Anonymous wrote:What's your def of a "reasonable drive"?
It might not be as practical as you think to go there, say, every weekend as you may think.
Aren't you busy on weekends - with your own household chores, errands, cleaning, prepping for the week, social obligations, etc.?

And if you have (multiple) kids - sports, Saturday games, bday parties, school projects...on top of regular weekend stuff?

Financially, it comes down to can you afford 2 households. Yes, there's maintanence, but you also have to have the "small" things that add up quickly - the food, the linens, the creature comforts of home, and that can really add up quickly.
And what is this "maintenance" - will it need a new roof soon, new windowns, pipes are getting leaky, HVac working ok?

This is what we found out. We just don't have time on the wkds. So the cabin sits... There is nothing worse than an empty house. All kinds of issues. Think carefully

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.

We have several. I think the issue is that there will be times you have to go there even if not planned or convenient. That’s what is annoying g.

I also like that the kids are old enough to hold down the fort at our primary home while dh and I have an occasional overnight just the two of us. We would only be 30/40 minutes away if something came up - also nice.

Anonymous wrote:A little different, but we bought a large lot with two homes on it. We rent them out and they pay for themselves. We've never thought that they were that much extra work, and in less than 4 years they'll be paid for. We've only had them for around 7 years. It's a great investment, IMO. One of our sons and his wife rent one of them, so between the three homes that we have, there will always be that source of income for our kids should they decide to rent them out when we're gone, or they could? live in them.

I don't think we want to deal with renters. This property would be strictly for our enjoyment. Honestly one of the things that is appealing about buying the property is that we will be able to bring our dogs with us while we are enjoying it. Now we usually have to get a pet sitter when we want to go out of town for a weekend and that can really make a weekend away $$$$.

The cottage is small so I'm not seeing us staying in it for weeks at time. It would be more for weekends and even some occasional week nights depending on the time of year.

A little different, but we bought a large lot with two homes on it. We rent them out and they pay for themselves. We've never thought that they were that much extra work, and in less than 4 years they'll be paid for. We've only had them for around 7 years. It's a great investment, IMO. One of our sons and his wife rent one of them, so between the three homes that we have, there will always be that source of income for our kids should they decide to rent them out when we're gone, or they could? live in them.

Anonymous wrote:It would not require flood insurance which is one of the things that really caught my eye. The tax and insurance aspects are worries to me because I really do not know how that works with a second home.

Even if it is not required, you should buy flood insurance Regular insurance does not cover flooding. Properties that are not required to buy insurance are not necessarily free of flood risk, they are just considered lower risk. It should be cheaper if its not a mandatory purchase zone.

We like where our primary larger home is located and we are not looking to downsize at this point.

The cottage would be strictly used for recreational purposes.

It would not require flood insurance which is one of the things that really caught my eye. The tax and insurance aspects are worries to me because I really do not know how that works with a second home.

Reasonable drive = 30/40 minutes. Kids are teens (HS and going into college).

Maintenance means anything associated with taking care of a home - fixing running toilets, broken appliances, etc. The place is fairly small and seems manageable to me. I do not think that furnishing it would be too expensive for us. It's more a matter of finding furniture to utilize the relatively small spaces inside the cottage.

Expense wise we could swing it, I guess the question would be is this a smart use of our money or are second homes generally a huge money pit.

You may need some kind of caretaker/property management service to come by and check on the house after major storms or during times when you can't get to the property for a few weeks.

Depending on where you are, things like property taxes or insurance may be higher for non-resident owners. I think there are other tax issues with a second home as well (mortgage interest deductions, etc.)

What's your def of a "reasonable drive"?
It might not be as practical as you think to go there, say, every weekend as you may think.
Aren't you busy on weekends - with your own household chores, errands, cleaning, prepping for the week, social obligations, etc.?

And if you have (multiple) kids - sports, Saturday games, bday parties, school projects...on top of regular weekend stuff?

Financially, it comes down to can you afford 2 households. Yes, there's maintanence, but you also have to have the "small" things that add up quickly - the food, the linens, the creature comforts of home, and that can really add up quickly.
And what is this "maintenance" - will it need a new roof soon, new windowns, pipes are getting leaky, HVac working ok?

If it's in a flood zone, you'll need flood insurance if carrying a mortgage...maintenance for well pump, septic tank, dock/pier, shoreline, etc. You can save some money by automating the house so that you can turn on/off water remotely, e.g. turning on the water heater and heat/ac before driving down...

Anonymous wrote:The small cottage is within a pretty reasonable drive from us in a scenic area. We would be able to handle yard work, maintenance, etc. and we would also be able to use it a lot. I think that there is a good chance that the home/lot will appreciate in value over the next 5 years.

Aside from utilities and another mortgage payment, what are the other expenses associated with a second home that we should keep in mind? We do not plan to rent it out.

Insurance will be higher. Maintenance.

The small cottage is within a pretty reasonable drive from us in a scenic area. We would be able to handle yard work, maintenance, etc. and we would also be able to use it a lot. I think that there is a good chance that the home/lot will appreciate in value over the next 5 years.

Aside from utilities and another mortgage payment, what are the other expenses associated with a second home that we should keep in mind? We do not plan to rent it out.