should I sell my DVC--will I regret it?

[elaine]

this is the 1st year that I'm going to have extra points after 10+ years of DVC trips. my points have gone up in value, so I'd make a profit, but also know that I'd have to pay even more if I ever wanted to repurchase points. I have a small contract that I'd keep for WDW benefits and studio stays. I don't want to always have to rent out points--seems like a hassle and I'm somewhat nervous about renting to strangers.
We also have a ton of RCI points, which we could use to stay at Bonnet Creek, for future trips when I need a bigger space. Youngest kids are in college in the fall 2019, so I expect WDW trips to be EOY at the most. WWYD?

 

[WinniWoman]

Hi, Elaine. I think this is a personal decision. I know it's tough because I go back and forth trying to decide whether to turn back our Smuggs ownership. Because I was so unsure that told me to still keep it for awhile longer so that is where I am at.

If you think you could still have the same vacations without it, I would do it unless you want to pass it on to your kids at some point.

Of course, I know nothing about points or Disney ownerships. Good luck with your decision!

 

[TheHolleys87]

Obviously you're the only person who can answer your question, because it boils down to what's best for you, taking into account finances, travel plans, family situation, etc. We've owned DVC for 20+ years and continue to enjoy it as retired empty nesters, but then again we haven't had any extra points (especially after borrowing almost a year's points for a GV in early 2014 so we could take the whole family -- we've only borrowed half of next year's points for this month's visit by the two of us).

Renting out points is easy, especially if you use a middleman agency (you don't earn as many $, but they deal with the strangers and all you have to do is make the reservations and room requests and book Magical Express and the dining package), but if you're not comfortable with that then I'd say sell now, while the market for DVC resales is still good.

 

[PcflEZFlng]

We bought our DVC contract 15 years ago when we thought we would visit WDW about once every 3 years. It didn't turn out that way because we usually ended up using the points for other purposes (such as cruises and exchanges) which in retrospect were a poor value for the points. We would have been much better off renting out the points and using the cash to pay for the vacations we took. I finally rented out our points for the first time last year, using a broker. It was easy, painless, and profitable, and I wish I'd been doing it before.

Having DVC is best - in fact, it's a great deal - IF you plan to use it to stay at the property for which you bought it. It seems you've been doing that, and have gotten great value out of your contract. But if you'll no longer be doing that, then you'll probably be better off selling it. If you're not sure, you can always rent out the points and still be okay. Because we're not using it as originally intended and likely won't be, I'm considering selling ours this year as well, with renting as a fallback option. There is huge demand from people looking to rent from owners.

 

[rickandcindy23]

Maybe you should use David's Rentals. You make a little money on the points, not as much as you would make yourself, but it's good profit. You still have to add Magical Express, guest names, etc. for luggage tags and magic bands. It's somewhat of a hassle, but it's worthy of your time to make real money.

When Rick and I bought, we decided we would use most of our points ourselves. Then we started getting DVC exchanges through RCI, and the RCI availability was enough to get us sick of staying on site, so now we only use our points for a night here or there (mostly to get 60 days out for FP+).

 

[PcflEZFlng]

I used the DVC Rental Store and had a good experience with them. They and David's are the top two brokers.

 

[ljmiii]

As others have said only you can know the right answer. That said...

1) Renting DVC points out through David's or the DVC Rental Store is easy peasy (I used the DVC Rental Store the one time I had excess points). Once they arrange a renter you just do what you would normally do - reserve the villa, Magical Express, and Magic Bands - and cash flows your way. Assuming you use TurboTax or its ilk reporting to the IRS is simple as well.

2) You didn't mention which resort is your DVC 'home'. The contracts that expire in 2042 will start to decline in value sometime in the next 10-ish years. Needless to say there is considerable debate as to when that will happen as the crossover point is affected by many variables - the rising prices of 'new' DVC contracts, cash stays at DVC resorts, and DVC rental points, the expected value of the contract at expiration (a debate in it's own right), as well as non-Disney related variables such as the economy and the likelyhood of any event that would reduce tourism.

