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Old 06-20-2020, 07:31 PM   #21
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I think he wants to get to the other "family" side of the lake..
Get it now.
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Old 06-20-2020, 10:19 PM   #22
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I bought a place in Florida in March, and had plans to fly down there for 3 months to get it all set up.

The virus shutdown hit. I ended up cancelling my flights, and I still haven't made it down there. My plan is mid October now.

Your comments about working on your new Florida place are getting me all fired up. I'm looking forward to doing the same.

..
That photo you posted is that the FL place ?

As to going to FL to work on a place, why wouldn't you drive ?
When I go to my cottage, driving is the only possibility as I bring 5 toolboxes, chainsaw, and sometimes a generator. Along with other stuff.
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Old 06-21-2020, 03:50 AM   #23
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I would ignore the age part.

I have friends who are in their 30s and 40s who could not take care of a 2nd home. Others who are in their 70s who are totally up to it.
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Old 06-21-2020, 06:49 AM   #24
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Sunset,
The photo is my lake cabin in Minnesota.
I also load up my truck with tools and gear when heading up to my cabin.

I plan on driving to my Florida place for the same reason this fall.

I was going to fly down to my Florida place this spring for a short visit to get it all set up, because I had just gotten home from driving down there for the winter. I rented last winter.



I cancelled my flight and plans, because of Covid. There were shutting everything down at the time.


JP
Quote:
Originally Posted by Sunset View Post
That photo you posted is that the FL place ?

As to going to FL to work on a place, why wouldn't you drive ?
When I go to my cottage, driving is the only possibility as I bring 5 toolboxes, chainsaw, and sometimes a generator. Along with other stuff.
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Old 06-21-2020, 07:25 AM   #25
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Sunset,
The photo is my lake cabin in Minnesota.
I also load up my truck with tools and gear when heading up to my cabin.

I plan on driving to my Florida place for the same reason this fall.

I was going to fly down to my Florida place this spring for a short visit to get it all set up, because I had just gotten home from driving down there for the winter. I rented last winter.

JP
We have a lake cabin here in the Upper Peninsula of Michigan, so not too far from you. I actually have the cabin up for sale right now, as we don't use it as much as we used to, and I'd like to use some $$ from the sale of the cabin to do some improvements to our new Florida house.

Our house is in west-central Florida, on the Gulf. Great place for kayaking and fishing, which are two of my favorite things to do. Always a little tense at this time of year during hurricane season, so I keep a close eye on the tropical storm updates from down there. It's way too hot and humid down there now for me, but I'm hooked on spending winters there. We also drive, and I also haul plenty of tools with me, for house projects.
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Old 06-21-2020, 08:34 AM   #26
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We have a lake cabin here in the Upper Peninsula of Michigan, so not too far from you. I actually have the cabin up for sale right now, as we don't use it as much as we used to, and I'd like to use some $$ from the sale of the cabin to do some improvements to our new Florida house.


Our house is in west-central Florida, on the Gulf. Great place for kayaking and fishing, which are two of my favorite things to do. Always a little tense at this time of year during hurricane season, so I keep a close eye on the tropical storm updates from down there. It's way too hot and humid down there now for me, but I'm hooked on spending winters there. We also drive, and I also haul plenty of tools with me, for house projects.

RAE,
My cabin is only an hour away from my Minnesota home, so a short drive.
I own it with my cousin, and it works out very nice. I'm up there every other weekend in the summer, and I have a partner/friend to help me maintain and fix up the place. We also split all of the costs. I have no plans to get rid of it, unless I choose to stay in Florida full time.


I'm hoping that I enjoy my new Florida place as much as you enjoy yours.



I'm also located on the gulf side, and have plans to be very active in the winter. This sounds much better to me than sitting around inside my house during a long Minnesota winter.


Take care, JP
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Old 06-21-2020, 09:02 AM   #27
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OP again. I'm jealous of you guys with the different cabins and Florida second homes. I watch all those different House Hunter real estate shows and see these people buying great vacation homes for $300k or so. I'd jump at that chance!

