Vacation and Weekend Homes

[Anonymous]

This comes up again and again. A second home isn’t free but I can afford it and we split our time between DC and our second home. Yes there are taxes and maintenance costs but our house has also appreciated significantly so we are way ahead on our investment.

Finally, it’s not really a “vacation” house since we work remotely, but it’s nice to be on the beach in the evening and on weekends. We still take vacations to a variety of places.

I see both sides - we’ve considered buying a ski house as well but I prefer to ski in different places so don’t want to be tied to one place.

[Anonymous]

Anonymous wrote:

Anonymous wrote:People here often write that second homes are a waste of money and pointless, and that people should rather invest the money and go on vacations. My thoughts about this are different - they are really a financial commitment for the people who buy them, but they offer so much more once they’re paid off. They’re basically a free place to spend extended holidays/vacations, an anchor to explore and travel to other places from, a place where families build memories. Most people I know have vacation homes (1 or 2), where they go every summer with their kids, or spend summer weekends. No one ever complains, everyone really likes and enjoys them. In all instances though, they were bought by their parents or grandparents.

Does “paid off” and “a free place” include the $30,000/year property taxes?

Nope. 2M+ beach house In Rehoboth. Property taxes less than $2,000 a year. ($320 is property tax and the rest is the school tax). Reasonable to me!😀✌️

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:People here often write that second homes are a waste of money and pointless, and that people should rather invest the money and go on vacations. My thoughts about this are different - they are really a financial commitment for the people who buy them, but they offer so much more once they’re paid off. They’re basically a free place to spend extended holidays/vacations, an anchor to explore and travel to other places from, a place where families build memories. Most people I know have vacation homes (1 or 2), where they go every summer with their kids, or spend summer weekends. No one ever complains, everyone really likes and enjoys them. In all instances though, they were bought by their parents or grandparents.

Does “paid off” and “a free place” include the $30,000/year property taxes?

Nope. 2M+ beach house In Rehoboth. Property taxes less than $2,000 a year. ($320 is property tax and the rest is the school tax). Reasonable to me!😀✌️

Yep this. Sussex county (Rehoboth beach) property taxes are computed at 50% of the 1974 appraised value. 🔥

[Anonymous]

Anonymous wrote:

Anonymous wrote:Purchasing a vacation home (or homes) is a personal and subjective decision. Some people want them; some people (like me) don’t. There’s no right answer.

+1. We owned an investment property in Duck for years (picked it up cheap during the Great Recession) and enjoyed during the shoulder and off seasons (and sometimes during the high season). We were happy to dump it when everything skyrocketed during/after Covid. Maybe I would feel differently about a property in another area, but, it was never great as a jump off point to explore the area (there is not much to explore), and we quickly realized we'd never retire there (not enough year round activity). Most people I know who own or go to "family" vacation homes inherited these homes (or will inherit them). There is no right answer.

An “investment property” is not a “vacation home.” There’s a huge difference.

We owned an “investment property” in OBX as well. And we, too, used it primarily during the shoulder season and enjoyed it when we did. But on balance owning it was a royal pain in the a$$ because of renters and the expense and wear and tear involved. Plus you needed things like locked owner’s closets and couldn’t leave anything personal just lying around. Hell, you couldn’t even leave butter in the fridge.

We sold our OBX house years ago, an early in the pandemic ending up buying a true vacation/second home. It’s just under 2 hours NW of downtown DC but it’s a whole different world. Large home on 7 acres, a beautiful pool, stables (we don’t use them but our neighbors do) and walking distance to the center of a charming historic town with plenty of restaurants and other amenities. We come and go as we please and will never rent it out, ever. It’s a true second home.

There’s no comparison between a vacation home and an investment property.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Purchasing a vacation home (or homes) is a personal and subjective decision. Some people want them; some people (like me) don’t. There’s no right answer.

+1. We owned an investment property in Duck for years (picked it up cheap during the Great Recession) and enjoyed during the shoulder and off seasons (and sometimes during the high season). We were happy to dump it when everything skyrocketed during/after Covid. Maybe I would feel differently about a property in another area, but, it was never great as a jump off point to explore the area (there is not much to explore), and we quickly realized we'd never retire there (not enough year round activity). Most people I know who own or go to "family" vacation homes inherited these homes (or will inherit them). There is no right answer.

