2nd home versus money in the bank

[ivinsfan]

^ looks beautiful!!

And it confirms the idea that a 2nd home is what you want it to be...this one is just right for us and the family and is inexpensive to boot.

 

[cyber888]

For you, maybe. Not for us. In this thread we are hearing from many who are speaking from theory, never having owned a second home. The difference between theory and practice is that, in theory, they are the same.

I have owned a 2nd home, a log cabin with 3 acres up in the mountain, for several years. DW and I all got tired of the maintenance. Staining, caulking, mowing, planting, fixing things, etc. Every time we go there, we had to work on something.

We sold our 2nd home, and now we rent - we enjoy renting way much more, as we really enjoy our vacation and forget the maintenance part. We also have a timeshare and we stay in 2 - 3 bedroom penthouse-like suites. It's just more enjoyable without the maintenance.

If you enjoy your second home now and have not gotten tired of it, that's good. But it is not theory - I have owned a second home .. been there done that, and we have grown to hate the maintenance. This is first hand experience.

 

[RetireeRobert]

I have owned a 2nd home, a log cabin with 3 acres up in the mountain, for several years. DW and I all got tired of the maintenance. Staining, caulking, mowing, planting, fixing things, etc. Every time we go there, we had to work on something.

We sold our 2nd home, and now we rent - we enjoy renting way much more, as we really enjoy our vacation and forget the maintenance part. We also have a timeshare and we stay in 2 - 3 bedroom penthouse-like suites. It's just more enjoyable without the maintenance.

If you enjoy your second home now and have not gotten tired of it, that's good. But it is not theory - I have owned a second home .. been there done that, and we have grown to hate the maintenance. This is first hand experience.

You convinced me! I relish the prospect of freedom to change places I visit, not be locked into "well, I own this second home, I should go there to get my money's worth out of it" routine. Between the freedom to spice it up with some new adventures, and avoiding the drudge of the chores in what "should be fun time", no second home for me. But, that is just me. Maybe some like going to the same old place time after time, and spending their "off" time doing chores!

 

[Music Lover]

I have owned a 2nd home, a log cabin with 3 acres up in the mountain, for several years. DW and I all got tired of the maintenance. Staining, caulking, mowing, planting, fixing things, etc. Every time we go there, we had to work on something.

We sold our 2nd home, and now we rent - we enjoy renting way much more, as we really enjoy our vacation and forget the maintenance part. We also have a timeshare and we stay in 2 - 3 bedroom penthouse-like suites. It's just more enjoyable without the maintenance.

If you enjoy your second home now and have not gotten tired of it, that's good. But it is not theory - I have owned a second home .. been there done that, and we have grown to hate the maintenance. This is first hand experience.

We have a 3-season lake house 90 kms away that is used spring, summer, and fall. Of course there's maintenance and chores but we knew that before we bought and factored that in. We didn't want to rent because we like having a place that's ours alone with all of our stuff. It's less than an hour away so we can come and go at a moments notice. In winter it's shut down and we take a couple trips somewhere warm.

At some point in the future we'll get tired of the maintenance and it will be sold. In the meantime, we're happily retired and doing exactly what we want.

If someone can afford a second home and are aware of the costs and maintenance involved then they should buy one if that's what they want. It's a personal choice and lifestyle decision that goes beyond the math alone.

 

[street]

We have a 3-season lake house 90 kms away that is used spring, summer, and fall. Of course there's maintenance and chores but we knew that before we bought and factored that in. We didn't want to rent because we like having a place that's ours alone with all of our stuff. It's less than an hour away so we can come and go at a moments notice. In winter it's shut down and we take a couple trips somewhere warm.

At some point in the future we'll get tired of the maintenance and it will be sold. In the meantime, we're happily retired and doing exactly what we want.

If someone can afford a second home and are aware of the costs and maintenance involved then they should buy one if that's what they want. It's a personal choice and lifestyle decision that goes beyond the math alone.

Yes Yes great advise!! If you can, you should, if you want too. Money shouldn't be the deciding factor if you can.

 

[OldShooter]

Actually, my most common maintenance issue with the lake place is trying to remember how much wine is in the racks.

 

[2cheap2eat]

I'm retired and recently enjoyed a month long stay in a VRBO home rental in the Rocky Mountains. My wife and I love the mountains and would consider living in Colorado during the summer and fall seasons but are unable to move from our permanent address (Southeast US) due to family/parent care responsibilities.

We have funds available (taxable) that we don't currently utilize to pay expenses. Has anyone in retirement bit the bullet and sold out of investments, paid the capital gains hit and purchased a 2nd home? At least we'd get some enjoyment out of it instead of the funds sitting in an investment account.

What pitfalls should I consider? Any regrets out there?

