Should I buy a beach vacation home?

[Anonymous]

Anonymous wrote:Buying a beach house will not likely ever be the best investment you can make. But how much money do people really need? It’s fine to choose to buy fun instead of more money than you will ever spend in your life.

The financial part that does matter is whether you can afford it. And that includes considering unexpected expenses, like increased HOA fees and special assessments. So do your homework.

Plus while many are not climate deniers, we don’t all feel compelled to make decisions based on something that’s going to occur generations after we’re dead, like significant rise in water level.

As for flooding, as recent events have shown us, even being inland can’t protect you from flooding.

My plan is to give the extra money to my kids so that they and my grandkids have a leg up. So, within reason I will enjoy my money and make good financial and life decisions - but, I want my genes to continue to have a chance in this world too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Buying a beach house will not likely ever be the best investment you can make. But how much money do people really need? It’s fine to choose to buy fun instead of more money than you will ever spend in your life.

The financial part that does matter is whether you can afford it. And that includes considering unexpected expenses, like increased HOA fees and special assessments. So do your homework.

Plus while many are not climate deniers, we don’t all feel compelled to make decisions based on something that’s going to occur generations after we’re dead, like significant rise in water level.

As for flooding, as recent events have shown us, even being inland can’t protect you from flooding.

People keep mentioning HOA fees which I don’t really associate with owning a SF beach home. It doesn’t seem like many beach houses are in HOA communities.

Are you referring to owning a condo?

There are several SF home communities along Route 1 in Delaware between Dewey Beach and Ocean City where you will need to pay HOA fees as an owner.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If I only listened to the DCUM echo chamber, I would be more worried about owning our beach home and being able to resell it. Because climate change is real, and sure, the stock market would have been smarter purely from an investment standpoint.

The fact is that 40% there are SO many families who still want to buy beach properties -- though maybe that's on the wane in Florida. Maybe because they can afford it regardless of whether it blows away. Maybe because they're climate change deniers. Maybe because they are motivated by emotion and are willing to ignore the risks; they want a gathering place for family that feels more like home than a vacation rental.

And all of that negates the naysaying on this thread. You'll be able to resell your beach house because the psychology still favors buying coastal properties. I'm at our beach house right now. I had two people just this week ask me if we'd think of selling - one who wants to buy, the other who knows someone who is actively looking. Could that change in the next few years? Sure. But right now, it's the weird poster here (who is so freaked out that she's calling names) who is the outlier. No one on our island is freaking out.

Ha Ha you were doing so well until you weeded into bullshit. This did not happen. Folks looking for beach houses don’t ask owners of houses that aren’t on the market if they’re “interested in selling.” They look at the MLS, where there always are plenty of houses for sale in every beach community that attracts renters.

Not PP, but my dad has a place in Fenwick Island and that has happened to him a few times. Not recently that I know of, but this was a few years ago when inventory was pretty low. I'd like for him to agree to sell it soon, and I hope some of those people are still looking.

Sure it has happened to your dad a “few times.” But over how long of a time period? “Twice this week?” I doubt it very much.

Of course, it’s the middle of the summer and you have people in the area vacationing and enjoying themselves and fantasizing about owning their own place, so you can imagine people making fantasy inquiries. But two serious inquiries this week for a house that isn’t on the market? I call bullshit.

Not recently, like I said. It's not people knocking on the door . . . just a few people who sent letters inquiring if he was interested in selling. He does get cold calls from RE agents, but I don't count those. Maybe that's what the PP is referring to?

LOL I get THAT in DC! Means nothing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If I only listened to the DCUM echo chamber, I would be more worried about owning our beach home and being able to resell it. Because climate change is real, and sure, the stock market would have been smarter purely from an investment standpoint.

The fact is that 40% there are SO many families who still want to buy beach properties -- though maybe that's on the wane in Florida. Maybe because they can afford it regardless of whether it blows away. Maybe because they're climate change deniers. Maybe because they are motivated by emotion and are willing to ignore the risks; they want a gathering place for family that feels more like home than a vacation rental.

