Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The condo fees range from $650-$1000/month. All in, taxes, condo fees and maintenance will be about $30k/year. Right now we are going during Christmas and renting a place is $$$ (ski town).

so for 30K/yr you could rent a ridiculous house in Aspen for 3-4 weeks. Or you could just travel to Utah, Colorado, Wyoming, Austria, France, or Switzerland and ski instead of going to the same place all the time. Your kids will be bored.

Have you looked at prices at these places? Week at Christmas in Aspen for a 2 bedroom condo it is $20,000 at a place that is nice but not crazy. Last year we spent $15k for a week in Park City at Christmas time.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much money do you think it is prudent to have in retirement and investments before buying a vacation home (really a condo)? Some facts - have a $1.5m house here with mortgage around $800k. Rate is low, so no plan to pay this off early, plus we deduct the full amount of the interest payments. With vacation home, we would likely pay cash since we are maxed out on interest tax deduct and it is not a necessity. How much would you want in the bank to feel like this is not a stupid thing to do? We would pay costs associated with house out of cash flow (taxes, condo fees, etc).

We are biting the bullet and buying a vacation house, but not without some angst just because it is such an expensive luxury and we are not used to spending like this given our relatively frugal personalities and working class backgrounds. Vacation house is $500K. HHI is almost $2M. About $1.5M saved for retirement, $200K for kids' college, 15-year mortgage on a house worth about $1.2M with PITI about $4K (less than $500K left on mortgage). We have about $800K liquid.

Did you just start making that much? Because our savings/investments/college are quite a bit higher and our income is lower.

Yes, just a couple of years ago. Also, both of us come from working class backgrounds, so no financial support from family for college tuition, grad school, wedding, or down payment on house.

All the more reason, to keep spending in check, pay off your primary residence, shore up retirement and kids college costs now. Then pay cash for a second home. If everything is on credit, you have nothing at the end if things go south.

We are paying cash.

But you still have a mortgage on your primary house as well as woefully inadequate retirement and college funds. Get those on more solid ground before you go for the splurge house.

This is totally dependent upon their age. If they are 30 with $1.5m in retirement and $200k in 529s with kids who are 2 and 4, they are in excellent shape. If they are 45 or 50, totally different story.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much money do you think it is prudent to have in retirement and investments before buying a vacation home (really a condo)? Some facts - have a $1.5m house here with mortgage around $800k. Rate is low, so no plan to pay this off early, plus we deduct the full amount of the interest payments. With vacation home, we would likely pay cash since we are maxed out on interest tax deduct and it is not a necessity. How much would you want in the bank to feel like this is not a stupid thing to do? We would pay costs associated with house out of cash flow (taxes, condo fees, etc).

We are biting the bullet and buying a vacation house, but not without some angst just because it is such an expensive luxury and we are not used to spending like this given our relatively frugal personalities and working class backgrounds. Vacation house is $500K. HHI is almost $2M. About $1.5M saved for retirement, $200K for kids' college, 15-year mortgage on a house worth about $1.2M with PITI about $4K (less than $500K left on mortgage). We have about $800K liquid.

Did you just start making that much? Because our savings/investments/college are quite a bit higher and our income is lower.

Yes, just a couple of years ago. Also, both of us come from working class backgrounds, so no financial support from family for college tuition, grad school, wedding, or down payment on house.

All the more reason, to keep spending in check, pay off your primary residence, shore up retirement and kids college costs now. Then pay cash for a second home. If everything is on credit, you have nothing at the end if things go south.

We are paying cash.

But you still have a mortgage on your primary house as well as woefully inadequate retirement and college funds. Get those on more solid ground before you go for the splurge house.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much money do you think it is prudent to have in retirement and investments before buying a vacation home (really a condo)? Some facts - have a $1.5m house here with mortgage around $800k. Rate is low, so no plan to pay this off early, plus we deduct the full amount of the interest payments. With vacation home, we would likely pay cash since we are maxed out on interest tax deduct and it is not a necessity. How much would you want in the bank to feel like this is not a stupid thing to do? We would pay costs associated with house out of cash flow (taxes, condo fees, etc).

We are biting the bullet and buying a vacation house, but not without some angst just because it is such an expensive luxury and we are not used to spending like this given our relatively frugal personalities and working class backgrounds. Vacation house is $500K. HHI is almost $2M. About $1.5M saved for retirement, $200K for kids' college, 15-year mortgage on a house worth about $1.2M with PITI about $4K (less than $500K left on mortgage). We have about $800K liquid.

