Can We Afford a $1.5MM Second Home?

[Anonymous]

Anonymous wrote:You're 59 OP - you want to drop $750,000 on the place (not counting insurance and monthly mortgage). How often are you planning on going? How much would a similar place be to rent? Will you be happy just going to that one place?

Even if a week at a really nice place was $10k (with airfare and what not) you could go 75,000 times... IMO it's not worth it, not when it's an area prone to hurricaines and what not.

Well technically 75 times at $10k, and you'd have no equity at the end of that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You're 59 OP - you want to drop $750,000 on the place (not counting insurance and monthly mortgage). How often are you planning on going? How much would a similar place be to rent? Will you be happy just going to that one place?

Even if a week at a really nice place was $10k (with airfare and what not) you could go 75,000 times... IMO it's not worth it, not when it's an area prone to hurricaines and what not.

Well technically 75 times at $10k, and you'd have no equity at the end of that.

A fair question. For now I'd guess we'd go 3-4 times a year for 7-10 days each time.
We just returned from there and spent 7 nights at a nice hotel (Ritz Naples Beach) at a cost of $1,350/night.
I should probably add that we don't have any children. Leaving a maximum estate behind for a child is, unfortunately, not a consideration.
Flood insurance, as mentioned above, is included in the monthly maintenance fee. Homeowners, for the inside, is on me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You're 59 OP - you want to drop $750,000 on the place (not counting insurance and monthly mortgage). How often are you planning on going? How much would a similar place be to rent? Will you be happy just going to that one place?

Even if a week at a really nice place was $10k (with airfare and what not) you could go 75,000 times... IMO it's not worth it, not when it's an area prone to hurricaines and what not.

Well technically 75 times at $10k, and you'd have no equity at the end of that.

A fair question. For now I'd guess we'd go 3-4 times a year for 7-10 days each time.
We just returned from there and spent 7 nights at a nice hotel (Ritz Naples Beach) at a cost of $1,350/night.
I should probably add that we don't have any children. Leaving a maximum estate behind for a child is, unfortunately, not a consideration.
Flood insurance, as mentioned above, is included in the monthly maintenance fee. Homeowners, for the inside, is on me.

So 4 times a year for around $15k a pop, gives you about 13 years worth of vacations for $750k. No, you won't have equity at the end, but it doesn't sound like that's the purpose of the purchase. Personally I'd rather be able to travel anywhere and not be limited to one location, but if you really want to go to the same place then enjoy!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You're 59 OP - you want to drop $750,000 on the place (not counting insurance and monthly mortgage). How often are you planning on going? How much would a similar place be to rent? Will you be happy just going to that one place?

Even if a week at a really nice place was $10k (with airfare and what not) you could go 75,000 times... IMO it's not worth it, not when it's an area prone to hurricaines and what not.

Well technically 75 times at $10k, and you'd have no equity at the end of that.

A fair question. For now I'd guess we'd go 3-4 times a year for 7-10 days each time.
We just returned from there and spent 7 nights at a nice hotel (Ritz Naples Beach) at a cost of $1,350/night.
I should probably add that we don't have any children. Leaving a maximum estate behind for a child is, unfortunately, not a consideration.
Flood insurance, as mentioned above, is included in the monthly maintenance fee. Homeowners, for the inside, is on me.

I expect fewer, but longer trips, when I retire.my guess would be 2-3 months in Florida per winter and another 2 weeks someplace else.
We have a timeshare that we'd contine to use annually.

So 4 times a year for around $15k a pop, gives you about 13 years worth of vacations for $750k. No, you won't have equity at the end, but it doesn't sound like that's the purpose of the purchase. Personally I'd rather be able to travel anywhere and not be limited to one location, but if you really want to go to the same place then enjoy!

[Anonymous]

Anonymous wrote:You're 59 OP - you want to drop $750,000 on the place (not counting insurance and monthly mortgage). How often are you planning on going? How much would a similar place be to rent? Will you be happy just going to that one place?

Even if a week at a really nice place was $10k (with airfare and what not) you could go 75,000 times... IMO it's not worth it, not when it's an area prone to hurricaines and what not.

I agree. PITA and cheaper to rent unless you live there permanently.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You're 59 OP - you want to drop $750,000 on the place (not counting insurance and monthly mortgage). How often are you planning on going? How much would a similar place be to rent? Will you be happy just going to that one place?

Even if a week at a really nice place was $10k (with airfare and what not) you could go 75,000 times... IMO it's not worth it, not when it's an area prone to hurricaines and what not.

I agree. PITA and cheaper to rent unless you live there permanently.

Disagree - much easier and more peaceful going to your own home whenever you want rather than going to a new place (with other people's layout/stuff) each time and/or being subject to the existing booking calendar. You have no kids, you can afford it, and you can't take it with you. I'd buy it if I were you, and frankly think you could look even higher than $1.5mm unless you're completely confident it satisfies all your needs/wants.

[Anonymous]

We had a second home in NYC and sold ultimately bc with the sunk and carrying costs, it would be cheaper to stay at a suite at the Mandarin Oriental or whatever luxury hotel for 3 weeks every month including airfare and room service. But we maybe used the apt maybe 60 days a year and provided free lodging to friends and relatives.