An “investment property” is not a “vacation home.” There’s a huge difference.

We owned an “investment property” in OBX as well. And we, too, used it primarily during the shoulder season and enjoyed it when we did. But on balance owning it was a royal pain in the a$$ because of renters and the expense and wear and tear involved. Plus you needed things like locked owner’s closets and couldn’t leave anything personal just lying around. Hell, you couldn’t even leave butter in the fridge.

We sold our OBX house years ago, an early in the pandemic ending up buying a true vacation/second home. It’s just under 2 hours NW of downtown DC but it’s a whole different world. Large home on 7 acres, a beautiful pool, stables (we don’t use them but our neighbors do) and walking distance to the center of a charming historic town with plenty of restaurants and other amenities. We come and go as we please and will never rent it out, ever. It’s a true second home.

There’s no comparison between a vacation home and an investment property.

I don't disagree with this but the great thing is that the same second home/property can go from being a vacation home (e.g. when kids are small) to an investment property (e.g., when kids are busy with school and sports) and back to a being a vacation home again (e.g., as empty nesters), before ultimately even becoming a retirement home. So multiple types of uses depending on life circumstances.

[Anonymous]

I don’t usually believe in bloody revolution. But when I head people talking about “a place to build memories “, I do.

[Anonymous]

Anonymous wrote:I don’t usually believe in bloody revolution. But when I head people talking about “a place to build memories “, I do.

careful, your ressentiment is showing

[Anonymous]

Everything needs upkeep. That costs. A family vacation home is an asset that's tricky for later generations to deal with. Not everyone can contribute equally. Not everyone can enjoy equally. Op, glad it's a pleasant reality or aspiration for you and your family.

[Anonymous]

We like to explore different locations in the US and abroad, rather than returning to the same location year after year. Every family is different

[Anonymous]

My parents had/still have a beach house growing up and it was the source of so many wonderful family memories. We go a second vacation home now for our immediate family and I am hopeful it will provide those same memories for us. I also traveled all over the world too as a child but having that second home base was a gift in my mind. It’s expensive and kind of a hassle to keep up another house but worth it.

[Anonymous]

Anonymous wrote:Everything needs upkeep. That costs. A family vacation home is an asset that's tricky for later generations to deal with. Not everyone can contribute equally. Not everyone can enjoy equally. Op, glad it's a pleasant reality or aspiration for you and your family.

Our second home is on Cape Cod. There are some longtime family homes but most people sell their home when they get too old to maintain it or enjoy it. It’s no different than a primary home - it’s an asset that can be sold.

[Anonymous]

Even ignoring property taxes and upkeep you have to think about the opportunity cost of having all that equity in the vacation house vs other investments.

That said, I would 100% have a vacation home if I lived in Boston or NYC area and had Cape Cod and New England skiing closer by. There is nowhere 2-3 hours of DC that I like enough to get a vacation house. We thought about getting a place on Cape Cod anyway, but it is just too far and hard to get to. And I can't justify a ski condo when they are so easy to rent.

[Anonymous]

I can see the appeal for some but we don't want to visit the same place every summer. We do annual trips with my parents, siblings and our families but we pick a different vrbo house or resort so that we can visit different places. It also lets us siblings who are spread across the country each get a turn at a shorter flight.

[Anonymous]

Anonymous wrote:I can see the appeal for some but we don't want to visit the same place every summer. We do annual trips with my parents, siblings and our families but we pick a different vrbo house or resort so that we can visit different places. It also lets us siblings who are spread across the country each get a turn at a shorter flight.

We visit monthly or whenever we feel like it, plus take vacations further away.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I can see the appeal for some but we don't want to visit the same place every summer. We do annual trips with my parents, siblings and our families but we pick a different vrbo house or resort so that we can visit different places. It also lets us siblings who are spread across the country each get a turn at a shorter flight.

We visit monthly or whenever we feel like it, plus take vacations further away.

+1. For many it’s a weekend home or getaway. It’s not a vacation home.