Stats for purchasing a second home and is it a good idea?

[Anonymous]

We are considering the purchase of a second home and are trying to determine how prudent it might be. Our stats:
• HHI of $300k plus bonus potential of $20-$30k
• Three children (oldest is 12) in good public schools
• Primary residence PITI is $2,400 ($350k remaining on $550k mortgage; home value ~ $700k); no other debt
• Well-funded retirement and college accounts (close to meeting our goal of having in-state tuition covered for all three children through a combination of Virginia 529 Invest and Prepaid accounts)
• Approximately $150k cash available for second home down payment

My dream has always been to have a place somewhere on the water, a very modest cottage would be great, where our family can get away during weekends, summers and other breaks. Somewhere relatively close (within two hours). We are very much into hiking, kayaking, and generally spending time outdoors. I know that the real estate market is not optimal now, but as my children grow older I am really coming back to this idea and wondering if we could make it work. My job of 20+ years is very stable and nearly all-remote now, with the occasional in-office visit, so working from this home for much of the summer would be entirely possible. My husband's job is similarly stable and allows for some flexibility in where he can work. Both sets of grandparents are local and we would love to have a place for them to get away and spend time with the family. I know that second homes are a lot of work and I may be romanticizing how much we would use it, especially given travel sports and other commitments, but I really think it could be wonderful. Perhaps we should wait to see if the real estate market comes down sometime within the next year or so? We definitely have sticker shock with some of the listings we see these days. We have even considered purchasing land and building at some point down the road. Any advice, insight or other opinions would be appreciated.

[Anonymous]

Yes, I think it’s fine. I would consider buying a place you can rent some prime weeks a year to off set the cost.

[Anonymous]

You don't account for the maintenance, upkeep, and furnishings of the 2nd home.

I don't know that you can get your "cute lakeside/lakeview " cottage with a $300k income and juggling your current mortgag.. Where would this property be??

And interest rates are climbing right now.

[Anonymous]

With 3 kids, so you have the freedom to take off for weekends? We have a few vacation homes but using them becomes much less frequent now that the kids have a lot of activities. We sold one for this reason.

[Anonymous]

I’m curious where this location is? I’d love a place on the water and have plenty of money to spend but with three kids it’s difficult to find time to go away on the weekends.

[Anonymous]

Properties are so expensive. You won’t be getting a vacation home on the water for your budget.

I have a vacation home, but I purchased it in 2009 so my PITI is $700/mo. Vacation rental income has taken a nose dive in the last 3 most because everyone has your idea. I’m very glad I don’t need that income at all. It was a nice to have.

You’ve be buying at an inflated price, high interest rates, and at your price point guaranteed very piss poor income potential. If will be way cheaper for you to rent the same types of place for an extended time.

[Anonymous]

OP could get something in WVA but it wouldn't be waterfront or anything close to it.

Could also get something on the eastern shore, but again, not close to waterfront.

Also, OP is not accounting for the weekend tube they are about to hit with three kids and 12 y.o. is the oldest. Count on the next 6-8 years as being a no-go for leaving the area on weekend.

[Anonymous]

Anonymous wrote:I’m curious where this location is? I’d love a place on the water and have plenty of money to spend but with three kids it’s difficult to find time to go away on the weekends.

This. I have exactly zero weekends free between now and the end of July.

[Anonymous]

Anonymous wrote:OP could get something in WVA but it wouldn't be waterfront or anything close to it.

Could also get something on the eastern shore, but again, not close to waterfront.

Also, OP is not accounting for the weekend tube they are about to hit with three kids and 12 y.o. is the oldest. Count on the next 6-8 years as being a no-go for leaving the area on weekend.

I only agree if your kids are in travel sports. Lots of kids don’t play travel sports and do have leisure time and time to spend making memories with family. We have friends who explicitly opted out of anything, but rec and have spent the last 10 summers traveling the country in their RV. They spend the weekend in winters at their cabin in cannan valley and ski all winter.

[Anonymous]

You can afford a second home but I doubt on the water. There are communities where you can buy the structures and rent the land. That’s an affordable way to be on the water.

As for weekends. We have kids and they’ve been in sports including travel. You just go when you can during those years. We love our second home and have never regretted it. It will be our retirement home.

[Anonymous]

I did this! It’s great. I’m so much happier now.

I kept my house in Nova and bought on Pamlico sound. I can always rent the beach cottage.

I did change my primary residence. Advantages to that.

[Anonymous]

Ps my cottage has a water view and was $275k in 2020.

[Anonymous]

This is a heart decision, not financial, right?
It is cheaper to rent a hotel room or Airbnb for all those occasions than to buy a 2nd home. Renting places allows you to switch were you all go.

[Anonymous]

We bought a place on the water in Talbot County and are very glad we did. Maybe slightly higher hhi than yours.

It isn’t really that much work. It can be expensive, especially if there is a pool.

Myone concern would be the three kids at that age. You are just entering the age of activities. My guess is you won’t have many free weekends forthe next decade.

[Anonymous]

OP here. Thanks very much for all of the replies. One of our children has been involved in a pretty intense travel sport now for two years and the other two are busy with sports and other activities as well, so we are pretty well into the booked up weekends phase. We are finding, though, that there are periods of time in the year where we are much less busy as a family and that is when I could see us taking advantage of a vacation home. I realize that this could change as they get older. As for real estate prices, I definitely wish I could turn back time a few years - ha. We would love to stay around $300k, which was more feasible not too long ago where we are looking. This may just remain a dream, at least for a while yet, but I still love hearing others' stories - both the good and not so good.