Comments on: Should We Buy a Vacation Home? http://www.mydollarplan.com/should-we-buy-a-vacation-home/ because money doesn't grow on trees Thu, 09 Feb 2012 14:28:55 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Mike Scheer http://www.mydollarplan.com/should-we-buy-a-vacation-home/#comment-97255 Mike Scheer Mon, 29 Aug 2011 14:36:51 +0000 http://www.mydollarplan.com/?p=1190#comment-97255 Globalmargaret, you obviously don't have kids or a clue about college costs. My daughter goes to Butler Univ. Room, board tuition and incidentals run $55-60,000. Cost go up 4%-7% per year. If you're just starting a family $300,000 for 4 years is probably an under estimate-at $50,000/yr X 4% increase per year, your talking close to $400,000 for a private university. If you don't have the money, don't borrow the leisure IMO . We are going through the vacation home scenario now. 2 kids 17 and 20-college paid for, house paid for, no debt. I'm 52, my wife is 49, both retired. We have a shared family vacation home in No. WI., but want our own place for memories. What to do? I enjoy the northwoods, wife can take it in small 5 day doses.My daughter loves it, son wants to be home with his friends. Globalmargaret, you obviously don’t have kids or a clue about college costs. My daughter goes to Butler Univ. Room, board tuition and incidentals run $55-60,000. Cost go up 4%-7% per year. If you’re just starting a family $300,000 for 4 years is probably an under estimate-at $50,000/yr X 4% increase per year, your talking close to $400,000 for a private university.

If you don’t have the money, don’t borrow the leisure IMO .

We are going through the vacation home scenario now. 2 kids 17 and 20-college paid for, house paid for, no debt.

I’m 52, my wife is 49, both retired. We have a shared family vacation home in No. WI., but want our own place for memories. What to do? I enjoy the northwoods, wife can take it in small 5 day doses.My daughter loves it, son wants to be home with his friends.

]]> By: globalmargaret http://www.mydollarplan.com/should-we-buy-a-vacation-home/#comment-89160 globalmargaret Tue, 21 Jun 2011 21:59:40 +0000 http://www.mydollarplan.com/?p=1190#comment-89160 No offence sak, but 300K for college, you have got to be kidding me. I don't have kids and don't plan on having them any time soon but IF that figure was remotely accurate it would seal the deal on me never having kids. NOTHING is worth 300K...excessively large houses, to many cars, and uncecessary purchases are ransoming childrens future, not weekends at the beach. As for the vacation home, if you are going to use it and arn't going to spend your life paying it off then I say go for it. Whats the harm, I know lots of folks who buy a vacation home and evenually retire there. Most of these people are the type who spend a fair share of thier time there, not just a weekend a month type. No offence sak, but 300K for college, you have got to be kidding me. I don’t have kids and don’t plan on having them any time soon but IF that figure was remotely accurate it would seal the deal on me never having kids. NOTHING is worth 300K…excessively large houses, to many cars, and uncecessary purchases are ransoming childrens future, not weekends at the beach.

As for the vacation home, if you are going to use it and arn’t going to spend your life paying it off then I say go for it. Whats the harm, I know lots of folks who buy a vacation home and evenually retire there. Most of these people are the type who spend a fair share of thier time there, not just a weekend a month type.

]]> By: Rich Berger http://www.mydollarplan.com/should-we-buy-a-vacation-home/#comment-86253 Rich Berger Wed, 11 May 2011 17:45:24 +0000 http://www.mydollarplan.com/?p=1190#comment-86253 We have a "vacation" home that we had built in 2004. We spend about 40+ weekends a year there and don't rent it out. It is fully furnished so that we don't have to bring much out to it each weekend (although we invariably do bring stuff every weekend). My comments - it doesn't make economic sense to have it. We enjoy it. Also, the distance from your primary residence is key to getting sufficient use of it. Ours is within 2 hours' drive. If you increase the distance to 3, 4 or more hours, your usage will go down sharply. Our house is in a lake commmunity and we notice a number of houses that are used infrequently. Sometimes people spend money to upgrade their house and hardly even come afterward. We rented in this community for 8 years off an on before we bought and built. We also waited until our kids were in college - when kids are Jr/Sr. high school age, they do not want to spend weekends with their parents and away from their friend. They may also have a lot of activities that will keep them from coming, too. We have a “vacation” home that we had built in 2004. We spend about 40+ weekends a year there and don’t rent it out. It is fully furnished so that we don’t have to bring much out to it each weekend (although we invariably do bring stuff every weekend).

