Why did you sell?

[heynowirv]

that sounds like my friend i mentioned above. they still have their okw contract. she said they paid something like $34 a point and so they paid cash for a 200 point contract. that is crazy! boardwalk is their 2nd favorite and that is where they have 2 of their contracts and the 4th at ssr, which they always seem to rent out to family. sounds like they and you prefer to be close to downtown disney.

What we love about OKW is the laid back feel of it. You can walk, or take a bus to DS, but I don't see us going anywhere near there soon.

 

[harmon54]

We are using more points than ever and plan to spend a month at WDW in retirement. I know the market, watch it intently and buy when I find a loaded contract we can rent, use and eventually flip when the market is right, rinse and repeat. Having a number of contracts gives me the flexibility to do this and not mess up our vacations. We just passed ROFR on #10 yesterday.

Wow I am envious but this sounds like a full time job! I can’t even keep one contract straight

 

[MICKIMINI]

Wow I am envious but this sounds like a full time job! I can’t even keep one contract straight

Not in the least! The buying/selling part is writing a few checks or cashing them. Renting is a few minutes/hour per rental total. The thing that takes the most time is finding a worthy contract which takes a daily review of all resales and a bit of luck making a deal.

I guess it is like buying a beach house, renting it for a few weeks, spending time enjoying it and then selling for a profit (but a much smaller version LOL)...what is not to love?

Reward: Vacations at WDW for us and son and DIL...a few years it will be snowbirds for the entire month of January!

 

[Cyberc1978]

Not in the least! The buying/selling part is writing a few checks or cashing them. Renting is a few minutes/hour per rental total. The thing that takes the most time is finding a worthy contract which takes a daily review of all resales and a bit of luck making a deal.

I guess it is like buying a beach house, renting it for a few weeks, spending time enjoying it and then selling for a profit (but a much smaller version LOL)...what is not to love?

Reward: Vacations at WDW for us and son and DIL...a few years it will be snowbirds for the entire month of January!

Is it really worth it, buying and selling so fast? I mean the broker takes a commision and thats around 8.5% of the selling price?

 

[MICKIMINI]

Is it really worth it, buying and selling so fast? I mean the broker takes a commision and thats around 8.5% of the selling price?

Yes. I don't want to reveal how much I have made in the past two year by signing a few checks, but it is substantial! We typically also use a substantial amount of the points as well, which is a benefit not included in the calculation. Don't forget, the points banked from a prior year are purchased without paying MF's. We buy contracts at resorts we like and stay at.

I think it is irrelevant how long we hold the contract. A member could own a contract for many years and choose to sell low after buying high. I buy low and sell high and can afford to hold all contracts in order to sell when the market is good. I'm a good stock picker too LOL!

 

[we"reofftoneverland]

yep and i am not going to. i appreciate the disboards and would like to stick around. they only allow some viewpoints and so i know when to keep my mouth closed. it is better to follow the rules and not make waves, even when you know you are standing on solid ground.

Absolutely true that they only allow some viewpoints

 

[Cyberc1978]

Yes. I don't want to reveal how much I have made in the past two year by signing a few checks, but it is substantial! We typically also use a substantial amount of the points as well, which is a benefit not included in the calculation. Don't forget, the points banked from a prior year are purchased without paying MF's. We buy contracts at resorts we like and stay at.

I think it is irrelevant how long we hold the contract. A member could own a contract for many years and choose to sell low after buying high. I buy low and sell high and can afford to hold all contracts in order to sell when the market is good. I'm a good stock picker too LOL!

I agree how long you hold it does not matter, but "normally" the shorter you hold a contract the less you make selling it. Of course if you get a real steal you can make some good money.

 

[loreli13]

Is ever worth it to buy HH or VB for a short term contract, or do people feel like they get stuck with a contract they can't sell?

 

[MICKIMINI]

Is ever worth it to buy HH or VB for a short term contract, or do people feel like they get stuck with a contract they can't sell?

I sold two VBR's last year for an excellent profit after all expenses. You really have to buy cheap and I did ($50's). I believe I sold for $89 PP which was about the top for the market at that time.

