me look into it and end up here. So you never know.

 

[zavandor]

I don't think that renting points at 10$ pp would mean earning anything.

Example: I buy 100 point @ 60$ per point at BWV. It's 6000$

Let's see the expenses
1) MF: 5.62$ per point = 562$
2) Opportunity cost: if I had invested 6000$, I could earn in the first year 5%, so I should consider loosing 300$
3) Lost value: in 30 years my property will expire, so I'll consider loosing 2$ per year per point. For my 100 points, it's 200$ lost every year.

562 + 300 + 200 = 1062$ lost/paid every year

Now I rent the 100 points at 10$ per point = 1000$ earnings.

So renting points I lost 62$. And this is before taxes on renting, I don't know in the USA, but where I live it's a lot.

In the renting board I can see people renting points @9$pp. I can understand if points are near the expiration date, but I see 9$ also for points expiring far in the future.

Also renting @10$ would mean loosing money,the minimum amount should be 11$ and also in this case I would not consider it a good investment, considering the risk of a not paid balance or a damage made by the renter that the owner must pay.

Unless there is a flaw in my calculations or unless renting prices go up a lot, I would not consider buying points as an investment. Always buy what you think you would use. If one year you do not use them, you could rent, but only to break even.

 

[Caren90]

2) Opportunity cost: if I had invested 6000$, I could earn in the first year 5%, so I should consider loosing 300$

Please let me know where you have earned 5% these past few years. I want a piece of that action.

 

[zavandor]

Ok well, I'm optimistic by nature

I don't know rates in the USA, in my spreadsheet I have done to decide if buying or not I have used a more realistic 3%, that is what I get currently in Italy. But I've read somewhere here on the boards to consider 5%, so I thought you in the USA were more lucky

 

[Caren90]

Ok well, I'm optimistic by nature

I don't know rates in the USA, in my spreadsheet I have done to decide if buying or not I have used a more realistic 3%, that is what I get currently in Italy. But I've read somewhere here on the boards to consider 5%, so I thought you in the USA were more lucky

I completely understand where you are coming from and see that you have fiscally thought out the pros/cons of renting.

I agree with most others on here that buying what you need is the optimal way to purchase but it is really hard to know that magic number and year to year it my vacation needs change. For example, this year I have already dipped into my 2013 points allotment.

Buena Giornata!

 

[Deb & Bill]

DVC allows banking and borrowing so that gives you flexibility to change what you need each year.

 

[luckyman_apd]

I completely understand where you are coming from and see that you have fiscally thought out the pros/cons of renting.

I agree with most others on here that buying what you need is the optimal way to purchase but it is really hard to know that magic number and year to year it my vacation needs change. For example, this year I have already dipped into my 2013 points allotment.

Buena Giornata!

I'd rather be dipping into future points than stuck with more than you need. Renting from someone else is an easier option than needing to rent out your own. Future reallocations make it even harder to judge unless you can travel at anytime. Unfortunately, I can't, but my wife can and I can foresee into the future her taking the kids without me for a trip

But, that's life. When they are a little older and she can manage both by herself, well as long as they are enjoying it and we have the points. A more likely scenario is that they go and I meet them at the last few days of the trip.

 

[msp2mco]

I have rented points several times, and it has been easy to do. However, I know that it comes with risk. I'm not doing it as an investment; it's just that we weren't able to use all our points during a certain period of time.