Starport Seven-Five
DIS Veteran
- Joined
- Aug 16, 2019
You should look at what point renters went through in 2020…I like stability, honestly ….
There is nothing stable about this market, our economy, ….
So like I said No thank you!
You should look at what point renters went through in 2020…I like stability, honestly ….
There is nothing stable about this market, our economy, ….
So like I said No thank you!
I saw a bunch of points for $19 for rent the other day and thought of this thread. In a world with $19 points, renting is the smarter choice mathematically.
It has other downsides, for sure, but this is math.
How so?You should look at what point renters went through in 2020…
I would have to look through old threads to remember all the details. My memory is that people who rented through sites like David's were struggling to get refunds.How so?
I had a lot of points rented in 2020!
Every one of my renters got re-accommodated …
A Message to our guests and owners
We understand the severe impact that the COVID-19 virus is having.
Here is what we hope to accomplish over the next few days (maybe weeks).
If you are a guest, please wait for us to contact you. We will work with your owner to verify point status and then contact you with available options. This could be a rebooked reservation, points for a future reservation, or possibly a refund dependent on the owner’s current financial status. We may, in some circumstances, be able to re-rent points to allow for a refund situation. Each case will have its own set of variables. We promise to do everything we can to ease this unprecedented situation.
If you are an owner, please wait for us to contact you. We ask that you put your contract with the guest aside and work from your heart. Let your conscience be your guide. Depending on the status of your points, we will ask you to rebook the reservation, offer the points for a future reservation, offer a refund of the monies sent to you if you are financially able to, and let us re-rent your points. We do not intend to leave any owner "holding the bag."
Our commitment to you is as follows;
We will be in contact with each and every owner
&
We will be in contact with each and every guest
Due to this unprecedented situation, we are not equipped with the resources to do this in our usual timely fashion. It may take weeks to sift through all of the cancelled reservations. Yet, we remain committed to replying to each message we receive. We ask that you don’t send more than one email; every email sent takes resources away to sort through. Abusive language will not be tolerated.
Thank you for your support and your loyalty. We will keep you updated throughout this dynamic situation as events unfold.
Please do math for me on this. I’m about to add another contract and don’t see this, but would be curious how you got $19 renting to be smarter choice.
The one thing that has come to mind separately is renting can get u in at 11 months at other resorts.
Sounds like a good reason not to work with a broker…. Like I said, all my renters were taken care of !I would have to look through old threads to remember all the details. My memory is that people who rented through sites like David's were struggling to get refunds.
This was David's message on March 16th, 2020:
https://www.disboards.com/threads/davids-dvc-rental-reimbursement-or-rescheduling.3796922/
Very sad and very true.Owning makes sense if you have bought into Disney as a long term vacation destination. There is no way I have the confidence in Disney as a corporation or destination right now to invest in future travel and we've been spending our travel dollars at other places.
I really want POLY tower, HOWEVER, I would NOT buy any more DVC unless and until Management remembers that DVC is a long term relationship with their GUESTS. NOT A GET RICH QUICK SCEEM!!!Very sad and very true.
I wouldn't buy DVC right now for two reasons. One is the buy in cost, which would be nearly 3 times what I paid ( because of increased resale costs and stronger USD against the Euro and GBP).
The second is that I'm not so sure I want to go twice every 3 years like in the past. I've already switched to every other year and I might do longer pauses. I'm not selling yet, maybe it's just momentary and I'll get excited again. If I sell I'll lose all my perks as a long time resale buyers (blue card, unrestricted points) and no chance I'd pay direct prices to get those back. So I rent excess points and wait.
Just wanted to second this. I'm currently working on transferring one of my contracts into a living trust so that my former DH won't be the owner if I pass, since he wouldn't get a good value out of it.I was 5 minutes from purchasing resale in early 2020 and I am so glad I didn't. If I want to go to WDW and stay on property again (unlikely at this time) I can pay cash or rent points from one of you! However, now I don't have a costly timeshare to manage in a place that I do not care to visit in the foreseeable future.
