What's a point worth to trade

[Bill & Deb]

Hello All

We're new members to this Web Site but DVC members for years. Without a doubt it was the best thing we ever bought, the good problem we have now is we keep buying more points. We're buying now because we love the BWV & BCV location and for our retirement. This has presented us with an abundance of points for now. We would have no trouble traveling but would like to rent out some from time to time. However we need help priceing our points to rent. We bought our first at BVC for about $58. and we just bought BCV for $80, and the price is to rise to $84 this Dec.
If you can help us with ideas and values we would like this very much. We have read may of the post on this Web Site and are very happy we found you all.

Thanks All and hope to meet you BACK HOME Bill & Deb:

 

[Gary K. D.]

You have to figure that a point is worth $2.00 over the 40 years that are left in the contract (2042) if purchased at the current price of $80.00 per point. Maintainence now runs between $3.17 and $4.25 per point depending on the Resort...figure $4.00 for BWV or BCV. Financing the package at current rates will run $3.50 per point per year over the next 5 years if the contract is financed over that period of time. I usually figure that the bare cost is $9.50 minimum. You cetainly have to figure a $ or $$ for the risk of ownership that the renter does not bare. I still don't understand rentals at $6.00. They are truly fire sales to salvage something as a result of poor planning or unforseen circumstance. It appears that the tail is wagging the dog in the current rental market where the renters are dictating the prices and the owners are too afraid to ask what the points are worth. Even at $11.,00, $12.00 or $13.00 renters are getting a bargain no matter what Disney has on the boards for their promotional programs.

 

[Deb & Bill]

Boy, you freaked me out!!!! I'm Deb & Bill. I didn't remember putting in a message like this. Then I read it again.

 

[cigar95]

Gary, although the true cost (or value) of a point may be in the $12 range, the real worth is what the market supports. Since I already know you're a smart guy, this isn't news to you.

Somehow it has crept into the cosmos that the going rate for points is $9-$10, so that's what renters are willing to pay. Unless the owners get brave and try raising the price, we'll never find out if renters are willing to pay higher rates. My guess is that they are. (In other words, renters are getting an even bigger bargain than they might realize.)

But as long as some owners offer their points in the $10 range, it will be hard for others to find renters at $12. My guess is that the going rate will drift up with inflation, as renters will typically compare the cost to rent to the cost of cash reservations at WDW resorts. (This may cause your underlying $2/point/year to be a little overstated, but the difference wouldn't be more than a dollar.)

And, as you pointed out, there will always be the occasional fire sale.