Should I take my dad's offer ?

[DisEye]

I have a dilemma and would appreciate some opinions. My parents bought into DVC about 10 years ago, adding points until they have 600 points now. 480 points are at SSR split between three contracts of 110, 170, and 200 points. 120 points are at BLT in two contracts of 30 and 90. They did this with the expectation that my two siblings and I would eventually each get 200 points apiece.

The time has come where my dad is ready to stop paying the maintenance fees and pass the points on. My family is the only one that is really into Disney, so my two siblings want to sell their points. I want to keep mine. I plan to keep the BLT points and probably the SSR 110 point contract, so we would sell the SSR 170 and 200 point contracts. I would give my siblings the equivalent after-commission cost of the other 30 points.

My dilemma is that my father has offered to "gift" me the other points and I would in turn "gift" my brother and sister with some cash. It's a decent price, somewhat lower than what contracts are selling for right now. I have the money to buy them if I want to do it though it would come out of the stock market.

My heart says to buy them, but my head isn't so sure. Realistically we really don't need that many points. I think that the 230 points would be plenty for how we would typically use them, so I would probably rent the majority out to pay for the MFs. We don't typically book more than 7 months ahead so I could rent out the BLT points for more and some of the SSR too.

So which way do I go? How easy is it to rent them? I know that renting them should cover the MFs but there is a pretty big expense up front to buy them. If I buy them I would see it as somewhat of an investment. Is this a good investment or not?

Any thoughts or advice would be appreciated. Thanks!

 

[starry_solo]

I would!

 

[TCRAIG]

As an investment - no
As a family decision and to make my dad happy - yes!

 

[DisEye]

As an investment - no
As a family decision and to make my dad happy - yes!

My dad thinks that I should sell them all and rent points when I want to go to Disney so that part doesn't apply. I'm not going to sell them all though! I'm going to keep 230 for sure.

 

[DisEye]

I would!

Believe me, I would really like to! I'm trying to be realistic though. Is it worth keeping the points if I'm probably just going to rent them out most of the time?

 

[JETSDAD]

I'd just go with what you want to use personally. Right now the rental market is strong and it is very easy to rent out points but is that where you want money tied up as an 'investment' should there be a downturn in the economy and people start cutting out their luxuries such as Disney vacations?

 

[4luv2cdisney]

How do your siblings feel about possibly getting less $ from you than from selling them outright? (If that is what is happening)

I'd make sure this deal is very fair to them. Even just the fact that you plan on keeping the BLT and they get the proceeds from the (cheaper) SSR points seems very unequal. Your extra 30 pts at BLT would sell at a pretty significant premium per point vs a 200 pt SSR contract. Maybe they don't realize it, but regardless, I would feel obligated to pay them each 1\3 of what the total value of all 600 points would bring in less commissions.

 

[kniquy]

If I buy them I would see it as somewhat of an investment. Is this a good investment or not?

It is an emotional investment - not a financial one. If you will be gifted these contracts that will likely mean you will retain the benefits of the contracts, which can be a huge win. It really sounds like your family will use the points. Even though 230 points sounds like a lot you will find yourself wanting to take longer trips or planning a few shorter stays or wanting a larger room so your parents can travel with you.

My dilemma is that my father has offered to "gift" me the other points and I would in turn "gift" my brother and sister with some cash. It's a decent price, somewhat lower than what contracts are selling for right now. I have the money to buy them if I want to do it though it would come out of the stock market.

So are you planning on buying the whole 600 points? In the interest of making this a better financial decision i would take the gift of the 230 points. Then let your father sell those contracts and give your siblings the money. You are essentially getting 30 extra SSR points more than your siblings -- base that off the price that SSR is selling resale (subtract commission of 8%) to make it fair (seeing the other contracts would have that against them as well) and then pay them off that amount. This way you are not taking too much of your savings/stocks, you get your contracts with hopefully all the benefits that your father has enjoyed. So with this you might owe your siblings about $3000. With this you also wash your hands of having to deal with renting out points or having to pay MF on that many points.

Money and siblings can get very messy especially if they don't know about DVC and its value -- they might think they are owed more money than you plan on paying. If your father sells the SSR contracts then they get what they get and you pay the 30 pt difference.

 

[Geomom]

I would just keep what you would use, especially as you'd pay the ever increasing yearly dues on points you're not personally using. If you're not going to book further out than 7 mths (not using the 11 month home booking window), I would keep the 200 pt SSR contract just to make it easy and cause no ill feelings with your siblings. Family and money/inheritances can get ugly fast! Also think about how many points you would use on a trip--it's definitely easier with just 1 larger contract vs. 3 smaller ones. Do the 2 BLT ones have the same UY? If not, it'll be more difficult on you to use them on the same trip--you'd be booking separate days and getting reservations linked.

 

[piccolopat]

My dad thinks that I should sell them all and rent points when I want to go to Disney so that part doesn't apply. I'm not going to sell them all though! I'm going to keep 230 for sure.

If that is the case, why doesn't he sell all of his points, divide the proceeds as a gift to you and your siblings and then you each can decide how to use the cash?

 

[4luv2cdisney]

It is an emotional investment - not a financial one. If you will be gifted these contracts that will likely mean you will retain the benefits of the contracts, which can be a huge win. It really sounds like your family will use the points. Even though 230 points sounds like a lot you will find yourself wanting to take longer trips or planning a few shorter stays or wanting a larger room so your parents can travel with you.

