A crossroads in my "PM life". ****WINNER!!!****
gecko109
Posts: 8,231 ✭
I have hit a major point in my PM pursuits, and its probably for the best. I am in the very fortunate situation to be WAY ahead of the game as far as profit on the metals I have worked so hard to stack over the past 4 years. I have decided to do a partial cash-out on a substantial portion of my holdings in order to aquire a new asset class....real estate.
On the suggestion of a good friend, and co-worker....my wife and I have begun looking at parcels of land in a gated community not too far from home. We have found a wonderful piece of land which is on a 26 acre lake and has in place a relatively new park camper/trailor. Sewer, water, and electric are all hooked up, and this particular parcel has a massive 125-150 feet of lakefront footage with a pier, seawall, and dock. In otherwords, a fantastic summer cottage!
In order to pull this together....without a medium mortgage....I have decided to liquidate about 1/3rd of my PM holdings....or about $25,000 worth, and add an additional $10,000 in cash to put a total of $35,000 down on this $52,000 property. Initially, I wanted to sell $42,000 worth of metal and pay cash for the place, but financing $17,000 is basically about $100/month on a mortgage.....an amount that wont be felt at all......but the additional $17,000 in metals being sold would be quite a blow!
The main reason we are doing this is for our 4 year old boy. I think having a summer cottage thats a couple hours away will be a great opportunity for fun family times. I think that a loss of 1/3rd of my stack is worth the advantage of having such a nice getaway. Besides, we are basically just trading 1 asset class for another.....its not like we are going to blow $25,000 on a month long trip to Europe.
What do you guys think about this plan? If you were in my shoes, would it be something you would consider? Would it be a no brainer? Or does it have the potential to be a "costly" manuver in terms of the future loss on the possible gains on that $25k in metals?
On the suggestion of a good friend, and co-worker....my wife and I have begun looking at parcels of land in a gated community not too far from home. We have found a wonderful piece of land which is on a 26 acre lake and has in place a relatively new park camper/trailor. Sewer, water, and electric are all hooked up, and this particular parcel has a massive 125-150 feet of lakefront footage with a pier, seawall, and dock. In otherwords, a fantastic summer cottage!
In order to pull this together....without a medium mortgage....I have decided to liquidate about 1/3rd of my PM holdings....or about $25,000 worth, and add an additional $10,000 in cash to put a total of $35,000 down on this $52,000 property. Initially, I wanted to sell $42,000 worth of metal and pay cash for the place, but financing $17,000 is basically about $100/month on a mortgage.....an amount that wont be felt at all......but the additional $17,000 in metals being sold would be quite a blow!
The main reason we are doing this is for our 4 year old boy. I think having a summer cottage thats a couple hours away will be a great opportunity for fun family times. I think that a loss of 1/3rd of my stack is worth the advantage of having such a nice getaway. Besides, we are basically just trading 1 asset class for another.....its not like we are going to blow $25,000 on a month long trip to Europe.
What do you guys think about this plan? If you were in my shoes, would it be something you would consider? Would it be a no brainer? Or does it have the potential to be a "costly" manuver in terms of the future loss on the possible gains on that $25k in metals?
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Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Sounds like you have a good plan to do that.
especially for a place which its not your primary home or an income producing property.
Chances are that you wont be using this property as much as you think, sure it would be fun for a while but after going there for a couple of years, your kid might decide he just wants to go to disney instead.
Then you have to pay for property taxes, insurance and repairs.
52,000 is a nice chunck of money ...how much would it be to just rent a place like that for a month in the summer? 2k maybe 3k?
Groucho Marx
Steve
I'd be more inclined to buy income-producing property in order to finance the new lot. But that's me, and I'm funny that way
--Severian the Lame
<< <i>I am not a fan of real estate.
especially for a place which its not your primary home or an income producing property.
Chances are that you wont be using this property as much as you think, sure it would be fun for a while but after going there for a couple of years, your kid might decide he just wants to go to disney instead.
