Should I consider purchasing the family vacation cabin?

[folivier]

This is from your Dad's perspective. We traveled for 12 years once we retired, mostly in a motorhome and also some monthly rentals. We finally bought our cabin. We thought about a beach place since our kids love the beach and it would be close enough for them to use on weekends. But reality steered our decision. They are busy with careers and their kids so realistically would only use it once or maybe twice a year. So the cabin we bought is 1300 miles away in a place DW and I really like. They might come once a year or maybe not. But we enjoy our cabin over half the year.
When they were kids we had a nice weekend place and I thought to keep it once I retired and they were on their own. Thought they'd use it frequently since it was only a couple hours drive. Had a 10 acre lake, on a beautiful flowing river, nice 4 bedroom cabin. But again reality set in so we sold it.
Do what YOU want to do. Your dad will adjust.

 

[street]

Interesting situation I guess I see it both ways.

I think of what will happen to my ranch as I age and when I'm gone. I have made it clear to my son that it never gets sold and stays with someone within his family. In my case there really isn't any upkeep and taxes are cheap. I hope my wishes are kept and is handed down and enjoyed as much as I have enjoyed it.

This will be inherited not sold so there is a big difference from OP. The ownership of some special is a hard thing for me to give up.

 

[marko]

He still seems to love the area but the neighbors are a big issue.

.

New neighbors became a big issue at our old forever home that was in a sort of vacation area. We moved and never looked back!

Memories never seem to live up to the new reality. People, neighbors and values change, sometimes quickly along with a lot less consideration for those around them.

 

[MarieIG]

Interesting situation I guess I see it both ways.

I think of what will happen to my ranch as I age and when I'm gone. I have made it clear to my son that it never gets sold and stays with someone within his family. In my case there really isn't any upkeep and taxes are cheap. I hope my wishes are kept and is handed down and enjoyed as much as I have enjoyed it.

This will be inherited not sold so there is a big difference from OP. The ownership of some special is a hard thing for me to give up.

Street, I expect that it will be.

 

[harley]

There's a more private lot down the road but it doesn't have living quarters so a trailer or RV would be needed. They want quite a bit of money for it (over twice as much as they paid for it five years ago).

Probably best to wait until the market finally cools down, whenever that happens.

I'm not saying whether you should buy or sell, but waiting for the prices to come down is a mistake if you are planning to have a place there. Prices almost never come down.

 

[pacergal]

"I can probably swing it..."
Don't make a financial decision on probably. Either you have the money or you don't.

Do you love the cabin and the area? Is it a place you see yourself going too over and over?Would you be able to do the maintenance/repairs/ etc yourself or need to hire out?
How does all of this fit in while you are still working?

 

[38Chevy454]

Just like all of the other replies, don't buy it. Besides all of the negative points brought up, you have only one reason to buy it and that is sentimental. You even state it would be a financial stretch of some amount for you. Add in all the personal drama and potential family problems, plus now you are on the hook for all expenses and repairs. Being that you are still working, you will now burn all your vacation time having to go to the vacation home to perform upkeep and maintenance. Plus trying to justify the purchase by you actually using it.

I do not see any financial reason it is a good decision. Certainly is a bad decision from emotional aspects. Let your father sell it, he can buy an RV if he wants. Gets him out of the vacation home, and what he does with an RV is not your problem. The RV will need repairs and have breakdowns, it's the nature of them; you need to be able to do some repairs yourself or they will become a money pit paying for everything done by others. There are too many drawbacks for you buying the vacation home, let it go to someone else.

 

[Barry Darsow]

I would say no. In my own case I have always preferred to reduce the cost of our personal infrastructure. That means, renting our apartment, and renting vacation properties as needed. In your case, you seem to have identified a lot of downsides to the purchase, so best to avoid it.

-BB

That's an interesting perspective. So you don't see rent as "throwing money away" as is often stated?

 

[Barry Darsow]

This is from your Dad's perspective. We traveled for 12 years once we retired, mostly in a motorhome and also some monthly rentals. We finally bought our cabin. We thought about a beach place since our kids love the beach and it would be close enough for them to use on weekends. But reality steered our decision. They are busy with careers and their kids so realistically would only use it once or maybe twice a year. So the cabin we bought is 1300 miles away in a place DW and I really like. They might come once a year or maybe not. But we enjoy our cabin over half the year.
When they were kids we had a nice weekend place and I thought to keep it once I retired and they were on their own. Thought they'd use it frequently since it was only a couple hours drive. Had a 10 acre lake, on a beautiful flowing river, nice 4 bedroom cabin. But again reality set in so we sold it.
Do what YOU want to do. Your dad will adjust.

