Suddenly we have too many points

[Dancind]

Don't know what to do. For a variety of reasons (daughter is 20, heat in FL, cost to get there and tickets) we are not going to be going to WDW much anymore. We own number removed points, split between resorts removed.

I'm torn between selling the resort removed points and keeping them to cover things like a trip to DL, maybe Hawaii, trips to take the step-grandkids if they can go during the winter when it isn't crowded.

We would still have the more details removed. And for our daughter to use when she is older and maybe has kids.

I actually called to try and get an RCI trade, but the place in Del Mar CA we are interested in was booked for the next two years! Does not seem like a good option. I think there was availability at other places, but we may not want to stay at those for a week.

Seems like renting is getting more and more difficult too. I would think about going through David's Vacation Rentals. But is he going to be able to keep in business with the new renting crackdown through MS?

With the new restrictions on resales, can we even sell them?

This is taxing my brain. Didn't think we would get to this point so soon, but WDW has kind of lost it's magic for us. I think we went too many times. What would you do?

 

[vicki_c]

What new renting crackdown?

David's business seems just fine - he is just a matchmaker between owners and people wanting to rent.

Anyway, with that many points that you don't see using, I would probably sell one of your contracts and be done with it. I'm sure you will have no problem selling your * contract - the resale market sounds like its as robust as ever.

 

[dvc at last !]

What new renting crackdown?

David's business seems just fine - he is just a matchmaker between owners and people wanting to rent.

Anyway, with that many points that you don't see using, I would probably sell one of your contracts and be done with it. I'm sure you will have no problem selling your * contract - the resale market sounds like its as robust as ever.

Well said !

 

[Bell30012]

Rental crackdown? I hope not. We only have 50 points and like to rent more when we need them.

 

[snoope]

you have contracts at to properties that are good for resale. details removed
As far as I know there is no crackdown on rentals. In fact guides talk about it in their sales pitch.

 

[Dancind]

I admit I haven't experienced a problem first hand, but I read this thread today:

http://www.disboards.com/showthread.php?t=2740952

 

[mickeysbestfriend]

we'd rent the points out to family and friends before we would sell them. We have a grandson that is 6 months old and his momma is likely to want to bring him down many many times.

 

[JimMIA]

I admit I haven't experienced a problem first hand, but I read this thread today:

http://www.disboards.com/showthread.php?t=2740952

Over-exuberant MS CMs sometimes make silly statements, so I wouldn't put any stock in those comments from MS. Renting points is specifically permitted by the POS, with the qualification that DVC accounts can't be used for "commercial purposes," a phrase that DVC has wisely refrained from trying to define or enforce.

In that thread, Sammie was technically correct with the comments that charging for point transfers is prohibited by the POS, but that's been going on forever and will no doubt continue as long as DVC allows transfers. The rule is silly and unenforceable to the point of being stupid.

 

[JimMIA]

In fact guides talk about it in their sales pitch.

Guides talk about a lot of things in their sales pitches. Don't pay any attention to guides about stuff like this.

 

[DOCDDS]

I have a feeling the original intention of renting for commercial purposes had nothing to do with making a profit from renting your points, I think the intention was that you couldn't establish a commercial business on Disney property using your points to rent the space. That is you couldn't run a travel agency out of the Boardwalk room that you made reservations for. You couldn't sell your newly designed running shoes during Marathon week out of the room that you had at Beach Club.

The original restriction put in place to limit the number of points you could own per Resort or in total (2000 and 5000) was to discourage you from not personally using your points. My question then is why, if Disney were so concerned about this non-personal usage, did Disney recently increase the number of points an individual entity could own up to 8000? Maks no sense to me if they (Disney) are trying to limit this non personal use.

 

[bobbiwoz]

If I had too many points and was tired of going to Disney, I would sell the points. It seems as if people still want to buy in even with the restrictions on resale, and I would get out from under the MFs!

Bobbi

 

[dcfromva]

Dancind,
I know what you are going through. We have several contracts, too. After my DS went off the college, DH and I were going to WDW more often but staying in smaller accomodations so the points are going a lot further.
But, there are more fundamental reasons for us to sell, too. DH is not as interested in going to WDW as I am--I doubt he'd be interested in wintering at WDW (although I wouldn't mind it at all. ).
Renting points is not appealing to me at all.
And, I am retiring soon and I would like to have a little less overhead going to maint fees so selling one of the contracts makes sense to me.
I finally listed the contract I wanted to sell with the Timeshare Store about a week ago. I think it would have been super easy to sell the points back in March, but I wasn't ready to do sell at that point--it may take more time (and/or a price adjustment ) to sell now. We'll see how it goes, but it feels good to have made a decision since I have struggled with this decision for several years!

