Second home vs Larger home

[Anonymous]

Anonymous wrote:

Anonymous wrote:Key is to buy a second home somewhere people want to be, and you would rather be. A house by a lake in WV isn't something anyone actually wants; it's a burden. A house in the Colorado mountains a couple miles from Breckenridge won't be a burden at all.

+1 A ski house in a popular ski resort area or a beach house walkable to the beach in a popular vacation location can always be rented even during a recession.

The rental market is far from recesssion-proof. The STR market is massively oversupplied in most areas and has seen a dramatic drop off in demand. We went skiing during the holidays and everyone was talking about how thin the crowds were and it’s only gotten worse since then. I have been searching for rentals for the summer in different areas and there is a huge amount of availability (at places that are usually booked up early) and when you look at the calendars, many houses with high ratings and long rental histories have few or no bookings for the summer. You should never buy a house you can’t easily afford without rental income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Key is to buy a second home somewhere people want to be, and you would rather be. A house by a lake in WV isn't something anyone actually wants; it's a burden. A house in the Colorado mountains a couple miles from Breckenridge won't be a burden at all.

+1 A ski house in a popular ski resort area or a beach house walkable to the beach in a popular vacation location can always be rented even during a recession.

The rental market is far from recesssion-proof. The STR market is massively oversupplied in most areas and has seen a dramatic drop off in demand. We went skiing during the holidays and everyone was talking about how thin the crowds were and it’s only gotten worse since then. I have been searching for rentals for the summer in different areas and there is a huge amount of availability (at places that are usually booked up early) and when you look at the calendars, many houses with high ratings and long rental histories have few or no bookings for the summer. You should never buy a house you can’t easily afford without rental income.

The DE beach rentals are still getting booked, but people are booking a week or two in advance as opposed to months in advance. Looking back to the 2008 financial crisis, the homes within a couple blocks from the beach were still solidly booked.

Admittedly the homes 3+ blocks to the beach do better during good economic times and worse during bad economic times. Another poster said to buy where other people want to be - that's the best way to ensure rental opportunity.

Some people pick a vacation within driving distance instead of a vacation requiring plane tix during worse economic times, so buy within driving distance of wealthy areas.