Easy. Here is the what I would recommend. It's not what I would do because I am not willing to pay $3700 for what I can get for $330:
1) It takes 312 points to stay at Beach Club Villas for Nov 22-29, 2008 in a 2br unit. Let's assume you own 312 points at Beach Club Villas.
2) Sell the 312 points. I just checked the Timeshare Store. You can probably sell them yourself for about $90 per point. That would net you $312 * 90 = $28,000. Let's assume no capital gain.
3) You will also be saving on maintenance fees. That savings would be 312 * $4.80/point = $1500 per year.
4) You normally pay $450 per ticket. So, your normal airline ticket budget is $450 * 4 = $1800
5) With your $28000 in capital, I would invest in several timeshares that can achieve reliably a 25% return on invested capital in rentals. Not a really high bar, but you need to know what you are doing. Your return: $28000 * .25 = $7000. Subtract out 25% for taxes. You then net, $7000 * .75 = $5250.
Now, for an apples to apples trip, you will now have $5250 + $1500 + $1800 = $8550 budget.
6) Now, rent 312 points from a DVC owner at Beach Club Villas for $12 per point. That will cost: 312 * $12/point = $3744
7) Pay for your airline tickets: $900 * 4 = $3600.
Total cost for the same accommodations and airline = $3744 + $3600 = $7344. That leaves you with a balance of $8550 - 7344 = $1206.
8) Take the $1206 and pay for your Disney passes.
This plan works perfectly if you can sell your DVC points for $90 per point and you learn how to purchase timeshares that return 25% or more.
Why own DVC when you can do so much better by owning other timeshares that are much better investments?
Hi BocaBum,
Interesting ideas. We own 170 pts, and I don't know if someone would buy them from me privately at $90/pt. That would be nice. Folks pay the TTS and the TTS takes its 10% commission, so that makes the seller's actual net price $81/pt. I'd have to look into how hard it is to get it sold myself and how to get the paperwork all done. We currently have the reservation for Thanksgiving, so that would be cancelled out if I sold, and the 63 points that I borrowed from 09 would have to be used in 08, and I suppose I could bank my returned 08 pts (170) into 09. And I'd have 4 banked pts from 07 that would need to be dealt with.
If I did sell, I'm not sure what I would replace it with. Maybe we'd net $15,000, with no capital gains. Assuming your numbers and rental expertise, I could in theory make 25% or $3,750, and net $2,812.50 after taxes. Using your numbers, I'd be saving $1137.60 in MFs (237 x $4.80). So I'd have
$2812.50 rental income from timeshare investment
$1137.60 MFs
$1800.00 ($450 x 4)
-------------------
$5750.10
I would have to pay more than $12/pt for a 2 bedroom at BCV at Thanksgiving, so pretending that such a reservation could be found, let's figure $15/pt, or $3555.00 in rental costs. That leaves us $2195.10 for airfare. Luckily, we already have non-expiry park hoppers for our trip, so we don't need to dish out money for tickets this year.
Anyhow, it could work or not. It's a lot of work to sell and buy since I'm not in the business of doing that, and I still end up with about the same budget for airfare (a budget that is too low, it seems

) Do I come out ahead, the same, or worse off?
So is it still worth it, you think? I don't think I would be able to pull it off for 2008 reservations, though, because I'd have to find the rental NOW and buy the airfare now, and I wouldn't really have the cash for the $3555.00 rental right now.
It might be an option for 2009, though. No airfare to WDW in 09, so it would be a straight sell and invest thing.