Renting Points We Are Selling Too Low

[TCPluto]

It's all about supply and demand. Those two factors set the price.

P.S. I see your point though, if I spent all that money on DVC, I'd be disappointed at 8-10 dollars a point as well!

Not so much. While a great deal of points were advertised at $8-9, I made several reservations at $12.

At that price, I saved the renter over 57% from what Disney would have charged.

 

[Plutofan]

The price per point should also take in consideration the risk to the renter. The DVC owner is in complete control of the reservation, need to cancel before 30 days from arrival date, DVC owner may not be in good standing by the time your vacation starts.

AP rate for AKL is $155 including tax. Daily mousekeeping service, can cancel within 5 days and receive full refund, you are in control of your reservation. If you check-in on Saturday for four nights that would cost $620.

Studio at BWV for the same days is 48 points. At $11 a point that is $528. With daily mousekeeping service the total would be around $628. The BWV is a larger room and has a microwave and wet bar that the AKL doesn't.

They both cost about the same price. Both are very beautiful resorts. The BWV is a little nicer but the risk is much higher so the price per point must be low enough are the renter will not want to take the risk.

On that thought lets not forget that after a renter checks in 100% of the risk falls on the seller since if the room is damaged or something is left on the hotel bill Disney may go after the DVC member.

 

[sneal0821]

On that thought lets not forget that after a renter checks in 100% of the risk falls on the seller since if the room is damaged or something is left on the hotel bill Disney may go after the DVC member.

I didn't know that Disney would go after the DVC member if the renter damaged things or left a bill. I hope all DVC member have a good contract they make the renter sign.

 

[LIFERBABE]

Actually the AP rate for a standard view room at AKL is $149+tax=$166. But I think a more equitable comparison would be between a studio at BCV/BWV with a standard view room at YC/BC since part of what you pay for at BCV/BWV is the Epcot location.

Looking at the dates you are interested in (check in Sat Oct 7, check out Wed Oct 11th): Regular rate for a standard-view room at BC in Regular season is $345/night. Assuming a $100 AP discount becomes available for those dates, the discounted room at YC/BC would be $273.17 with tax. Your 4-night vacation would cost $1092.70.

A studio at BCV or BWV for the same days is 59 points. At $11 a point that is $649. Add in daily mousekeeping and the total would be $749. The BCV studio with daily mousekeeping works out to be $343.70 less than a standard-view room at BC/YC with a $100/night AP discount.

Even at $12/point, the cost of 4 nights in a BCV studio with daily mousekeeping is less than the cost of 3 nights in a standard-view BC/YC room with a $100 AP discount ($808 vs $1092.70, or $284.70 less for the studio). And if you avoid staying on a weekend night, the cost difference is even greater.

Yes, there is risk on both sides but even at $11-$12, it's still a great deal if you are looking to stay at an Epcot resort.

Exactly! Thank you Lisa because I was thinking the same thing. Why compare AKL with BWV studio when BWV has Inn rooms that can be compared to. AKL and WL have historically been the lowest priced rooms, discounted or not. AKL is a bus to everything and their rooms are smaller.
Why choose a Saturday night comparison when most renters are renting Sun-Thur. avoiding the weekend points. We can skew the numbers to fit, but $11-$12 a point is an excellent price and still takes into account the risks of renting.

We stay at Mandalay Bay in Vegas every time we visit. They offered a non-refundable rate that was about $40 less per night than the regular rate. Last time we stayed, we booked the non-refundable rate knowing that if we cancelled we would not get our money back. They no longer offer this savings option anymore. My point is, we all assign a value to the risks we take every day.

Look at what people go through to get cheap accomodations via timeshare deals. They submit to torture and time consuming presentations so that they can save money. DVC rentals are risky, but the risk is outweighed by the reward and the price is excellent, even at $11-$12 ppt.

Members can rent for whatever they want, but I think the discussion should be fact based and unbiased.

 

[mullertwin]

PS: This is tongue in cheek and for the person who thinks they can get a moderate for $108 they will have a long wait, even with AP discount it is still $122

It depends on what time of year you go. I just went this past January and got a great AP rate of $88.09 per night for a moderate and that INCLUDES tax.

 

[Alexander]

Yeah, we are booked at POFQ for $110/night Easter weekend (this April 2006)with the AP discount, and have paid as little as $74/night in the summer with just a room-only code.

Will this topic ever die? People will charge what they want for their points. If you got into DVC to make money, you are in the wrong business! Quit trying to tell others what they should rent their points for. What's next? Someone telling me what to charge for items at a garage sale?

I guess those of us better watch out for the "cartel" because we (gasp) give away points to family and friends.

 

[Dean]

LOL, I couldn't help thinking as I scanned this thread. How could I get $15 per point. I know, I could book Sunday to Friday during high demand times then put them for sale on place like ebay. Free Market at work. But then we'd have an outcry and you know what, it'd likely be some of the same people who think the current rental price is too low.

 

[greenban]

LOL, I couldn't help thinking as I scanned this thread. How could I get $15 per point. I know, I could book Sunday to Friday during high demand times then put them for sale on place like ebay. Free Market at work. But then we'd have an outcry and you know what, it'd likely be some of the same people who think the current rental price is too low.

