Where to buy a warm weather second home?

[Midpack]

I would take the odd Hurricane over the barrage of Tornados some states get. There is always something no matter where one lives. The areas with a better quality of life are the ones most prone to something or another.

Doesn’t mean the risks are equivalent everywhere.

 

[MichaelB]

We’ve owned more than one home for over 20 years, mostly because we moved so frequently. A second home is no easy task and my advice would be to second aja8888, Music Lover and Ronstar, and rent. Airbnb makes it so easy. It won’t be more costly.

Maintenance is much more challenging and extended vacancy is an insurance, security and upkeep risk. Condos as second homes are much easier to deal with. Social networks are very difficult to keep up.

There is no best location because it always depends on what one is getting away from and what tradeoffs one is willing to make, and these are very personal choices.

 

[brett]

One differentiator for some may be the average length of stay. We know people who use their second home for five-six months per year. Others for 3 months.

That difference can translate into huge differences when it comes down to the potential costs and benefits of ownership vs rental.

It was one of the deciding factors for us. Our useage would be 3-4 months and even then we would have been using it as base for travel to other areas. So really 3 months max of actual occupancy and probaby a little less.

 

[OldShooter]

I would take the odd Hurricane over the barrage of Tornados some states get. There is always something no matter where one lives. The areas with a better quality of life are the ones most prone to something or another.

Tornado deaths are generally fewer than hurricane deaths annually but the important difference is that tornado damage is concentrated in small spots spread over large areas, so the statistical risk to an individual home is much lower compared to the larger damage footprint of hurricanes concentrated over smaller areas of land. That is why Florida insurance rates are going nuts and policies are being cancelled where in much of the country that's not the case. Unsubsidized insurance rates are pretty highly correlated with damage risk.

Not sure that I believe higher quality of life is at all correlated with danger from natural disasters. I could believe uncorrelated but not negatively correlated.

Regardless, YMMV.

 

[Music Lover]

Social networks are very difficult to keep up.

This shouldn't be overlooked. We've made several friends at our vacation place in Mexico, thanks to my wife who is very outgoing. We have a breakfast group, a dinner group, I golf with a dozen guys, we have get togethers and barbeques, etc.

We talked to a couple last year that were at the next table to us in a restaurant that had been in Mexico for a couple months and didn't really know anyone and were getting bored. They were nice people and friendly but weren't very outgoing and hadn't made any friends.

 

[latexman]

There may be some places pretty cheap after today in the Big Bend area of FL.

 

[FlaGator]

There may be some places pretty cheap after today in the Big Bend area of FL.

I understand and appreciate the humor, I regularly do it

For the many who have no way of knowing - it was never expensive there. No beach, basically a marshy/bayou/mangrove coast. And that's mostly true of the coastline from Apalachicola east and south to Crystal River.

The town of Perry (SE of Tallahassee) looks to be the closest town of note to landfall of Helene. Its largest employers were a lumber mill and a state prison. Lumber mill has shutdown though. The WM Supercenter is probably #2 now.

 

[corn18]

We were looking at buying a second home in SW Florida for $1M. Once we dove deep, we decided that we could rent a really nice place for the three months we want to get away from OH for 20 years+. The capital risk is just too much for us. Or maybe we just rent a crewed boat for three months. Who knows, but owning a second home is out due to the capital investment required.

 

[FlaGator]

We were looking at buying a second home in SW Florida for $1M. Once we dove deep, we decided that we could rent a really nice place for the three months we want to get away from OH for 20 years+. The capital risk is just too much for us. Or maybe we just rent a crewed boat for three months. Who knows, but owning a second home is out due to the capital investment required.

I agree with your math and risk assessment. The late wife and I considered buying a second home a couple of times, but couldn't make the numbers work to our satisfaction as owners. For us it was a financial, not lifestyle decision, but I understand the lifestyle weighting on the decision.

We decided to invest the money in the market not RE. Life changes, and very happy to not own more RE than my residence when I found myself widowed and single parent. Another low probability risk one might consider, among others.

 

[Asabino]

This is similar to other threads that have come along and it still contains (to me) the same mystery: @Asabino, Do you not care about potential risks when you are evaluating possible destinations? Wild fire, floods, earthquake, hurricane, etc. Also financial risks like a city (Chicago) or state (Illinois) having to raise taxes significantly to avoid bankruptcy. ... If I were looking for a "last house" these would be important considerations for me. When I was 30 I could have handled and recovered from these types of events. Now much older, I guess I have the money to recover but I do not want the year or more of disruption and hassle.

The only possible explanation I have for my puzzlement over this issue is the human tendency toward recency bias (Recency bias - Wikipedia) where recent events (no hurricanes, no earthquakes, etc. ) are over-weighted in decision making.

Not trying to hassle you here. Just genuinely curious why you don't mention these risks. Hurricanes alone would instantly take Florida off my candidates list.

