Reply to Do you think a vacation home is a good investment?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]With hurricanes and rising tides beach property seems really risky to me.  I think people also often buy when they have little kids and then find with other kids that they can’t really use it due to sports and other commitments.  The people I know who use them regularly have kids who are kind of introverts and/or don’t do sports or theater or dance or anything like that.  [/quote]

I’ve always found it odd that people list climate change as a reason not to buy a beach house while ignoring that such a huge portion of our GDP and infrastructure are based in coastal cities.

If climate change disaster happens, we’ll all have a lot bigger problems than just a beach cottage being wrecked.

Live your best life now.[/quote]

Climate change is happening, it’s getting worse (see flooding in VT and fires in Maui), and you should be sensible about where you buy. I would look up any property on the First Street Foundation’s website to see flood, fire, wind, heat risks. If you want to buy a property with a lot of risk you should just accept that you’ll likely need to rebuild at some point in a 20- year period and if it’s in a place like Florida or California you should understand that getting P&C insurance over the next few decades will only get harder and be more expensive. If you’re OK with that than go for it, but view it for what it is - a risky investment with little likelihood of a long-term return. [/quote]

I took your advice and looked up the risk factors on First Street Foundation's website for both our North Carolina beach house and our Bethesda house in Sumner.  Guess which one had an "extreme" level of risk for flooding?   Bethesda.  [/quote]

So you've likely doubled your risk having a primary and a secondary home in a flood risk area (I'm assuming like most NC beach houses there's significant risk if not extreme--the NC beach house we recently sold was extreme risk and was already on a trajectory of insurance policy reviews).[/quote]

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