Why buy if you can rent points?

[Desnik]

Please don't flame me!! I'm not trying to start any controversy. I just thought I'd throw this question out there because my DH did to me!

We have been contemplating the DVC for 4 years now!! We go to DW every year. DH does not fly so we only go where we can drive to This past Nov. we rented points and for under $500 we stood at a PV studio at BWV for 5 nights.(we got the points for $9.50 each) Now I know that price was a fluk and the going rate is $10 each and probably will go up. I guess DH has a problem with the monthly dues and the inital big investment. He hates the idea of another payment.

So, for someone like us what would be the benefit to buying vs. just renting every year? Are we missing something?

 

[kem330]

Because if you prorate the buy in, plus dues, your cost is approximately $6 a point (assuming you pay cash and don't finance) Right there you are saving $4 a point. As dues go up, I would anticipate rental costs to go up as well so I would think that would be a constant ratio. You have complete control of your reservation- make it when you want, cancel, etc. without restrictions imposed by rentee.

 

[Ducky4Disney]

I'm a simple perspn so I only have simple answers.

For me it would seem worth it to buy becasue instead of shelling out a large amount of money at once for a vacation you pay monthly (which helps). And of course, if you rent for 10 years - you could have paid off you're financing and then you get 40 years of vacationing for dues (assuming you buy SSR with the 50 year contract). Plus you get discounts on other things, like tours and restaraunts, you can trade your points with Interval International and go anywhere in the world (just about). You can also rent your points to other people and use the cash for anything else.

It's pretty versatile, really.

D4D

 

[Richyams]

Why rent when you can buy?

 

[Desnik]

Because I don't have to pay monthly dues. I still get the other perks when I'm there like free vallet and discounts on restaurants. No big investment. I only visit DW for vacations. I do plan on trying HH and do like VB, so we would go there again. DH will not go on a plane so the other perks of trading out and going to places around the world doesn't work for us. Also it's pretty cheap and alot better than a standard hotel at rack rate.

 

[JeffPort]

Well, under your scenario, you would need a DVC resale contract of only 50 points to get your 5 day midweek vacation in a studio unit.

Keeping it simple, assuming a sale at about $70 per point, that will cost you about $3500 (plus a few hundred in closing costs). With those points in hand, you will then only face a $200 per year maintenence cost (about $4 per point) for your vacation stay. That's a difference of $300. (Dues will rise over time, but so will the point rental costs.) After 12 stays, you have made up the difference. In addition, you will have the luxury of booking your own stay without the hassles or risks of renting, plus you'll have the flexibility to alter your plans at your leisure. After 12 years, your lodging cost is next to nothing.

The tradeoff is that you are committing your family to a Disney visit every year or two for the foreseeable future. If you don't believe you or your family will tire of your visits (including the beach resort options), then this isn't much of an issue for you.

From my perspective, the real benefits of DVC kick in by splurging and getting enough points for a true multi-room condominium arrangement with a full kitchen. Unlike a standard hotel room, the added space will be a real comfort and the ability to fix some meals in your room will offset some of the added room costs.

 

[Happy Birthday Cat]

In the long run it saves money to buy points. Some people like to rent and until you are comfortable with buying, continue to rent as long as you can do it. Another DVC owner will benefit from you doing that and you will add to the demand for points.

HBC

 

[Dean]

This is a valid question and for many, the answer is that it's better to rent than buy. For others, buying is much better. The advantage of buying is that you have price controls, banking, borrowing and direct control over your reservatiions. Nothing can happen that you don't have control over unless DVC does something themselves. If you rent, you have risks and much less control. OTOH, you have far more flexibility if you rent for the occasional stay. For those that want to go some times but not others and will not consistently use the points, renting may be better. Still others might be better off looking for discounts and paying cash.

 

[donald@home]

I have been a member since 1996. I have been vacationing MANY times a year at WDW, VB, HH and DCL. I could sell my points today and actually MAKE money from the sale, which means I would have had all of those wonderful years of vacations and memories for free. I couldn't do this if I was renting points.

 

[Nick@ VB+OKW]

Originally posted by donald@home
I could sell my points today and actually MAKE money from the sale, which means I would have had all of those wonderful years of vacations and memories for free. I couldn't do this if I was renting points.

...................

Originally posted by Desnik
Please don't flame me!!

 

[Deb & Bill]

And if Disney ever decides to not give renters the DVC perks (which according to the literature renters are not supposed to get), you wouldn't have those. Disney could crack down on renting altogether. Ya never know.

 

[Mary Ellen]

1) I'm another one who can sell and make money on the deal - my vacations will have cost less than my annual dues.

2) Not that many years ago (5?) points were renting for about $5. The cost of renting points has (at least) gone up 100%. I'm guesstimating my annual dues have gone up less than 10% in that time.

3) I have full control over our vacations. I don't need to find someone to rent from before 11 mo. - as we like early Dec in a Std view BWV. I also don't have to worry about someone making my ressies for me.

4) We LOVE knowing that we have many, many DVC vacations in our future.

 

[Dean]

Originally posted by Deb & Bill
And if Disney ever decides to not give renters the DVC perks (which according to the literature renters are not supposed to get), you wouldn't have those. Disney could crack down on renting altogether. Ya never know.

They could withold the "member" perks but couldn't stop renting altogether as long as they are renting them.

 

[crisi]

Renting (on a per point basis) will be a little more expensive. Most of us figure our cost per point at about $6...so you are paying an extra $4 per point to rent. However, if you aren't going to use 150 points a year, you will save money renting over buying (of course, you could buy 150 points and become the landlord. If you used 50 points a year and rented 100, for a $4 per point profit, you'd end up paying for your own points. You could also try to find a smaller contract resale).

Renting does carry some minor risk. The owner can take your money and cancel the reservation, leaving you showing up in Disney with no room and no recourse with Disney. You'll have to try and get your money back out of the owner - never easy, especially when you are talking about an owner in a different state. It doesn't seem to happen often, but it is a risk in renting.

Relying on renting (either as a renter or a landlord) will always depend on some balance in the supply and demand. It seems to be there now, with most people not having problems finding or renting points (unless they are trying to get rid of points at the last minute, or they are trying to find points at a discount). But there is no guarentee for either party that the supply/demand balance for points will hold. If the demand exceeds supply, we can expect that people will start offering more for points to get them. If the supply exceeds demand, you should be able to get some real bargains on rentals.