Vacation Homes

[ddswifey]

If you go in with others, there's much greater risk of it going south.  A divorce (the other peoples, not your own) can ruin everything. I've seen this happen between two friends who I never ever thought one of them would get a divorce.  Just something to consider.

[CordMcNally]

Jack_Sparrow wrote:

I know some glass half full folks will point out there is potential for drama, and somebody always ends up doing all the work, someone’s family doesn’t clean enough, broke the boat before we went down, blah blah blah. All this aside, you find the right people it will be worth it and you’ll have someone to spend some time with at the lake every now and then.

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Buying a vacation house is generally a bad idea. Buying a vacation house with other people is making a bad idea even worse.

[dennis]

You are swimming against the tide on this site talking about a lake home so I'll swim with you. It's definitely a luxury and think hard on it before pulling the trigger. I am writing this from the deck of our lake home and I love it. I am retired and spend a good amount of time here. It is a lake on which my family has vacationed for a couple of generations. Our primary residence is a little smaller than the usual Dr. house and was half the cost of the lake house (because of the cost of the land). We started with a condo we could afford for the first 16 yrs and then sold it and bought the house, rolling the gain from the condo into the house equity (250% gain). It is certainly is a luxury though and you'll have to budget for it but if it's a lifestyle you want it is certainly possible.

[Kamban]

I hate going to a vacation home on the lake even on weekends.

For weekend vacation, I just want to vacation at home. If I want to more than 4 days on a longer weekend or a 2 week vacation, I would rather just get a hotel. I like to vacation at different places. Not go to the same place over and over and over,,,,

[FIREshrink]

Joanna - truck and trailer. It's been great for us. I always wanted a cabin and this has been far more useful, flexible, portable, and inexpensive.

[Infinity]

To me, a vacation home is considered a luxury item, likes cars, planes, boats, except it may go up in value (unlikely to make up for the expenses).  It is in liability category in my financial book (takes money out of my pocket), not asset category that brings money in.  Once you are rich, of course, you can afford any luxury items you want.  Until that time comes, pay for a few days of stay in resorts, hotel or AirBnB is a better option for me.

[CM]

Lots of experience on bogleheads. Here is a current thread:

https://www.bogleheads.org/forum/viewtopic.php?f=2&t=284615

Most regret the purchase.

[uptoolate]

Relaxing watching some Justified after a great day at the lake house.  We call it a cottage but it is really a year-round house - in many ways nicer than our primary residence.  We didn't do anything special to own it. Just worked and made the decision that it was worth it for us to have such a place.  Four children, now all in their 20s. Priceless memories and after some years of them not being up so much in their mid-teens they all now want to be here as often as possible.  It is nice to have a place with all of our own things, not have to pack, just jump in the car and go.  Financially, has actually turned out better than some 'investments' but definitely wasn't made with that expectation.  Our best decision regarding it was to buy something that was very well built - steel roof, gas fireplaces, very low maintenance.  We don't rent it out but do let family and friends stay as often as they want.  It is all about values and priorities.  Can't say that it impacted our retirement planning negatively.  Definitely don't regret the purchase. Maybe just lucky.

[SLC OB]

SValleyMD wrote:

it’s under 1.5 hours from my home

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1.5 hours from SValley.... can't be Tahoe... Delta? Berryessa? Clear Lake?

[uteomfs]

Be patient. The more I travel and have the means to travel, the less I want a second home. It’s becoming even more so a renters world. A few things to consider, overall costs including insurance, taxes and maintenance. We looked at places, highly desirable locations, and taxes alone were more expensive than a nice hotel in the same area would be for a couple of weeks. Time, it’s just ************************ hard to spend a lot of time at your second home early in your career. For me, it has only been recent I have had more than 2 weeks off a year to travel. Add the potential for kids and this is even more difficult. Way too many good deals on VRBO and the like, who wants that headache of owning. I will be heading back home tomorrow from vacation and wont lift a finger cleaning this home we rented. Someone else’s problem. Also won’t be paying to have the pool/hot tub fixed that had problems during our stay.

[Brains428]

Secondary lake houses are pretty common around here, even among non-physicians. Real estate around middle America are pretty reasonable. The people I know that use them the most use it about 20% of the year (a week a month during summer/warmer times, a weekend a month during the winter). They don't really vacation, though, so it's where that discretionary income goes. I think the secret costs come in the forms of boat and decks.

I don't see myself ever buying one, but I do enjoy glamping (go out into nature, come back to a real bed and maybe a TV).

[fatlittlepig]

A second house to furnish, pay for, second property tax, insurance, utilities. Definite pass for me, would rather pay for a hotel or rent a place.

[ame1215]

how about owning a beach condo/house  and also giving out to short rentals and using when you want ?

[VagabondMD]

One of the best financial decisions I ever made was not buying a vacation home. I despise maintenance and repairs on our one home. Two homes are 1 1/2 too many for me.

We strongly considered a second home in a mountain resort area for summer and winter vacations. Over time, we even stopped visiting the location where we would have purchased the second home because we became somewhat bored traveling there and enjoyed going to new places.

 

[Raddoc123]

Many wealthy people don’t own them according to one of those millionaire next door books.   Not only a terrible use of money but how about the waste of time trying to maintain, furnish the house, clean, driving or flying there and restricting yourself.  Makes zero sense to me.