So are you planning on buying the whole 600 points? In the interest of making this a better financial decision i would take the gift of the 230 points. Then let your father sell those contracts and give your siblings the money. You are essentially getting 30 extra SSR points more than your siblings -- base that off the price that SSR is selling resale (subtract commission of 8%) to make it fair (seeing the other contracts would have that against them as well) and then pay them off that amount. This way you are not taking too much of your savings/stocks, you get your contracts with hopefully all the benefits that your father has enjoyed. So with this you might owe your siblings about $3000. With this you also wash your hands of having to deal with renting out points or having to pay MF on that many points.

Money and siblings can get very messy especially if they don't know about DVC and its value -- they might think they are owed more money than you plan on paying. If your father sells the SSR contracts then they get what they get and you pay the 30 pt difference.

I agree with this except for the math. That doesn't seem fair to Her siblings at all. Her siblings would be getting proceeds from larger SSR contracts while she is getting 120 BLT points and smaller contracts that are prob worth at least $45 / pt more. At minimum, she should pay them the value of the entire 30 pt BLT contract.

If These were my kids, I'd have her pay her siblings for their share of the premium on all the BLT points or just give her the 200 point SSR contract and sell the others and see if there needs to be any "squaring up" after the contracts are sold.

 

[bobbiwoz]

If that is the case, why doesn't he sell all of his points, divide the proceeds as a gift to you and your siblings and then you each can decide how to use the cash?

If the points are grandfathered in with benefits, the OP would be losing perks unnecessarily.

 

[rg35]

If that is the case, why doesn't he sell all of his points, divide the proceeds as a gift to you and your siblings and then you each can decide how to use the cash?

This seems like it would be a losing situation for the OP. Re-buying direct points would likely cost more than the cash gift. If they bought resale, then they'd lose out on member benefits they'd get by inheriting the contracts.

Since the OP's family enjoys going to WDW and would use DVC, the best thing for them would be to take some allocation of these points directly from the father.

 

[Lorilais_mommie]

Renting is fairly easy..we use David’s and never had a issue.

Yes! Let you father GIFT you at least the 230 pts.. if not all! you want to retain the member perks.

As for the other points.
Investment wise.. rental mark is hot right now but that can change.. The economy can tank But if it does what then happens to your stocks??
I see it as a risk either way..

Another way to look at it too..
you can always hold those extra contracts for a few years, see if you like having them, if not then sell. Time and time again we have all seen the price per point rise and rise. I could sell both my AKV and GFV for more now than what I paid buying direct.

Just my .02..

 

[kniquy]

I agree with this except for the math. That doesn't seem fair to Her siblings at all. Her siblings would be getting proceeds from larger SSR contracts while she is getting 120 BLT points and smaller contracts that are prob worth at least $45 / pt more. At minimum, she should pay them the value of the entire 30 pt BLT contract.

The 30 point difference shouldn't really be that big of a deal seeing the value of what she is being gifted. 30 pts BLT $4200 (I'd still take out he 8% commission - seeing that is what the profit would bring on the resale market) bringing the BLT points to $3800 (divided by the siblings). Family can be the worst to deal with when it comes to money so keeping things as even as possible is the best way not to get any flak down the road.

 

[piccolopat]

If the points are grandfathered in with benefits, the OP would be losing perks unnecessarily.

My question was due to OP's statement that her father wanted to gift her all of the points, then have her sell them and rent points when she wanted to go to Disney. That makes no sense to me. If he gifts her the points for her to keep and use, that's a different situation. In that case, I agree that she should keep them as long as she believes she will get value out of them for future vacations.

 

[CarolMN]

Don't take all the points UNLESS you are financially OK with paying the mtce fees without renting.

Renting may be easy now, but if the demand for Disney vacations slows, you may be forced to sell or rent below cost. IMO, the risk due to the economy, coupled with Disney's ability to adversely affect both the rental & resale markets is greater than the potential return. Keep what you can afford on your own.

Good luck!

 

[MoreTravels]

I think your siblings are counting on free riding with you. Once you go all the points, they will send their kids to beg free trips from you. Auntie auntie can we go to Disney with you? Would you be able to say no to your nephews and nieces?

 

[miTnosnhoJ]

I think the whole DVC experience goes in stages. For a young family, a 1BR or studio makes a lot of sense.
When your kids get to be college age, they may have less time or less inclination to spend time at Disney. Some will. Some won’t.
As they get older and start families of their own, they will love being with you at Disney. Depending on how many kids you have, and how many kids They have, at some point it may make sense to start using GVs. (Or multiple 2BRs.) If you have a good supply of “old” points, this is very doable. To buy more then at current prices could be very expensive.

I would think through whether you could see yourself ever needing GVs. If so, and if you could Bridge to that time inexpensively through renting, then I would consider taking all the contracts.

There is no right or wrong here. Only what is best for your family.

 

[chainkid]

If you keep the points it is highly likely you will be funding your extended families WDW vacations for the foreseeable future and paying the maintenance fees yourself. I do it all the time but I offered in the beginning but found over time it became an expected perk. I'm not complaining mind you as I love my family and can afford to do it but I could easily see the burden falling on you and causing friction if you aren't prepared for it.