how much would you spend on a 2nd home if your hhi (this yr) was $2m (next yr could be a little less) and $8m in savings....primary residence is paid off...dh wants to buy a $$ home... (more)
andi am very squeamish...2nd homes ARE NOT good investments...thoughts? i know you are not prof financial planners (we have someone for that who is giving us his opinion)...just want a range of opinions...
posted June 23rd, 2010 at 6:15pm in Toddler
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- $2M 6-23-2010 6:16pm
- I am so poor. No savings. Cannot relate. Enjoy. 6-23-2010 6:16pm
- I would buy a nice apartment somewhere you like a lot. Paris, London, whatever. I wouldn't spend more than 1.2 M if I had 8 to spend. 6-23-2010 6:16pm
- thanks. dh wants to spend $1.8....i want to spend $1m....we'll probably have to meet in the middle which is close to your #. 6-23-2010 6:19pm
- How about finding a place you love? I would not look at it as investment, you should buy something you will love and will use a lot. 6-23-2010 6:22pm
- we have $3 million in savings and HHI of $2 million and we would spend $2-3 million. in the market now. 6-23-2010 6:22pm
- ^we carry a mortgage on primary residence and would carry mortgage on second residence (put 20% down). 6-23-2010 6:23pm
- how do you feel comfortable with this? shouldn't you pay down mortgages first? 6-23-2010 6:27pm
- why would I? mortgage rate is not very high and we like the tax deduction. we have a lot of equity on top of the mortgage in primary residence (more than would cover the second...(more) 6-23-2010 6:30pm residence mortgage). I guess I don't see what you are doing with all your money that you think you can't afford it. but I guess that's why you have $8 million saved and we only have $3 million. we live pretty well (and kids have money for college put away) so not concerned about saving that much more.
- i guess its different spending habits. i don't want a "showy" house....and grew up saving much much more than you spend. if we don't save 50% of our income each year, i freak out...(more) 6-23-2010 6:32pm
- my DH is much more of a risk taker than I am too. but i've run the numbers for us backwards forwards and sideways and we can definitely do it at $2-3 million and still be saving a couple...(more) 6-23-2010 6:37pm hundred thousand a year. so I guess that's how i've gotten comfortable. I get the part about showy house. we are looking in hamptons and at 2-3 million, believe it or not, most of them are not that showy but its the difference of having 4 or 5 bedrooms and we want to be able to have other families out with us so if it costs a little more to have one or two more bedrooms, I'd rather that.
- my DH is much more of a risk taker than I am too. but i've run the numbers for us backwards forwards and sideways and we can definitely do it at $2-3 million and still be saving a couple...(more) 6-23-2010 6:37pm
- i guess its different spending habits. i don't want a "showy" house....and grew up saving much much more than you spend. if we don't save 50% of our income each year, i freak out...(more) 6-23-2010 6:32pm
- why would I? mortgage rate is not very high and we like the tax deduction. we have a lot of equity on top of the mortgage in primary residence (more than would cover the second...(more) 6-23-2010 6:30pm
- how do you feel comfortable with this? shouldn't you pay down mortgages first? 6-23-2010 6:27pm
- ^we carry a mortgage on primary residence and would carry mortgage on second residence (put 20% down). 6-23-2010 6:23pm
- thanks. dh wants to spend $1.8....i want to spend $1m....we'll probably have to meet in the middle which is close to your #. 6-23-2010 6:19pm
- we have second home that is paid off as is our primary residence. Personally, no home right now is an investment. You can't think of any house as such right now, really. 6-23-2010 6:17pm
- this! 6-23-2010 6:17pm
- oy vey 6-23-2010 6:18pm
- 2nd homes can be decent investments if you can rent it out. We rent ours out...we use it on a few weekends and rent it out the rest of the time. It's great! Definitely covers taxes and...(more) 6-23-2010 6:18pm
- how many weeks a year do you rent it out? 6-23-2010 6:20pm
- ours is a community where the summer is the high season. usually rent it out for about 6-8 weeks. $4500/week. 6-23-2010 6:21pm
- how many weeks a year do you rent it out? 6-23-2010 6:20pm
- 3mm 6-23-2010 6:18pm
- The best buys are those in the low to slightly under mid-range. Usually those are most distressed sellers. 6-23-2010 6:19pm
- which range is that? less than $1m? less than $2m? 6-23-2010 6:20pm
- depends on what median home value is where you are looking. For us, anything under $1.3 that is on the market tends to be a distressed seller. Also condos. 6-23-2010 6:22pm
- which range is that? less than $1m? less than $2m? 6-23-2010 6:20pm
- our second home was a great investment. more than doubled in 5 years. better than our primary residence. 6-23-2010 6:20pm
- Depends on your family. We use our house all the time, we love it. Financially it might not make great sense, but we really enjoy it so it's worth it to us. Similar hhi to yours. 6-23-2010 6:21pm
- Wow, where are the rabid flamers? 6-23-2010 6:28pm