Wait to Buy Vacation Home Until You Have Children

Money Bizwiz Team
4 Min Read

A Luxurious Investment: Buying a Vacation Property

When it comes to buying a primary residence, the advice is often to do it as soon as you can afford to. However, purchasing a vacation property is a whole different ball game. It’s a luxury expense that nobody needs, and the chances are you won’t use it enough times a year to justify the expense, making it a less-than-optimal investment.

My own experience with buying a vacation property in Palisades Lake Tahoe in 2007 left me somewhat jaded. Despite getting a discount from the peak price, the property’s value continued to decline during the global financial crisis, making me question the wisdom of owning a vacation property.

A Vacation Property: Worth It After Having Children

As a single individual or couple, you might not use a vacation property enough to justify owning it. Renting it out during the times you don’t use it is essential to avoid being in the red with expenses. However, once you have children, the value of a vacation property skyrockets for five main reasons.

1) More people get to enjoy the vacation property

The more individuals who can enjoy the property, the more valuable it becomes. Having kids allows you to utilize the space more efficiently, making the investment more worthwhile.

2) The cost of the vacation property gets amortized across more people

With children, the cost of the property is spread out among more people, making it a better value proposition.

3) More comfortable living arrangements for a family

Owning a vacation property that suits your family’s needs provides a better layout and more comfortable accommodations for family vacations, which becomes more appealing after having kids.

4) A stable second home for kids to build lifelong memories

Children benefit from the familiarity of a vacation property and the sense of community it offers. It becomes a second home where they can build lasting memories.

5) You give yourself more time to build more wealth

Buying a vacation property after having kids allows you to focus on accumulating wealth before their arrival, giving you more financial stability to prioritize spending on family experiences.

Finally Excited To Go To Our Vacation Property More Often

After a fantastic family ski vacation, I’m thrilled about visiting our vacation property more frequently and creating new family experiences and bonding over the years.

Wait Until Your Youngest Turns At Least Three Before Buying

Buying a vacation property should be a lifestyle decision first and an investment second. Ideally, wait until your last child turns three before buying to ensure the property is utilized to its full potential.

Invest In Real Estate More Strategically

If buying a vacation property isn’t for you, consider investing in passive real estate investments through platforms like Fundrise for potentially better returns. With remote work becoming more common, investing in real estate in lower-cost areas can be a sound financial decision.

Ultimately, whether you decide to buy a vacation property before or after having kids, consider the value it will bring to your family and the memories you’ll create together. Best of luck with your decision-making process!

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