Renting Points We Are Selling Too Low

[Maistre Gracey]

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?

Again, I'm truly a novice about the renting thing, but I have seen and read about folks booking weeks and selling them on ebay for much more than $10/pt.

I don't really know exactly where else since I have never rented.

MG

 

[boatboatboat]

The other day BWV had a one bedroom for s/m/t/w/t during Christmas, I considered booking it, and then renting it out.

I prolly could have gotten well over 10 a pt, being Christmas week

 

[abner1776]

Everyone is complaining that they are barely breaking even at $10 a point, but I am not understanding the math.
You purchase VWL at $92 with 36 more years equals $2.55 per point. Dues are $4.46(?) so that comes out to be basically $7 per point and SSR would be closer to $6 per point.

So if you rent out your points at $10 you are making either $3 or $4 pp, the renter gets a break on the crazy rack rates and everyone is happy. Why are people looking for $12 -$15 ???

 

[boatboatboat]

You invested 13,800 (150 pt contract) that at 8% (2/3 below the average mkt rate the last 50 years) would have shown you a gain of 1104 dollars, every year. Some years would be much higher, some would be lower and even at a loss. Once again the 8% I used is 2/3 of the average rate of return in the mkt the last 50 years. That means every point cost you 7.36 in lost income .

so we have 7.36 in lost income, + 4.46 in dues, your REAL cost per pt=11.82.

 

[simpilotswife]

Everytime I see this subject I can't help but think of the Ferengi.

 

[Plutofan]

Also a lot of people need to cover there mortgage interest or lost income on the orginal investment. You need to remember that DVC is a prepaid vaction plan. At the end of the term the property goes back to Disney. So most peoples true cost, from a pure economic standpoint, is at least $10 per point.

 

[snowbunny]

You invested 13,800 (150 pt contract) that at 8% (2/3 below the average mkt rate the last 50 years) would have shown you a gain of 1104 dollars, every year. Some years would be much higher, some would be lower and even at a loss. Once again the 8% I used is 2/3 of the average rate of return in the mkt the last 50 years. That means every point cost you 7.36 in lost income .

so we have 7.36 in lost income, + 4.46 in dues, your REAL cost per pt=11.82.

Again, that's assuming that the money was invested instead of (more likely) being blown on Disney vacations...

 

[boatboatboat]

Again, that's assuming that the money was invested instead of (more likely) being blown on Disney vacations...

Yes it is assuming, that the typical DVC owner has money they have set aside and invested for future needs. IMO it's a rather safe assumption....

 

[DVC Sadie]

Yes it is assuming, that the typical DVC owner has money they have set aside and invested for future needs. IMO it's a rather safe assumption....

Not necessarily. A lot of people finance absolutely everything to feed the need of instant gratification.

 

[boatboatboat]

we disagree.

IMO the majority of DVC owners used current savings to purchase their time shares.

 

[snowbunny]

IMO the majority of DVC owners used current savings to purchase their time shares.

Source for this statistic, please?

 

[Beca]

we disagree.

IMO the majority of DVC owners used current savings to purchase their time shares.

mmmm....doubt it...I have seen too many posts over the years asking about buying other resorts from DVC. Someone will mentnion "resale", and the poster will talk of how they need DVC financing. DVC is making a small fortune on that financing!!! And, what members who are financing are paying, is a LOT more than those who pay cash.



Beca

 

[boatboatboat]

Source for this statistic, please?

IMO= means, in my OPINION, meaning that this comment is based on personel observations and assumptions.


You aren't going to see someone post on here asking how they should "pay in cash" for a DVC. While someone who is borrowing the money may indeed post a question or remark.

 

[snowbunny]

IMO= means, in my OPINION, meaning that this comment is based on personel observations and assumptions.


You aren't going to see someone post on here asking how they should "pay in cash" for a DVC. While someone who is borrowing the money may indeed post a question or remark.

Right well my opinion, based on my observation of never seeing someone here write that they're not going to Disney this year, or next, or the year after that because they are going to invest their money at 8% instead, is that your assumptions are quite wrong.

 

[boatboatboat]

If some time you would care to debate about comments I have WRITTEN, rather then comments you have imagined I have written, let me know.

take care........

 

[Beca]

Sounds like a good idea for a poll!!



Beca

 

[Maistre Gracey]

Right well my opinion, based on my observation of never seeing someone here write that they're not going to Disney this year, or next, or the year after that because they are going to invest their money at 8% instead, is that your assumptions are quite wrong.

My point exactly.
Either they are never vacationing, or you must subtract the cost of your Disney accommodations from the "invested" money.

And don't forget-- After the break even point, a DVC Member can bank the net profits and earn many years of interest on that money.

There are many, many things to consider. If I figured lost interest income, I guess I spent $800 on my toaster.

MG

 

[boatboatboat]

To not take into consideration "lost income" when purchasing property is foolish.

 

[Dean]

Again, that's assuming that the money was invested instead of (more likely) being blown on Disney vacations...

I think it's a reasonable bet that a significant portion of DVC members made a conscious decision and are using investment type dollars to own DVC. It's certainly true in my case. In addition, fact that many people make poor financial decisions in general doesn't add to the value of DVC.

 

[Dean]

Right well my opinion, based on my observation of never seeing someone here write that they're not going to Disney this year, or next, or the year after that because they are going to invest their money at 8% instead, is that your assumptions are quite wrong.

I can tell you that I've used only one night with points since 1999 for my personal stay. I have sent family on a couple of occasions in addition, we were pretty disney'd out. And once this years family group trip is done, we will sell a portion to most of our DVC points and likely would sell all other than our emotional attachment to the system. And we've seen a number of posts over the past few years about people wanting to try other things, don't go to the parks much, etc. Plus the exchange rate has risen significantly in the last couple of years.

I think the premise of the investment return is to have the principle intact then use a portion to all of the yearly proceeds for the vacations supplemented by the yearly fees one would pay otherwise.