If I stretch it I'm looking at $500k and that's for a non-lake cabin or condo. Prices in California are unreal plus add in huge California property taxes and it's nearly impossible to buy anything.
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Old 06-21-2020, 09:13 AM   #28
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... Prices in California are unreal plus add in huge California property taxes and it's nearly impossible to buy anything.
FWIW I wouldn't consider buying in any of the states with serious financial problems like CA and IL. Far too risky.

More: https://www.pewtrusts.org/en/researc...nding-gap-2017 and many other places.
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Old 06-21-2020, 09:18 AM   #29
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OP again. I'm jealous of you guys with the different cabins and Florida second homes. I watch all those different House Hunter real estate shows and see these people buying great vacation homes for $300k or so. I'd jump at that chance!

If I stretch it I'm looking at $500k and that's for a non-lake cabin or condo. Prices in California are unreal plus add in huge California property taxes and it's nearly impossible to buy anything.

Drake,
My old cabin is basically a shack. We purchased it very cheap a few years after the 2008 recession, when the property values hadn't gone way back up yet.


My new Florida place is not fancy. It is in an older, but nice, town home community. It was maintained well, has low association costs that maintain the grounds and beautiful community pool, and it has a beautiful screened in porch with a private outdoor patio. The porch and patio are the highlight of the town home.



It was under $250K. That was a big purchase for me, but I've been reading the "Blow That Dough" thread for awhile now, and I'm in a can't take it with you mode.



I also decided that I'm just diversifying my retirement assets. Kind of funny.



If I run low on cash I'm going to purge my long time Minnesota home, and live in a trailer and my MN cabin for 5 months each summer.

Travel around visiting friends, and quit working at maintaining my old house. This is crazy talk on my part.



I don't think that will be necessary for financial reasons, but you need a plan B. I sort of want to do the trailer thing regardless of my financial situation.


JP
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Old 06-23-2020, 01:20 AM   #30
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Long story short: Our (former) upstairs neighbors purchased their condo before retirement. Their kids used it some and they vacationed there on occasion. When fully retired, they moved in for a couple of years and totally rehabbed it. Their kids moved to Chicago, so they sold their condo, bought a condo in Chicago AND in Florida. Now they sort of split their time between Chicago and Florida.

My take away is that you really need to know yourself (our neighbors could not stand to be away from their adult children) before you buy a vacation home (or move "away" for that matter.) Of course, YMMV.
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Old 06-23-2020, 06:34 AM   #31
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FWIW I wouldn't consider buying in any of the states with serious financial problems like CA and IL. Far too risky.

More: https://www.pewtrusts.org/en/researc...nding-gap-2017 and many other places.
I found a slightly newer report for 2018 on their website. Illinois remains in the worst group, but California is in the middle group with a 70% - 79% funding level. Of possible interest to retirement home buyers is the fact that two states which are often mentioned as destinations to retire to, Colorado & S. Carolina, are in the worst group with pension funding levels below 60%.

https://www.pewtrusts.org/en/researc...nding-gap-2018
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Old 06-23-2020, 07:38 AM   #32
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I don't think it is the age part.

It is the requiring a 30 year mortgage to buy a luxury.

If your finances prevented you from doing it up to 60, chances are finances are still preventing you from doing it today.

I would not buy if it will dent or stretch or limit your retirement prospects. If the amount does, then renting for the weeks you can spend there is a better use of funds.
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Old 06-23-2020, 08:22 AM   #33
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I had a vacation house in South Lake Tahoe for about 10 years. I spent half of my work time in the Sierra mountains so it suited me to split my time 50/50 between my main house in the Bay Area and Tahoe.