 

[bnoble]

this is the 1st year that I'm going to have extra points after 10+ years of DVC trips. ... I don't want to always have to rent out points

I don't know that I'd pull the trigger on selling unless/until I started to have points left over routinely.

And, one way to avoid having leftover points: We've been in a position of taking fewer trips over the past few years, and I've started using my various timeshare assets to take fewer but more "expensive" vacations. For example, one year I managed to get a 3BR Penthouse unit at Hilton's Lagoon Tower on Oahu. It took the better part of a combination of two different deposited weeks. But, because I had "extra" deposits that I didn't have another use for, why not? You could do something similar within DVC, by splurging on a large unit, a special view, etc.

 

[PcflEZFlng]

As others have said only you can know the right answer. That said...

1) Renting DVC points out through David's or the DVC Rental Store is easy peasy (I used the DVC Rental Store the one time I had excess points). Once they arrange a renter you just do what you would normally do - reserve the villa, Magical Express, and Magic Bands - and cash flows your way. Assuming you use TurboTax or its ilk reporting to the IRS is simple as well.

2) You didn't mention which resort is your DVC 'home'. The contracts that expire in 2042 will start to decline in value sometime in the next 10-ish years. Needless to say there is considerable debate as to when that will happen as the crossover point is affected by many variables - the rising prices of 'new' DVC contracts, cash stays at DVC resorts, and DVC rental points, the expected value of the contract at expiration (a debate in it's own right), as well as non-Disney related variables such as the economy and the likelyhood of any event that would reduce tourism.

Great post, especially in regard to number 2 by addressing the RTU expiration.

Also, as bnoble mentioned, OP you could splurge by combining options. If you were to do so, in DVC you get the most bang for your buck by combining points via banking and/or borrowing and staying within the DVC system. You probably already know, of course, that if you choose a different resort than your contracted one, you would need to wait until the 7-month window to book it. But that option might not work for you if you still have kids in school and have to limit your travel to high-demand seasons when hardly anything Disney is available 7 months out. In your case, if you keep the contract and choose not to rent out, you might be better off just extending your EOY stay at your home resort to consume the points and enjoy a longer vacation.

 

[Dean]

this is the 1st year that I'm going to have extra points after 10+ years of DVC trips. my points have gone up in value, so I'd make a profit, but also know that I'd have to pay even more if I ever wanted to repurchase points. I have a small contract that I'd keep for WDW benefits and studio stays. I don't want to always have to rent out points--seems like a hassle and I'm somewhat nervous about renting to strangers.
We also have a ton of RCI points, which we could use to stay at Bonnet Creek, for future trips when I need a bigger space. Youngest kids are in college in the fall 2019, so I expect WDW trips to be EOY at the most. WWYD?

I agree with the group, I'd tend to hold it and see. Why don't you rent for a couple of years then you can decide. Use one of the brokers, makes it an arms length transaction. In part it depends on your specific situation and the home resort. If it's just extra points but you'll use it routinely I absolutely would not sell. If you won't use it all it's a good time to sell and recoup some cost. It's unlikely to go down in 1-2 years unless there are major issues but in 5-10 years I think there is a risk there of losing compared to now.

 

[chriskre]

I have been having health issues lately so have had to rent out my points.
I did a few rentals to friends for a night here and there but finally decided to
try out the points rental service and OMG it's sooooo easy.
At least it was at the DVC rental store. I did not have to
make any reservations or deal with the buyer at all.
I was shocked at the great reservations they were able to get with my SSR points.
Mostly Poly & Grand Floridian rooms. I can't even do that. LOL

I did give them access to my account so they did everything and deposited
the money into my bank account. You get like 50% upon the rental and then
the rest I think 45 days before check in. Don't remember exactly but I got
it easily without having to remind them. I'd do it again. So much easier
than trying to do it yourself and dealing with chargebacks and all that comes
with renting.

