Should I rent points? Is renting a waste of membership?

[disneyri]

Wondering what people feel about renting points? Am I correct to calculate that points are worth approx. 6.00 each give or take. When people rent for 9.00 or 10.00/pt, they make a little money that year but dont necessarily vacation and lose points for that year.

We are taking a disney cruise late 2004, and I was going to rent our 100pts BeachClubVilla on my April 1 UseYear. Should I work hard to rent all 100? I have an offer for 83 of my points at 9.00/pt?

Is renting wasting membership??

thanks

Jay

 

[Blackunicorn]

Well, you're going to get a lot of different opinions on this. Some people feel that their points are worth at least $12 pp, while some people feel that anything over $5 to $6 is bilking it.

My opinion is that the value is higher. What we are doing, in order to go to Disneyland this year, is figure out how much comparable accomodations would cost us vs. what we would shell out in points, and using that to calculate the minimum amount per point that we need to charge.

Is it a waste of membership? Only you can answer that. It's your membership, you can do what you want with it, and if you don't feel cheated, it's not up to anyone else to tell you that you should.

 

[chips]

Depends on what you compare it to. Retail rack rate plus taxes puts the value of a point at 18-23 dollars per point depending on number of weekend nights.

If you will eventually use the points for personal villa use, the best use is to use it for personal use.

If you plan to use the points for non villa use, the dollar value would be less than 9 dollars per point. This makes renting the points more attractive.

It is your decision but if I came down in price I would demand take all 100. If you have time and are on the fence, don't come down in price. People that have rented suggested mention 10 dollars firm.

People do rent points and pay cash for the cruise. Some also have enough points to also stay at a villa when they want. With 100 points it is going to be or not and.

 

[Happy Birthday Cat]

We are renting points right now so that we can take a crusie next year. After doing the calculations, it makes much more sense for us to rent out our points and pay cash for the cruise. It works out for everyone. My family gets a cruise and some other families will get to enjoy our points at the VWL and the BCV. It works out for everyone this way but I would not rent out points simply to bring in cash and not use it for another vacation.

HBC

 

[disneyri]

For the bahamas 4nt at that time, the wonder is 79pts/person. If points were valued at ~6.00, that would be 474.00/person. The price for our cruise was 415.00/person including everything.

I am renting my 100pts for 1000.00, making 170.00 for spending AND paying for the cruise. I chose the cash way obviously!

Looking back, if I did not rent my points, I would not have had the 158pts anyway....

 

[Richyams]

I would suggest reserving christmas week and then auctioning off the reservation on Ebay.

Only kidding, I would never suggest anything that slimey.

I can't believe anyone would be that low or do anythin that slimey.

 

[TnRobin]

Keep in mind that value and cost are two differenct things. Cost is what you paid for them which is probably approx $6 a point. Value is Fair Market Value or what the market will pay for them. This seems to be between $8 - $12.

Should you rent point. If you will not be using the points, I would definitely consider renting them before you lose them. With the price of cruises going up and up (both pointwise and cashwise) you do need to compare. In the summer or other non-discounted times, you may not come out ahead by renting. In the fall or other discounted times, you will probably do better by renting. You really need to get actual prices of cruises to do your comparison.

Good luck with which ever option you choose.

 

[Disney Doll]

I'd never let them just expire. I'd either give them away to a friend or family member, or I'd rent them.

As far as how much to rent them for, I guess that's sort of a personal decision. I can only liken it to an upcoming vacation. We will be staying in an OKW GV for 4 nights/5days, for a total of 144 points. If I charged $10 per point for that stay, it would mean a cost for accomodations to someone of $1440.00. Do you think $1440.00 is a lot to pay for that length of time in a 3 bedroom, 33/12 bath luxury condo in WDW? I don't, so i'd probably say, in general, that $10/point is pretty fair. Obviously, if it were a family member or close friend, maybe I'd charge them less or not at all.

 

[pumpkinboy]

If these are points that expire more than a year from now, I would say they are worth more than the "going rate" of $10 per point, while if they are due to expire end of this month, tkae whatever someone wil offer for them. There is also the hassle factor, since it would seem easier to simply get a check, transfer the points and be done with it, than to make a reservation and hope the tenants don't cancel... I notice some folks will quote a lower price for transfers, or for taking all the points they need to rent out; by contrast some rent out long-dated points (ones good for the all important 11 month ressies) at $11-$12 per point.

