Reply to Pros/cons of buying a second home

Forum Index » Money and Finances

Reply to "Pros/cons of buying a second home "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]It's a luxury and a big expense, since you're not planning to rent it, which is fine. If you're confident that you can comfortably afford it, that's great.

I only take a slight issue with the way you said that you think it will go up in value in five years. You're not planning on renting it, and you're not planning on selling it, so whether it goes up in value is basically irrelevant. It's a sunk cost. I don't say this to criticize, but just to make sure you're thinking about this with the right mindset. It's not an investment. It is a large initial cost, and an ongoing cost in perpetuity, as long as you own it. [/quote]

It's not strictly going to be an investment property.  The goal is to use it often.  The appreciation simply means that we will recoup some of the money we put into it when we go to sell it.  I honestly do not know how much it will appreciate though.  Obviously, 200K would be more of a profit than 20K.  I do not anticipate having to sell the property at a loss.

[/quote]

nobody anticipates that.  However, when the economy experiences a slow down, vacation home areas are the first to take a hit. Unless you are renting it to recoup some of your money, it needs to be viewed as a losing expense.
A home of any sorts should never be looked at as an investment. With utilities, mortgage, internet (you said cameras, right?), taxes, upkeep, you will never make what you put into it and it will be much more hassle and expense than regular travel.  People do it it build memories or to escape city life, or because they love the beach or mountains or whatever. Certainly not because it is easy, less hassle, or less money that  simply getting on a plane and going somewhere.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics