2nd Home = 2nd Life

2nd Home = 2nd Life

I feel like I write a similar blog every summer. The summer season is upon us and this is where people get the itch that second home itches. You and your family just got back from the shore or the beach and had the best time. The sun, the beach, the water, the relaxation, you named it you loved it.

Next thing you did is start chatting with your partner and discussing what it would take to buy that second beach or vacation home. You crunch the numbers, double check them, and heck even consult with us to see if financially it is feasible. Lo and behold we show you that you can indeed afford that secondary home.

Now comes the tough part.

The Decision of a Second Home

The reality is affording the home is only one half of the equation when determining if a secondary home is a good decision. Like anything in financial planning, it is one part math, one part art, as the old saying goes just because you can doesn’t mean you should.

Here is my number one knockout question when clients or friends ask me about purchasing that secondary property. The question is simple, are you ready for a second life? Sit with that for a moment and I’ll opine.

Here is what I mean by a second life. Are you ready for a second set of friends and truly a second lifestyle. There is a big, and I mean huge, difference between renting a beach house for a week and owning it for 52 weeks. It takes money, upkeep, usage, and effort to uphold a secondary residence. So you better be loving it. With a second home you want to be pulled to that property, not pushed. Having an obligation to use it because you haven’t in three months isn’t a good reason to utilize it. Going and enjoying that secondary set of friends or lifestyle is a great reason to go (hence pulling you there versus feeling like you are pushed there).

I see it all the time, people buy that other home, use it for a few weeks a year and end up selling it three years later realizing they simply didn’t use it enough. What I hear when I see that is they bought a home in an area they do happen to love. But it became more of an obligation once they owned it than that respite and release they were looking for.

Conversely, I see people all the time who truly love their secondary lifestyle. They have a boat or a routine where they go. They join a golf club or tennis league (you will never hear me say pickleball, fyi) that they are excited to get back to. Most importantly they have a community, they feel a part of something that brings them excitement.

Not a Home but a Lifestyle

I guess at the end of the day, you aren’t buying a second home at all, you are spending money to have a secondary lifestyle that you yearn for. For some that may be a mountain or lake home that they love spending time at and enjoying. It is about the memories, the community, and being part of a different ethos than where you currently reside. Don’t make it about purchasing a cool spot in a great area. Those places have a shelf life. The ones that last build a community and put roots down to have some permanence.

My advice: unless you and your partner feel the same way, simply rent and stay at the nicest place you can afford to scratch the itch that way. If you are ready to truly have a second life, then let’s look at the financials to determine what is feasible in the first place.

As always, stay wealthy, healthy, and happy.