VGF, thoughts on purchase price?

[DisDad22]

Hello all,

I just put an offer on a VGF-1 500 pt. listing…
The contract had 1000 points for 2022, 500 points for 2023 and 500 points for 2024.
I offered $162. What are your thoughts on this price for this listing given the current market conditions?

 

[Sandisw]

Direct right now is $187 for 500 points, but it would not give you the banked 2021 points this one is getting. It would not be a large enough spread for me to have restricted points from RIV or future resorts, and potential membership perks ( assuming you don't have them).

However, if it fits you needs and you don't care about those other things, then that is all that matters!

 

[havoc315]

With current incentives, I believe a 500 point contract sells direct $197 per point, add-on for existing members at $187 per point.
So $162 represents 82% of the direct pricing for a new member. -- I'd say quite reasonable offer. Knowing I could get direct points for $187 to $197 per point, I certainly wouldn't pay more than $165-$170 for re-sale. Comes a point where might as well just buy direct.

 

[Matty B13]

Seems fair, especially since the owner hasn't used any points and probably doesn't want to be bothered with renting them out.

 

[Jimmy Geppetto]

Hello all,

I just put an offer on a VGF-1 500 pt. listing…
The contract had 1000 points for 2022, 500 points for 2023 and 500 points for 2024.
I offered $162. What are your thoughts on this price for this listing given the current market conditions?

This contract has +500 points which you will not get from Disney if you buy direct. Those 500 points could easily be rented for $20pp. Thats $10,000! In theory you’re paying $142 per point if you did that compared to $187 direct.

 

[pianomanzano]

Personally, I would've gone lower (a couple of us on the ROFR thread have gotten offers accepted (and passed ROFR) in the $144-$158/pt range. But if you're happy with, that's all that matters

 

[DisDad22]

Personally, I would've gone lower (a couple of us on the ROFR thread have gotten offers accepted (and passed ROFR) in the $144-$158/pt range. But if you're happy with, that's all that matters

Wow! May I ask how recent? We’re those contracts stripped?

 

[DisDad22]

This contract has +500 points which you will not get from Disney if you buy direct. Those 500 points could easily be rented for $20pp. Thats $10,000! In theory you’re paying $142 per point if you did that compared to $187 direct.

Couple questions…Easily rented for $20pp? I only researched David’s Rental and they’re paying $17pp… how do you go about renting yours?

Also, I like your analysis coming to $142pp after taking the $10k of banked points and putting it into the purchase price. However, is it really 10k? Don’t you have to pay taxes on points rented out?

 

[pianomanzano]

Mine was partially stripped (64 of 125 points available for 2022) with split fees (158/pt). I think the $144/pt was stripped of '22 points. $162 is a great price considering how loaded it is, and better than mine if you rent out those older points. My original comment about going lower is basically because 500pt is such a large contract and my immediate reaction for a contract that large is to go even lower.

 

[havoc315]

Couple questions…Easily rented for $20pp? I only researched David’s Rental and they’re paying $17pp… how do you go about renting yours?

Also, I like your analysis coming to $142pp after taking the $10k of banked points and putting it into the purchase price. However, is it really 10k? Don’t you have to pay taxes on points rented out?

No, you don't have to pay taxes on points you rent out. You're not technically making a profit.

$20pp would be a reach, possible if you rent it out on your own at the 11 month mark. Once you pass the 7 month mark, renting on your own, you won't do better than about $15 per point.

 

[DisDad22]

Mine was partially stripped (64 of 125 points available for 2022) with split fees (158/pt). I think the $144/pt was stripped of '22 points. $162 is a great price considering how loaded it is, and better than mine if you rent out those older points. My original comment about going lower is basically because 500pt is such a large contract and my immediate reaction for a contract that large is to go even lower.

Yes, I plan on renting out the older points to sweeten the purchase price. Another member posted that I can rent the 500 points from 2021 for 10K at $20pp. Then if I take that 10K and place it into the purchase, that equates to $142pp !! …. But do you have to pay taxes on points rented out?

 

[pianomanzano]

Yes, I plan on renting out the older points to sweeten the purchase price. Another member posted that I can rent the 500 points from 2021 for 10K at $20pp. Then if I take that 10K and place it into the purchase, that equates to $142pp !! …. But do you have to pay taxes on points rented out?

I'm not an accountant and I'm sure there's other threads on this topic that can give you an answer on taxes. I haven't gone through a broker to rent points out yet (only rented points out on my own once), but I believe brokers will give a 1099 when they pay you for renting out points.

I'll also add that people always say, just rent your points like it's an easy/low level of effort thing to do. Going through a broker you'll get paid less than doing it by yourself, you'll still have to make reservations on their behalf. Renting points on your own is another story. There's a lot of "teaching" renters about how DVC works, what availability is really like, renters who want to adjust/cancel their rentals, and then you gotta worry about not getting scammed by renters who might do a paypal charge back (payment processors by the way may monitor and flag your account if you have multiple transactions that amount to more than 10k+, even if your transfers are tagged as "friends and family"). With a ton of points like that I'd personally rather just look for a one-time transfer of points instead of booking a bunch of studio rentals.

 

[RamblinWreck]

Wow! May I ask how recent? We’re those contracts stripped?

I'm the $144 man!

And yes, it was pretty stripped. No 2022 points, and some 2023 points were borrowed and used.

I think you scored a pretty good deal. Maybe you could have gotten down into the $150's somewhere, but most sellers aren't coming down that low. So if it's the right contract for you, I'd say you did well!

 

[sndral]

Hello all,

I just put an offer on a VGF-1 500 pt. listing…
The contract had 1000 points for 2022, 500 points for 2023 and 500 points for 2024.
I offered $162. What are your thoughts on this price for this listing given the current market conditions?

Just curious - who’s paying MF’s, most sellers expect buyers to @ least pay for current use year points which can add $7 per point, when you buy direct your current use year dues are prorated & w/ VGF2 direct & use years before BPK opens in June MFs will be prorated from the date BPK opens.

 

[DisDad22]

I’m paying for 2022, not the 2021

 

[skippytx]

Not a bad price, and renting those 500 banked points out will be a nice net cost reduction for sure. The only thing about those big contracts is they are hard to move if you need to sell. Not impossible, but harder than a smaller contract for sure.

Personally I would just let David's or someone else handle renting the points out. I hate dealing with that stuff. David's is paying 17 a point on premium rentals right now.

 

[kmc33]

New for 2022, PayPal and Venmo are required to provide customers with a 1099-K form if they receive $600 or more in goods and services transactions during the 2022 tax year.

 

[Mexacajun]

I’m paying for 2022, not the 2021

Did they accept the offer?

 

[RamblinWreck]

New for 2022, PayPal and Venmo are required to provide customers with a 1099-K form if they receive $600 or more in goods and services transactions during the 2022 tax year.

This was already the case in Taxachusetts

It's pretty annoying.

 

[wnielsen1]

No, you don't have to pay taxes on points you rent out. You're not technically making a profit.

LOL