Then you have to pay for property taxes, insurance and repairs.
52,000 is a nice chunck of money ...how much would it be to just rent a place like that for a month in the summer? 2k maybe 3k? >>
You are absolutely correct in that an income producing property is a much more sound financial purchase! Property tax, association fees, and insurance amount to a total of just $165/month. Renting a comparable place for a month during high demand seasons is probably close to your 2K guess, but unfortunately...due to our schedules...we never have a month off at a time. Since the drive is about 1.5-2 hours, its close enough that we can just jump in a car and go for a day or 2 at a time. We could also easily spend an entire week out there at a crack as schedules permit. If we didnt have a kid, we wouldnt be even considering a place like this. This is almost all for his benefit. We live in a very congested city...Chicago....so having a place where the air is fresh, and wildlife is abundant is a major plus. The relatively short drive is also a big benefit. I anticipate at least 10 trips per year (its open year round) so if we own the place for 10 years, thats 100 stays....or about $520 per stay. A 2-3 day local getaway will cost the same...and thats without the benefit of having 150 feet of lake frontage! And dont forget, after those 10 years, we will have more than just a pile of receipts and photos of where we stayed.....we will still own a $52,000 (probably more by then) chunk of property on a lake!
We are very excited to be able to do something like this at our age. Most 36 year olds dont have summer cottages.....we will have one that is 55% paid for on day 1. If for some reason it doesnt work out.....we dont like it after a year or 2, we will still have quite a bit of equity in the place, and can then use that money for some other pursuit. I tend to think the benefits outweigh the costs of "losing" 1/3rd of my metals. At $50K, im still in great shape with physical PMs....and can rebuild my stack as discretionary money permits.
I'll know by 4pm tomorrow if its a done deal. We are taking $2,000 in earnest cash with us just in case we have to have the place! Wish us luck!
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Father in law is retired. He goes there every other weekend, weather permitting, to mow. And clear brush. And plant seedlings. Patch holes, repair the dock, move pavers, etc. etc. etc.
Maybe two weekends a year my wife's folks actually visit for "fun". Have friends over, cook out. Hay rides for a church group.
Be cautious, gecko. That's all I'm saying. It's easy to get emotionally attached to the idea of a place like that. But the reality may not be what you're expecting.
--Severian the Lame
If it is something that will make you happy then go for it.
But I Just personally dont like it...I live in South Florida and we get lots of people from up north and from overseas who love our beaches and warm weather all year round and then decide to buy a place down here. ( for future retirement, for kids, weather etc)
They use the pace quite a lot for sometime but after a while they come less and less and the place its just another headache to deal with, taxes, hurricane seasons etc.
Just think about it and add it all up.
It costs you about $2000 a year in fees plus $1200 for the mortage...so thats about 3200 a year or about 6 visits per year if you used that money to just rent.
so basically you get 4 "free" weekends a year.
Life gets complicated so probably instead of your planned 10 visits you might end up with 8 visits per year...so basically you would be giving up 25K in metals for about 2-4 weekends a year and an iliquid piece of land in the middle of nowhere with a nice view.
Groucho Marx
Would not be surprised to see silver 3X to 4X current levels in that time...and RE another 20-30% lower. Many longer term deflationary cycles bottoming over the next
3-4 yrs. Once that passes then I'll be thinking about where to spend any extra cash.
roadrunner
<< <i>with a pier, seawall, and dock. >>
Depending on the amount of boat traffic (wake) the seawall can be a real expensive PIA maintance wise. Sink holes can appear in your yard behind the wall from failure beneath the sea wall, or the wall might have to be replaced, may take years but it can happen.
Follow your dreams but not into a money pit.
<< <i>
<< <i>with a pier, seawall, and dock. >>
Depending on the amount of boat traffic (wake) the seawall can be a real expensive PIA maintance wise. Sink holes can appear in your yard behind the wall from failure beneath the sea wall, or the wall might have to be replaced, may take years but it can happen.
