sold... no harm, no foul... check the details

[brunoflipper]

Originally at time of purchase…

300 pts purchased at 70/ppt (Cash) = $ 21000
Approx. Closing costs/MF = 1500
Total cost at purchase (paid cash)= 22500

But contract came with...
600 banked pts which we rented at 10/pp t= 6000
So...
Total actual out of pocket cash costs= $ 16500


This year borrowed 40 points…

Used 170 pts to go to WDW = Priceless
Rented 170 (current and borrowed) pts at = 1700
Aprrox. annual dues = 1200
Net gain for year= +500


DVC buy-back 300 points (260 coming 03/06) at 64/ppt= $19200 (Buyer paid all closing costs/fees)


Total transaction= $19200 + 500 - 16500
Net Profit = $3200 and “free” 7 day trip to WDW all within 14 months

 

[KelNottAt]

Very interesting. I always wondered how a situation like that would work out. Thanks for sharing.

 

[vascubaguy]

How did you sell it back?

Were there no commissions you had to pay?

 

[Anewman]

Also did you pay any Maintanance fees on the initial 600 points?
Did you buy resale or though Disney?

 

[mydogdrew]

You sold Key West for $64? I would have thought $74.

 

[Beca]

Just curious....why did you sell?



Beca

 

[Scotch]

You forgot you have to pay the IRS taxes on the gain from rental.

 

[vascubaguy]

You forgot you have to pay the IRS taxes on the gain from rental.

Don't forget capital gains. (those are killer!)

 

[SoCalKDG]

Originally at time of purchase…

300 pts purchased at 70/ppt (Cash) = $ 21000
Approx. Closing costs/MF = 1500
Total cost at purchase (paid cash)= 22500

But contract came with...
600 banked pts which we rented at 10/pp t= 6000
So...
Total actual out of pocket cash costs= $ 16500


This year borrowed 40 points…

Used 170 pts to go to WDW = Priceless
Rented 170 (current and borrowed) pts at = 1700
Aprrox. annual dues = 1200
Net gain for year= +500


DVC buy-back 300 points (260 coming 03/06) at 64/ppt= $19200 (Buyer paid all closing costs/fees)


Total transaction= $19200 + 500 - 16500
Net Profit = $3200 and “free” 7 day trip to WDW all within 14 months

That would have been 300 banked points(2003) and 300 current points(2004) that you sold for $6000.

Now why did you have to sell at a loss? I bought in 2004 as well at $73 at BWV. I could now sell this at $80+. I didn't think any of the resorts went down in value?

How did you get out of paying commissions?

 

[Beca]

That would have been 300 banked points(2003) and 300 current points(2004) that you sold for $6000.

Now why did you have to sell at a loss? I bought in 2004 as well at $73 at BWV. I could now sell this at $80+. I didn't think any of the resorts went down in value?

How did you get out of paying commissions?

He says he made $3200 plus a free trip to WDW. He might have sold the contract himself.



Beca

 

[mydogdrew]

He says he made $3200 plus a free trip to WDW. He might have sold the contract himself.



Beca

Could be but he sold it for less than 90% of value sold he would have done better paying the broker fee. In most cases if you bought 2 or more years ago resale you should get your money back today after paying the broker (plus some free trips). Just can't count on that trend continuing though.

 

[bicker]

Hmmm... seems like folks are missing the OP's point.

 

[DisneyMomOK]

If you sell thru a broker, your net would be the $64. I believe the OP was listing his final net receipts after deducting his costs ($200 + $20 + broker fees).

Sharon

 

[dianeschlicht]

Sorry, but it seems like a lot of "monkey business" for one 7 day trip!

 

[mydogdrew]

Sorry, but it seems like a lot of "monkey business" for one 7 day trip!

To be fair, its a free week + $3200. I can see why some might be compelled to "cash out" the short-term profit.

 

[senecabeach]

OK now....All you BCV owners....Listen Up!!

Sell....Sell.....Sell.....

 

[JimC]

Sorry, but it seems like a lot of "monkey business" for one 7 day trip!

OK now....All you BCV owners....Listen Up!!

Sell....Sell.....Sell.....

Bad Bad Seneca

 

[brunoflipper]

How did you sell it back?

Were there no commissions you had to pay?

fsbo...
nope..

 

[brunoflipper]

Just curious....why did you sell?



Beca

last time we went we realized that going more than every three years was going to get old fast...

 

[brunoflipper]

Also did you pay any Maintanance fees on the initial 600 points?
Did you buy resale or though Disney?

nope.
resale.