Rent or sell

[Chuck wright]

Has anyone done an analysis of rent your points out vs selling them outright

 

[Chuck S]

Moved here from the Rent/Transfer Board, as the rental board is limited to specific Rental/Transfer transactions, and is not a general discussion board.



To try to address your question...

It will vary greatly upon each owners financial situation, what they paid for their points intitially, and whether they continue to travel to Disney on a semi-regular basis. Also remember that DVC Point contracts can not be split. For instance, say you have 500 points, you can not sell 200 points and keep 300 points.

First off, I have no intention of selling. And I did rent about 100 points out last year, which was the first time I ever had the extra points I wasn't using. Personally, I paid an average of $53.50 for my 345 points 32 years ago. I've more than gotten my moneys worth at that buy in price. I have 4 contracts, 230 points, two 40 point contracts, and a 35 point contract. That number of points gives me the flexability I desire to travel solo or take friends on large group trips every few years. I could sell them for a decent profit, or I could rent 1/2 of them and pay all the annual dues on the contract, and still continue to travel to WDW using my room. I'm single, But if I sell, there is no way I could continue to afford going to Disney twice a year, or take a large group of friends. I've taken two large group trips, one of 16 people and one of 11 people. Sometimes I travel solo, but usually a take a friend or two with me. I still very much enjoy Disney, and I purchase the Sorcerer Level annual pass. If I need to cut travel expenses on a trip, I simply eat meals in the room, and only buy a couple snacks in the parks, Given the cost of motels along the way, it is cheaper for me to fly to Disney on solo trips, than to drive. I drove straight thru once, years ago, just napping in a rest area, but I'm getting too old to do that now. If I take a group, we will still often drive, as it does cut costs.

If you have several small contracts, you can always sell off the smaller contracts, and still keep enough in a larger contract for your own Disney travel needs.

There is a lot of factors in deciding to Rent or Sell. My personal advice, while you're trying to decide, would be to rent, and see if that works out for your needs. If not, you can always sell, after your renters have completed their trips, of course, so they aren't cancelled.

Good luck with your decision.

Please do not give specifics of your contracts on the DISBoards, for if you do decide to sell, it could be interpreted as soliciting a sale, and we do not allow that on the boards.

 

[Noodlez]

I own at (removed the details of resort) I have started renting my points via social media which easily gets me $23 per point at the current rate, giving me over $14 per point per year after annual dues. If I put them with a broker I would only get $18 per point, but that's still over $9 per year after dues. Even going by the lowest amount I would want over $150 per point if I was to sell. Using the amount I can actually rent them for I would want over $230! They're not going for anywhere near that amount though

This is why I have no intention of selling my points, but also why some people are still buying 2042 contracts.

The analysis depends on personal situations, though. I'm not renting out all of my points because I still enjoy using them and can afford to do so. It would be very different if I actually had financial difficulties at the moment. Selling my points would give me a decent amount of money that could pay off debts or give me some security. It also depends on where you own! I never knew when I purchased that my points would be in high demand, but this could change in an instant.

 

[Sandisw]

I own at (removed the details of resort) I have started renting my points via social media which easily gets me $23 per point at the current rate, giving me over $14 per point per year after annual dues. If I put them with a broker I would only get $18 per point, but that's still over $9 per year after dues. Even going by the lowest amount I would want over $150 per point if I was to sell. Using the amount I can actually rent them for I would want over $230! They're not going for anywhere near that amount though

This is why I have no intention of selling my points, but also why some people are still buying 2042 contracts.

The analysis depends on personal situations, though. I'm not renting out all of my points because I still enjoy using them and can afford to do so. It would be very different if I actually had financial difficulties at the moment. Selling my points would give me a decent amount of money that could pay off debts or give me some security. It also depends on where you own! I never knew when I purchased that my points would be in high demand, but this could change in an instant.

Details of the resort you rent were removed, just to be sure it wasn't seen as an offer....which I know you were not.

 

[crisi]

I did one recently. Not surprisingly, my Boardwalk Villa points are worth about the same if I rent or sell them. I figured this by taking the anticipated profit per year on my BWV points under rental and running some TVM calculations on them vs. their value on the resale market minus broker fees. Its a little better to sell them if I rent through a broker, a little better to hang onto them if I rent them myself, quite a bit better to hang onto them if I were to list spec rentals somewhere other than here and were able to consistently book BWV standard view studios.

 

[Nappy1380]

Has anyone done an analysis of rent your points out vs selling them outright

You can do some quick and dirty math.

1) (Price per point - dues per point = net profit per point renting) x total points = X
2) (Price per point - commission (9-10%) = net profit per point selling) x total points = Y
3) IF - Years left on contract multiplied by X is greater than Y, then you would have higher capital return if you rented throughout the remaining life of the contract.

Ancillary benefits by renting vs selling are that you can decide to use points at any time vs buy back in or rent. You also can sell at any point should you not want to play the long game or risk have points that don't get rented out.

If you need cash now however...call JG Wentworth

 

[MinnieFan4ever]

Thanks a lot Nappy1380. Now I have that jingle running in my head!

 

[Mazz519]

We own 650pts we use 350 to 400 pts a year whatever we dont use we Rent out and it Covers most if not all the maintenance fees every year.... Thought about selling half our points a few years ago but realized renting would be better

 

[Genie+]

The nuts thing is getting $38pp rental with Boardwalk points. The broker I used padded another $8pp on top. It STILL sold. To be clear it was a season 2 reservation 9pts/nt studio on a night with EEH, and sat until less than 2 months out. Our backup plan was taking $5pp off and I’m fairly certain would’ve went quickly that way. This is the reason why BW standard studios and AKV value studios make up a large portion of confirmed reservations though. Either one can easily get $30pp on the right dates.

Being very competitive categories even for owners, and taxes, make these hard to scale up. And there is risk the DVC hammer comes to down to put the kibosh on these activities. I think just a matter of when. Could be within 5 yrs, might be after 10yrs. If/when that happens resale prices will react. I’d rather be in front of that.

 

[LAX]

The nuts thing is getting $38pp rental with Boardwalk points. The broker I used padded another $8pp on top. It STILL sold. To be clear it was a season 2 reservation 9pts/nt studio on a night with EEH, and sat until less than 2 months out. Our backup plan was taking $5pp off and I’m fairly certain would’ve went quickly that way. This is the reason why BW standard studios and AKV value studios make up a large portion of confirmed reservations though. Either one can easily get $30pp on the right dates.

Being very competitive categories even for owners, and taxes, make these hard to scale up. And there is risk the DVC hammer comes to down to put the kibosh on these activities. I think just a matter of when. Could be within 5 yrs, might be after 10yrs. If/when that happens resale prices will react. I’d rather be in front of that.

Wow, over $30 per point? That's impressive.

LAX