And all of that negates the naysaying on this thread. You'll be able to resell your beach house because the psychology still favors buying coastal properties. I'm at our beach house right now. I had two people just this week ask me if we'd think of selling - one who wants to buy, the other who knows someone who is actively looking. Could that change in the next few years? Sure. But right now, it's the weird poster here (who is so freaked out that she's calling names) who is the outlier. No one on our island is freaking out.

Ha Ha you were doing so well until you weeded into bullshit. This did not happen. Folks looking for beach houses don’t ask owners of houses that aren’t on the market if they’re “interested in selling.” They look at the MLS, where there always are plenty of houses for sale in every beach community that attracts renters.

There are very very few houses for sale in the upscale beach town we’ve been looking at. Inventory is so low. I fear prices will only rise if rates get cut.

Sure, Jan.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If I only listened to the DCUM echo chamber, I would be more worried about owning our beach home and being able to resell it. Because climate change is real, and sure, the stock market would have been smarter purely from an investment standpoint.

The fact is that 40% there are SO many families who still want to buy beach properties -- though maybe that's on the wane in Florida. Maybe because they can afford it regardless of whether it blows away. Maybe because they're climate change deniers. Maybe because they are motivated by emotion and are willing to ignore the risks; they want a gathering place for family that feels more like home than a vacation rental.

And all of that negates the naysaying on this thread. You'll be able to resell your beach house because the psychology still favors buying coastal properties. I'm at our beach house right now. I had two people just this week ask me if we'd think of selling - one who wants to buy, the other who knows someone who is actively looking. Could that change in the next few years? Sure. But right now, it's the weird poster here (who is so freaked out that she's calling names) who is the outlier. No one on our island is freaking out.

Ha Ha you were doing so well until you weeded into bullshit. This did not happen. Folks looking for beach houses don’t ask owners of houses that aren’t on the market if they’re “interested in selling.” They look at the MLS, where there always are plenty of houses for sale in every beach community that attracts renters.

Not PP, but my dad has a place in Fenwick Island and that has happened to him a few times. Not recently that I know of, but this was a few years ago when inventory was pretty low. I'd like for him to agree to sell it soon, and I hope some of those people are still looking.

Sure it has happened to your dad a “few times.” But over how long of a time period? “Twice this week?” I doubt it very much.

Of course, it’s the middle of the summer and you have people in the area vacationing and enjoying themselves and fantasizing about owning their own place, so you can imagine people making fantasy inquiries. But two serious inquiries this week for a house that isn’t on the market? I call bullshit.

Not recently, like I said. It's not people knocking on the door . . . just a few people who sent letters inquiring if he was interested in selling. He does get cold calls from RE agents, but I don't count those. Maybe that's what the PP is referring to?

LOL I get THAT in DC! Means nothing.

I didn't say that it means anything . . . just that it does happen.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If I only listened to the DCUM echo chamber, I would be more worried about owning our beach home and being able to resell it. Because climate change is real, and sure, the stock market would have been smarter purely from an investment standpoint.

The fact is that 40% there are SO many families who still want to buy beach properties -- though maybe that's on the wane in Florida. Maybe because they can afford it regardless of whether it blows away. Maybe because they're climate change deniers. Maybe because they are motivated by emotion and are willing to ignore the risks; they want a gathering place for family that feels more like home than a vacation rental.

And all of that negates the naysaying on this thread. You'll be able to resell your beach house because the psychology still favors buying coastal properties. I'm at our beach house right now. I had two people just this week ask me if we'd think of selling - one who wants to buy, the other who knows someone who is actively looking. Could that change in the next few years? Sure. But right now, it's the weird poster here (who is so freaked out that she's calling names) who is the outlier. No one on our island is freaking out.

Ha Ha you were doing so well until you weeded into bullshit. This did not happen. Folks looking for beach houses don’t ask owners of houses that aren’t on the market if they’re “interested in selling.” They look at the MLS, where there always are plenty of houses for sale in every beach community that attracts renters.

There are very very few houses for sale in the upscale beach town we’ve been looking at. Inventory is so low. I fear prices will only rise if rates get cut.

