Second house “camp”

[hunts_with_stick]

So a house with 3 acres is coming up for sale next to my property, an hour away from my main house. We are thinking about buying it for a camp. That being said, I would need to take a mortgage out on it. We don’t have one on our primary house. Can I get a 30 year mortgage? Also, has anyone sold any pm’s to make a purchase? I have that option as well that would cover the majority of the cost and would only need a small loan at that point. I could also reduce my 401k contribution by 5%. Is insurance on a second home any less expensive? Are there any hidden costs to a second home?

 

[Brian662]

So a house with 3 acres is coming up for sale next to my property, an hour away from my main house. We are thinking about buying it for a camp. That being said, I would need to take a mortgage out on it. We don’t have one on our primary house. Can I get a 30 year mortgage? Yes you can Also, has anyone sold any pm’s to make a purchase? I have that option as well that would cover the majority of the cost and would only need a small loan at that point. I could also reduce my 401k contribution by 5%. Is insurance on a second home any less expensive? No, it isn't Are there any hidden costs to a second home? Not really, just double the utilities, and furnishings

Answered the questions I have experience with in red inside your quoted text.

Paying to keep the place heated or cooled, insurance, and a possible mortgage definitely add up in costs. I would absolutely not reduce my 401k to afford a second home, you'll never get that compounding interest back, maybe that's just me though.

 

[Howboutthemdawgs]

Since you don’t have a mortgage you have a lot of equity I’m sure in your residence. You could possibly get a heloc to pay for it

 

[hunts_with_stick]

Thanks! I have thought of a heloc as well. I wonder if it’s worth hanging on to the pm’s or if the value of a house will go up faster.

Has anyone ever regretted buying a camp? This place is turnkey, so I’m not worried about that, just more so I guess in terms of they didn’t use it as much as expected or they just got tired of paying the bills. I think it would increase the value of my property if I were ever to sell them both as one parcel

 

[Howboutthemdawgs]

Sorry what are pm’s? I’m sure it’s obvious but I’m drawing a blank.
I’m not sure your specific situation but having a place to stay absolutely makes or breaks a property for me. So no I wouldn’t regret it. I sold a very adequate property because the living arrangements were rough just so I could get a better place to stay

 

[hunts_with_stick]

Precious metals

 

[Natty Bumppo]

Are there any hidden costs to a second home?

One potentially...it may not affect you. If you have kids who will be in college in the future it will affect your financial aid, as FAFSA considers a second home an asset. I dealt with that this year as I bought a neighboring property two years ago that had a 5,000 sq. ft. home on it. I started a small timber frame LLC on that property and that then made it a business, not a second home, and I was not required to list it on the FAFSA form as an asset.

 

[escpen]

From experience, I really regret not being more aggressive in my attempts to purchase the home on 20 acres that neighbors my main hunting property, which is about 2 hours away from where I live. To have the ability to stay on the property and own adjacent land would be invaluable to me. It sold a couple years back before ever coming on the market, unfortunately. Adding insult to injury, my new neighbors have been problematic almost from the start. Now I'm looking at spending at least the same amount of money, if not more, to put the infrastructure in on my place (e.g. well, septic, etc.) and build a smaller place without gaining any acreage.

If you can swing it, I'd suggest you buy.

 

[hunts_with_stick]

good info about fafsa that does come into play.

 

[Catscratch]

I'd talk with my insurance agent and tax man.

Dipping into retirement or long term savings/investments is risky if it's a large percentage of what you have. Less risky (in my opinion) if you're liquidating a "drop in the bucket".

 

[SwampCat]

I built a house on my acreage, 45 min from my main house and insurance was a little higher for it since no one lived in it on a regular basis.

 

[SD51555]

Look at all the costs. I have about the most maintenance free camp there could be. No water, no utilities, all maintenance free siding and roof. I still have to mow every week for five months, need a tank of propane every year, mower isn’t free, sucks mowing when bugs or heat is bad.

If u love it do it. But make sure you have the time and stomach to maintain it. I’d be looking at a 401k loan to finance part of it. Rates are down from their peaks, markets are topped out and getting shaky, and the interest stays in your pocket.


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[SwampCat]

Look at all the costs. I have about the most maintenance free camp there could be. No water, no utilities, all maintenance free siding and roof. I still have to mow every week for five months, need a tank of propane every year, mower isn’t free, sucks mowing when bugs or heat is bad.

