Purchase a vacation home ?

[Teacher Terry]

We like to travel to different places. My in-laws had one and we told them to sell it as we didn’t want to inherit it.

[Keim]

I'm not near retirement. Bought a remote mountain/forest cabin last summer for about $50k, also as a foreclosure. Spent this summer fixing it up as it sat empty for many years. I echo others, don't look for it to be a great financial decision; its a lifestyle choice. We are loving ours even though we only get to it about once a month.

I made a thread on it: http://www.early-retirement.org/foru...2-a-91836.html

[ivinsfan]

If you have to ask if you should, the answer is probably, No you shouldn't!!!

[Bamaman]

We are fortunate to have a very large lake in the middle of town. And my family has had a lake house there since 1945--which I inherited. It's 18 miles from my city house, and I'm out there 3-4 times per week.

A second home is often more of a commitment than a financial decision. Are you willing to spend enough time there? Is the second house somewhere that is desirable to be--like on a lake or on a mountaintop?

But what is the appreciation potential if you decide you need to sell it? In our case, our lake home is worth 10 times what we have in it, as there's just so many good deep water sunset lots available. And we're fortunate to have two Robert Trent Jones 18 hole golf courses on our street.

[45th Birthday]

Quote:

Originally Posted by Teacher Terry We like to travel to different places. My in-laws had one and we told them to sell it as we didn’t want to inherit it.

Seriously? If our offspring ever gave us instructions like that, we would make sure they inherit....

NOTHING.

[travelover]

Quote:

Originally Posted by 45th Birthday Seriously? If our offspring ever gave us instructions like that, we would make sure they inherit.... NOTHING.

Some people are just more vindictive than others.

[Talkjk]

We love our "vacation" home. Bought it in 2017, RE in 2020. So nice to be able to just go, already have a closet full of clothes, our tooth brushes, and all set up the way we like it. The convenience and privacy to me is worth it. If at some time we decide that it is no longer what we want, we sell it.

[Dtail]

Can't afford a 2nd home, but am super happy in FLA year round and like traveling to many different places.

[pb4uski]

Our current main home is our former vacation home. We bought it in 2005 when we were 50 despite plans to retire at 55. It was about 40 minutes from our main home at the time.

Initially, we used it mostly on weekends three seasons (it was not winterized). Then we decided to live there in the summer and use it weekends in the spring and fall.

Ultimately, we put in a septic system and well and foundation, and in 2010 decided to demolish and rebuild. We had initially planned to gut it and keep the existing structure but a high school friend who was our builder convinced me that we wold be better off to demolish and rebuild... and he was right.

We moved in 6 months after demolition and sold our main home about 4 months later. Having the proceeds from the main home in the bank and only one home for expenses convinced me to retire.

The opportunity in the OP looks like a great chance to both enjoy it on vacations and weekends and build some sweat equity.

[brucethebroker]

Quote:

Originally Posted by Ronstar I bought a snowbird condo 12 years before I retired. I only spent about a total of a month or two a year there before I was retired. Now we’re there 3-4 months a year and we really enjoy it.

Us too, and we bought it 2 weeks after DW retired. Foreclosure, but a condo, so no upkeep, just fees, and total cost is even with renting a place in our association for the winter.

Like another earlier reply, we have great friends at our snowbird neighborhood. It has been a good investment and great fun for 3 months a year. But, I would not like to work there all winter. Vacation homes are not a vacation if all you do is work each time you show up.

BTW, the earlier comment about the proximity to HD or Lowes is a great tip. We once lived about 35 min. away from the nearest-Too far away. Local hardware/lumber yard was friendly but expensive.

[pb4uski]

Similar story here, except we bought our snowbird condo after we retired and after renting for a couple seasons... we had initially intended to rent just 3-4 months a season, but one season could not find a rental in the neighborhood that we wanted where we have several friends... but an opportunity to buy popped up out of nowhere and the annual carrying costs were about the same as 3 months of rent in season.

Now that we own and are paying for 12 months a year anyway, it is easier to justify spending 6 months down here.

[travelover]

Quote:

Originally Posted by 45th Birthday Seriously? If our offspring ever gave us instructions like that, we would make sure they inherit.... NOTHING.

I just thought I'd share the private message you sent me with everyone.

[pb4uski]

^^^ Well done travelover. Have you put him/her on your Ignore List yet?

[travelover]

Quote:

Originally Posted by pb4uski ^^^ Well done travelover. Have you put him/her on your Ignore List yet?

No, I'm waiting for something really offensive.

[45th Birthday]

Quote:

Originally Posted by travelover I just thought I'd share the private message you sent me with everyone.

At least I keep my public posts free of violations of the TOS. Bless your heart.

[pb4uski]

Quote:

Originally Posted by Teacher Terry We like to travel to different places. My in-laws had one and we told them to sell it as we didn’t want to inherit it.

That reminds me... in his later years my Dad came around to a view that inheriting a vacation home was like inheriting a liability. True, you may have a nice property to enjoy but also a $15k a year bill between property taxes, maintenance, utilities, etc. You could rent it some to help cover the costs but then you inherit the hassles of being a landlord and in many cases the rent won't cover the costs... or if so just barely.

A neighbor friend died and his two kids inherited a nice waterfront seasonal property. One sibling could afford their share of the annual costs... but another could not... so they ended up selling it and splitting the proceeds.

[braumeister]

Quote:

Originally Posted by 45th Birthday Seriously? If our offspring ever gave us instructions like that, we would make sure they inherit.... NOTHING.

Quote:

Originally Posted by travelover Some people are just more vindictive than others.

Quote:

Originally Posted by travelover I just thought I'd share the private message you sent me with everyone.

Quote:

Originally Posted by 45th Birthday At least I keep my public posts free of violations of the TOS. Bless your heart.

[Mod hat on] Entirely too much personal unpleasantness going on. If we can't be tolerant with each other, we don't belong here.[/Mod hat off]

[Octogirl]

Thanks for all the thoughts on purchase of vacation home.


My family has owned a vacation beach house about 10 miles away since the 1960s, so I am very familiar with the area, costs, taxes, headaches. My sister, cousin, and a friend have vaca homes in the same area.



So Yes, part of this decision is personal choice.



We have looked at other homes in this town over past 2 years but it was never the right deal.

This house is on the water......with wonderful views. Other homes on the street are being rehabbed, so DH thinks it will appreciate. I looked at comps and maybe it will- but maybe it won't.



We have not made a decision yet but as many of you point out - it is a commitment of money, time, and maintenance.

Because it is a foreclosure, we have a week before bids are due.



Thanks again for your time and thoughts.

[TwoByFour]

This is one of those questions where the answer can really only come from you. We had a vacation home and loved it but that doesn't mean you will. It worked out well for us financially, but again, that doesn't mean it will for you. The devil is in the details. All I can say is do your homework, due diligence, inspections, etc. and then decide.

[Dawg52]

I thoroughly enjoy my coastal condo. But it's not for everyone so only you can decide. I spend 25-30% of my time there. Anything less than that is probably not worth it.