The 8,000 Point Club

[Pluto 32]

I've heard the max points someone can own is 8000 points. Is the 8000 point club a thing? Are you or do you know anyone who has achieved this status? I want to hear from you!

 

[drusba]

Current maximum is 4,000 any one resort and 8,000 overall, which a married couple could actually double by simply buying separate memberships (and potentially could tripple by the same couple also buying a joint membership). Have not heard of anyone that has either of the current maximums. In years past, there was a 2,000/5,000 maximum and there were at least some that had the 2,000, and some corporations that had 5,000 (a perk for employees). There were also some professional renters that had the max, at least until Disney changed the rental rules (from being able to do an unlimited number of rentals to only 20 a year without being deemed in violation of the commercial practice rule)

 

[crvetter]

Current maximum is 4,000 any one resort and 8,000 overall, which a married couple could actually double by simply buying separate memberships (and potentially could tripple by the same couple also buying a joint membership). Have not heard of anyone that has either of the current maximums. In years past, there was a 2,000/5,000 maximum and there were at least some that had the 2,000, and some corporations that had 5,000 (a perk for employees). There were also some professional renters that had the max, at least until Disney changed the rental rules (from being able to do an unlimited number of rentals to only 20 a year without being deemed in violation of the commercial practice rule)

Technically if I am not mistaken the rule is 8,000 max regardless of how you personally hold the title. So in this case the joint membership and the individual memberships would count against them.

"For the purpose of determining the total number of Vacation Points compiled, no separation shall be made of Ownership Interests owned by the same person(s) with other person(s) or entity(ies) in which any such person has a partnership, membership, beneficial or ownership interest."​

Also I do know that DVC will make exceptions to the 8,000 rule as long as there is strong evidence it won't be utilized for renting operations. Basically I assume large corporation that wish to buy as a company perk could probably get an exception as they would likely not be turning it to a rental operation. Also anyone that lists ownership as a company appears to be barred from making even 1 rental reservation (so if an owner decides to have an LLC hold their interest technically they can't even occasionally rent), as it says company holdings are specifically for recreational use only by the directors, officers, principals, or employees.

 

[Pyotr]

I will never own 8,000 points.

I likely won’t even own 800 points.

 

[Pluto 32]

I will never own 8,000 points.

I likely won’t even own 800 points.

Same here. Haha!

 

[Pluto 32]

Technically if I am not mistaken the rule is 8,000 max regardless of how you personally hold the title. So in this case the joint membership and the individual memberships would count against them.

"For the purpose of determining the total number of Vacation Points compiled, no separation shall be made of Ownership Interests owned by the same person(s) with other person(s) or entity(ies) in which any such person has a partnership, membership, beneficial or ownership interest."​

Also I do know that DVC will make exceptions to the 8,000 rule as long as there is strong evidence it won't be utilized for renting operations. Basically I assume large corporation that wish to buy as a company perk could probably get an exception as they would likely not be turning it to a rental operation. Also anyone that lists ownership as a company appears to be barred from making even 1 rental reservation (so if an owner decides to have an LLC hold their interest technically they can't even occasionally rent), as it says company holdings are specifically for recreational use only by the directors, officers, principals, or employees.

I would think that it would also make sense to restrict how many points someone owns as they would have too much availability to take up inventory.

 

[KAT4DISNEY]

I would think that it would also make sense to restrict how many points someone owns as they would have too much availability to take up inventory.

The points will be sold to somebody and it really doesn't matter whom. The resorts are sold to be booked 100% year round less the small percentage DVC is required to retain ownership of for maintenance etc.

 

[KAT4DISNEY]

Just one more note - in several ways the large point owners do not cost the system as much as a multitude of small point owners. One mailing vs 80 mailings. Maybe one phone call about something vs one call from 80 different members. One moonlight magic registrations vs 80 registrations. One set of Gold AP's * the limit allowed vs 80 * the limit allowed and so on.

 

[Pluto 32]

Just one more note - in several ways the large point owners do not cost the system as much as a multitude of small point owners. One mailing vs 80 mailings. Maybe one phone call about something vs one call from 80 different members. One moonlight magic registrations vs 80 registrations. One set of Gold AP's * the limit allowed vs 80 * the limit allowed and so on.

On average how many total points is a resort worth until it is considered 100% sold?

 

[Pluto 32]

The points will be sold to somebody and it really doesn't matter whom. The resorts are sold to be booked 100% year round less the small percentage DVC is required to retain ownership of for maintenance etc.

I guess that’s true whether one person has more book in power then another even if it is split up with multiple members that availability is still going to be used up.

 

[crvetter]

On average how many total points is a resort worth until it is considered 100% sold?

So legally they can only sell 51 out of 52 weeks of points, that is what Florida allows. So if you take the points required to book a resort for an entire year only 51/52 of those approximately are available to sell. DVC is required to maintain 2% at minimum of the points in each unit in order to maintain the voting rights (I believe the voting rights is the real reason they maintain the points but it is definitely a minimum of 2%).

 

[drusba]

On average how many total points is a resort worth until it is considered 100% sold?

