-by Scoop (September 1, 2017)
ccording to Real Estate Scoreboard (RES), of the roughly 75 Million U.S. Baby Boomers 40% would like to own a 2nd or vacation home. Personally I have my doubts the percentage is that high but then again who wouldn’t want to own a really nice 1-, 2- or 3-bedroom vacation home located in one of their favorite places like high up in the mountains or maybe in a fast-paced cosmopolitan city or perhaps a quaint ocean-front home on an isolated beach surrounded by a lush tropical environment?
So Here’s The Scoop: RES also tells us in their article “The Cost of Owning a Second or Vacation Home” that in the USA, the cost to own that 2nd or vacation home is running around $700 each month.
But hold on, Pilgrims, because what RES actually said was that monthly expense does not include the mortgage, repairs or improvements; they arrived at their figure by only calculating $150 for property taxes, $60 for insurance, $285 for utilities, $100 for lawn-care and $100 for HOA’s, bringing the monthly cost (average) expense to $695.
I’m not sure I would agree with those numbers either because if someone bought a (e.g.) vacation cabin in the mountains far away from prying eyes they might not have HOAs to pay and they may incur lower utility costs and property taxes and as for lawn-care expenses – forget about it – they’re living the great outdoor lifestyle.
Of course even in the aforementioned setting there is usually the cost to buy the ‘shack’ and since many people reportedly don’t pay all cash for their 2nd or vacation home they’ll also have a principle & interest (PI) payment to remit each month as well.
So if most buyers found a really sweet deal and the additional PI outlay was another (e.g.) $700 then the ‘average’ cost to own a 2nd and/or vacation home in the USA would be more like $1,400 (+ -) each month.
Let’s see – that seems to tally up to about $16,800 per year, or $84,000.00 over the first 60 months (5 years) to own a 2nd or dream vacation home without, that is, the unexpected and the inevitable costs of home repairs (aka: maintenance costs).
Hmmm, thinking, thinking and much more thinking!
Now I’ve never claimed to be the brightest bulb in any marquee but I wonder if it wouldn’t be such a bad idea to stop selling timeshares the way they are usually sold to sales guests and instead place a much greater emphasis on the vacation home aspect of what we are actually peddling in the first place?
You know, like the advantages of owning a beautiful & fully appointed hassle-free vacation home at a fraction of the mandatory costs associated with traditional vacation home ownership and where ‘our’ vacation owners don’t even have to so much as wash the windows, steam the carpets, clean the pool, scour the B-B-Q or mow the lawn, etc.
And then there is that real dollar value for ‘our’ vacation owners, should they ever so desire, of being able to use the same types of vacation homes with their loved ones and friends all around the world and do so in some of the most sought after regions and destinations imaginable.
Hey, it’s just an idea but when you consider that average expense of $1,400 each month to own a fairly modest 2nd and/or traditional vacation home costing about $420,000 over the first 25 years – excluding, that is, those pesky and mandatory home repairs & general maintenance – well, being a vacation owner just might be an attractive alternative for budget conscious consumers who would love having their own vacation home.
Good Luck Out There
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