Vacation Home - How old is too old?

[OldShooter]

Like most questions of this type, the answer has to be "It depends."

Without going into boring detail, at 75YO we are in the process of building quite an expensive lake home. Financial insanity. Our family has occupied roughly 1200 feet of beautiful lakeshore since about 1915. The land to the west has been occupied since 1895 by the same family. Last year that land became available and was a hafta-do-it for us. Between us and another family member we have added about 600 additional feet to the compound. We will bequeath this land and house to DS, who will in turn bequeath to another generation. In the big picture, our age doesn't matter except that we had the financial resources to pull it off.

 

[TripleLindy]

Interesting thread and good feedback. We’ve been in a similar situation - got close to buying, then Covid hit, then pricing went through the roof and negotiating power through the floor. Unfortunately, our desired destination is a ski condo and most that we were interested in were cash sales, so they’ve still been increasing in price. Plus my DW has a thing about putting our property into a rental pool, which was really the only way to justify the crazy high HOA fees for ski condos. On top of that, we helped each of our 3 kids and their spouses get into their first homes - all in the past 18 months. That left a mark and probably took us out of the vacation home market. VRBO account remains active!

 

[Bamaman]

Interesting thread and good feedback. We’ve been in a similar situation - got close to buying, then Covid hit, then pricing went through the roof and negotiating power through the floor. Unfortunately, our desired destination is a ski condo and most that we were interested in were cash sales, so they’ve still been increasing in price. Plus my DW has a thing about putting our property into a rental pool, which was really the only way to justify the crazy high HOA fees for ski condos. On top of that, we helped each of our 3 kids and their spouses get into their first homes - all in the past 18 months. That left a mark and probably took us out of the vacation home market. VRBO account remains active!

We have many friends with condos and homes down on the Gulf Coast of Alabama and the Florida Panhandle. They comment about how renters do not take great care of their furniture and fixtures. One has a condo to use and a condo to rent out with furniture that's okay but not too nice. So if you invest in a place to rent, be careful on the furnishings, etc.

 

[Rocket Man]

Topic says it all. Prior to covid 2 1/2 years ago we had planned to buy a vacation home but unfortunately everything in the area we were looking at immediately sky rocketed in price. An inflated amount I refuse to spend also.



Assuming prices go down in this area, we're still thinking about buying one but the one issue I keep thinking about is how old is too old to start such a plan? Assuming health isn't a major concern (fingers crossed), at what point would you feel the hassle of it all isn't worth it?



I only wish I had been able to do this 5 or 10 years ago. Any late starters out there? Early 60's here.

We have been in the exact same boat. We were looking at a second home in The Villages. After Covid, prices increased from $60,000 to $100,000, depending on the model. Then the demand went through the roof with all the people exiting New York, New Jersey and Illinois, where we live. We actually put in for several new builds with the crazy lottery system they had to use for a while, but we did not win the lotto drawing. Demand has slowed down the last couple of months, all the houses do not go under contract the minute they hit the market and there is an inventory now, but the prices have not come down. Interest rates are not a big factor because a large percentage of buyers pay cash. We are not excited about the location of the new homes on the market currently. There is a location that will be opening up in another month or so with new homes, but I believe the prices there may actually go up more. However, we are having second thoughts about the wisdom of owning a second home. DW and I are in our upper sixties, and even though we enjoy good health for our age, neither of us has the energy level we used to have. Do we want the hassles and extra work of maintaining that second home? Do we want to be tied down to always going there every time we take a trip? Couple that with the current prices that are approaching ridiculous, and the current financial and political climate in our country where you do not know what might happen in the next few years, we have decided that we may be better off without that second home. If we were 10 years younger it would be more tempting. We reserve the right to change our mind, but that is where we are right now.