Did you just start making that much? Because our savings/investments/college are quite a bit higher and our income is lower.

Yes, just a couple of years ago. Also, both of us come from working class backgrounds, so no financial support from family for college tuition, grad school, wedding, or down payment on house.

All the more reason, to keep spending in check, pay off your primary residence, shore up retirement and kids college costs now. Then pay cash for a second home. If everything is on credit, you have nothing at the end if things go south.

We are paying cash.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much money do you think it is prudent to have in retirement and investments before buying a vacation home (really a condo)? Some facts - have a $1.5m house here with mortgage around $800k. Rate is low, so no plan to pay this off early, plus we deduct the full amount of the interest payments. With vacation home, we would likely pay cash since we are maxed out on interest tax deduct and it is not a necessity. How much would you want in the bank to feel like this is not a stupid thing to do? We would pay costs associated with house out of cash flow (taxes, condo fees, etc).

We are biting the bullet and buying a vacation house, but not without some angst just because it is such an expensive luxury and we are not used to spending like this given our relatively frugal personalities and working class backgrounds. Vacation house is $500K. HHI is almost $2M. About $1.5M saved for retirement, $200K for kids' college, 15-year mortgage on a house worth about $1.2M with PITI about $4K (less than $500K left on mortgage). We have about $800K liquid.

Did you just start making that much? Because our savings/investments/college are quite a bit higher and our income is lower.

Yes, just a couple of years ago. Also, both of us come from working class backgrounds, so no financial support from family for college tuition, grad school, wedding, or down payment on house.

All the more reason, to keep spending in check, pay off your primary residence, shore up retirement and kids college costs now. Then pay cash for a second home. If everything is on credit, you have nothing at the end if things go south.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The condo fees range from $650-$1000/month. All in, taxes, condo fees and maintenance will be about $30k/year. Right now we are going during Christmas and renting a place is $$$ (ski town).

so for 30K/yr you could rent a ridiculous house in Aspen for 3-4 weeks. Or you could just travel to Utah, Colorado, Wyoming, Austria, France, or Switzerland and ski instead of going to the same place all the time. Your kids will be bored.

Have you looked at prices at these places? Week at Christmas in Aspen for a 2 bedroom condo it is $20,000 at a place that is nice but not crazy. Last year we spent $15k for a week in Park City at Christmas time.

I have no idea what you are looking at, that has not been my experience at all and we do at least 2 weeks out west each year. Honestly are you the same person who insists that it costs $1,500/nt to stay in Manhattan (as if the Mandarin is the only gig in town), when in reality you can get a great room for $700?

I'm actually booked AT Snowmass in Crestwood this coming Christmas, check in 12/26, check out 1/1. The condo is slope side and is ski in ski out. The community has all amenities, including boot and ski storage, concierge, heated outdoor pool, fitness center and is in the village. For a 2 bedroom,I'm paying $4,700. We did Aspen proper last Christmas and liked Snowmass best because you cannot ski in/out in Aspen and have to take a shuttle everywhere. Plus Snowmass has more for the kids.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much money do you think it is prudent to have in retirement and investments before buying a vacation home (really a condo)? Some facts - have a $1.5m house here with mortgage around $800k. Rate is low, so no plan to pay this off early, plus we deduct the full amount of the interest payments. With vacation home, we would likely pay cash since we are maxed out on interest tax deduct and it is not a necessity. How much would you want in the bank to feel like this is not a stupid thing to do? We would pay costs associated with house out of cash flow (taxes, condo fees, etc).

We are biting the bullet and buying a vacation house, but not without some angst just because it is such an expensive luxury and we are not used to spending like this given our relatively frugal personalities and working class backgrounds. Vacation house is $500K. HHI is almost $2M. About $1.5M saved for retirement, $200K for kids' college, 15-year mortgage on a house worth about $1.2M with PITI about $4K (less than $500K left on mortgage). We have about $800K liquid.

Did you just start making that much? Because our savings/investments/college are quite a bit higher and our income is lower.

Yes, just a couple of years ago. Also, both of us come from working class backgrounds, so no financial support from family for college tuition, grad school, wedding, or down payment on house.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much money do you think it is prudent to have in retirement and investments before buying a vacation home (really a condo)? Some facts - have a $1.5m house here with mortgage around $800k. Rate is low, so no plan to pay this off early, plus we deduct the full amount of the interest payments. With vacation home, we would likely pay cash since we are maxed out on interest tax deduct and it is not a necessity. How much would you want in the bank to feel like this is not a stupid thing to do? We would pay costs associated with house out of cash flow (taxes, condo fees, etc).