Each resort has its own designated total number of points, e.g., BWV about 4.8M, AKV 7.4, BLT 5.7. A complete sell-out would be considered selling 98% of the total since DVD always retains at least 2%. A declared sell-out, as it has occurred in the past, is more amorphous in that it depends not just on total sold but on when DVD decides it wants to declare it as sold out and thus no longer focus on it as a key resort being. Aulani has still not sold-out under any measure, many also suspect that is true to some extent at SSR. and even VB; others that DVD has declared were sold out were likely in the 96% to 98% level actually sold when the declaraion was made.

 

[crvetter]

At the end of 2017 (the numbers reported for the 12/2018 annual meeting) DVC was retaining ownership of 280,776 points at SSR (points they actually declare as owning, thus pay dues on, etc.) out of the approximate 14,029,450 points that exist within the association. The unsold amount of points that DVC had (which they intend to sell bought through ROFR, foreclosure, etc.) was 36,262. So they are holding exactly 2% at SSR and 0.26% is "unsold".

For instance VGF is 2,520,445 points about with DVC owning 50,424 (2% again) and 5,033 unsold (0.2%). So SSR which I would have also assumed to be an outlier on what is unsold and/or maintained by DVC is similar to a resort I thought DVC would have maintained a bit more points on.

 

[Pluto 32]

At the end of 2017 (the numbers reported for the 12/2018 annual meeting) DVC was retaining ownership of 280,776 points at SSR (points they actually declare as owning, thus pay dues on, etc.) out of the approximate 14,029,450 points that exist within the association. The unsold amount of points that DVC had (which they intend to sell bought through ROFR, foreclosure, etc.) was 36,262. So they are holding exactly 2% at SSR and 0.26% is "unsold".

For instance VGF is 2,520,445 points about with DVC owning 50,424 (2% again) and 5,033 unsold (0.2%). So SSR which I would have also assumed to be an outlier on what is unsold and/or maintained by DVC is similar to a resort I thought DVC would have maintained a bit more points on.

Great info! What did they do with all of the points that DVC owns? Do they use that availability for cash reservations?

When you take the total cost of the points and average in the price of what they sell per point I doubt the resort actually cost that much to build leaving Disney with a whole lot of profit.

 

[crvetter]

Great info! What did they do with all of the points that DVC owns? Do they use that availability for cash reservations?

When you take the total cost of the points and average in the price of what they sell per point I doubt the resort actually cost that much to build leaving Disney with a whole lot of profit.

I'm not sure what the profit margin really is. They don't really break DVC out in the financial statements (it is lumped in with the Cash Resorts and Theme Park division). Though they have all those guides, kiosk personnel, compliance, legal, construction costs, and marketing budgets. But I suspect the profit margin is very healthy and likely well above the division's profit margin of what I recall to be 18%.

The points that DVC owns are cash reservations or however they deem fit. The fact there are only enough points to reserve 51 out of 52 weeks is done to allow for renovation of units and any maintenance issues.

 

[CanadaDisney05]

I will never own 8,000 points.

I likely won’t even own 800 points.

I'm saving up to own 80 points

 

[BillPA]

That 8000 points at CCV will set you back a NOT cool $1,800,000 with $59,440 dues for the year. That will get you in a 2 BR for about 24 weeks a year, split between Magic and Dream seasons...What a deal...

 

[The Jackal]

I remember watching one episode of the DVC show, it was one of the earlier ones and the guy, I can't remember his name, from the Time Share Store said he had several clients who were maxed out at 8,000 points. Pete was amazed. I think the highest on this board is a little over 5,000.

 

[gharter]

The points will be sold to somebody and it really doesn't matter whom. The resorts are sold to be booked 100% year round less the small percentage DVC is required to retain ownership of for maintenance etc.

I think I remember reading that DVC started to limit the number of points any person could own as there were too many people buying up large amounts of points and continually renting them out as essentially a business.

 

[DVC Doctor]

I've heard the max points someone can own is 8000 points. Is the 8000 point club a thing? Are you or do you know anyone who has achieved this status? I want to hear from you!

And what would you want to know?

I know several people with extremely large DVC point ownerships (the exact number really is not that important) and most of those people bought when there was a dip in prices and they probably paid around $50 per point on average, thus their cost would be around $400,000 and that is a huge savings compared to buying today at around $1,440,000 (@ $180pp) - they are saving over $1 million dollars buying resale. But in reality none of them would buy that many points at $180pp, but some do addon for the new resorts. The funny thing is that with current valuations around $100pp, they made $400,000 profit buying DVC cheap and that to me is spectacular.

Some book GV for large families, some love christmas and new year weeks, some give points to their relatives for free, some give as bonus to their employees, some rent excessive points, etc.

Nothing different than other DVC members, no secret number to call, no membership to Club 33, no special handshake, no limited edition pins, no bonus fastpasses, no additional perks than anyone else.

Most pay their HUGE annual dues via credit cards and get reward points (i.e. AmX or Chase) and $48,000 per year really adds up (especially at 3x Chase Sapphire Reserve).