 

[TripleLindy]

We have been in the exact same boat. We were looking at a second home in The Villages. After Covid, prices increased from $60,000 to $100,000, depending on the model. Then the demand went through the roof with all the people exiting New York, New Jersey and Illinois, where we live. We actually put in for several new builds with the crazy lottery system they had to use for a while, but we did not win the lotto drawing. Demand has slowed down the last couple of months, all the houses do not go under contract the minute they hit the market and there is an inventory now, but the prices have not come down. Interest rates are not a big factor because a large percentage of buyers pay cash. We are not excited about the location of the new homes on the market currently. There is a location that will be opening up in another month or so with new homes, but I believe the prices there may actually go up more. However, we are having second thoughts about the wisdom of owning a second home. DW and I are in our upper sixties, and even though we enjoy good health for our age, neither of us has the energy level we used to have. Do we want the hassles and extra work of maintaining that second home? Do we want to be tied down to always going there every time we take a trip? Couple that with the current prices that are approaching ridiculous, and the current financial and political climate in our country where you do not know what might happen in the next few years, we have decided that we may be better off without that second home. If we were 10 years younger it would be more tempting. We reserve the right to change our mind, but that is where we are right now.

We had a 2nd home in Sun City Texas, just north of Austin, but sold it last year. We used it often when our youngest son was going to school at UT, but after that, most of my trips down there were solo. I’d play pickleball on the day I arrived, do my maintenance stuff the next day, like cleaning gutters, and play a round of golf before heading home, which was only a 3 hour drive away. While I was able to have some fun, the trips were really maintenance trips. I can play golf and pickleball without the drive, and I don’t miss the extra chores. It wasn’t really a vacation destination and the climate was virtually the same as in DFW. My wife and I did the reno work ourselves and we bought nice furniture for it, so there was no way she was going to let me rent that property.

 

[tryan]

Build on a small lake in ski country when the boys were 5 and 7. 15 years later its what they know... having learned to :ski, swim, canoe, kayak, paddle board, fish. You get the idea.

Don't wait another day. Never TOO SOON.

 

[WhenIsItTime]

Thanks for the comments. Although ongoing maintenance is always a concern, I was simply thinking about the amount of quality years I'd have left to enjoy it before age creeps up enough to make using it less common. Buying one at age 40 is a lot different than 60+.

I'm also open to a condo even though I'd never own one as a primary residence. I like the idea of locking the front door and walking away unlike a single family home. Still open though to either though. HOA fees of course are another thing to think about.

I guess the direction of our current economy will be the deciding factor. For me, a recession would be a good thing as much as I hate to say that. Without one I don't see homes prices here in California dropping enough to make a difference.

Many aspects to this topic. But, if you can find a place in the right spot, that is accessible (meaning you can logistically get there as often as desired), affordable, and ultimately resalable, and provides a "vacation" type atmosphere, then I say GO FOR IT.

I have a second house. I do chores at both houses. Chores at the vacation house are much more enjoyable! That locations is just not right for us to live year-around, but has an amazing summer appeal. For sure there is a burden of two dwellings, but it works for us and we will have spent at least 15 years that way before I see any changes possible.

 

[calmloki]

At 61 we bought a house in La Quinta Ca - a neighborhood cove surrounded by steep close hills. Turned out it was 2010 and places were CHEAP. Since then we spend about 6 months in the Oregon summer and 6 in the SoCal "winter". Our heating and AC costs are minimal. Beautiful outside all the time.
Does mean driving back and forth every year, which is becoming more onerous as time passes. Fantasy was to go back and forth with a toothbrush, but find we transport a full carload to and fro. At 73 it is getting a bit tougher, but still worthwhile.

 

[Drake3287]

At 61 we bought a house in La Quinta Ca - a neighborhood cove surrounded by steep close hills. Turned out it was 2010 and places were CHEAP. Since then we spend about 6 months in the Oregon summer and 6 in the SoCal "winter". Our heating and AC costs are minimal. Beautiful outside all the time.
Does mean driving back and forth every year, which is becoming more onerous as time passes. Fantasy was to go back and forth with a toothbrush, but find we transport a full carload to and fro. At 73 it is getting a bit tougher, but still worthwhile.

I'll visiting La Quinta Cove this Monday, I'll have a drink for you at the Roadrunner! Driving down as far as Harris Ranch Sunday night before driving on to LQ Monday morning. Yes, that drive get's old fast!

Although we don't golf, LQ and the surrounding area has been on our second home radar. Originally Tahoe but I doubt prices will drop enough for us.

 

[DrRoy]

Just get a good inspection before you make an offer.