I recall a couple of vacations when I was a really young kid where there were four generations staying at the same place. I guess multi-generational vacations are pretty much a thing of the past. Seems that it's unusual these days for anyone past a certain age to vacation at all with parents.

 

[Barry Darsow]

New neighbors became a big issue at our old forever home that was in a sort of vacation area. We moved and never looked back!

Memories never seem to live up to the new reality. People, neighbors and values change, sometimes quickly along with a lot less consideration for those around them.

Yeah it doesn't take too many "bad" neighbors to ruin a neighborhood.

 

[Barry Darsow]

I'm not saying whether you should buy or sell, but waiting for the prices to come down is a mistake if you are planning to have a place there. Prices almost never come down.

In that area, prices came down quite a bit after the 2008 crash and stayed stagnant for almost a decade before they started going back up.

 

[Barry Darsow]

"I can probably swing it..."
Don't make a financial decision on probably. Either you have the money or you don't.

Depends what you mean by have the money. Pay for cash? Nope. Able to comfortably afford a mortgage? Yes. However, there's no guarantee of remaining employed with the same salary until retirement.

Do you love the cabin and the area? Is it a place you see yourself going too over and over?Would you be able to do the maintenance/repairs/ etc yourself or need to hire out?
How does all of this fit in while you are still working?

Yes to the first two. No to the last point. I'd say both to the third question. I work remote so it could fit but I've never spent more than a week there at a time.

 

[Barry Darsow]

Just like all of the other replies, don't buy it. Besides all of the negative points brought up, you have only one reason to buy it and that is sentimental. You even state it would be a financial stretch of some amount for you. Add in all the personal drama and potential family problems, plus now you are on the hook for all expenses and repairs. Being that you are still working, you will now burn all your vacation time having to go to the vacation home to perform upkeep and maintenance. Plus trying to justify the purchase by you actually using it.

I do not see any financial reason it is a good decision. Certainly is a bad decision from emotional aspects. Let your father sell it, he can buy an RV if he wants. Gets him out of the vacation home, and what he does with an RV is not your problem. The RV will need repairs and have breakdowns, it's the nature of them; you need to be able to do some repairs yourself or they will become a money pit paying for everything done by others. There are too many drawbacks for you buying the vacation home, let it go to someone else.

I think you're right that financially it would not be a good decision. I can only imagine how much money my dad spent to pay interest that will never be recouped even if he sells it for a good sum. Sometimes he says he would have been better off buying a nice house at that time instead.

Yeah, he seems to be assuming an RV will never break down but there will still be maintenance to deal with.

 

[DrRoy]

I grew up loving the family summer cottage on a lake in Canada, and could not imagine not going there forever. By the time my mom died, my wife and I had developed different travel interests and I let my sister buy me out.

 

[Music Lover]

That's an interesting perspective. So you don't see rent as "throwing money away" as is often stated?

Even a paid off place has ongoing costs...insurance, taxes, maintenance, utilities, etc. Those costs are included in any place you rent. But renting removes almost all of the hassle, and if you don't like the place you can stop renting or find another place more suitable.

If you're only going to use a cabin a few times a year it's probably best to rent. If you plan on spending a lot of time there AND don't mind all the work that comes with owning a second property then owning might be the way to go. We have a lake house and every time we come here we have to cut the grass and weed whack. Plus we have to take care of all the normal maintenance issues that come with a home. This is in addition to our city home so obviously it's twice as much work.

 

[OldShooter]

... If you're only going to use a cabin a few times a year it's probably best to rent. ...

Well, different strokes for different folks. IMO there is a huge qualitative difference between an owned cabin and a rental. Pretty much the difference between a city house and a hotel.

When we arrive at our lake place, the spices that DW likes to cook with are in the cabinet. Ditto the pots and pans that she uses for her familiar recipes. Jeans, shirts, and underwear are in the dresser and clothes for different weather are hanging in the closet or on hooks in the back hall. Tools I most commonly use are already there and .... Well, you get the idea. Sure there is a cost to truly having a second "home," but it can be mitigated to a degree by hiring lawn mowing, snow plowing, etc. In the end it's more expensive in time and money, but for us the qualitative differences are huge.

 

[SheitlQueen]

I'd pass on it. Too many issues and it sounds like it needs money put into it and you don't have the time to really go and enjoy it, let alone take care of it. Rent a place a couple weeks a year some place where you really want to go but don't have any responsibilities to.