I could sell for a profit too but decided that since I'm only 54 and I
live so close to Orlando that I'm sure my Disney days are not yet over. I don't
go to the parks as much as in the past but I love being on property and just
enjoying the resorts and restaurants. I also enjoy the Vero beach resort
so will probably be using my points there more often. If you haven't been
there you might want to check it out. It's a beautiful place and it's cheap
points wise so good bang for your buck.

I think you will know when it's time to divest. Seems you aren't positive just yet
so I'd wait until you are done with Disney. I love Bonnet Creek but as you get older
if you ever need a scooter, let me tell you that it's a big pain in the behind to use
their transport to visit Disney disabled. That was enough to convince me to keep
my points and just stay at BC when I am only doing a one day Disney visit and just
want to hang out in Orlando, which we do often.

 

[sfwilshire]

Those grown kids may not travel with you for a few years, but then they will start again with spouses and grandkids. We are at that phase now. 10 of us at WDW last year. The more fun the vacation location, the more of them that want to come along. I'm loving it!

Sheila

 

[elaine]

thanks to all. I think, as advised, we'll rent out points this year and then revisit again next year. I have AKV, so contract does not end until later.

 

[TravelTime]

thanks to all. I think, as advised, we'll rent out points this year and then revisit again next year. I have AKV, so contract does not end until later.

How many points do you have at AK?

 

[elaine]

160.

 

[TravelTime]

I would not sell now if you only have 160 points total. I have 470 points between 5 home resorts. I had the same doubts you had. I finally decided to hold what I have until I am absolutely sure I do not want to visit anymore. I know I would never visit WDW if I stayed offside. The hassle is to much for me.

 

[TravelTime]

Given the new changes for resale of DVC, you may strongly want to reconsider selling and hold onto your points until you are very sure you will no longer be using them.

 

[presley]

Well, lots of owners are speculating a lot of stuff about resales right now including that the costs will go down. Please educate yourself today about the changes. I think there is a change this month and you'd need to sell before the date for the new owner to not be affected. Since I don't own anymore, I haven't paid full attention to what is going on, but I believe people who buy resale after a certain date (that is this month sometime) will not be able to use their DVC points to stay in any new DVC resorts. That could change your resale value later.

 

[littlestar]

We are listing a small point contract (should show up as soon as Disney verifies the points). But we are keeping 275 points. I want to get back below 300 points to reduce our dues a little before my husband retires. Almost was tempted to list a 90 point contract, too, because of all the DVC changes here lately, but decided against it because of our grandkids.

 

[elaine]

deifinitely keeping for the next 2 years to see how this sorts out and if we still want to keeping going to DVC. Re. Renting-no way am I giving acocunt access to a rental company and if I use the other, I still have to make reservations, dining plan, MDE, etc.-a lot of work IMHO.
I really wish we had a high-end swap board and not just marketplace. I might post via Nextdoor neigborhood website and see if any neigbors are interested. That Riviera thing is quite a shock to many.

 

[TravelTime]

I spoke to a DVC guide. He said DVC is raising prices on Jan 16 on the 14 parks with another big price hike for the most popular resorts. Up to $260 for Grand Cal and $245 for Grand Floridian. The prices increases will be smaller for the parks that are not sold out. This information is consistent with the rumors I have read on other sites.

I suspect they have something sneaky up their sleeves for Riviera. It makes no sense to limit resale of the new parks to only one resort. The guide gave me some illogical answers so I am taking some of what he said with a grain of salt.

He said Riviera may have 2 person studios that are smaller than deluxe studios yet he said Riviera is going to be very upscale. I think the 2 person small studios is devaluing the Riviera resort. How can you be super luxe if you are squeezing people into sardine cans? I reserve 1 bedrooms and sometimes 2 bedrooms for just me and my DH. I will not even stay in a studio by myself if I can help it. Given what he said, I do not think Riviera will be that upscale but I could be wrong. It probably will not appeal to me, though.

