Monday, September 01, 2008

Renting Out for 17 Weeks Yearly Pays for Your Vacation Home

"According to government data, close to 40%, and perhaps as many as 50%, of the foreclosures in 2007 were of nonowner-occupied homes, which generally means vacation homes,"says Standard and Poors The Outlook. S&P Chief Economist David Wyss "expects this trend to continue into 2008 and 2009, pointing out that it's psychologically easier for people to skip payments on a secondary home, whereas they will scrimp and save in other ways in order to hold on to their primary home." But the article also quotes second-home expert Christine Karpinski as pointing out: "If you have a mortgage on your second home, renting it out only 17 weeks will cover your mortgage payments for an entire year ....If it's paid for free and clear, only five off-week rentals will cover costs like bills for your phone, power, cable, and association dues."

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