Last week I had to play the role of dream breaker on that second home. This week, I plan to play the other side of the equation. I get to play dream maker for those that need that extra nudge to take the plunge. Time to shift gears to the pros of buying that second, vacation, home.
There are plenty of positives to owning that second home, so let’s hop to it!
I cringe as I say these words, as I don’t really consider real estate an investment. That said, I look at the Jersey shore real estate, for instance. Over the past two years, the market here has gone up considerably, to the tune of approximately 50%. A lot of vacation homes are in desirable places, with a finite supply. Going back to my Econ 101 days with Crazy Willy, Supply=Demand. And where there is a limited supply, and the demand is high, values increase. I wouldn’t purchase a second home for this purpose, but it can certainly be a nice fringe benefit.
Alright, I’ll save the best for second. If you ask me the number one reason to purchase a vacation home it is for the experience and memories. For me, it is very personal. I grew up at the Jersey shore, as in, literally was raised 5 miles from the ocean. Some of my best friends in the world still live here, and certainly many of my fondest memories in life happened here. I want to give this gift to my children and continue the tradition. When my kids are older, I want their families to come down here. I want them to look back with nothing but fondness providing them warmth in their soul. I know it sounds cheesy, but that my friends, is the greatest gift to me.
Do you find yourself describing yourself as a father or mother? How about a doctor or teacher? Ever get stuck in the mundane and need to break away from these social constraints our society labels us with? Look no further than that second home. It is kind of like going to college and reinventing yourself. If you have a mountain home, there you can be an outdoorsman or fisherman. At the shore, I am a beach bum and super active. I ride bikes with the kids and it forces me out of those “normal” constraints I label myself with every other day of the year. Owning that second home should be done to fill a lifestyle void you have, and provide you with those intangibles you might be currently lacking.
Peace of Mind-
For many that second home can really give you peace of mind. One, that allows you to hop in the car on a whim and go to your happy place. No need to pack or unpack anything. Rather, get in the car and go to your weekend get-away. I spend so much time educating on the benefits of balance in one’s life. That second home can really alleviate a lot of stress and force you into a mode of relaxation.
Most people go on one or two vacations a year. They plan for a week here or a week there, months if not years in advance. When you own a second home, you essentially own an on-call vacation. All you have to do is make the time, and an instant vacation can be had. There are only a million benefits to vacationing I could list. If you purchase that second home it can certainly serve as a conduit to these benefits.
Friends & Family-
Final benefit worth noting today is that of friends and family. For some, it may be a curse, but as the saying goes, “if you build it, they will come.” Want to see your family more – buy a house in a desirable place, TRUSTTTT ME they will come to visit. Have friends you are close with whether local or not, invite them to your vacation home – TRUSTTTT ME they will come. Not only that you will most certainly build an entirely new set of friends wherever you are purchasing. Heck, we even added a new daughter at the shore. The lovely Ashley has become my 4th kid and my children’s favorite human being on the planet. The good news is, although she is our unofficial 4th kid, her parents are still paying for her to go to college next year!
The Facts of Life
“You take the good, You take the bad, You take them both, and there you have the facts of life. The facts of life”
You can tell I am a product of the 80’s there with an homage to one of the great tv shows. As The Facts of Life taught us many things in life come with good and bad. The challenge in owning a second home is to sift through the financial, emotional, qualitative, and quantitative benefits of owning a second home. It is certainly not for everyone, and generally not for most.
I do hope this two-part series can help lay out what I’ve lived and witnessed through decades of dealing with people’s finances. As always here to help you achieve your goals here at Diversified.
Stay wealthy, healthy, and happy.
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