Chuck wright
Earning My Ears
- Joined
- Mar 24, 2020
Has anyone done an analysis of rent your points out vs selling them outright
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.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.
You can do some quick and dirty math.Has anyone done an analysis of rent your points out vs selling them outright
Wow, over $30 per point? That's impressive.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.