If you're set on a second home then I guess you will go ahead but don't expect to do anything but lose a load of money on it. I worked in Finance and so kept good money records. The total cost of ownership including maintenance, mortgage interest, taxes and insurance was approximately 30k per year over the 9 years. Mine was a new build and so I didnt have to put a lot into it at the beginning. I did sell it for about 50k more than I paid and I was really lucky to sell at a good time - bought in 2009 and sold in 2018. If you dont keep tabs on the pennies or if you listen to the realtors, I made 50k on the investment. Of course the truth is it cost me 270k to make the 50k so I really lost 220k. This is how it is with vacation homes. It was fun owning it but for an elderly person it had lots of stairs and the winters are 5 months long and you will have to shovel a huge amount of snow. For about 3 months of the winter the place is covered with sheets of ice on the frozen ground so expect to fall a few times. Not great if you have brittle bones.
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Old 06-23-2020, 08:58 AM   #34
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.... If the amount does, then renting for the weeks you can spend there is a better use of funds.
Many people don't recognize the real costs of a vacation property, especially the opportunity cost of money. When I look at the places on our lake, a modest property costs $300-400k, so that's $15-20k a year at a modest 5% opportunity cost. Add in 2% of value for property taxes, insurance and maintenance and you're probably at $23-30k a year of all-in cost.

Meanwhile you can rent a place for $1-2k a week. Now the nice part of owning is that you turn the key and all your stuff is there, but the cost is significant if it is just a financial decision.
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Old 06-23-2020, 09:01 AM   #35
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....Of course the truth is it cost me 270k to make the 50k so I really lost 220k. ...
Huh?

How do you figure that you really lost $220k.

Math is hard?
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Old 06-23-2020, 09:06 AM   #36
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... the cost is significant if it is just a financial decision.
Exactly. Viewed as an investment I doubt that very many second homes are attractive and certainly they are high risk. But for most of us, the cost is a lifestyle expense just like travel, hobbies, charitable donations, etc.

For someone who has to break even or make money from a prospective second home purchase, it is probably better to invest somewhere else.
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Old 06-23-2020, 09:06 AM   #37
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Huh?

How do you figure that you really lost $220k.

Math is hard?
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The total cost of ownership including maintenance, mortgage interest, taxes and insurance was approximately 30k per year over the 9 years.
Apparently they is.
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Old 06-23-2020, 09:12 AM   #38
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Apparently they is.
If you own a home for 9 years and PITI is $30k a year and you sell for what you bought for have you "really lost" $270k? No, not at all since you got 9 years of use of the property.

I guess if one ended up buying a second home and not using the place at all then it is arguably $270k wasted.... but not lost. The $30k a year cost of ownership is something that you knew or should have known about when you bought.
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Old 06-23-2020, 09:28 AM   #39
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Long story short: Our (former) upstairs neighbors purchased their condo before retirement. Their kids used it some and they vacationed there on occasion. When fully retired, they moved in for a couple of years and totally rehabbed it. Their kids moved to Chicago, so they sold their condo, bought a condo in Chicago AND in Florida. Now they sort of split their time between Chicago and Florida.

My take away is that you really need to know yourself (our neighbors could not stand to be away from their adult children) before you buy a vacation home (or move "away" for that matter.) Of course, YMMV.
Yes one of the factors for us buying in PV was that it is 4.5 hours flying time from Vancouver and 5 hours flying time to Toronto where kids and grandkids live. Or course that assumes that flying again becomes practical and affordable?
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Old 06-23-2020, 09:42 AM   #40
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Many people don't recognize the real costs of a vacation property, especially the opportunity cost of money. When I look at the places on our lake, a modest property costs $300-400k, so that's $15-20k a year at a modest 5% opportunity cost. Add in 2% of value for property taxes, insurance and maintenance and you're probably at $23-30k a year of all-in cost.

Meanwhile you can rent a place for $1-2k a week. Now the nice part of owning is that you turn the key and all your stuff is there, but the cost is significant if it is just a financial decision.
Depending upon location (remote, tranquil) sometimes you turn the key and find some local "person" has broken in and stolen some of your stuff.
So there is the extra cost of fixing and replacing stuff. I personally estimate it to be $300/yr.

I can go years without trouble, and then the next Spring, find the door broken open and find anything of value is gone.

I cannot store any tools beyond a $5 hammer in the place, in the past from my place and neighbors stolen things included:
guns, outboard motors, generator, wood stove (these are extremely heavy), installed shower enclosure (someone had to un-install it), propane lights, canoe, aluminum boat, etc.

It's always a potential surprise on the first Spring trip to the cottage.
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