Building A Pool - Loan Question

[HillCountry]

The other alternative is to move to a community with pool. Plenty to choose from.

 

[pb4uski]

Having owned a home with a pool for over 25 years... never again... and certainly would not pay $100k and 25% of the value of the home to put one in... but its your money.

IME after the novelty wears off the pool gets limited use but YMMV.

With respect to your OP, your best bet is probably to try to do a construction loan for the pool and then roll it into a refinance... you may be able to finance some but not all of the $100k.

 

[6miths]

Another 25 year pool owner (in a 5 month season and 4 children). It's a personal decision as pointed out. Does come at a significant cost in time and dollars and will not add much value to the house. The associated hardscaping adds reasonable value but the pool not so much and certainly decreases the number of people who will eventually consider buying the house. I think the better idea is what people have pointed out is to buy a house with a pool for those who desire one. Not your situation though. Make sure to be able to fence the pool off completely.

 

[CaliKid]

Join a country club and save the money. I have a pool and there are lots of added costs beyond the initial build. Pool guy, filters, solar, heater, re-plaster, etc.... I'd skip it.

 

[kgtest]

Let me add that I could pay for this pool with cash. But I figured why not finance for a month or so, then pay it off.

If there was an emergency, I'd rather still have the cash around.

I'm open to your opinions. Homes in my zip code with a pool are going for 600k to 800k and up.

What foreseeable emergency could cost 100k? It sounds like you are looking for permission, which I do not grant. How many spa memberships could you obtain for that cost? I think a lifetime.

Why oh why is that pool so much money? I would get second, third and fourth bids, talk to some CPA about your finances, and definitely want to know your income history and earning power if I were the lender...oh and I would want some collateral or cash downpayment.



edit to add my in-laws maintain a pool and have for almost 20 years now, but he's a retired cardio and can basically afford whatever the hell he wants. Its a long term non-equity investment, meaning an investment into experience, that will not return anything if not make it harder to sell. With that said, the memories might be worth the $5,000/yr annual initial investment + upkeep.

You will save on some swimming lessons, but the cost to fill the pool later probably negates the savings

 

[ExFlyBoy5]

Austin , real estate will always give you a good return , Folks in Houston are calling Austin little LA.

Is this a throw back post from 2006?

 

[GravitySucks]

Let me add that I could pay for this pool with cash. But I figured why not finance for a month or so, then pay it off.

If there was an emergency, I'd rather still have the cash around.

I'm open to your opinions. Homes in my zip code with a pool are going for 600k to 800k and up.

Finance for a month or two.
You must think there are no origination fees involved. Even if that's the case, why go through with the headache of figuring out what type of loan and the application process?

 

[GravitySucks]

Austin , real estate will always give you a good return , Folks in Houston are calling Austin little LA.

In the early 80s I worked for a company located in Dallas and always heard Dallas real estate always gives a good return. I had a 72 yr old co worker come back to work because he invested in rentals in the can't lose area. Got rich fast, then went broke fast.

 

[foxfirev5]

A pool is like a boat that you can't move. We've had/have both. Beyond the initial purchase maintenance is a big drag. It's a vacation that never ends with continued expense. It's a lifestyle choice with no financial rational to justify it. But, if you must, enjoy it!

 

[rdy2go]

As a pool owner of sixteen years near Austin, I'd ask a knowledgeable real estate agent if they think a pool really adds any value to a home. Personally, I don't think it does. What part of Austin are we talking about, Circle C, Tarrytown, Hyde Park? Your location may also factor into whether or not it would be a good investment.

 

[REWahoo]

The other alternative is to move to a community with pool. Plenty to choose from.

+1

We lived in a nice subdivision with a community/HOA pool when our kids were young. The HOA sponsored a swim team and the kids spent summer mornings practicing for Saturday swim meets vs. other subdivisions. Great exercise and a sure-fire antidote for the dreaded "I'm bored!" disease.

Both our kids got certified as lifeguards and worked at the pool during HS and on summer break while in college.

 

[48Fire]

Wife and I are putting in a pool and will most likely finance it.

- Rough cost $100k
- Balance on current mortgage about 298k
- If we were to sell our home today (without the pool being built) it would go for about 420k

What type of loan do you all suggest? One person said we'd need a 2nd lien for a home improvement loan since there's not enough equity. Would a HELOC be better?

Just looking for additional options here. Thanks!

We built a pool with similar numbers in 2001. Of course, that was before the housing bust, so maybe lenders will be a little more reluctant.

And as far as the "value" of a pool, and the "bad investment", it's really your decision. We just built our second pool, living in Florida full-time after ER. It's a must for me. Yesterday I was in it four times! After the morning walk, then after some yard work, then afternoon walk, then a cold one to end the day

There are many items that don't make good investments. Any vacation, any nice meal at a great restaurant, cars, etc. As long as you are not impacting ER or whatever goals you have, then I don't see a problem

 

[Scuba]

Austin , real estate will always give you a good return , Folks in Houston are calling Austin little LA.

Real estate is cyclical. If Austin is truly becoming like LA, real estate prices will swing wildly in a downturn. We own on oceanfront condo in a beach community in Southern CA. It declined by 30% in the last recession, and is now worth about 20% more than what we paid for it. Our financial investments have performed far better over this time period. I certainly wouldn’t count on appreciation covering the cost of a pool.

Also, I would question putting in a $100K pool for a $420K house. Seems like an over investment relative to home value. And I agree with other posters that it’s not a smart financial decision to finance this. Generally I am a fan of mortgage debt but not to the extent of virtually eliminating home equity.

 

[ncbill]

I get the want for a pool in a hot weather market. However they are horrible investments from a return standpoint. Plus you have a whole generation that won't buy a house because the kids could fall down the stairs or they could be on a different floor. Throw in a pool and you've cut out 70% of the potential buyers right there. So with a pool comes liability. If you have a pool you'd better have a $2 million umbrella policy.

Liability is a huge concern.

Personally I would not have a backyard pool without designing it to standards for public/community pools - here that's a separate fence (minimum 4 feet) & self-closing gate w/ special child-resistant latch.

 

[athena53]

Liability is a huge concern.

Personally I would not have a backyard pool without designing it to standards for public/community pools - here that's a separate fence (minimum 4 feet) & self-closing gate w/ special child-resistant latch.

Years ago our local paper had a story about a woman who was fighting her HOA because the fence she wanted to put up around the pool was too high given the limitations in the Association's Restrictions. IIRC, it wasn't anything crazy like 12 feet- it was enough to keep uninvited kids out, which any sensible pool owner would do.

Fortunately we had no such issues and had a nice tall fence- and a $2 million umbrella policy.