If you have funds in a retirement account, maybe you can buy via self-directed IRA. Just another option without the potential withdrawal tax hit. Of course, need to talk to tax professional first.

 

[ER2B]

You convinced me! I relish the prospect of freedom to change places I visit, not be locked into "well, I own this second home, I should go there to get my money's worth out of it" routine. Between the freedom to spice it up with some new adventures, and avoiding the drudge of the chores in what "should be fun time", no second home for me. But, that is just me. Maybe some like going to the same old place time after time, and spending their "off" time doing chores!

Just came home from a 10 day 3 Airbnb stays in 3 states. Mice found a way in the basement, sump pump failed (very close to flooding the basement), grass overgrown, wasp nesting in gazebo. We were just gone 10 days. I can't imagine having a 2nd home.

 

[Keim]

Just came home from a 10 day 3 Airbnb stays in 3 states. Mice found a way in the basement, sump pump failed (very close to flooding the basement), grass overgrown, wasp nesting in gazebo. We were just gone 10 days. I can't imagine having a 2nd home.

That really depends on what you buy and how you set it up. My place is a simple cabin, and as such doesnt have lawn, etc. We turn off the electric and water at the mains when we arent there. Not much to go wrong aside from critter issues.

If the buyer is smart they think of these issues and buy an appropriate locatíon.

 

[Scrapr]

If someone can afford a second home and are aware of the costs and maintenance involved then they should buy one if that's what they want. It's a personal choice and lifestyle decision that goes beyond the math alone.

Our vacation home was great family time. Very good way for me to decompress from running our business. We had so much fun there. My late wife would spend all summer there. I would call her to see when she was going to come home .....I was running low on chips & salsa! She loved it so much we sold the big house & moved there full time. I am so glad that we had that time because she passed shortly after. Bend has a lot of good memories for me.

 

[sheehs1]

For me it was a quality of life decision, has been well worth it and I love my small 1200 sf, 2 bd, 2 bath Bay Front Low Rise (3 story) condo on the Chesapeake Bay (paying cash). I am on the second floor. It's a little over an hour from my primary home in good traffic. I would not have opted for a 2nd home with acreage to maintain because I have that with my primary house and one is enough! Yes I pay an HOA fee but it is relatively low and worth it. The bonus is my grandchildren are in the same area. Had I not purchased this, I would rarely see them, my daughter and son-in-law, attend their soccer games, etc. I have made great new friends here as well!

Prior to purchasing this in 2017, I looked for several years and actually put contracts on homes a state away from me...but always cancelled as it just felt "mentally" heavy for me when I thought about the maintenance, upkeep, etc.

It has appreciated over $100,000 since purchase mainly because it is bay front and the views, sunrises and sunsets are stellar. Units go on the market and sell for above ask within a week. with competing bids. What hasn't appreciated in price the last 5 years?! I don't rent it out because the last thing I want to think about is someone else "sleeping in my bed".

Agree with others who say it is not always a "financial decision". My decision was a "Quality of life decision". I could afford it without breaking the bank or expecting a "financial return".

 

[Dash man]

Well, with two vacation homes, a Florida beach condo and a Jersey Shore single family home, we sink a lot of money into improvements, maintenance and repairs. We recoup most of the Jersey Shore home expenses with renting for 4-6 weeks every summer. We use it primarily in the spring and fall ourselves. Other family use it too. The Florida condo, with a beautiful ocean view from the eighth floor, is so relaxing to visit. It is our biggest financial drain because of the maintenance and management of the building driving up costs.
Are they worth it? The Jersey home is definitely yes. The memories being made there and the ease of only having to drive two hours to get there make it worthwhile. Utilities are inexpensive and insurance reasonable, but taxes hurt.
The Florida condo we love, but aging parent responsibilities have tied us to be close to home for most of the past three out of five years we’ve owned it. Utilities are reasonable but condo fees and assessments keep going up. We wouldn’t get our money out of it if we sold, but if we don’t get to use it more this year, we may put it on the market.

 

[disneysteve]

I'm curious. For those of you who own a 2nd home, did any of you do a long-term rental first? I don't mean a few weeks or months but actually renting a condo or house for a year or two before you committed to buying?

 

[Luvtoride]

Well, with two vacation homes, a Florida beach condo and a Jersey Shore single family home, we sink a lot of money into improvements, maintenance and repairs. We recoup most of the Jersey Shore home expenses with renting for 4-6 weeks every summer. We use it primarily in the spring and fall ourselves. Other family use it too. The Florida condo, with a beautiful ocean view from the eighth floor, is so relaxing to visit. It is our biggest financial drain because of the maintenance and management of the building driving up costs.
Are they worth it? The Jersey home is definitely yes. The memories being made there and the ease of only having to drive two hours to get there make it worthwhile. Utilities are inexpensive and insurance reasonable, but taxes hurt.
The Florida condo we love, but aging parent responsibilities have tied us to be close to home for most of the past three out of five years we’ve owned it. Utilities are reasonable but condo fees and assessments keep going up. We wouldn’t get our money out of it if we sold, but if we don’t get to use it more this year, we may put it on the market.