Weather and other factors play into the mix. I suppose anywhere you go, weather and "act of God" circumstances are always in play. I'm looking for vacation/second home - wanting recommendations where we may be interested.

 

[ziggy29]

Good weather, affordable, low risk of natural disaster (and thus no excruciating insurance costs) -- pick any two. I'm pretty sure a place that ticks all three boxes is a unicorn.

When people want to talk about going to a place to retire, they often gravitate to places like Florida or Texas, with no state income tax. But in many cases, the insurance costs there will eat you alive as much as any income tax can, so just be mindful. What you are saving in income taxes could be going to other types of taxes, or to the insurance company.

 

[Asabino]

Are you limiting your search to the US?

Yes sir.

 

[Asabino]

Why not just rent one?

That is one option. We've had a couple of mountain ski resort condos. My kids enjoyed them. Looking to buy something so that they can enjoy the property with their family.

 

[Asabino]

I can tell you where Not to buy one:
View attachment 52473

HAHAHAHA! YUP!

 

[Asabino]

This shouldn't be overlooked. We've made several friends at our vacation place in Mexico, thanks to my wife who is very outgoing. We have a breakfast group, a dinner group, I golf with a dozen guys, we have get togethers and barbeques, etc.

We talked to a couple last year that were at the next table to us in a restaurant that had been in Mexico for a couple months and didn't really know anyone and were getting bored. They were nice people and friendly but weren't very outgoing and hadn't made any friends.

I agree 100 percent.

 

[FlaGator]

We’ve looked for condos in Florida, Myrtle Beach and the Gulf shores. High HOA’s and pending assessments turned us off on these locations. Any recommendations?

If your warm weather requirement includes a nearby beach in the US, it's not obvious to me there are better choices than the ones you've ruled out.

If waterfront/near the beach is in the mix, there are a few places on the Gulf Coast you may want to consider. In FL, the bays north of Pensacola Beach and inland Ft. Walton Beach offer a lot of choices. Beaches aren't far away, but plenty of places on the water, just not the sugar sand beach right out your door. In AL, Fairhope on Mobile Bay is another one to consider. Inland AL also has a number of lakes with housing types that may meet your needs. Lake Martin comes to mind, it's in the southern part of the state, not far from Montgomery and Auburn. Atlanta is a few hours away.

As for the HOA fees, FL condos are ugly right now due to legislation in the aftermath of the collapse of an older, poorly maintained building in Miami-Dade. It could take a couple of years for that to settle out. However, maintenance of a waterfront property will never be cheap. Once the underfunded reserve problem is sorted out, I think it reasonable to expect condo HOA fees will stabilize but be higher than they have been in the past.

For an alternative without nearby water, have you considered Arizona? 4-5 months are miserable, the rest of the year is OK->great. Same as my assessment of the FL Panhandle, but I put a few different months in the miserable category than for AZ.

Good luck on your search, and my compliments for creating this option for yourself.

 

[ShokWaveRider]

Remember Condo Fee usually include insurance. That can be quite a big number.

 

[Ronstar]

Remember Condo Fee usually include insurance. That can be quite a big number.

In our case, the condo HOA fee included insurance on the structure (which is owned by the HOA). I had to get a separate policy for contents.

 

[ShokWaveRider]

In our case, the condo HOA fee included insurance on the structure (which is owned by the HOA). I had to get a separate policy for contents.

Of course, that is normal. Just like Rental insurance.

 

[brett]

Our decision not to buy was based on lifestyle and numbers.

We were on the fence on lifestyle because we prefer to travel to different locations in the winter.

The math was very much on the negative side for us. . Capital, operating, hassle of distant ownership, risk, and the fact that it is an indivisible asset.

Pushed us right over to a no decision. Zero rear view mirror regrets after 13 years.

 

[Trailwalker]

We’ve been in Tucson for a few days now. It’s plenty warm here.

 

[kcowan]

I'm not in the market, but I'd find a way to check how the reserves of the HOA are managed. While weather has impacted insurance rates in FL, the HOA dues spikes and/or huge special assessments have stemmed from (grossly) inadequate maintenance reserves. Plummeting property values stem from both. That could happen anywhere reserves aren't maintained, not just FL. (Foolish) homeowners interested in keeping HOA increases down can make some very short-sighted decisions leaving all condo owners exposed.

Our retired friends in Asheville are rethinking their decision...lucky we visited them 3 weeks ago.

 

[audreyh1]

Our retired friends in Asheville are rethinking their decision...lucky we visited them 3 weeks ago.

It may never happen again in their lifetimes, but it’s a very tough break.

 

[Ronstar]

Our retired friends in Asheville are rethinking their decision...lucky we visited them 3 weeks ago.

DW has now ruled out Asheville for our next home. Thing is - every place has the possibility of a disaster.

 

[6miths]

DW interested in Spain (Malaga) and Portugal (Porto) but OP is US only so those are out.

Looking at some of the hurricane pictures and at Google Maps traffic, it looks like NC homeowners might be headed for a premium increase. Heart goes out!