Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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.

But you can "live your best life now" by just choosing to rent when you want to go to a beach cottage/vacation. Plenty of excellent choices to rent and then you don't have to spend the other 50 weeks of the year stressing about maintaining the home. And you can invest your savings, since you don't have a money pit to maintain.

Did you read the full post you replied to? I think not.

DP but it seems silly to say if I put $300k into coastal RE I am no more exposed to climate risk than if I put $300k into a total market index.

Yes climate change is bad for the economy (that is the whole reason institutional investors support ESG as a tool) but it’s clearly worse for someone who might lose their vacation home than for the average person.

That's a claim you have no evidence for.

Beach homes go underwater, so do coastal cities. Water don't G.A.F.

Anonymous wrote:These threads are so silly. Anyone who has owned a vacation home for a few years is sitting on a mountain of equity. Yeah what a pain in the ***. They all wish they were throwing money away being prole renters. Give me a break.

Exactly.

We made over $1 million on our beach house. It’s no work whatsoever to maintain it since we have great property managers.

Beach house ownership is for the wealthy.

How much would it need to appreciate to pay off the duplicative operating expenses sunk in?

Anonymous wrote:

Anonymous wrote:

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Anonymous wrote:It depends on location, and a host of other factors, OP. To me, it is not worth the investment of my mental energy.

+1. For me its the mental energy specifically. Maintaining our primary home is work enough. I don't need more work. I'll stick to hotels and rentals. If I were uber wealthy and a personal assistant could manage all the property maintenance and contractors maybe, but I'm not.

+1 We sold ours. There's also a huge glut of vacation homes right now since everyone and their brother started doing airbnb/vrbo etc AND insurance market is rapidly changing for areas with climate issues. Insurance for a rental property is always a lot higher. I feel we got out when we should, but I could be wrong. It was nice for about 2 years and then a hassle.

Rehoboth inventory is tighter than northern va and prices are insane. Glad we bought 18 yrs ago. House tripled in value. Will retire here and also work remote here in Rehoboth. 🍷 🏖️

How much time have you actually spent in Rehoboth in the dead of winter? I grew up in a similar beach town, and let me tell you: the winter is brutal. With the money you could get for your house, there are a thousand places that are more pleasant and interesting to retire to.

We will spend Sept 7th through Jan 10 at beach house. Then back to beach 2 weeks in Feb and 3 weeks in March. Just got back today and spent most of the summer there. I love off season! Can’t wait. We are self employed and fully remote so can work anywhere. Heading to mountain home next week but it will be pretty hot next week. Will retire to Rehoboth for awhile. Can always move elsewhere down south in future if feel like it.

Enjoy your unoriginal retirement! That would never, ever work for me.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These threads are so silly. Anyone who has owned a vacation home for a few years is sitting on a mountain of equity. Yeah what a pain in the ***. They all wish they were throwing money away being prole renters. Give me a break.

This!✌️

OPs question was it a good investment not are the owners rich. And, generally speaking, it carries a lot of carrying costs and few of the benefits of a primary home. If you want a vacation home as a luxury purchase, it's a better investment than a luxury car. But if you want it as a financial investment, it's often not that great of one. Sometimes it is, usually not compared to other options. If you purchase it to rent out, then you are a landlord and it could possibly be a good investment, but you also have another job. The alternative to not investing in a vacation home is not being a renter, it's not having an extra home.

It is a good investment that made owners rich!😁🍷

I think people like to think that because it justifies the luxury purchase. Owning a vacation home seems more fun than adding to your stock portfolio.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These threads are so silly. Anyone who has owned a vacation home for a few years is sitting on a mountain of equity. Yeah what a pain in the ***. They all wish they were throwing money away being prole renters. Give me a break.

This!✌️

OPs question was it a good investment not are the owners rich. And, generally speaking, it carries a lot of carrying costs and few of the benefits of a primary home. If you want a vacation home as a luxury purchase, it's a better investment than a luxury car. But if you want it as a financial investment, it's often not that great of one. Sometimes it is, usually not compared to other options. If you purchase it to rent out, then you are a landlord and it could possibly be a good investment, but you also have another job. The alternative to not investing in a vacation home is not being a renter, it's not having an extra home.

It is a good investment that made owners rich!😁🍷

Anonymous wrote:I’m sensing a decent amount of sock puppeting on this thread

How so?

I’m sensing a decent amount of sock puppeting on this thread

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It depends on location, and a host of other factors, OP. To me, it is not worth the investment of my mental energy.

+1. For me its the mental energy specifically. Maintaining our primary home is work enough. I don't need more work. I'll stick to hotels and rentals. If I were uber wealthy and a personal assistant could manage all the property maintenance and contractors maybe, but I'm not.

+1 We sold ours. There's also a huge glut of vacation homes right now since everyone and their brother started doing airbnb/vrbo etc AND insurance market is rapidly changing for areas with climate issues. Insurance for a rental property is always a lot higher. I feel we got out when we should, but I could be wrong. It was nice for about 2 years and then a hassle.