Follow your dreams but not into a money pit. >>
Because the lake is smallish at just 26 acres, only trolling motors are allowed. Not too much wake from those i'd imagine.
<< <i>As MJ said, do you what you want. But if you want opinions I think RE has several more years of declining before recovery. And PM's have several more years upwards.
Would not be surprised to see silver 3X to 4X current levels in that time...and RE another 20-30% lower. Many longer term deflationary cycles bottoming over the next
3-4 yrs. Once that passes then I'll be thinking about where to spend any extra cash.
roadrunner >>
I agree completely with your assesment. However, my kid is now 4.....the whole point of having such a summer getaway is for us to enjoy it. If we wait too much longer, then the 4 year old is a 14 year old who wants to hang with his buddies from the neighborhood.....not his old man at the lake.
FWIW- Phil, I see this as low risk, low reward financially, However, I see it as high reward from memories you may create with your family. That you can not put a price on.
However, since you asked and this thread is off and running......
Personally, I wouldn't sell any of your PM's. I would sell your Corvette instead. It is a third car and not practical. Are you risking falling into the same trap as many Americans do? Three cars, a second home and with your new purchase you will be buying a small boat and other toys as well. Sell the Vette instead of the pm's, that is a slam dunk. MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>Its not a bad deal ..not at all...especially since you are barely financing at all.
If it is something that will make you happy then go for it.
But I Just personally dont like it...I live in South Florida and we get lots of people from up north and from overseas who love our beaches and warm weather all year round and then decide to buy a place down here. ( for future retirement, for kids, weather etc)
They use the pace quite a lot for sometime but after a while they come less and less and the place its just another headache to deal with, taxes, hurricane seasons etc.
Just think about it and add it all up.
It costs you about $2000 a year in fees plus $1200 for the mortage...so thats about 3200 a year or about 6 visits per year if you used that money to just rent.
so basically you get 4 "free" weekends a year.
Life gets complicated so probably instead of your planned 10 visits you might end up with 8 visits per year...so basically you would be giving up 25K in metals for about 2-4 weekends a year and an iliquid piece of land in the middle of nowhere with a nice view. >>
The difference between owning property thats a plane ride away, and one thats a 90 min drive away is obvious. Although my estimate of 10 trips/year is just a guess, I do understand the point of diminishing trips over time. As far as owning an "iliquid" piece of land, im not sure im quite understanding your definition of the term iliquid. Just as the value of metals will never be $0, so too are the "rules" for land. I actually think that lakefront property close to a major metropolitan hub like Chicago would be an extremely "liquid" piece of land! Even in the worst economy, there will always be those who are doing well and want lakefront property.
Weiss brings up a great point on maintenence. I will attempt to do all the upkeep myself, but am not opposed to hiring a landscape company to take care of the grounds maybe every other month. The lot itself is about 150 x 50 or so (dont have the exacts yet) and would probably cost no more than $100 per visit by the landscaping company. We have the cash for all the overhead....its just a matter of how much "work" I want to do myself I suppose.
As stated before, its simply a trade in of 1 asset class for another. Do I think metals will outperform land in the coming years? Most likely. But I cant go fishing in a bucket of 400oz of silver and 6oz of gold! My kid cant run around in a pile of 5oz silver bars. 24 gold 1/4oz eagles dont have a fresh, outdoorsy smell to them. Besides, i'll still have a respectable pile of the shiny stuff, AND a place for the family and friends to relax. Cant wait till tomorrow!
>
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RE is how I keep score; you cannot own too much free
and clear real property.
Buying a property that produces nothing but prospective
"fun," in a likely further declining market - using funds that
could be invested in assets that are likely to appreciate
quickly - is a TERRIBLE idea.
You may "feel" rich enough to buy an expensive toy, but
you're prolly not. If you are still paying a mortgage on your
primary residence, BUYING your way into another mortgage
on an unproductive property is an extremely poor judgement
call.
..........
If you wanna take some PM profits, they would be MUCH better
spent on paying off your residential mortgage. The money you
currently use for those mortgage payments could then be put
to work buying more PMs every month --- or, if you insist, used
to buy an unproductive "fun" property.
First things FIRST.
The first step to absolute freedom is to eliminate ANY mortgage
payment on your primary residence.
Best of luck
Groucho Marx
You go man. Have a blast at your new lake pad. The time spent there with your family will be priceless.
<< <i>I agree completely with your assesment. However, my kid is now 4.....the whole point of having such a summer getaway is for us to enjoy it. If we wait too much longer, then the 4 year old is a 14 year old who wants to hang with his buddies from the neighborhood.....not his old man at the lake. >>
Great point gecko!
<< <i>Personally, I wouldn't sell any of your PM's. I would sell your Corvette instead. It is a third car and not practical. Are you risking falling into the same trap as many Americans do? Three cars, a second home and with your new purchase you will be buying a small boat and other toys as well. Sell the Vette instead of the pm's, that is a slam dunk. MJ >>
Some outstanding advise from MJ. Trade one toy for another more usable toy the whole family can enjoy.
<< <i>
<< <i>I agree completely with your assesment. However, my kid is now 4.....the whole point of having such a summer getaway is for us to enjoy it. If we wait too much longer, then the 4 year old is a 14 year old who wants to hang with his buddies from the neighborhood.....not his old man at the lake. >>
Great point gecko!
<< <i>Personally, I wouldn't sell any of your PM's. I would sell your Corvette instead. It is a third car and not practical. Are you risking falling into the same trap as many Americans do? Three cars, a second home and with your new purchase you will be buying a small boat and other toys as well. Sell the Vette instead of the pm's, that is a slam dunk. MJ >>
Some outstanding advise from MJ. Trade one toy for another more usable toy the whole family can enjoy. >>
What if owning both "toys" are easily affordable because we have been living so far under our means for the last 5 years? Does that change anything? The vette is the ultimate indulgence in complete wastefulness. Even I will admit to that much. But we can easily afford it, so im very hesitant to give it up. Nothing brings the same kind of grin to my face as when that 6.0L V8 pops to life!
>
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<< <i>What if owning both "toys" are easily affordable because we have been living so far under our means for the last 5 years? Does that change anything? The vette is the ultimate indulgence in complete wastefulness. Even I will admit to that much. But we can easily afford it, so im very hesitant to give it up. Nothing brings the same kind of grin to my face as when that 6.0L V8 pops to life! >>
My best friend has a 2004 tourch red rag top vette...she is mad at the world fast!
<< <i>While I can understand the "corvette" thing, I am more concerned about your time. This new property will take more time to manage than you think. Your corvette probably takes little time to manage. Especially if you are thinking about having more kids, time would be an issue, at least to me. >>
The lot we live on in Chicago is a very modest typical one. 25 x 125 with about 12 minutes worth of mowing. Its a brick raised ranch style and was built in 1979, so real "maintenence" is almost non existant. The property we are goin to see Sunday is MUCH more labor intensive, and I really get that. Its something to consider for sure. Each time we go there as a family, I will likely be doing a couple hours worth of chores around the place. Thats if I decide to do everything myself.....hiring a landscaper is an option.
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>
<< <i>While I can understand the "corvette" thing, I am more concerned about your time. This new property will take more time to manage than you think. Your corvette probably takes little time to manage. Especially if you are thinking about having more kids, time would be an issue, at least to me. >>
The lot we live on in Chicago is a very modest typical one. 25 x 125 with about 12 minutes worth of mowing. Its a brick raised ranch style and was built in 1979, so real "maintenence" is almost non existant. The property we are goin to see Sunday is MUCH more labor intensive, and I really get that. Its something to consider for sure. Each time we go there as a family, I will likely be doing a couple hours worth of chores around the place. Thats if I decide to do everything myself.....hiring a landscaper is an option. >>
I want to quickly throw my hat in the ring for hiring a landscaper.
