Need Advice - "Renting Points"

[DLeBlanc]

Hello,
This is my second post. I really appreciate everyone's willingness to share their experiences.

I do have a question regarding a Disney time share:

After speaking with my Wife, we may only visit Disney every other year. If we "rent" our points every other year, it seems that we could easily pay for our intial investment within 8-10 years and enjoy the balance of the time share, 40-42 years, with only paying our annual maintenence fee. This seems too good to be true. Does anyine have experience in doing this?

Thanks in advance for your valuable input.

Dean :wave:

 

[HauntedPirate]

Well, you probably can't pay your annual/monthly payment on the initial investment by renting out your points every other year, but it may be possible. Points typically rent out between $10-12 per point. When we bought in in 2005, interest rates thru Disney were a bit under 10% over 10 years. It's probably worth a few minutes to do some calculations and see if it would work for you.

 

[LBurg93]

A minimum buy in to DVC is 160 points. I believe AKV are currently $104 per point, so thats $16,640.00 plus the monthly maintance fee, this is for 50 years. You can try to buy a resale. Good Luck with your decision.

Points to rent are usually $10-$12, AKV points can be $14.

 

[scorp111]

Here is an example:

If you bought 250 points at AKLV

250 points: $26,000. You'll pay $2600 down, plus closing costs of roughly $320. =That means you're financing $23,400. On a five year payoff, that's $505.86 monthly (plus dues). On a ten year payoff, it's $319.03 monthly (plus dues).

So on the 10 year payoff, you are paying over $3800 per year.

If you rent the 250 points, even at $13 per point, that is $3250.

You mentioned renting every other year, so that means during the period you would be paying $7600, and bringing in only $3250.


All of this is aside from the approximately $100 per month, (1200 annually) in maintainance fees (dues).

 

[LBurg93]

Hi Dean

Let's say you like to stay AKV's once a year in a 1 bedroom savannah view. (an advantage is Washer & Dryer in room, none in studio) During Priemer season it is 349 points. You could buy 180 points @ $104, $18,720. Every other year you bank your points, so you can have 360 points available. Not sure of closing costs, but I believe the rate is 2.299% which would be $431.00. Put down 10%, $1,915, Finance $17,236. Dues are $4.62 per point, $831.60 per year or $69.30 per month.

You own the points till 2057, and pay maintance each year.

FYI, at the end of every year you can print a tax statement off the member web site for your yearly taxes and you do not have to finance through DVC (rate too high). You can put it on a line of credit.

I would do the math, and see if it works out for you. Good Luck

 

[DLeBlanc]

Renting Points

Hi,
We are still "on the fence" with purchasing a DVC package. If we do buy in, we would purchase 206 points at AKV. Although we can pay cash for the points, we are still trying to justify the entire package price (initial investment and annual fees). Any suggestions and/or considerations you may have would be very much appreciated.

Thanks,
Dean :shrug:

 

[mprewitt]

Although we can pay cash for the points, we are still trying to justify the entire package price (initial investment and annual fees). Any suggestions and/or considerations you may have would be very much appreciated.

Figure out how much you'll spend for your stays at WDW hotels over the next 10 years, versus the buy-in plus maintenance for DVC. Depending on whether you usually stay at a deluxe resort or a moderate resort, the point-in-time when DVC is better financially than not buying DVC will vary. For some folks, it's as soon as 3-4 years, while others it may be 7-8 years.

If you're planning on coming to WDW at least every other year for the next several years, and you typically stay at deluxe or moderate resorts, then DVC will typicall make sense from a financial standpoint.

If you typically stay at value resorts, or you don't think you will consistently be coming to WDW over the next several years, then DVC may not be for you.

 

[slappy magoo]

Also, not the biggest deal, but if you're planning on going to WDW every other year, then yes you could rent your points. But unless you're in a situation where that extra money from renting your points would come in handy, you could also bank points every other year, and prolong the visits you do make, or really stay in style in a bigger unit, if you're tight with friends and family you can invite them along in a 2 BR unit, etc. Let yourself have some luxury once in a while.