Can We Afford a $1.5MM Second Home?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Personally, I'd get a little place on the beach on the Mediterranean (Greece, Spain, Italy, etc). We've gone a few times over the years and would love to spend the summers there. That or maybe Maine.

As they age access to healthcare will become a priority. Unless they are going to plunk down more money and move again then. Imagine one of them having a heart attack and needing an airlift from a remote beach on the Mediterranean...

they have good hospitals in europe too - i would venture that most mediterranean locations would be pretty close to one.

I'd rather hop a short flight to florida. Beyond sightseeing what will I do differently? I could sit in warm Europe or sit in Florida and relax. 12m and no debt just go buy he condo. FL resident v NY resident is a tax dream. Consider it.

[Anonymous]

Anonymous wrote:I can't think of a less exciting way to use $1,5M than Naples, FL, but if it makes you happy, do it x

This.

[Anonymous]

Anonymous wrote:You have this much money and you have a to come on a garbage anonymous forum to ask? This area really just hands out money to every moron with a degree, wow.

I know! Sucks to be you, doesn't it?

[Anonymous]

Go for it, life is too short. Have 12MM, 1.5M second home is nothing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Do it! Remember your taxes will be really high though since you aren't residents.

Really? Why?
We have a friend in that building, also a non-resident, and his property taxes are very reasonable.
We are NY State residents, so we know all about high taxes. Florida is refreshing in contrast to NYS.

Florida property taxes are EXTREMELY HIGH (because they don't have income tax in Florida). We own a 3 bed ocean front condo that is worth about $300k. Our taxes are about $6k per year.

I have no idea what they are in NY, but compared to DC that's insane (e.g. we pay $2k for a house worth about $800k. Though it's assessed at more like $300k)

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Do it! Remember your taxes will be really high though since you aren't residents.

Really? Why?
We have a friend in that building, also a non-resident, and his property taxes are very reasonable.
We are NY State residents, so we know all about high taxes. Florida is refreshing in contrast to NYS.

Florida property taxes are EXTREMELY HIGH (because they don't have income tax in Florida). We own a 3 bed ocean front condo that is worth about $300k. Our taxes are about $6k per year.

I have no idea what they are in NY, but compared to DC that's insane (e.g. we pay $2k for a house worth about $800k. Though it's assessed at more like $300k)

$300k in NYS would probably be a minimum of $10k in taxes. Throw another 8% sales tax on top of that and we are taxed to death.

[Anonymous]

$300k in NYS would probably be a minimum of $10k in taxes. Throw another 8% sales tax on top of that and we are taxed to death.

Don't forget the NYS Income Taxes. They are among the highest in the nation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Personally, I'd get a little place on the beach on the Mediterranean (Greece, Spain, Italy, etc). We've gone a few times over the years and would love to spend the summers there. That or maybe Maine.

As they age access to healthcare will become a priority. Unless they are going to plunk down more money and move again then. Imagine one of them having a heart attack and needing an airlift from a remote beach on the Mediterranean...

I don't see this really being a problem. It's not like it's a third world country.

You clearly never had to go to a public hospital in a provincial Greek town. I hope you never have to.

+1 Same with Italy

Maybe it depends where you are in Italy? My daughter developed an ear infection during our trip last year and we were pleasantly surprised with the healthcare she received.

[Anonymous]

We have a $900k condo on south beach - about 2 blocks from the beach. Your annual property taxes are going to be anywhere from $20,000 to $28,000, and will not enjoy any caps - so they have the potential to grow every year based on increases in the value.

As you mentioned, condo fees cover building insurance. But you still need contents. Being only a couple blocks from the beach, we can only get interiors insurance from Citizens - the state run program. We pay $6000 a year for a pretty bare bones policy. Yours will be closer to $10k.

You will also be paying condo fees - I assume that will be another $25k for a unit in naples.

Carrying costs in Florida are really really high. When you live there full time, it's okay because you don't pay state income tax. So in our case, our insurance and taxes are around $20k a year - which is a lot less than what we'd pay in state income taxes in other states. But it's very expensive for nonresidents.

[Anonymous]

Anonymous wrote:We have a $900k condo on south beach - about 2 blocks from the beach. Your annual property taxes are going to be anywhere from $20,000 to $28,000, and will not enjoy any caps - so they have the potential to grow every year based on increases in the value.

As you mentioned, condo fees cover building insurance. But you still need contents. Being only a couple blocks from the beach, we can only get interiors insurance from Citizens - the state run program. We pay $6000 a year for a pretty bare bones policy. Yours will be closer to $10k.

You will also be paying condo fees - I assume that will be another $25k for a unit in naples.

Carrying costs in Florida are really really high. When you live there full time, it's okay because you don't pay state income tax. So in our case, our insurance and taxes are around $20k a year - which is a lot less than what we'd pay in state income taxes in other states. But it's very expensive for nonresidents.

We also own in Florida, but at a lower price point. This is completely true. We own our condo outright and currently have it fully rented, but because of the cost of property tax, insurance and condo fees for a beachfront property with full amenities, accounting for depreciation we make a loss. Even with no mortgage the rent does NOT cover the costs. Unfortunately the condo building does not allow for rentals less than 3 months so we can not cash in on the vacation market which would actually make us some money. Needless to say we will be selling soon.

[Anonymous]

A 2012 report entitled Surging Seas, compiled by Climate Central, a nonprofit group, cited 11,000 properties in Naples Florida that were vulnerable to flooding by the year 2030.
http://sealevel.climatecentral.org/ssrf/florida