The Shore Was Expensive This Year

Paying $3,000 a week or more for a summer house at the shore seems pretty steep as the article implies.

Now that the rental season is over I wonder if all those "investors" that over paid earlier this year will be able to make their mortgage payments until next June, with no rental income.

Think about it. If you bought a Jersey shore rental property in the spring, and you rented it out all summer, you probably had little or no cash drain and therefore felt no cash drain pain. Now that the season is over and the rent checks are not coming in, the pain might get pretty severe in a few months.


Snip...

[Observers seemed to settle on this theory: Businesses that thrive on people making day trips from northern New Jersey, New York and Pennsylvania couldn't have asked for better conditions. Businesses that needed people to stay overnight were hurt by the rising cost of rentals that in some places reached more than $3,000 a week.

"With those kinds of prices, you can get on a plane and go to the Caribbean," Commerce Bancorp economist Joel Naroff said. "And you don't have to bring linens."]

More...