My coworker, who I gave the Disney bug to, owns and has been very successful in managing his points and having fantastic vacations. Owning has absolutely worked for him.
It comes down to more than a math problem and everyone has to do their own calculations.
Very sad and very true.
I wouldn't buy DVC right now for two reasons. One is the buy in cost, which would be nearly 3 times what I paid ( because of increased resale costs and stronger USD against the Euro and GBP).
The second is that I'm not so sure I want to go twice every 3 years like in the past. I've already switched to every other year and I might do longer pauses. I'm not selling yet, maybe it's just momentary and I'll get excited again. If I sell I'll lose all my perks as a long time resale buyers (blue card, unrestricted points) and no chance I'd pay direct prices to get those back. So I rent excess points and wait.
https://www.dvcresalemarket.com/blog/best-economical-dvc-resorts-to-purchase-spring-2022/
This is why. This math has some limitations, like linear depreciation. But assuming it's in the ballpark, why would you buy $14, $15, $17 points and lock up five figures and take on the risks of owning when you can just rent for $19?
Add in the cost of financing, and renting is a total no-brainer to me.
And yes, renting can have some upside, like skip a year, change resorts, do it big this year. Renting does also have risk and downside, as does ownership.
I think this really depends on what you pay for the resale of a 2042 resort. There are deals to be had that keep the annualized cost far enough below rental rates to make owning them worthwhile.I do think you are largely correct, with a few slight caveats;
Under the assumption that one holds the contract towards complete expiration and there is therefore no value left on it. Most applicable to 19 year contracts (if one is buying now the price per point certainly has to start decreasing at some point), less applicable to mid 40's year residual contracts, that almost certainly can be sold for a similar resale price (historically up to significantly more) in 19 years.
You are also not accounting for rental prices scaling upwards that have thus far strongly outpaced maintenance fees. Per point rental prices are up several dollars over the last few years alone. That's probably a lot to depend on short term, but again I'm confident a rental price per point in 20 years will be significantly higher than today.
The line in the sand you point out is exactly what I agree with though. The math rapidly falls apart when one considers a purchase for anything below a OKW Extended on that DVC Resale Market list. Coincidentally that lines up well with 2042 resorts are a niche resale purchase decision these days that requires a lot more of an emotional purchase than a truly sensible one. The one oddity being Grand Cal, I think people also slightly lost their mind with, considering resale prices went from 150 to 300 on that resort from 2019-2021.
Sounds like a good reason not to work with a broker…. Like I said, all my renters were taken care of !
You are completely correct!Which is one of the reasons owning is also a huge risk. That was a nightmare for both renters and owners - not everyone - on either side - ended up whole. When owners say "I can just rent my points" they need to understand that if something like that happens, they will have to decide if they make renters whole, and take the risk of losing points themselves, or not. Losing points as an owner is one of the ways that can really impact any sort of "saving money" analysis - I have yet to see a model for "and 5% of the time we loose points because we rent out and they cancel without paying the second half, or we book a Grand Villa to bring family and they back out or Dad had a heart attack and we couldn't go." Its one of the arguments for booking through CRO and paying cash and not bothering with DVC at all.
You are completely correct!
The next time there is a once in a hundred years event, someone might not come out whole.
Look at all the old people in New York that came thought COVID DEAD!
DVC take some work to manage on the owners part. Renting also requires you to stand your ground and know your worth.
when renting DVC you have to get paid at time of booking. If your are doing half now half later, well you have invited the risk.
You are selling a perishable item.
I will tempt fate by saying In 16 years I have never lost a point.
Like I said all may renters where taken care of during COVID….. yes it took some work on my part.
No I did not lose money.
Maybe you are to busy to manage your assets effectively?
Ownership strikes me as best deal by far even with what many people are describing as very high priced to buy in.