We are biting the bullet and buying a vacation house, but not without some angst just because it is such an expensive luxury and we are not used to spending like this given our relatively frugal personalities and working class backgrounds. Vacation house is $500K. HHI is almost $2M. About $1.5M saved for retirement, $200K for kids' college, 15-year mortgage on a house worth about $1.2M with PITI about $4K (less than $500K left on mortgage). We have about $800K liquid.

Did you just start making that much? Because our savings/investments/college are quite a bit higher and our income is lower.

Yes, just a couple of years ago. Also, both of us come from working class backgrounds, so no financial support from family for college tuition, grad school, wedding, or down payment on house.

Really and you don’t want to just pay off your mortgage? Or honestly, upgrade your primary home and rent a vacation home? At your income I’d definitely be in a 2-2.5m home.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much money do you think it is prudent to have in retirement and investments before buying a vacation home (really a condo)? Some facts - have a $1.5m house here with mortgage around $800k. Rate is low, so no plan to pay this off early, plus we deduct the full amount of the interest payments. With vacation home, we would likely pay cash since we are maxed out on interest tax deduct and it is not a necessity. How much would you want in the bank to feel like this is not a stupid thing to do? We would pay costs associated with house out of cash flow (taxes, condo fees, etc).

We are biting the bullet and buying a vacation house, but not without some angst just because it is such an expensive luxury and we are not used to spending like this given our relatively frugal personalities and working class backgrounds. Vacation house is $500K. HHI is almost $2M. About $1.5M saved for retirement, $200K for kids' college, 15-year mortgage on a house worth about $1.2M with PITI about $4K (less than $500K left on mortgage). We have about $800K liquid.

Did you just start making that much? Because our savings/investments/college are quite a bit higher and our income is lower.

Yes, just a couple of years ago. Also, both of us come from working class backgrounds, so no financial support from family for college tuition, grad school, wedding, or down payment on house.

Anonymous wrote:We spent a little over $1m for a second home. At the time we had around $4m saved. We took out a hefty mortgage and have been paying it off aggressively. We have very little mortgage left on our primary home so our total is below the deductibility limits (which of course didn’t exist when we bought it).

We don’t rent it out so it’s all out of cash flow, which is fine. Agree with PP that it’s not an investment, it’s a luxury/expensive hobby. The house has certainly appreciated but we have no plans to sell it. It’s an extension of our primary house.

I’m surprised you are finding condos/houses that you would rent for $20k week for under $1m. We ski in the west several times a year. The house we rented in park city this season for $6k at Christmas was worth about $800-900k. A house that rented for $15-20k would be much more expensive.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much money do you think it is prudent to have in retirement and investments before buying a vacation home (really a condo)? Some facts - have a $1.5m house here with mortgage around $800k. Rate is low, so no plan to pay this off early, plus we deduct the full amount of the interest payments. With vacation home, we would likely pay cash since we are maxed out on interest tax deduct and it is not a necessity. How much would you want in the bank to feel like this is not a stupid thing to do? We would pay costs associated with house out of cash flow (taxes, condo fees, etc).

We are biting the bullet and buying a vacation house, but not without some angst just because it is such an expensive luxury and we are not used to spending like this given our relatively frugal personalities and working class backgrounds. Vacation house is $500K. HHI is almost $2M. About $1.5M saved for retirement, $200K for kids' college, 15-year mortgage on a house worth about $1.2M with PITI about $4K (less than $500K left on mortgage). We have about $800K liquid.

Did you just start making that much? Because our savings/investments/college are quite a bit higher and our income is lower.

Anonymous wrote:

Anonymous wrote:How much money do you think it is prudent to have in retirement and investments before buying a vacation home (really a condo)? Some facts - have a $1.5m house here with mortgage around $800k. Rate is low, so no plan to pay this off early, plus we deduct the full amount of the interest payments. With vacation home, we would likely pay cash since we are maxed out on interest tax deduct and it is not a necessity. How much would you want in the bank to feel like this is not a stupid thing to do? We would pay costs associated with house out of cash flow (taxes, condo fees, etc).

We are biting the bullet and buying a vacation house, but not without some angst just because it is such an expensive luxury and we are not used to spending like this given our relatively frugal personalities and working class backgrounds. Vacation house is $500K. HHI is almost $2M. About $1.5M saved for retirement, $200K for kids' college, 15-year mortgage on a house worth about $1.2M with PITI about $4K (less than $500K left on mortgage). We have about $800K liquid.