I’ll add that I’ve been told by locals that there are less and less rentals available every year because rich people are buying the houses and not renting them out.

Where are you looking? We have a house in the Hamptons that we don't rent, but the town we're in has pretty strict regulations about rentals---especially short-term rentals. That's not a bad thing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If I only listened to the DCUM echo chamber, I would be more worried about owning our beach home and being able to resell it. Because climate change is real, and sure, the stock market would have been smarter purely from an investment standpoint.

The fact is that 40% there are SO many families who still want to buy beach properties -- though maybe that's on the wane in Florida. Maybe because they can afford it regardless of whether it blows away. Maybe because they're climate change deniers. Maybe because they are motivated by emotion and are willing to ignore the risks; they want a gathering place for family that feels more like home than a vacation rental.

And all of that negates the naysaying on this thread. You'll be able to resell your beach house because the psychology still favors buying coastal properties. I'm at our beach house right now. I had two people just this week ask me if we'd think of selling - one who wants to buy, the other who knows someone who is actively looking. Could that change in the next few years? Sure. But right now, it's the weird poster here (who is so freaked out that she's calling names) who is the outlier. No one on our island is freaking out.

Ha Ha you were doing so well until you weeded into bullshit. This did not happen. Folks looking for beach houses don’t ask owners of houses that aren’t on the market if they’re “interested in selling.” They look at the MLS, where there always are plenty of houses for sale in every beach community that attracts renters.

There are very very few houses for sale in the upscale beach town we’ve been looking at. Inventory is so low. I fear prices will only rise if rates get cut.

I’ll add that I’ve been told by locals that there are less and less rentals available every year because rich people are buying the houses and not renting them out.

Where are you looking? We have a house in the Hamptons that we don't rent, but the town we're in has pretty strict regulations about rentals---especially short-term rentals. That's not a bad thing.

We’re looking at an affluent beach town in NJ. Don’t want to say where because of the nut that is on this thread. Yes, I think that’s right that it’s not a bad thing, especially with limits on short term rentals. We would not plan to do that but might rent during the peak season for a few years before we renovate.

[Anonymous]

I laugh when people say "don't buy a house at sea level because of global warming!" even though I do believe global warming is real.

Know what else is at sea level?:

New Orleans, Louisiana
Miami, Florida
New York City, New York
Boston, Massachusetts
San Francisco, California
Charleston, South Carolina
Norfolk, Virginia
Long Beach, California
Galveston, Texas
Atlantic City, New Jersey
Wilmington, North Carolina
Tampa, Florida
Savannah, Georgia
Oakland, California
Honolulu, Hawaii
Amsterdam
New Orleans
Jakarta
Bangkok
Venice
Rotterdam
Tokyo
Lagos
Alexandria
Dhaka
Mumbai
Manila
Ho Chi Minh City
Singapore
Karachi
Copenhagen

Many more people than beach house owners are gonna have issues. As in, everybody on earth.

So go ahead and enjoy that beach house while you can. I sure enjoy the hell out of mine!

[Anonymous]

Anonymous wrote:I laugh when people say "don't buy a house at sea level because of global warming!" even though I do believe global warming is real.

Know what else is at sea level?:

New Orleans, Louisiana
Miami, Florida
New York City, New York
Boston, Massachusetts
San Francisco, California
Charleston, South Carolina
Norfolk, Virginia
Long Beach, California
Galveston, Texas
Atlantic City, New Jersey
Wilmington, North Carolina
Tampa, Florida
Savannah, Georgia
Oakland, California
Honolulu, Hawaii
Amsterdam
New Orleans
Jakarta
Bangkok
Venice
Rotterdam
Tokyo
Lagos
Alexandria
Dhaka
Mumbai
Manila
Ho Chi Minh City
Singapore
Karachi
Copenhagen

Many more people than beach house owners are gonna have issues. As in, everybody on earth.

So go ahead and enjoy that beach house while you can. I sure enjoy the hell out of mine!

Bingo!

[Anonymous]

I can see the appeal if we had family nearby that would come regularly. Otherwise when we I think about I I realize that between seeing family in California, wanting to explore the world, not es ting to deal right repairs, concerns about climate change and not having g a lot of time off I prefer to rent a week or two a year. If I were to buy any second property now it would be outside the us (either small Paris apartment or larger property outside Paris).