My comments – it doesn’t make economic sense to have it. We enjoy it. Also, the distance from your primary residence is key to getting sufficient use of it. Ours is within 2 hours’ drive. If you increase the distance to 3, 4 or more hours, your usage will go down sharply. Our house is in a lake commmunity and we notice a number of houses that are used infrequently. Sometimes people spend money to upgrade their house and hardly even come afterward. We rented in this community for 8 years off an on before we bought and built. We also waited until our kids were in college – when kids are Jr/Sr. high school age, they do not want to spend weekends with their parents and away from their friend. They may also have a lot of activities that will keep them from coming, too.

]]> By: J. Rusch http://www.mydollarplan.com/should-we-buy-a-vacation-home/#comment-81269 J. Rusch Tue, 22 Mar 2011 23:32:32 +0000 http://www.mydollarplan.com/?p=1190#comment-81269 Sak you hit it on the nose. Take a vacation and spend your hard earned money on maintaining your paid off home. jr Sak you hit it on the nose. Take a vacation and spend your hard earned money on maintaining your paid off home.

jr

]]> By: sak http://www.mydollarplan.com/should-we-buy-a-vacation-home/#comment-26421 sak Mon, 06 Dec 2010 01:51:00 +0000 http://www.mydollarplan.com/?p=1190#comment-26421 if you can't pay cash for it, you can't afford it. and it's a good idea only if your primary home is paid for, you have the 300K or more in the bank for each kid who needs to go to college, and you're saving at least 20% of your gross pay for retirement. Too many people with their creative minds - from financing to watching the sunset on a lake is what sidetracked us from reality and got us into the financial mess that's ransoming our children's futures. if you can’t pay cash for it, you can’t afford it. and it’s a good idea only if your primary home is paid for, you have the 300K or more in the bank for each kid who needs to go to college, and you’re saving at least 20% of your gross pay for retirement. Too many people with their creative minds – from financing to watching the sunset on a lake is what sidetracked us from reality and got us into the financial mess that’s ransoming our children’s futures.

]]> By: Chris http://www.mydollarplan.com/should-we-buy-a-vacation-home/#comment-15339 Chris Sun, 05 Sep 2010 17:16:08 +0000 http://www.mydollarplan.com/?p=1190#comment-15339 I am curious on maybe buying a vacation/rental home. The questions I have are, 1. How much down payment do banks usually require, I am guessing 20%? 2. Can you refinance your current home to come up with the down payment? I owe 47k on a 95k home. 3. How much of nightly rent can you figure to get back when going through a rental company? From dealing with rental companies from the other end, some charge cleaning fees, hot tub and reservation fees, etc., my guess would be they still might take some of the nightly rent, but how much? Some also just charge a flat rental fee and others charge more for more people, etc. 4. If you go through a rental company, how easy is it to stay there or let friends or family stay there (like how much notice) and what charges apply if any? Meaning the hot tub fee, cleaning fee, etc. Any answers would be appreciated, as I am deciding what to do? I am curious on maybe buying a vacation/rental home. The questions I have are, 1. How much down payment do banks usually require, I am guessing 20%? 2. Can you refinance your current home to come up with the down payment? I owe 47k on a 95k home. 3. How much of nightly rent can you figure to get back when going through a rental company? From dealing with rental companies from the other end, some charge cleaning fees, hot tub and reservation fees, etc., my guess would be they still might take some of the nightly rent, but how much? Some also just charge a flat rental fee and others charge more for more people, etc. 4. If you go through a rental company, how easy is it to stay there or let friends or family stay there (like how much notice) and what charges apply if any? Meaning the hot tub fee, cleaning fee, etc.