Rehoboth inventory is tighter than northern va and prices are insane. Glad we bought 18 yrs ago. House tripled in value. Will retire here and also work remote here in Rehoboth. 🍷 🏖️

How much time have you actually spent in Rehoboth in the dead of winter? I grew up in a similar beach town, and let me tell you: the winter is brutal. With the money you could get for your house, there are a thousand places that are more pleasant and interesting to retire to.

We will spend Sept 7th through Jan 10 at beach house. Then back to beach 2 weeks in Feb and 3 weeks in March. Just got back today and spent most of the summer there. I love off season! Can’t wait. We are self employed and fully remote so can work anywhere. Heading to mountain home next week but it will be pretty hot next week. Will retire to Rehoboth for awhile. Can always move elsewhere down south in future if feel like it.

Anonymous wrote:These threads are so silly. Anyone who has owned a vacation home for a few years is sitting on a mountain of equity. Yeah what a pain in the ***. They all wish they were throwing money away being prole renters. Give me a break.

+1

Anonymous wrote:

Anonymous wrote:These threads are so silly. Anyone who has owned a vacation home for a few years is sitting on a mountain of equity. Yeah what a pain in the ***. They all wish they were throwing money away being prole renters. Give me a break.

This!✌️

OPs question was it a good investment not are the owners rich. And, generally speaking, it carries a lot of carrying costs and few of the benefits of a primary home. If you want a vacation home as a luxury purchase, it's a better investment than a luxury car. But if you want it as a financial investment, it's often not that great of one. Sometimes it is, usually not compared to other options. If you purchase it to rent out, then you are a landlord and it could possibly be a good investment, but you also have another job. The alternative to not investing in a vacation home is not being a renter, it's not having an extra home.

Anonymous wrote:These threads are so silly. Anyone who has owned a vacation home for a few years is sitting on a mountain of equity. Yeah what a pain in the ***. They all wish they were throwing money away being prole renters. Give me a break.

This!✌️

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It depends on location, and a host of other factors, OP. To me, it is not worth the investment of my mental energy.

+1. For me its the mental energy specifically. Maintaining our primary home is work enough. I don't need more work. I'll stick to hotels and rentals. If I were uber wealthy and a personal assistant could manage all the property maintenance and contractors maybe, but I'm not.

+1 We sold ours. There's also a huge glut of vacation homes right now since everyone and their brother started doing airbnb/vrbo etc AND insurance market is rapidly changing for areas with climate issues. Insurance for a rental property is always a lot higher. I feel we got out when we should, but I could be wrong. It was nice for about 2 years and then a hassle.

Rehoboth inventory is tighter than northern va and prices are insane. Glad we bought 18 yrs ago. House tripled in value. Will retire here and also work remote here in Rehoboth. 🍷 🏖️

How much time have you actually spent in Rehoboth in the dead of winter? I grew up in a similar beach town, and let me tell you: the winter is brutal. With the money you could get for your house, there are a thousand places that are more pleasant and interesting to retire to.

Everyone has different tastes. Personally I happen to love the beach in winter. A fire in the fireplace, the sound of the wind whipping the dunes, and a walk on an empty beach wrapped in a blanket with a Yeti full of spiked hot chocolate is just as lovely to me as a warm summer day.

You didn’t answer my question. I asked how much actual time you have spent there in the dead of winter. I’m sure you’ve been there some, but it’s not the same as living there full time. But you’ll find that out yourself soon enough.

Lots of romanticizing going on here. Reality is a different thing entirely.

These threads are so silly. Anyone who has owned a vacation home for a few years is sitting on a mountain of equity. Yeah what a pain in the ***. They all wish they were throwing money away being prole renters. Give me a break.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

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.

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.

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.

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).

Yes - coastal flooding is a given with climate change but inland flooding is also a real risk with climate change. And inland flooding can happen in places where there is/has been extreme drought (remember what happened in California over the winter) and where there is not a recent history of flooding (Vermont example). There have been some recent articles on how climate risks have not been priced into the housing market yet but it’s worth doing the minimum amount of due diligence before buying to try to understand the risks, especially if it part of your retirement planning or you would like to pass the property on to your children. My parent’s own a house a street back from the ocean in Florida and no one in my family thinks of it as a long-term investment. My mom jokes it will be under water soon. It’s kind of sad, but that attitude is probably healthy.

I felt almost guilty selling our vacation home bc it seemed insane to me to purchase a house at that price with extreme flood risk, but it seems some people have enough money not to care. The market where we sold is very tight and people are snatching up properties as soon as they are up for sale. But the buyers made similar kinds of underwater jokes---'we'd like to retire here if it's not underwater by then' etc. The level of denial seems very bizarre to me--I literally have watched over the years the flooding getting more intense in the very neighborhood and a lot of people have mold issues from even just minor flooding. There are plenty of people who leave their house unused for weeks/months and then come back to significant mold issues. Already opening up a vacation home when you've not been there a bit comes with surprises. We didn't rent it out to others, but had a caretaker who looked out for it (and for a lot of the places in the area). There's always something needing fixing etc. Add in mold? Doesn't seem like a great vacation to me. And the idea that this will serve as a retirement home in a few decades?? It was such a relief to get rid of that place. I guess I'm out of step with the majority view.