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DVC Points: Why buy when you can rent?

Portrait of a young happy family with two children packing for holiday at home.

On the subject of DVC points, you’ll encounter a lot of questions. One of the most common queries is this: should you buy DVC points or rent instead?

In this post, we’ll look at the pros and cons of both sides so you can determine which option works best for you.

Option 1: Renting DVC points

Renting DVC points is the way to go if you wish to make your money liquid. It also makes your funds easily available in case you undergo a change in your financial situation. Since the money is not tied up to an asset (which is ownership interest in DVC), you can take it elsewhere without much of a hassle.

If you plan taking this route, here are a couple of things you should know:

  • Renting DVC points entails you to pay more than what DVC point owners spend for the annual dues, but…
  • Since you are not purchasing DVC points, you don’t have to make any down payments (unless it’s required by the party you’re renting from).

Although renting DVC points gives you a great degree of flexibility, there are still certain risks involved.

  • Renting DVC points requires more work in that you don’t have specific control over your reservation/s.
  • There are more restrictions when it comes to refunds and cancellations.
  • Although you get to enjoy member benefits when you rent DVC points, you’re on unstable ground as these perks can easily be withdrawn.

If you’re mostly after flexibility and you don’t want to commit to a DVC membership, renting points instead.

Option 2: Buying DVC points

If you see yourself going to DVC resorts often within a long period of team, buying DVC points seem to be a more economically sound option than renting.

Although your money is tied up to the ownership interest, making a reservation at your preferred resort would be comparatively easier. It gives you a lot of peace of mind, as the essence of owning DVC points is paying for your vacation even when you haven’t made concrete plans.

Of course, there are several considerations you need to weigh:

  • Initial costs will be high, and after that, you’ll need to pay annual dues and maintenance fees. Almost always, these expenses increase every year.
  • This is different from a real estate investment. You’re not building equity, nor are you buying a property. What you’re getting is ownership interest, which will eventually expire.

Ultimately, this is the best path to take if you plan on staying in a DVC resort frequently. Being able to plan your vacation ahead of time (within a 7-month or 11-month period) also helps.

Should the time come that you no longer want to commit to it, you have two options: sell your membership or rent it out.

Whether you choose to rent or buy, we have your back

We’re one of the best resources when it comes to buying, renting, and selling DVC points. Get in touch with our team today or browse our website to learn more.