We actually like VBR and stay there. I would hesitate to buy if I didn't like the resort though people buy SSR all the time and many don't like it... I've spent 25 years studying the market so I'm confident in my purchases though like anything else in life, you are taking a chance with DVC.

 

[cmrdgrs]

Is ever worth it to buy HH or VB for a short term contract, or do people feel like they get stuck with a contract they can't sell?

I own at HHI and absolutely love the resort. Go there annually over the 4th of July. It also has good rental income in the summer months, so no I don't think you will feel "stuck" with a HHI contract.

Can't speak to VB. Never been there.

 

[we"reofftoneverland]

Is ever worth it to buy HH or VB for a short term contract, or do people feel like they get stuck with a contract they can't sell?

Just be aware that the MF are HIGH at VBR and HH. So compared to say SSR, you are paying more than $3 more per point per year. At 200 points, that is $600 more in MF per year. Over ten years, that is $6000. It’s a big difference.

 

[MICKIMINI]

Just be aware that the MF are HIGH at VBR and HH. So compared to say SSR, you are paying more than $3 more per point per year. At 200 points, that is $600 more in MF per year. Over ten years, that is $6000. It’s a big difference.

I think poster was thinking more short term. If you own for a few year s and then sell, it's not much in the big picture.

 

[loreli13]

Just be aware that the MF are HIGH at VBR and HH. So compared to say SSR, you are paying more than $3 more per point per year. At 200 points, that is $600 more in MF per year. Over ten years, that is $6000. It’s a big difference.

Yes, that's why it would be more of a short term plan and I'd want to make sure I could sell those contracts after a few years for at least what I bought them for per point. I've stayed at both locations and loved them, but you're right for long term it's just not worth it. A 450 point contract for 25k, even at $4300 a year in dues could make for some great stays.

 

[cmrdgrs]

Yes, that's why it would be more of a short term plan and I'd want to make sure I could sell those contracts after a few years for at least what I bought them for per point. I've stayed at both locations and loved them, but you're right for long term it's just not worth it. A 450 point contract for 25k, even at $4300 a year in dues could make for some great stays.

I think this is especially true if it comes with some banked points. I'm really torn about selling my HHI contract + it's a grandfathered contract, so I can use it at Riviera. But, my kids are headed off to college soon and I could really use that money for those expenses. Do they really need a college education?

 

[MICKIMINI]

I think this is especially true if it comes with some banked points. I'm really torn about selling my HHI contract + it's a grandfathered contract, so I can use it at Riviera. But, my kids are headed off to college soon and I could really use that money for those expenses. Do they really need a college education?

We sold a SSR during college years. Just think what you can rebuy those HHI points for in 8-10 years??

 

[cmrdgrs]

We sold a SSR during college years. Just think what you can rebuy those HHI points for in 8-10 years??

Yes, I do think it is time for me to part with this contract. It won't be a lot of money, but I also won't have to pay the dues anymore either. I had it up for sale twice, and pulled it down twice, because I changed my mind -- I really do love that resort and enjoy the heck out of it! But, life moves on and changes. I think I have to accept that. My plan was to not keep it, and I ended up loving the resort.

 

[RoseGold]

buy when I find a loaded contract we can rent, use and eventually flip when the market is right, rinse and repeat.

I think this is my plan long term as well. Though it’s scary to be holding this many points! I plan to use a lot more points now with a small child than later, and I hope to pass on a contract. So I guess I just have to rent them in the middle.

I’m also a good stock picker.

 

[prs_14]

Thank you! Rather than buy a condo in FL it is a better financial decision IMO to own multiple DVC's which we can use, rent, flip, buy more - until we either sell for financial reasons in old age or gift to our son and DIL. The flexibility is priceless and I don't have to clean and DH doesn't have to mow the lawn!

I am surprised prices didn't drop further this spring and grabbed two contracts at the tail end of the short "downturn". I don't plan to flip until after the "hard refurb" when I'm guessing there may be a spike in BRV prices in 2-3 years. We'll enjoy until then and I'll likely have a few more contracts in the flipping pipeline by then.
Typically, prices seem to decline closer to the end of the year when MF's are due. The weirdness this year makes prices unpredictable IMO. I always suggest educating yourself about DVC which means lots of reading on disboards and learning price trends and demand and knowing what you want. There are always deals to be had. Once you understand the market you can spot a deal pretty quickly. I'm watching closely to see what this fall will bring too! Good luck!