Dash man, we also have a 2nd home at the Jersey shore and it is so worth the expense. We don’t rent it out but we get extensive use of our condo as it’s only 70 minutes from our primary home in North Jersey. Our kids and grandkids are there with us almost every weekend in the summer and these great times and the memories we make are priceless.
Yes, the cost is high but we’ve factored that into our spending in retirement.

 

[Dash man]

Dash man, we also have a 2nd home at the Jersey shore and it is so worth the expense. We don’t rent it out but we get extensive use of our condo as it’s only 70 minutes from our primary home in North Jersey. Our kids and grandkids are there with us almost every weekend in the summer and these great times and the memories we make are priceless.
Yes, the cost is high but we’ve factored that into our spending in retirement.

Yes! And though we have no plans to sell, it’s nice watching the values increase like they have since we first bought it in 2017.

 

[Dash man]

I'm curious. For those of you who own a 2nd home, did any of you do a long-term rental first? I don't mean a few weeks or months but actually renting a condo or house for a year or two before you committed to buying?

We did not. But we had friends in both places and were very familiar with the areas.

 

[Luvtoride]

I'm curious. For those of you who own a 2nd home, did any of you do a long-term rental first? I don't mean a few weeks or months but actually renting a condo or house for a year or two before you committed to buying?

Yes, we rented for a year in a nearby beach community in the same town to get to know the area and decide where we wanted to purchase. This was very important in our decision to buy and where we bought.

 

[calmloki]

I'm curious. For those of you who own a 2nd home, did any of you do a long-term rental first? I don't mean a few weeks or months but actually renting a condo or house for a year or two before you committed to buying?

No. but Gal grew up about 70 miles away and was going back and forth from Oregon to SoCal for two week stays taking care of her Mom. We both spotted the house on an auction site, I drove south and we bought it. Prior to that we had made an offer on a Prescott home and spent several days at a time in different areas looking at places. Was really difficult to imagine a complete uproot. The second home we ended up with had a number of her high school friends close by.

 

[beanctr88]

A little late to the party on this, but here’s our situation. My wife is spending about 20% of her time in her hometown dealing with family health issues. We had planned on buying a second place there in retirement anyways, but decided to go ahead and do it now.

Financially, it doesn’t pencil out. However, we had issues getting hotel rooms/Airbnb several times since March as they are scarce anytime anything happens at the University.

We are buying a newly built place hoping that this reduces maintenance issues until I retire in a few years. The advantage of being able to go help family and have a place with all our stuff, not living in strange places for weeks at a time out of suitcases is worth the additional cost to us.

We don’t spend much on ourselves and can easily afford it and still meet my retirement date goal. This will allow us maximum flexibility and it is in a town we’ve always loved - not an unfamiliar tourist area.

You can’t let math and money keep you from doing what’s right for your family or your enjoyment.

 

[folivier]

We've had a 2nd home a few times during our working careers. But they were within a couple hours from our home so we could enjoy them on the weekends. When we retired we spent many long trips, months long, in our motorhome.
This Monday we closed on a log cabin in Colorado. Wednesday we started driving and brought the motorhome to a dealer to sell on consignment. Yesterday afternoon we got home for a week, our house seems to have escaped damage from Ida. We'll spend a week here seeing family and getting our fill of local foods. Then head back to the cabin for a couple months.
We ran the numbers comparing the expenses of having our motorhome to a cabin and they should be about the same. This last week has been exhausting. It's amazing how much stuff you can fill a motorhome with. We're exhausted to say the least. And later I'll try to post about buying a cabin from a bachelor. A great guy but cleanliness was not one of his better qualities.

 

[Sunset]

Dash man, we also have a 2nd home at the Jersey shore and it is so worth the expense. We don’t rent it out but we get extensive use of our condo as it’s only 70 minutes from our primary home in North Jersey. Our kids and grandkids are there with us almost every weekend in the summer and these great times and the memories we make are priceless.
Yes, the cost is high but we’ve factored that into our spending in retirement.

Why don't you just move to the Jersey shore home, and enjoy it all the time ?

 

[Dash man]

Why don't you just move to the Jersey shore home, and enjoy it all the time ?

I believe Luvtoride is still working.

In my case, we live in PA and have a lot of family around, our church and taxes are more friendly for retirees. Healthcare is also much better than where our Jersey Shore home is.