 

[pjigar]

Let it go. I call the "Vacation homes" as "maintenance homes" unless you can visit at least every other weekend.

 

[Bryan Barnfellow]

That's an interesting perspective. So you don't see rent as "throwing money away" as is often stated?

Not at all. My current rented lakeside apartment, if it were for sale, would cost way more than I am prepared to pay in purchase price, taxes, and ongoing maintenance. I've usually owned my homes when I lived in the US; but I'd rather rent for the rest of my life here in Switzerland (as do most Swiss) than draw down the 35% necessary for the down payment, closing costs, taxes, etc. It's 35% once you are over age 65 here. Also, there is a bit of an ongoing bubble here in real estate and so that would be a worry as well.

That said, my wife and I have invested some of our own money to renovate some areas of the apartment--why not, we plan to live out our lives here and so want it to be a nicer place. Last, there is a kind of rent control here (tied to interest rates, that are generally highly stable and low). We haven't paid even one more franc per month in the 14 years we've been in the flat.

-BB

 

[Music Lover]

Well, different strokes for different folks. IMO there is a huge qualitative difference between an owned cabin and a rental. Pretty much the difference between a city house and a hotel.

When we arrive at our lake place, the spices that DW likes to cook with are in the cabinet. Ditto the pots and pans that she uses for her familiar recipes. Jeans, shirts, and underwear are in the dresser and clothes for different weather are hanging in the closet or on hooks in the back hall. Tools I most commonly use are already there and .... Well, you get the idea. Sure there is a cost to truly having a second "home," but it can be mitigated to a degree by hiring lawn mowing, snow plowing, etc. In the end it's more expensive in time and money, but for us the qualitative differences are huge.

Actually, I agree with most of the above. Our lake house has all of our stuff, we can just jump in the car empty handed and be there in less than an hour knowing that when we arrive everything we need is already there.

But if you will only use it a few times a year then it might not be worth it. The occasional weekend visit becomes a weekend of work and that eventually becomes a burden.

 

[Barry Darsow]

Even a paid off place has ongoing costs...insurance, taxes, maintenance, utilities, etc. Those costs are included in any place you rent. But renting removes almost all of the hassle, and if you don't like the place you can stop renting or find another place more suitable.

If you're only going to use a cabin a few times a year it's probably best to rent. If you plan on spending a lot of time there AND don't mind all the work that comes with owning a second property then owning might be the way to go. We have a lake house and every time we come here we have to cut the grass and weed whack. Plus we have to take care of all the normal maintenance issues that come with a home. This is in addition to our city home so obviously it's twice as much work.

True. That is what my dad is complaining about, taking care of two properties. I can see grass cutting and tree trimming especially burdensome if you ever have issues with your mower or trimmer.

 

[Barry Darsow]

I'd pass on it. Too many issues and it sounds like it needs money put into it and you don't have the time to really go and enjoy it, let alone take care of it. Rent a place a couple weeks a year some place where you really want to go but don't have any responsibilities to.

As I mentioned earlier, I could spend more time there as I work remotely, but if the neighbors are a nuisance and their dogs constantly bark (which my dad again complained about during our last conversation), I can see that getting old really quick.

 

[Barry Darsow]

Let it go. I call the "Vacation homes" as "maintenance homes" unless you can visit at least every other weekend.

It's too far away to visit every other weekend, it would have to be at the very least a three day or four day weekend to make a trip worthwhile.

 

[Barry Darsow]

He was making some more noise about selling our previous conversation. He has been talking about it for the past several years but a neighbor recently got top dollar for their property which seems to be increasing his motivation to sell (that and the annoying neighbors with the barking dogs). He thinks if he doesn't sell soon then it will go down in value and he'd never be able to sell it for what he wants. That's not to say he's made a decision but it seems he's closer to wanting to sell than before.

I'm leaning against buying for reasons stated. He hasn't asked me yet but it seems that he's going to ask me if I am interested before he decides.

 

[Koolau]

DW's parent bought a cabin on a river 15 miles from home. They also bought an RV. They spent all their free time taking the RV up to the cabin to w*rk. Cutting grass, clearing sticks and downed trees, replacing dry wall when the place flooded, etc., etc. They owned it for 40 years and never spent a single night in it. It had no bathroom (FIL with my help) dug a septic system with fingers.) FIL NEVER hooked it up!

If in doubt, don't!