If u love it do it. But make sure you have the time and stomach to maintain it. I’d be looking at a 401k loan to finance part of it. Rates are down from their peaks, markets are topped out and getting shaky, and the interest stays in your pocket.


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Yes, there are for sure additional costs. My family has a camp across the pasture from my house. I do some of the smaller work. But last year an hvac u it needed replacing. This year it will need bleached and stained. The screen doors on the back porch need replacing. Not only does it takes money, it takes time away from things you would rather be doing. Twice the maint, twice the power bill, twice the water bill, twice the grass mowing, twice the insurance, twice the property tax.

 

[BenA]

I'm 10.5 hours from my place. I've toyed back and forth with the idea of buying something to stay in. If I could later sell at a profit after all the upkeep and monthly bills, it could work. but not without costs both monetary and not. I'm limited in time due to distance, so it's cheaper and less maintenance if I stay at a hotel or short term rental. I get my time on my hunting property to devote to it and things around the area the family wants to see and do. Maybe I could rent it out on AirBnB or VRBO when I'm not there, but I'd have to find a manager in the area I trust very much.

 

[Howboutthemdawgs]

There’s some intangibly valuable (is that a phrase?) about having your own home away from home at your property. It’s the ultimate escape.

 

[hunts_with_stick]

Right, kind of what I was thinking as well. Plus maybe it will make the place more valuable?

 

[SD51555]

There’s some intangibly valuable (is that a phrase?) about having your own home away from home at your property. It’s the ultimate escape.

Absolutely. I’d not trade it for anything. And my place is probably the smallest and lowest amenity of places out there.


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[bigboreblr]

Since your consider economics of it. You need to compare it with something.

A.) get that house
B.) make something on your property
C.) Do something else with the money.

Few questions I got.

Your existing property- How many acres is your parcel? Too open to put a spot in to stay? Wudl you ever sell your current home and live there / retire?
New place- Taxes? How much work does it need? Place suit your needs well? Or, you need a bigger garage etc.
Your time- How often you go up there? How much more often would you go up there. What do you do now to stay there? Often just you? What would you give up now? Vacation time?

I drive an hour each way to work. Not great, but not horrible.

 

[hunts_with_stick]

Since your consider economics of it. You need to compare it with something.

A.) get that house
B.) make something on your property
C.) Do something else with the money.

Few questions I got.

Your existing property- How many acres is your parcel? 12

Too open to put a spot in to stay? no, have a shed that I use as a cabin with no amenities

Wudl you ever sell your current home and live there / retire? Yes

New place- Taxes? very low

How much work does it need? none really, pretty turn key

Place suit your needs well? Or, you need a bigger garage etc. lots of storage space

Your time- How often you go up there? During the hunting season, a lot. During the summer, somewhat frequently to cut the grass maintain the trees, but when its hot I don't stay overnight.

How much more often would you go up there. I would think more often during the week in summer

What do you do now to stay there? Often just you? yes because it is just a shed with a couple of beds. Sometimes my youngest goes with me

What would you give up now? Yes, vacation to different places with the family. At least for the first year, until I figured out all the expenses. Vacation time?

I drive an hour each way to work. Not great, but not horrible.

 

[SwampCat]

I'm 10.5 hours from my place. I've toyed back and forth with the idea of buying something to stay in. If I could later sell at a profit after all the upkeep and monthly bills, it could work. but not without costs both monetary and not. I'm limited in time due to distance, so it's cheaper and less maintenance if I stay at a hotel or short term rental. I get my time on my hunting property to devote to it and things around the area the family wants to see and do. Maybe I could rent it out on AirBnB or VRBO when I'm not there, but I'd have to find a manager in the area I trust very much.

The problem with a vrbo, is it restricts when you can go. And yes, I agree - building a cabin or a house will require more of your attention away from your property and hunting.

That said, my first land purchase was 12 acres near a large block of public land where I already did a lot of my hunting and fishing and the intent was to immediately build an overnight structure - I had very little land to manage. I also had a boat I kept at Venice, LA - ten hours away. Katrina took my boat a few years after I built my cabin - and actually did me a favor. Instead of buying a new boat, I bought more land adjacent to my original purchase. Ten hours away takes a lot of time and effort to get there. With more land, and no ocean boat, I spent a lot more time at my property.