Any answers would be appreciated, as I am deciding what to do?

]]> By: Carnival of Money Stories #53 | Business and Sports http://www.mydollarplan.com/should-we-buy-a-vacation-home/#comment-12577 Carnival of Money Stories #53 | Business and Sports Tue, 22 Jun 2010 10:33:55 +0000 http://www.mydollarplan.com/?p=1190#comment-12577 [...] Dollar Plan is thinking about a vacation home again! Man, I wish I was just thinking about a regular [...]

[...] Dollar Plan is thinking about a vacation home again! Man, I wish I was just thinking about a regular [...]

]]> By: Wendy http://www.mydollarplan.com/should-we-buy-a-vacation-home/#comment-12518 Wendy Sat, 19 Jun 2010 16:26:16 +0000 http://www.mydollarplan.com/?p=1190#comment-12518 I'm glad I stumbled upon this. I'm also enjoying the comments. We just put a down payment on a little house 2 hours away from us. It's just close enough to drive to for the weekend at least once or twice a month. We live in the city with our 3 kids, but both grew up with country life. We want our children to experience both sides. I found a place that I think will be a good investment, so even if we get tired of it in a few years, we probably won't lose money. I don't think I'd purchase a place that I couldn't go to at least once a month. I’m glad I stumbled upon this. I’m also enjoying the comments. We just put a down payment on a little house 2 hours away from us. It’s just close enough to drive to for the weekend at least once or twice a month. We live in the city with our 3 kids, but both grew up with country life. We want our children to experience both sides. I found a place that I think will be a good investment, so even if we get tired of it in a few years, we probably won’t lose money. I don’t think I’d purchase a place that I couldn’t go to at least once a month.

]]> By: Carnival of Money Stories #53 | FinanceMoz.com http://www.mydollarplan.com/should-we-buy-a-vacation-home/#comment-12141 Carnival of Money Stories #53 | FinanceMoz.com Sun, 06 Jun 2010 09:54:59 +0000 http://www.mydollarplan.com/?p=1190#comment-12141 [...] Dollar Plan is thinking about a vacation home again! Man, I wish I was just thinking about a regular [...]

[...] Dollar Plan is thinking about a vacation home again! Man, I wish I was just thinking about a regular [...]

]]> By: Link Roundup ? Limping Man Edition : Real-Time Finance http://www.mydollarplan.com/should-we-buy-a-vacation-home/#comment-11717 Link Roundup ? Limping Man Edition : Real-Time Finance Fri, 21 May 2010 12:00:35 +0000 http://www.mydollarplan.com/?p=1190#comment-11717 [...] Should we buy a Vacation Home? [...]

[...] Should we buy a Vacation Home? [...]

]]> By: Aury (Thunderdrake) http://www.mydollarplan.com/should-we-buy-a-vacation-home/#comment-11655 Aury (Thunderdrake) Tue, 18 May 2010 19:56:04 +0000 http://www.mydollarplan.com/?p=1190#comment-11655 If you just have the rental home sitting there, I think it's rightful to have that feeling of guilt. Because with nothing making use of it, it can quickly degenerate into a liability. One of the best things to do with an empty rent is to get temporary tenants (or longer term, depending on what you want) which will immediately help the flat put money in your pocket. To answer your question of 'Should we buy a vacation home?' If your numbers add up and you can administer a rent that is ultimately an asset, then my answer is; Absolutely! If you just have the rental home sitting there, I think it’s rightful to have that feeling of guilt. Because with nothing making use of it, it can quickly degenerate into a liability. One of the best things to do with an empty rent is to get temporary tenants (or longer term, depending on what you want) which will immediately help the flat put money in your pocket.

To answer your question of ‘Should we buy a vacation home?’ If your numbers add up and you can administer a rent that is ultimately an asset, then my answer is; Absolutely!