 

[Badger]

I can think of at least 3 things at the moment that should be considered - How far do you have to travel to get to the vacation home, how capable are you to deal with maintenance or financially able to pay for upkeep on 2 homes, is it in a location that will make it easy to eventually sell.
I built a nice timber frame house in the mountains years ago. It took 9 hours to get to the construction site (during major holidays and summer) and 9 years to "swing my hammer" to build. Every time I drove up to the house I had to bush-hog around the house before working. About 6-7 yrs after completion I got tired of the drive and maintenance and developed too many medical issues to try and maintain 2 houses. Sadly I finally sold it.

Cheers!

 

[Dawg52]

I was 60(now 68) when I bought my small beach condo. Very little upkeep involved with it. And it's only 3.5 hours from my home so not a bad drive. Will probably keep it another couple of years or so.

 

[Retired Expat]

We have been in the exact same boat. We were looking at a second home in The Villages. After Covid, prices increased from $60,000 to $100,000, depending on the model. Then the demand went through the roof with all the people exiting New York, New Jersey and Illinois, where we live. We actually put in for several new builds with the crazy lottery system they had to use for a while, but we did not win the lotto drawing. Demand has slowed down the last couple of months, all the houses do not go under contract the minute they hit the market and there is an inventory now, but the prices have not come down. Interest rates are not a big factor because a large percentage of buyers pay cash. We are not excited about the location of the new homes on the market currently. There is a location that will be opening up in another month or so with new homes, but I believe the prices there may actually go up more. However, we are having second thoughts about the wisdom of owning a second home. DW and I are in our upper sixties, and even though we enjoy good health for our age, neither of us has the energy level we used to have. Do we want the hassles and extra work of maintaining that second home? Do we want to be tied down to always going there every time we take a trip? Couple that with the current prices that are approaching ridiculous, and the current financial and political climate in our country where you do not know what might happen in the next few years, we have decided that we may be better off without that second home. If we were 10 years younger it would be more tempting. We reserve the right to change our mind, but that is where we are right now.

Bought our vacation home at 58 and am now 63. It takes 20 hours of travel to get there so we only use it for trips of a couple of weeks or more. But otherwise we rent it on AirBnB or do exchanges for other homes when we travel. House costs us nothing to hold as the rentals pay all expenses and upkeep. Only financial question is the loss of earnings on the investment as the rental doesn’t really generate income but provides us a free vacation home that we love. Value of the property is up 80% in 5 years so really no lost opportunity cost . It also allows me to pay others to take care of it but if I am there of course there is always work to do.

It is in a HCOL area while where we live is a VLCOL area . Would not make financial sense to do what we did if not renting it out sometimes. Has really been no problem and keeps me busy managing it from afar…. Hey, I am retired… like I can’t spare a few hours a week? Helps that I am handy and high tech so was able to turn it into a smart home that I can basically control from my phone.

 

[kcowan]

Bought our snowbird condo on 2007, completely renovated it with lots of local help. Sold it in 2018 and bought a newer larger one closer to the water. We keep a PM on contract during our absence. Do not rent it out.

 

[folivier]

Getting ready to close up our mountain cabin and head back to Louisiana for the winter. Lined up a couple local guys to groom the driveway and snowblow the deck so when we come back in January we can get in with the Polaris Ranger on tracks. Our interior roads are closed to wheeled traffic but groomed for snowmobiles and tracked vehicles.

 

[Bamaman]

Like most questions of this type, the answer has to be "It depends."

Without going into boring detail, at 75YO we are in the process of building quite an expensive lake home. Financial insanity. Our family has occupied roughly 1200 feet of beautiful lakeshore since about 1915. The land to the west has been occupied since 1895 by the same family. Last year that land became available and was a hafta-do-it for us. Between us and another family member we have added about 600 additional feet to the compound. We will bequeath this land and house to DS, who will in turn bequeath to another generation. In the big picture, our age doesn't matter except that we had the financial resources to pull it off.

That's absolutely incredible to have amassed such a piece of property. A 2,000 foot lake lot came available across from us--$6.5 million. It's got a great big lake view but is not even the best building property.

My grandmother paid $4,500 in 1945 for 200' of prime lakefront with deep water and a 7 mile sunset view. Good waterfront property on our TN River lake is running $4000 a front foot with a seawall. Our area modern houses average 5,500 square feet. It's just 70 minute drive from our main home.