[Anonymous]

Anonymous wrote:I really want a beach house and have looked extensively for one. I cannot find an area that I like that also isn’t at huge risk of flooding and erosion. So for now I am not buying one. I am trying to convince myself that I will like a house high in a cliff in Maine. But really I want a house right on the ocean at the Charleston SC beaches.

We are at that house right now. It's wonderful, I will say! But I will be ready to return to DC in a few weeks; it's definitely a vacation house.

[Anonymous]

Anonymous wrote:I would only buy a beach house if I could afford for it to be a complete failure as an investment. I would expect renters or squatters to trash it when I'm not there. I would expect the cost of insurance to triple over the next 5-10 years. And i would expect if I tried to sell it, it would be at a big loss. If you can stomach these real risks, then go for it.

We've owned a beach house for almost 15 years and none of these things has happened. Squatters? Please. Summer renters are hard on it, sure, but they don't "trash it" and it's nothing that a good cleaning service can't take care of. The cost of insurance is rising, but so far, not that much. And we regularly get cold calls with offers on the house that are many times what we paid for it.

I think you're dreaming up problems. There are cons to owning a beach house, but none that you have mentioned.

[Anonymous]

Anonymous wrote:I laugh when people say "don't buy a house at sea level because of global warming!" even though I do believe global warming is real.

Know what else is at sea level?:

New Orleans, Louisiana
Miami, Florida
New York City, New York
Boston, Massachusetts
San Francisco, California
Charleston, South Carolina
Norfolk, Virginia
Long Beach, California
Galveston, Texas
Atlantic City, New Jersey
Wilmington, North Carolina
Tampa, Florida
Savannah, Georgia
Oakland, California
Honolulu, Hawaii
Amsterdam
New Orleans
Jakarta
Bangkok
Venice
Rotterdam
Tokyo
Lagos
Alexandria
Dhaka
Mumbai
Manila
Ho Chi Minh City
Singapore
Karachi
Copenhagen

Many more people than beach house owners are gonna have issues. As in, everybody on earth.

So go ahead and enjoy that beach house while you can. I sure enjoy the hell out of mine!

I don't really find the argument "Ho Chi Minh City is also going to have flood problems, so the fact that my beach house won't be insurable in the next 5-8 years is fine with me!" very persuasive.

Investing, or even building, in an area that is only going to be more and more exposed to potentially destructive weather is crazy. Even if you're not looking at a beach house as an investment, it just doesn't seem like a good long-term play. It's not going to be a generational asset, and it's just going to be more and more of a pain in terms of maintenance.

It becomes everyone else's problem when beach house owners start expecting financial bailouts for their bad decision making.

[Anonymous]

If I had the money, I'd buy a beach house in Kauai or a lake house in Whitefish or Flathead Lake, MT. But I think we'd need to be over $30m for it to make sense, and so far, we've had great luck renting in both places. The house in MT we like has a private dock, and we can rent a boat for our trip.

[Anonymous]

Anonymous wrote:I laugh when people say "don't buy a house at sea level because of global warming!" even though I do believe global warming is real.

Know what else is at sea level?:

New Orleans, Louisiana
Miami, Florida
New York City, New York
Boston, Massachusetts
San Francisco, California
Charleston, South Carolina
Norfolk, Virginia
Long Beach, California
Galveston, Texas
Atlantic City, New Jersey
Wilmington, North Carolina
Tampa, Florida
Savannah, Georgia
Oakland, California
Honolulu, Hawaii
Amsterdam
New Orleans
Jakarta
Bangkok
Venice
Rotterdam
Tokyo
Lagos
Alexandria
Dhaka
Mumbai
Manila
Ho Chi Minh City
Singapore
Karachi
Copenhagen

Many more people than beach house owners are gonna have issues. As in, everybody on earth.

So go ahead and enjoy that beach house while you can. I sure enjoy the hell out of mine!

I would not buy house in any of those places for the flooding reasons alone.