Buying a vacation home

[am_vanquish]

One big factor in how much a vacation home makes sense is it's proximity to the primary residence. That directly impacts the frequency of use and also lowers the costs of getting to the vacation home. I guess a "weekend home" makes more sense than a "vacation home."

That said, there should also be a minimum distance requirement for a weekend home. I actually have a coworker here in Atlanta who has a condo in Midtown as well as a home out in the suburbs. That way, he can choose where to stay if he feels like commuting or is in the mood to party/entertain vs relax/getaway. Seems a bit insane to me, but he swears by it.

[disneysteve]

That said, there should also be a minimum distance requirement for a weekend home. I actually have a coworker here in Atlanta who has a condo in Midtown as well as a home out in the suburbs. That way, he can choose where to stay if he feels like commuting or is in the mood to party/entertain vs relax/getaway. Seems a bit insane to me, but he swears by it.

That is somewhat common in the Manhattan area. I know a few people who maintain a place in the city along with their family home in the suburbs. But they don't think of the city place as a vacation home. They use it strictly to avoid spending 4 hours/day or more commuting. They go in on Monday, stay in the city during the week and go home on Friday.

[bjl584]

Vacation homes are luxury purchases. They don't make financial sense. That what makes them luxuries. It is like trying to explain why anyone buys a $40,000 car or a $10,000 Rolex watch. Right or wrong, some people choose to sink their spare money into owning a 2nd home. Of course, under normal circumstances, real estate does appreciate over time, so there is some degree of investment aspect to this but the carrying costs often outweigh the appreciation value.

My wife and I have looked seriously into buying a home in Florida but we could never make the numbers work in our favor and we weren't willing to do it at a loss. So we continue to rent each time we go.

My partner at work has fallen in love with Costa Rica, a place often featured on that TV show I believe. Now he is the type who I fully expect will buy a place down there probably sooner than later. But he is not the guy you would want to take saving or investment advice from.

As you said, sometimes a vacation home can be a good investment. I met a gentleman the last time that I was in South Myrtle Beach. He was a full time resident of the house that was next door to the place that we were renting. He told me that he bought that place about 20 years ago when the penisula that we were on was just fields and swampland. He got it for $30,000. His house is appraised now at well over a Million dollars. The entire penisula is built up with other homes, a marina, and several hotels and restaurants. I'm not sure if he has an eye for a good deal and was able to predict that the area would one day become a vacation hotspot, or if he was just extremely lucky. Either way, he got a pretty good return on his investment.

[cptacek]

I know of lots of people who buy houses in small towns so they can go hunting. They spend probably $10,000 - $20,000 for a couple bedroom house?

I also know someone who built a metal shed and insulated it (in a little one horse town...no building requirements). It is one giant room with a kitchen and two small bathrooms off to the side. Probably 8 beds in the one room and various couches and recliners by the door. Their entire family comes out (3 generations at once). They love it and it is a great way for all of them to get together.

[TBH]

There's a New York Times real estate column that is about international second homes. Every week they show a house for sale in another country, and the articles talk about the rules for foreigners buying houses in the various countries.

Here's the most recent column:
For sale in Panama

It's pretty hard for me to imagine having enough money that I'd be comfortable buying a vacation house, but it sure is fun to daydream about it.

I don't think I'd want to own something in another country unless I could spend part of every year there, but I would love to buy a few acres and put a very simple prefab house on it, somewhere within a couple hours of where I live. I'd use it as a writing retreat and go up there for the weekend with friends.

[disneysteve]

There's a New York Times real estate column that is about international second homes.

A large percentage of the rental homes in the Disney World area are owned by people from England. Apparently, it is one of the top travel destinations for them and they often come for several weeks at a time. We've rented from British owners several times.