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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We have alarm systems for fire, carbon monoxide, security, and water detection. We have a property manager who checks things periodically and is available for emergencies, deliveries, etc if we aren’t there. In the summer, we have weekly landscaping and pool services. We have ring cameras and remote controlled heating and cooling systems.

None of this is cost effective. Is someone arguing that vacation homes are a bargain? They’re not. [/quote]

Its very cost effective.

Look, my family and I spend about 5 weeks total on Hatteras Island in our little 3 bed 2 bath salt box every year. There is no yard to maintain. The shingles and roof are cedar (no maintenance) and we have hurricane shutters on the home when not there. Break ins just aren't a thing down there. We cut water and HVAC when we leave and remotely turn on HVAC about 5 hours before we arrive. Utilities average out to 110 a month. If we rented it comps are about $2600 a week. So if we rented we'd be spending $13,000 alone just on rent.  Our total costs last year were $4300. So we are 9 grand better off and the house appreciated about 40% in the time we have owned it.

Then there is the huge bonus of getting to pick travel days based on traffic, having an entire wardrobe and toiletries down there (little to no packing) and a freezer full of pizzas and lasagnas for the first night down.

Icing on the cake is having the same picture every year of my three kids sitting in order on the porch from when they were babies until they were grown.[/quote]

So, not to get into the weeds on your analysis, but I gather you paid 100% cash for the house?  I don't see how your $4300 in total would include a mortgage, so I guess it's just property taxes, utilities and insurance?  $4300 still seems low for all that.

The issue is always opportunity cost.  I don't know much you paid, but if you had put your let's say $500k in just an S&P index like 10 years ago then you would have earned $15,000 in annual dividends (higher actually now since 2015) plus the S&P has tripled since 2015.

From a purely financial perspective you would be way, way better off if you had just decided to rent for 5 weeks each year.[/quote]

Life is for living, bro. You can't take it with you.[/quote]

I agree...but you can't make the claim that something is cost effective and then leave out many of the inputs related to cost (and opportunity cost).

However, in my example above the PP could have still lived essentially their exact same life (5 weeks in Hatteras each year)...but still have tons more money to do other things.  Though, yes you wouldn't have the pictures of your kids getting older and be able to leave all your stuff at the house so packing is easy.
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We also had no promise the S&P would perform like it has. You could have lost money.[/quote]

Yeah…but the house could have lost money too.[/quote]

Not until it is sold. And you'd still have the family time together for 15 + years.[/quote]

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