 

[JimMIA]

I have a feeling the original intention of renting for commercial purposes had nothing to do with making a profit from renting your points, I think the intention was that you couldn't establish a commercial business on Disney property using your points to rent the space. That is you couldn't run a travel agency out of the Boardwalk room that you made reservations for. You couldn't sell your newly designed running shoes during Marathon week out of the room that you had at Beach Club.

I don't think that's it.

DVC doesn't want competition in room rentals. They can't actually prohibit renting, because they rent their own points, but thay can put limits on it.

Their attempts to control rentals so far have been limited to sending letters to owners who rent more than 20 times a year, limiting transfers to one per UY, and probably telling MS CMs to discourage renting whenever they get an opportunity during their interactions with owners. Of those strategies, the one that had the most effect on commercial renting was the change in transfer policy -- although it probably hurt owners more than it helped DVC.

The occasional comments made by MS CMs are rude, inappropriate, and often so far-fetched that they border on lying (saying renting is "illegal" for example), and they probably have no effect...other than to leave a bad taste in the owner's mouth.

 

[JimMIA]

If I had too many points and was tired of going to Disney, I would sell the points. It seems as if people still want to buy in even with the restrictions on resale, and I would get out from under the MFs!

Bobbi

I agree. Actually, I not only agree, we recently did just that. I was considering keeping a contract to rent, but decided it wouldn't make sense in our case.

You could probably rent your points without any difficulty -- and depending on how many you have, possibly rent them for enough to pay the dues on both contracts. However, resale prices have been trending steadily downward for 2-3 years, so it's entirely possible that you would lose more resale value each year than you gain in rental revenue. That's better than having the points going unused, but it's still a losing proposition.

I looked at that math and decided to just take my lumps now rather than drag things out. Fortunately that decision coincided with the 3/20 buying spree so we did better than expected.

 

[Brian Noble]

If you think your circumstances will change relatively soon---as in in the next few years---keep and rent in the meantime. If you think you "might use the points someday," then sell. There are cheaper ways to go to Hawaii. Renting is likely to only get more difficult going forward---as the system grows, you can expect the number of owners looking to rent will also grow. Unless the market of people looking to rent also grows as the same clip, well, you can see where that lands you. If you own at a resort with an identifiable 11-month market (e.g. BCV/BWV for Food & Wine) that is one thing, but otherwise it will be harder and harder to distinguish yourself.

 

[Dancind]

Well, can't do anything until January anyway. Guess I will think on it some more.

Checking airfares this morning for a fall trip. Wow. It's a lot more than last year!

 

[shalom]

If you think your circumstances will change relatively soon---as in in the next few years---keep and rent in the meantime. If you think you "might use the points someday," then sell.

Excellent advice. I'm also wondering what sort of impact the Art of Animation resort with have on DVC rentals, but that's because I'm assuming a fair percentage of people who rent points do so because they're in a group that doesn't fit nicely in a regular room. More family suites may have some impact, or no impact at all, but if you're not going to be using the points anyhow, why take the risk that the rental market might become less useful for you/changes there might make resales less attractive?

 

[RachaelA]

Excellent advice. I'm also wondering what sort of impact the Art of Animation resort with have on DVC rentals, but that's because I'm assuming a fair percentage of people who rent points do so because they're in a group that doesn't fit nicely in a regular room. More family suites may have some impact, or no impact at all, but if you're not going to be using the points anyhow, why take the risk that the rental market might become less useful for you/changes there might make resales less attractive?

But the family suites don't have a full kitchen just a kitchenette. A lot of people rent points for the 1 bedrooms for the full kitchen.

 

[shalom]

But the family suites don't have a full kitchen just a kitchenette. A lot of people rent points for the 1 bedrooms for the full kitchen.

Good point, and one I hadn't considered. There are a lot of variables, and no way to know for sure, but I'd still think about that aspect if I were buying in. Then again, there's a sense where owning any TS is risky, but I've still got one.