We sold a SSR during college years. Just think what you can rebuy those HHI points for in 8-10 years??

I love your views on this stuff! Quick question that I have always wanted to get a feel for. When you rent points to others, how much "breakage" is there in terms of points left over after renting out and what do you do with those? Do the various brokers / middlemen agree to use at least X% of the points you have available for rent?

 

[MICKIMINI]

I love your views on this stuff! Quick question that I have always wanted to get a feel for. When you rent points to others, how much "breakage" is there in terms of points left over after renting out and what do you do with those? Do the various brokers / middlemen agree to use at least X% of the points you have available for rent?

Oh thanks! I'm always open to answering questions and like to be of help. To answer your question, I plan our trips first and then rent the balance of points. I now have two UY's so I have to be thinking about both timelines.

Early in the year when it was looking like this pandemic was serious, I rented out the 2020 points I knew we wouldn't be using after cancelling two trips (May & Oct). I offered up x number of points to "empty" one contract and then offered up another x amount of points to lower out the point balance on another. I dipped into 2021 a bit (before borrowing went to 50%) on the first rental because that's how it worked out. I had to make a calculated decision and quickly. I have a rental in October and one in January. My rule is use, bank or rent, but don't give ANY back to DVC.

I did it all before everything shut down at WDW. I left enough points just in case things got better and my son and DIL decided to travel at the end of this year or early next. They now have a reservation for next June. I can cancel and bank in May if they change their mind. I still have 73 points left in that contract in case they want to move to another resort at 7 months and need more points. If that doesn't happen I plan to use them next October along with all 2021 points at OKW and all 2020 and 2021 points at BRV. I will borrow a bit if necessary into 2022.

The two BRV's I bought recently have full 2020 and 2021 points. One has 2019 banked points which I will rent when they hit my account. I don't want to dip into 2020 but will in order not to lose any points. We'll use all remaining points in October 2021.

If I can scoop up a deal on another contract (I tried this week already) with more points I will rent any 2019 immediately and perhaps 2020 if we won't need them for October 2021. Depending on what we have available we could easily burn up 650 points in October but we're flexible. I've got it "mapped" out and have until November to nail it down.

Soooo, your question was short and my answer long. I hope that makes sense!

 

[prs_14]

Oh thanks! I'm always open to answering questions and like to be of help. To answer your question, I plan our trips first and then rent the balance of points. I now have two UY's so I have to be thinking about both timelines.

Early in the year when it was looking like this pandemic was serious, I rented out the 2020 points I knew we wouldn't be using after cancelling two trips (May & Oct). I offered up x number of points to "empty" one contract and then offered up another x amount of points to lower out the point balance on another. I dipped into 2021 a bit (before borrowing went to 50%) on the first rental because that's how it worked out. I had to make a calculated decision and quickly. I have a rental in October and one in January. My rule is use, bank or rent, but don't give ANY back to DVC.

I did it all before everything shut down at WDW. I left enough points just in case things got better and my son and DIL decided to travel at the end of this year or early next. They now have a reservation for next June. I can cancel and bank in May if they change their mind. I still have 73 points left in that contract in case they want to move to another resort at 7 months and need more points. If that doesn't happen I plan to use them next October along with all 2021 points at OKW and all 2020 and 2021 points at BRV. I will borrow a bit if necessary into 2022.

The two BRV's I bought recently have full 2020 and 2021 points. One has 2019 banked points which I will rent when they hit my account. I don't want to dip into 2020 but will in order not to lose any points. We'll use all remaining points in October 2021.

If I can scoop up a deal on another contract (I tried this week already) with more points I will rent any 2019 immediately and perhaps 2020 if we won't need them for October 2021. Depending on what we have available we could easily burn up 650 points in October but we're flexible. I've got it "mapped" out and have until November to nail it down.

Soooo, your question was short and my answer long. I hope that makes sense!

All of that makes sense and is super helpful. Thanks!