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Rent versus Exchanging for Credits through International Vacation
Home Exchange:
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| Example 1 | Renting your property | Using Credits |
| Weekly rental value | $2000 | 20 credits |
| Running costs @ 20% | $400 | $400* |
| Rental management fee @ 15% | $300 | $0 |
| Tax @ 25% | $325 | $0 |
| Leaves you with | $975 | 20 credits |
| Cost of renting equivalent vacation home | $2000 | 20 credits |
| Additional cost to you for your holiday | $1025 | $0 |
| Transaction fee for equivalent property | $0 | $140 |
| Cost of your holiday | $1025 | $540* |
That
is a saving of $485 or more if you are in a higher tax bracket.
* Probably
tax deductible
| Example 2 | Renting your property | Using Credits |
| Weekly rental value | $4000 | 40 credits |
| Running costs @ 20% | $800 | $800 |
| Rental management fee @ 15% | $600 | $0 |
| Tax @ 25% | $650 | $0 |
| Leaves you with | $1950 | 40 credits |
| Cost of renting equivalent vacation home | $4000 | 40 credits |
| Additional cost to you for your holiday | $2050 | $ |
| Transaction fee for equivalent property | $0 | $280 |
| Cost of your holiday | $2050 | $1080 |
That is a saving of $970 or more if you are in a higher tax bracket.
The above examples are for illustrative purposes only as everyone's outgoing will be different and we recommend you make your own calculations applicable to your property.
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International
Vacation Home Exchange
Mortlake Road, Kew, London TW9 4AW, UK, Phone: +44 20 8878 3559 Fax: +44 20 8255 1094 ©2003 International Vacation Home Exchange, All rights reserved. | |||||||||||||||
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