Those who have second homes, how much did you have saved when you bought?
topic
We are about to buy second and have 500k saved.
Don't!
Why?
How does it make sense to take a second debt without paying off the first one? If you have paid off the first, it will still make sense. Who wants to be in eternal debt and enormous risk a second home brings in?
First make sure you have 3-6 months emergency funds and your 401k is on track to be maxed out for the year. Then make sure you have enough saved for 20% down payment and 10% for incidentals, plus any known necessary upgrades to the second home. Having said that, if you are buying now, make sure you are ready to hold for the next 5-10 years.
$300K when brought 1st home and $2.5mil when brought 2nd home recently
How did you get to 2.5M? Housing appreciation , savings, TC or stocks?
Savings and index funds. I am very conservative investor. If I include housing appreciation it probably be close to 3.5 mil.
For some people, it’s less of a cost thing than a time availability. I have a place in Scottsdale. I’m there maybe 4-6 weeks a year. My extended family however, love it.
*save
Huh