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My wife and I (both age 35) have always dreamed of having a house right along the water. It doesn't necessarily have to be the beach, but we are definitely looking for something overlooking the Bay or a nice lake. We live about an hour and half now from the Delaware beaches, and are looking to have this as a second vacation place which we might eventually retire too.
The idea of purchasing this is still a few years away (5 give or take), as we have two little ones in daycare now. We both live below our means, and although we thought this dream out of reach, its amazing what you can do when you set goals (i.e 1200 a month in daycare, which is more then our mortgage just shows us that this is potentially possible a few years from now with both of our salaries (hopefully) still tracking upward). We have established a 6 month emergency fund, we both are contributing 16% of our salary to our 401K plans, 529 plans for each child and have no debt beyond our mortgage and small amount of student loans. In addition, we have some additional mutual fund investments beyond our emergency funds that we have 'earmarked' for a potential getaway home.
We intend to pay off our primary residence 5-10 years before we retire (guessing early 60's) and are well on track to do so. In retirement, we hope that we can then sell our primary house, and either invest and make any further mortgage payments on our getaway home from that, or even throw that money into paying off the second home based on where we stand.
We have money stashed away, and have for sometime with this goal in mind, but just trying to get some feedback fom any others here that might already own that second "getaway" place.
If you own a second place do you rent it out? Did you buy it early in your working career or did you wait until retirement and selling of your primary residence or somewhere inbetween? What were some of the biggest obstacles in making it happen? Right now this still seems like a stretch that we can make this happen, but its something we both love, so I at least want to test the waters to see if it makes both financial sense, and personal fulfillment. Thanks for any input.
The idea of purchasing this is still a few years away (5 give or take), as we have two little ones in daycare now. We both live below our means, and although we thought this dream out of reach, its amazing what you can do when you set goals (i.e 1200 a month in daycare, which is more then our mortgage just shows us that this is potentially possible a few years from now with both of our salaries (hopefully) still tracking upward). We have established a 6 month emergency fund, we both are contributing 16% of our salary to our 401K plans, 529 plans for each child and have no debt beyond our mortgage and small amount of student loans. In addition, we have some additional mutual fund investments beyond our emergency funds that we have 'earmarked' for a potential getaway home.
We intend to pay off our primary residence 5-10 years before we retire (guessing early 60's) and are well on track to do so. In retirement, we hope that we can then sell our primary house, and either invest and make any further mortgage payments on our getaway home from that, or even throw that money into paying off the second home based on where we stand.
We have money stashed away, and have for sometime with this goal in mind, but just trying to get some feedback fom any others here that might already own that second "getaway" place.
If you own a second place do you rent it out? Did you buy it early in your working career or did you wait until retirement and selling of your primary residence or somewhere inbetween? What were some of the biggest obstacles in making it happen? Right now this still seems like a stretch that we can make this happen, but its something we both love, so I at least want to test the waters to see if it makes both financial sense, and personal fulfillment. Thanks for any input.
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