Second homes usually are not worth the money and personally, I like luxury hotels even with the bother of bringing luggage.

[Anonymous]

Anonymous wrote:You're 59 OP - you want to drop $750,000 on the place (not counting insurance and monthly mortgage). How often are you planning on going? How much would a similar place be to rent? Will you be happy just going to that one place?

Even if a week at a really nice place was $10k (with airfare and what not) you could go 75,000 times... IMO it's not worth it, not when it's an area prone to hurricaines and what not.

Exactly!!!!!!!

[Anonymous]

Anonymous wrote:We had a second home in NYC and sold ultimately bc with the sunk and carrying costs, it would be cheaper to stay at a suite at the Mandarin Oriental or whatever luxury hotel for 3 weeks every month including airfare and room service. But we maybe used the apt maybe 60 days a year and provided free lodging to friends and relatives.

Second homes usually are not worth the money and personally, I like luxury hotels even with the bother of bringing luggage.

Very much a personal choice. Our second home we use 4 or 5 times a year. It's beachfront on a private secluded area. My office is upstairs, I can work remotely while literally watching sailboats from my window. The kitchen is how we want it, stocked with our favorite coffees, teas, etc. We grow papaya, lemons, mango, rosemary, mint and pineapple on the property. In the mornings I grab a ladder, find a mango, go back to my screened in porch and enjoy a bite while reading the ny times drinking my own favourite coffee. At sunset, I pour a Campari. If I want a second I have it. I travel with no luggage at all except perhaps some favourite chocolates or minor things to restock the house. My bedroom has my favourite pillows, my living room adorned with furniture from my parents. The local fisherman know me and sell me small lobsters (which I prefer) and grouper when they know I'm here. The neighbor grows hot peppers and makes a ridiculous mole sauce. The maids come every other day.

Compare that to the hassle of checking in, paying $18 for a mojito, risks your hotel sucks or you have a loud room next door, etc. Travel is nice, but there's something to be said about a vacation home.

[Anonymous]

I don't understand posts like this. If you are considering buying a $1.5M second home, you should be in a position to consult with an accountant. Don't put this to the peanut gallery.

[Anonymous]

Anonymous wrote:We had a second home in NYC and sold ultimately bc with the sunk and carrying costs, it would be cheaper to stay at a suite at the Mandarin Oriental or whatever luxury hotel for 3 weeks every month including airfare and room service. But we maybe used the apt maybe 60 days a year and provided free lodging to friends and relatives.

Second homes usually are not worth the money and personally, I like luxury hotels even with the bother of bringing luggage.

My husband wants a pied a terre in NY and I keep trying to explain this to him!

[Anonymous]

Anonymous wrote:

Anonymous wrote:We had a second home in NYC and sold ultimately bc with the sunk and carrying costs, it would be cheaper to stay at a suite at the Mandarin Oriental or whatever luxury hotel for 3 weeks every month including airfare and room service. But we maybe used the apt maybe 60 days a year and provided free lodging to friends and relatives.

Second homes usually are not worth the money and personally, I like luxury hotels even with the bother of bringing luggage.

Very much a personal choice. Our second home we use 4 or 5 times a year. It's beachfront on a private secluded area. My office is upstairs, I can work remotely while literally watching sailboats from my window. The kitchen is how we want it, stocked with our favorite coffees, teas, etc. We grow papaya, lemons, mango, rosemary, mint and pineapple on the property. In the mornings I grab a ladder, find a mango, go back to my screened in porch and enjoy a bite while reading the ny times drinking my own favourite coffee. At sunset, I pour a Campari. If I want a second I have it. I travel with no luggage at all except perhaps some favourite chocolates or minor things to restock the house. My bedroom has my favourite pillows, my living room adorned with furniture from my parents. The local fisherman know me and sell me small lobsters (which I prefer) and grouper when they know I'm here. The neighbor grows hot peppers and makes a ridiculous mole sauce. The maids come every other day.

Compare that to the hassle of checking in, paying $18 for a mojito, risks your hotel sucks or you have a loud room next door, etc. Travel is nice, but there's something to be said about a vacation home.

This cracked me up. Mangos and local fisherman? Prefer small lobsters? You're rather particular and I can imagine would not like a hotel.

[Anonymous]

OP, get out of here. If your net worth is 12 million you can afford to go to a financial advisor and get professional advice after looking at your assets wholistically. Asking this shit on the internet is just trolling.

[Anonymous]

Anonymous wrote:I don't understand posts like this. If you are considering buying a $1.5M second home, you should be in a position to consult with an accountant. Don't put this to the peanut gallery.

Read the original post before sounding off. OP is meeting with his accountant as well as his financial firm. I assume, considering its almost April 1st, his accountant probably has other things occupying his time right now.

[Anonymous]

Anonymous wrote:OP, get out of here. If your net worth is 12 million you can afford to go to a financial advisor and get professional advice after looking at your assets wholistically. Asking this shit on the internet is just trolling.

See above.