Good luck. I was doing this type of arbitrage myself this year. I was able to get my weekend nights at DVC member rates, and rented out those points (I decided I liked my tenants so made them 10 month BWV ressies during F&W, but am only charging $10 per point; I could undoubtedly get more, but they are so nice and easy to deal with). I expect the difference will go towards the Tea party at GF for DW, DD and godmother, and might cover a character breakfast in addition.

 

[Caskbill]

Don't forget that if you rent out points, the 'profit' you make is taxable as part of your income tax.

 

[niks81]

If you aren't planning to use your points then I don't think it is a waste of a membership at all. It's nice to be able to have that option in case you don't want to use them either on DVC or any of the exchanges.

 

[dis teacher]

We have to report it as income? I thought that this would just be a personal transaction. Where do you report it?

 

[spiceycat]

I have never rented points until this year.

My brother is having finance troubles and really needs the money.

I even asked about selling some of them (already sold VB) - "NO" - he and his family love OKW as much as I do - but until he gets in better shape financial - I will rent - now I am still going - but I stay in a studio - so I have enough points to rent some and still stay in my studio.

Rich - didn't you know I got a BWV standard view for Thanksgiving just to rent it on e-bay.....

Not really I hope to use it - my brother and his family will be staying at the Sheraton's Vistana Resort on my other timeshare - and if they can't go - I won't use both.....but everyone right now is hoping that they can go. So don't start yelling at me to release it - it won't be until a couple of weeks before - if they can say definitely or not - my nephew plays baseball and sometimes that interfers with vacation/holiday time.

I don't use this board - I use
www.redweek.com
there were some people that were trying to get $15 to $16 per point - so I started to advertise at $10 a point. I know - but I don't think people should take advantage of others just because they don't know about the dis boards - sorry!

 

[dilettante]

Never heard of www.redweek.com. Having never had a problem with DIS renters, are the renters at redweek as sophisticated and trouble-free? Also, good luck getting more than $10/point these days - I tried for a while to get $11, one lousy dollar more, but there's too much downward price pressure, i.e. too many DVCers dumping points at low prices.

 

[dermel]

Just purchased DVC contract and scheduled first trip in Sept for family of six.

I saw many crazy calculations with people trying to justify a purchase based on assumptions. Only the government can make an accurate prediction for something 75 years from now? (Any takers)

Assume a purchase price per point $70
7 yr Certificate of Deposit Rate at PFCU 5.5%
(a 38 year term would pay a higher yield)
Interest only Yearly Return $3.85/yr
Loss of Principal in 2042 $1.84/yr
($70 divided by 38 years)
Yearly Maint fee Avg $4.00/yr

Current unbiased value of point $9.69/yr

This does not take into consideration a profit margin, the inherent risk associated with owning a non-FDIC investment or the time and trust associated with renting points.

I determined at $10 the DVC rental points are undervalued and had a difficult time justifying a purchase of a contract.
However, I purchased to remove the temptation to save money by staying at the Kissimmee Super 8 Motel in the $49.95 apartment Suites with complimentary breakfast and free transportation.

 

[spiceycat]

you have alot of older member (like me) who purchased when the points were in the $50's not the current $80's or is it $90's.

ten is still a fair price for us - however I can see your point - if you brought recently - because of the higher base plus the higher maintence fees - it will take much longer to get your money out of it.

I did my comparison on the WDW deluxe resorts we were staying at - when I brought. Comparing it to the increase in the Polyn rooms - it was a bargain....Oh I still remember the Polyn when the rooms were under $50 a night - of course I am certain I won't to see those times again.....

when I was first on this board - I think the points were renting at $8 a point - it was Disney in their buy back program who say they were worth $10 a point - hey if Disney says that the who renting were not going to argue -so the rent price increase to $10 a point.

the people on redweek - most have been completely unaware that Disney would let DVC members rent - so yes they are uneducated much more than the people who visit here.

However as stated my ad is for $10 a point - for a studio at OKW - so $80 in Sept and Oct - those are the months I am advertising - may be you can go advertise a higher rate during a month that I am not interested in - I am after the smaller contract and more than one - so if one cancels I am not stuck (not to mention very upset) - if they wanted too many points or a season that I was not renting - I generally send them here and too the other websites that rent DVC points. They paid half when they receive the confirmation and half 90 days before their arrival date. I think that is fair and no one has say it is not.

you need to paid redweek $10 to advertise or even answer an advertisement.

Oh I also got rid of my Westgate here (or I am getting rid of it).....