When I expressed my opinions on Riviera, he said that is why they are still selling the old 14 resorts directly so people can buy from DVC and get use of all resorts.

I am suspicious that DVC may start increasing ROFR so they can re-sell the 14 parks at the higher prices. He did say that this is an attempt by DVC to increase direct sales but he also said that Disney is not threatened by the resale market. I said if Disney is not concerned about resale, then why are they implementing resale restrictions. He said he did not know the details.

P.S. He also said most people buy direct and never sell so he claims Disney does not think the resale changes with affect the vast majority of DVC buyers.

 

[Dean]

I suspect they have something sneaky up their sleeves for Riviera. It makes no sense to limit resale of the new parks to only one resort. The guide gave me some illogical answers so I am taking some of what he said with a grain of salt.

Different, esp since it'll be a new system legally. Sneaky sounds very negative.

He said Riviera may have 2 person studios that are smaller than deluxe studios yet he said Riviera is going to be very upscale. I think the 2 person small studios is devaluing the Riviera resort. How can you be super luxe if you are squeezing people into sardine cans? I reserve 1 bedrooms and sometimes 2 bedrooms for just me and my DH. I will not even stay in a studio by myself if I can help it. Given what he said, I do not think Riviera will be that upscale but I could be wrong. It probably will not appeal to me, though.

Makes sense esp since studios are really geared at 2 people anyway. It's likely such a studio would be cheaper than a larger studio, how much is the question. IMO this is a separate issue from the rating and scale of the resort. I'm skeptical for other reasons about flagship status but for their sake I hope it is since the limitations on resale will have some negative affect on sales (though not as much as some think).

When I expressed my opinions on Riviera, he said that is why they are still selling the old 14 resorts directly so people can buy from DVC and get use of all resorts.

I am suspicious that DVC may start increasing ROFR so they can re-sell the 14 parks at the higher prices. He did say that this is an attempt by DVC to increase direct sales but he also said that Disney is not threatened by the resale market. I said if Disney is not concerned about resale, then why are they implementing resale restrictions. He said he did not know the details.

P.S. He also said most people buy direct and never sell so he claims Disney does not think the resale changes with affect the vast majority of DVC buyers.

It seems they've increased ROFR likely for this purpose. It's true that most sales are retail but every resale is a potential lost sale. If they had not concern we would not have seen any of the changes we've seen so far.

 

[TheHolleys87]

I think upscale at Riviera will be seen in the finishes and amenities e.g. VGF vs. BWV — ginormous stainless steel French door fridge vs. smaller top-freezer white fridge, fancy tile work in bathroom, rooftop restaurant, etc. I also am still not convinced that resale buyers there won’t be able to trade out, because as direct buyers are replaced by resale buyers who can’t trade out, then how am I going to be able to trade in? Unless as others have suggested DVD is expecting resale value to plummet so they can take many or most contracts back via ROFR and resell those points over and over. Sigh. Just waiting to find out details!

 

[TravelTime]

I did not mean sneaky in a negative way. I should have used the word surprising. The restrictions do not make sense to me for the new resorts. Unless Riviera and the others are great, I would not want to buy into them since it would be an instant devaluation. But maybe DVC will surprise us with something that makes Riviera, Reflections and other new resorts highly desirable. I am wondering if they are going to introduce some surprising new rules for DVC2 that will make the new system less comparable to the old system and still very attractive to buyers.

 

[TheHolleys87]

I did not mean sneaky in a negative way. I should have used the word surprising. The restrictions do not make sense to me for the new resorts. Unless Riviera and the others are great, I would not want to buy into them since it would be an instant devaluation. But maybe DVC will surprise us with something that makes Riviera, Reflections and other new resorts highly desirable.

I fully expect them to surprise us, to overcome the handicaps of location (nearness to parks) they’ll have. Riviera’s gondola is an example. I think a 5- or 10-minute ride in a gondola (even without AC!) beats a 10-minute walk to the IG or a 30-minute boat ride to DHS.