It must have been the idea of making the house the way we wanted it since I didn't take time off from work to do it. And there is something nice about the "new" look that fresh paint gives a place.
Renting or buying? What is best for a second home.
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It must have been the idea of making the house the way we wanted it since I didn't take time off from work to do it. And there is something nice about the "new" look that fresh paint gives a place.
james7
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Don't be lured by fools gold. Even the slick salesmen pushing Ecuador warn that property appreciation there in the future will be zero, and that retirees or snowbirds there would be better off renting.
kcowan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
We rent one place and own the other. The place in Mexico is owned because we can have fulltime helpers to keep it safe and maintained. We are there for 6 months. We travel in September to work through the bucket lists. The place we rent is sublet while we are down south.
Getting to this place took 15 years and our first purchase was after 5 years of retirement. I would recommend taking your time and do a financial analysis of any potential purchase. Don't rely on rental income to offset costs. Don't trust realtors any more than you would trust other brokers/advisors.
(Obviously our situation is much different than yours. We are Canadian residents for tax purposes. But that is probably the extent of it.)
Getting to this place took 15 years and our first purchase was after 5 years of retirement. I would recommend taking your time and do a financial analysis of any potential purchase. Don't rely on rental income to offset costs. Don't trust realtors any more than you would trust other brokers/advisors.
(Obviously our situation is much different than yours. We are Canadian residents for tax purposes. But that is probably the extent of it.)
haha
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
People should perhaps consider that they, the expats, are the real estate market in many of these locations unless there is a lot of dope money sloshing around. So as soon as something happens to scare the gringos into going home, hasta la vista real estate bids.
I have read but have no direct knowledge that this is currently the case in some Mexican gringo enclaves.
Ha
james7
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I have read the same about all of Nicarauga, and parts of Panama, Costa Rica and Mexico. The middle class is just developing in Latin America, which is why they don't have many buyers of their own, except for Brazil and Argentina.
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I think that a condo is a better choice as a second home. But even a condo comes with non-trivial carrying costs. In desirable locations, HOA fees, property taxes and insurance can amount to hundreds or even thousands of dollars a month for a condo that sits empty most of the year. You can try to rent out the condo when you don't use it to help cover the carrying costs. But, in general, I think that renting a vacation home is probably a better option.
FreeAtLast
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I would rent. There are so many more options without the problems.
packrat44
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+1. While this approach is not the best for many, it works well for DW and I. We bought a "new" (lived in for only one year) foreclusure near Tucson that was immaculate in a highly desireable neighborhood for about 60% of the original sales price. Prior to buying, I ran the numbers for renting vs buying. The cross over point for us was about 3 months. While we enjoy the summers at our water-front house located spitting distance from the Canadian border, we have grown to dislike the winters for many reasons. A low-mileage convertible that was getting little use up north, is left down south in the garage for the times we choose to fly rather than drive. Similar to Kat, ownership does not take away from other travel.
tryan
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Have you considered a time-share in a resort area? Might get you the best of both worlds. Stability of reoccurring visits and flexibility to bail (rent) on a moments notice; with out maintenance and a huge financial committment.
We own our waterfront second home but it rents pretty well (grossed 30k last year) to offset the costs. Ownership is not for the faint heart .... Irene did 9k worth of damage. A biblical icestorm had me "stranded" in the house for 5 days. Heat has gone out a couple times .... otherwise we LOVE it.
We own our waterfront second home but it rents pretty well (grossed 30k last year) to offset the costs. Ownership is not for the faint heart .... Irene did 9k worth of damage. A biblical icestorm had me "stranded" in the house for 5 days. Heat has gone out a couple times .... otherwise we LOVE it.
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For the past 11 years, we have rented the same house in Maine for two weeks in July. Since we are still w*rking, we are time limited more than anything else. Once we retire, I'm certain we'll be able to extend our stay if we want. We love going to Maine every summer, but I would not want the hassle of actually owning the house.
SpencerM
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I find that buying a second home would obligate me to go there more than I otherwise might. There are too many other interesting places to go!
Own one house outright, that is enough. Plan to rent for several months per year elsewhere. Variety is good.
Own one house outright, that is enough. Plan to rent for several months per year elsewhere. Variety is good.
In-control
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I milled this over several times then realized that all the nice places are nice because they are new and exciting. I noticed that all the places that I liked were next to state/federal parks. For $12 a night I can hang out and have the best location. I purchased a lightweight trailer(22') camper, house with wheels, and am free and flexible. I currently am reserving every other weekend during the season, @ $12/night on the best spots. If I don't go - it's not much of a loss.
I say - be flexible and ownership is the opposite of flexible.
I say - be flexible and ownership is the opposite of flexible.
NYEXPAT
Thinks s/he gets paid by the post
I rent my primary residence (lower cost than owning) and would only "own" investment properties that produced rents/timber/grazing/agriculture. If it all goes to hell, I can still live in my rental property and barter for my needs or sell off land in whatever the currency of the day might be. There is also a very good chance there is enough gold there if anyone still wants to hoard it!
Frugalityisthenewblack
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This article weighs the pros and cons of owning a second home...Interesting in the comments sections most people advise against it it seems...a lot of them with experience http://www.theglobeandmail.com/globe-investor/personal-finance/financial-road-map/second-home-could-become-a-primary-headache/article2321324/
readers comments
Second home could become a primary headache - The Globe and Mail
readers comments
Second home could become a primary headache - The Globe and Mail
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The link is to the comments section following a newspaper article on Canadians owning second homes. I did not read them so perhaps Frugalityisthenewblack can give us a short summary.
kcowan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
How about this? Don't sink money into a vacation home. Keep the money in a high MER fund in Canada instead.
I have similar reasons for thinking about buying a small beach condo. It is difficult to find places where I want to go that are dog friendly and availability gets tricky when you don't plan out. Personal decision, but if you use it, have the money, and have fun, it's worth it.
W2R
Moderator Emeritus
Luckily, I have no pets, as much as I love animals. I could never afford a dog that would require me to buy a second home for it. On HGTV, I also notice that many couples seem to choose their primary home on the basis of whether or not their dog would like it. Then, there are the vet bills. Whew.
Dawg52
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I'm kind of kicking around the idea of a small condo on the AL coast. The above pretty well sums up my feelings, maybe more so in the future when I no longer have family obligations here. The thing I like about the coast(Orange Beach), it's only 3 hours from where I live, I have some family down there and of course I love the area. And I like the idea of splitting my time between my current home and the coast. Another plus, my nephew's wife owns a couple of condo's in the area and could/would manage it for me as she does her own at a much better rate than if I hired a management company. She has a cleaning lady, handy man and advertises her condos over the net. Has good bookings too. I would try and lease it part of the year to help cover some of the cost like condo fees, taxes etc...
I'm going to at least kick the tires so to speak. With real estate prices at such lows, there are some good deals around. Could go lower I suppose, but this is certainly a buyers market.