]]> By: Jeff @ sustainablelifeblog http://www.mydollarplan.com/should-we-buy-a-vacation-home/#comment-11535 Jeff @ sustainablelifeblog Fri, 14 May 2010 14:48:48 +0000 http://www.mydollarplan.com/?p=1190#comment-11535 Wow....there are lots of great posts & comments up here, and I'm going to add my 2 cents to the mix. A vacation home is something that I've always wanted to purchase. Not quite sure why, but having a place that one could go every year for 15 years I put lots of value in, and if I ever have children, it would be nice to have something to take them to a few times a year for good memories and such. Along with that, I can give it to them when I'm gone, and they can create their own memories with their kids. You seem to have (possibly unknowingly) stepped into one of the murkiest areas of personal finance, that of lifestyle choice. There are quite a few comments that say "Save your money, take vacations at different spots every year, and dont worry about the headaches of upkeep, etc at your vacation house. This situation all comes down to personal preference, the root of the "personal" in personal finance. However, completely throwing caution to the wind and failing to look at real numbers such as cost (if you can afford it, im assuming you can) ROI and the like, you can end up in a spot that may be difficult to work your way out of. There are many things that you can get solely with money, but money enables you to enjoy them, and this seems to be one of them. Having a spot for you and your extended family to go, relax in and make your own could far outweigh any income loss (from buying a vacation home/condo instead of investing in the stock market). Enjoy your decision, and Im sure every commenter would love to hear what you decide to do. Wow….there are lots of great posts & comments up here, and I’m going to add my 2 cents to the mix.

A vacation home is something that I’ve always wanted to purchase. Not quite sure why, but having a place that one could go every year for 15 years I put lots of value in, and if I ever have children, it would be nice to have something to take them to a few times a year for good memories and such. Along with that, I can give it to them when I’m gone, and they can create their own memories with their kids.
You seem to have (possibly unknowingly) stepped into one of the murkiest areas of personal finance, that of lifestyle choice. There are quite a few comments that say “Save your money, take vacations at different spots every year, and dont worry about the headaches of upkeep, etc at your vacation house.
This situation all comes down to personal preference, the root of the “personal” in personal finance. However, completely throwing caution to the wind and failing to look at real numbers such as cost (if you can afford it, im assuming you can) ROI and the like, you can end up in a spot that may be difficult to work your way out of.
There are many things that you can get solely with money, but money enables you to enjoy them, and this seems to be one of them. Having a spot for you and your extended family to go, relax in and make your own could far outweigh any income loss (from buying a vacation home/condo instead of investing in the stock market).
Enjoy your decision, and Im sure every commenter would love to hear what you decide to do.

]]> By: » Link Roundup – Limping Man Edition http://www.mydollarplan.com/should-we-buy-a-vacation-home/#comment-11522 » Link Roundup – Limping Man Edition Fri, 14 May 2010 02:30:16 +0000 http://www.mydollarplan.com/?p=1190#comment-11522 [...] Should We Buy a Vacation Home? [...]

[...] Should We Buy a Vacation Home? [...]

]]> By: Ron http://www.mydollarplan.com/should-we-buy-a-vacation-home/#comment-11521 Ron Fri, 14 May 2010 01:49:14 +0000 http://www.mydollarplan.com/?p=1190#comment-11521 LOL! Or you could do what's best for you and your family and ignore people who think everything in the world has to have an ROI. And you could ignore people who have never had a lake home of their own. LOL!
Or you could do what’s best for you and your family and ignore people who think everything in the world has to have an ROI. And you could ignore people who have never had a lake home of their own.

]]> By: nickel http://www.mydollarplan.com/should-we-buy-a-vacation-home/#comment-11520 nickel Fri, 14 May 2010 01:33:14 +0000 http://www.mydollarplan.com/?p=1190#comment-11520 I don't fully understand Erica's comment. Don't buy a vacation home because you can write a blog post and earn money? Huh? How about this... Grow your online business to the point where you can just go live on a lake. That way you don't have to have a second home. You just live in the fun one. :-) I don’t fully understand Erica’s comment. Don’t buy a vacation home because you can write a blog post and earn money? Huh? How about this… Grow your online business to the point where you can just go live on a lake. That way you don’t have to have a second home. You just live in the fun one. :-)

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