Dean!

You must be joking. Do you really think an Owner will mind you maximizing your return, Here? On the DIS?

Oh what a jaded life you must lead......

Or perhaps.....


my head.....


may be......



burried up.......



to my.......


ears in........





sand at Vero Beach!

Great observation and point!

-Tony

 

[boatboatboat]

I am a current DVC owner. Crunching numbers over the weekend about doing an add on of 100 pts or so.

After looking at renting for 10bucks a point, and NOT HAVING to pay dues or taxes, I have come to the conclusion renting is cheaper then owing.

I'll just keep my $8000.00(re-sale contract) and avoid the $460.00 a year in taxes and dues, and rent 100 points for a grand a year. Those 100 pts will cost me $540.00 more then if I owned and had to pay out $460.oo for dues and taxes.

I would rather have 8k to invest, and pay 1k a year , than to NOT have 8k to invest, and pay $460.00 in taxes and dues.


As long as I can rent for 10 bucks a point, I am better off to rent.

 

[Maistre Gracey]

I am a current DVC owner. Crunching numbers over the weekend about doing an add on of 100 pts or so.

After looking at renting for 10bucks a point, and NOT HAVING to pay dues or taxes, I have come to the conclusion renting is cheaper then owing.

I'll just keep my $8000.00 and avoid the $400.00 hundred a year in taxes and dues, and rent 100 points for a grand a year.


As long as I can rent for 10 bucks a point, I am better off to rent.

I'm a bit confused. Are you a DVC Member?

Anyway, you will eventually come out ahead by purchasing, but it will take some years.

You're also assuming the rental rate will remain $10 in the future.

You could get the triple hosing if you rent now, then buy later and pay more per point.

MG

 

[boatboatboat]

I'm a bit confused. Are you a DVC Member?

yes

Anyway, you will eventually come out ahead by purchasing, but it will take some years.

I don't think so.

You're also assuming the rental rate will remain $10 in the future.

It hasn't changed for 7 years. I think the price may drop as DVC continues to grow.

You could get the triple hosing if you rent now, then buy later and pay more per point.

I doubt if re-sale prices for HH and Vero will climb much more. If they do climb I can alsways take the 8k I have saved PLUS the intrest/growth it has made and use that to buy more pts.

 

[Maistre Gracey]

I'm a bit confused. Are you a DVC Member?

yes

Anyway, you will eventually come out ahead by purchasing, but it will take some years.

I don't think so.

You're also assuming the rental rate will remain $10 in the future.

It hasn't changed for 7 years. I think the price may drop as DVC continues to grow.

You could get the triple hosing if you rent now, then buy later and pay more per point.

I doubt if re-sale prices for HH and Vero will climb much more. If they do climb I can alsways take the 8k I have saved PLUS the intrest/growth it has made and use that to buy more pts.

If you honestly believe that in year 2030 when maintenance fees are about $12/point, the rental rate will be $8/pt, than you are correct in saying you will never come out ahead.

I'm betting that will not happen.

MG

 

[boatboatboat]

We disagree about what will happen to the future of DVC.

BTW 8k invested at a rate of return of 8% (2/3 the average rate of return in the mkts the last 50 years), will have grown to 50,729 by 2030.

I'll be fine..........

 

[greenban]

Since this cartel idea will not die (unfortunately), I have a name to propose for our cartell:


OPEC

O = Owners

P = Protecting

E = Economic

C = Concerns

What do y'all think?

-Tony

 

[Maistre Gracey]

We disagree about what will happen to the future of DVC.

BTW 8k invested at a rate of return of 8% (2/3 the average rate of return in the mkts the last 50 years), will have grown to 50,729 by 2030.

I'll be fine..........

In my opinion, it's foolish and inaccurate to figure lost oppurtunity income into the equation.

In your example, you are not even subtracting out your $1000/year to rent your points. If you do that, you will not make year 2030 with money in the bank.

MG

 

[boatboatboat]

So you think dues/taxes will hit 12 bucks a point?

Yet more reason to rent..............

 

[Maistre Gracey]

So you think dues/taxes will hit 12 bucks a point?

Yet more reason to rent..............

I'm not an economist, but I expect fees will climb roughly at the rate of inflation. Could be a little more, or a little less depending on future costs of the industry.

But I also expect the rental price to climb in the future. Obviously not exactly 3.5%/year, but over the long run I do believe it will keep up with dues. It certainly will never be less than dues.

MG

 

[boatboatboat]

but over the long run I do believe it will keep up with dues.

They haven't yet


It certainly will never be less than dues.


I don't dispute that

 

[Maistre Gracey]

but over the long run I do believe it will keep up with dues.

They haven't yet

I'm not sure about this, as I've never rented points (either side of the equation).

If a $10/pt offering was made in years past, we don't really know how much price negotiating went on. We don't really know the final price.
In year 2000 was it more common to advertise $10, but settle for $9?
Maybe today the renter holds firm at $10?

As has been noted, many high point renters have found other venues to get more $/pt.
I know many folks are getting more than $10/pt, as long as they are patient and not distressed points.

 

[boatboatboat]

I rented pts to a non dvc user in 99. I ask 10 which was the going price and got 10.

What are the other venues that people use to rent their points out?