When it comes down to it, it doesn't matter how big the stack is, how much dollars you make, we all only have 24 hours in a day. Make sure you do your best to maximize the hours you do have.
This means put this property on as much of "autopilot" as possible.
The wisdom of doing this and owning true property can be debated, with good points either way.
However, you can have all the money/things in the world but if you don't had the TIME to enjoy life, it is pretty much pointless.
Just my 2 cents.
Contests on living the dream.
buy existing, new construction prices too high
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Buy the place. Have some fun. Enjoy it . . .
If becomes a burden, or when your life situation changes, sell it.
Just the ramblings of an old fart that's been there ! ! !
HH
1947-P & D; 1948-D; 1949-P & S; 1950-D & S; and 1952-S.
Any help locating any of these OBW rolls would be gratefully appreciated!
<< <i>Phil, you are a rock head and no one is going to change your mind. Trade your Vette in for a pontoon or bass boat. Na, you won't do that. Hey, if you end up pulling either of the boats with your vette please be kind enough to take pictures...............MJ >>
Not looking for anyone to change my mind. Was just interested in other's thoughts. I guess if what I "value" differs from what you "value", then yeah, im a rock head. You can plainly see from my very 1st post that I have decided to do this.
Thanks to all for the comments.....whether they were encouraging or discouraging, its nice to take a look at both sides! I can rebuild my stack at my leisure.....I cant get back quality family time with my 4 year old.....thats really the bottom line here.
I think it all comes down to the individual and what they can handle. My best friend is 16 yrs older than me, he bought a mountain cabin on one acre, the same year I bought 4 acres at the very top of the mountain with plans to build a nice two story log cabin, views forever looking to the North above all other inhabitants on the Mountain at about 9000' elevation.
The difference between him and I over the years have been two things. First, he pays people to do almost everything for him. He owns approx 200 toilets, but has professional management. I manage all my income property. He's had more time with his kids/wife over the last 22 years than I have, I'm just too stuborn to pay people to do things I can do.
Second thing, he's 70 years old and has 3 times the energy I do. He doesn't mind driving 2 hours to spend 30 minutes fishing with one of the kids. Me, I just can't see doing that unless it's an all day trip. I get worn out just thinking about all the energy he has. He's never grown tired of taking care of Cabin upkeep, drives the 2 hr round trip probably twice a mth, even though the kids are all out of state at college now.
Of course, approx 15 yrs later I still haven't built the cabin. His kids have wonderful memories of cabin living on the mountain. He just finished remodeling the Cabin. If I had my rathers, in hindsight I wished I did things differently. I don't know where I could have came up with the energy though.
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We enjoyed the place for several years, went swimming, sailboating, entertaining, etc. In the meantime, the rest of our profits from precious metals went into her law school tuition. We managed to go out there about every other weekend for about a year. Of course, there is some "winterizing" to do over the winter, and there is always maintenance & upkeep to some extent even tho' its a recreational home.
The second and third years, we settled into a schedule that allowed us to go there every 2 or 3 weekends. We were both in school and I was still working full time, so we couldn't go as often as we would've liked - but it was definitely a great place to study and unwind. Keep in mind that each weekend also involved packing and travel, to and from - so the "weekend" is more like Friday night pack & travel, Saturday busy at the lake and Sunday, some relaxation before packing & traveling back home, regrettably.
The fourth year, we moved away from St. Louis and were sitting with a property that was about 7 hours away. The fifth year, we sold it at a slight loss because the recreational real estate market wasn't moving as well as when we had bought it. So, we had the money tied up & had to keep it maintained for 2 years without any regular utilization. You can't always predict stuff like that.
Would I do it again? Probably, which is to say that there are always tradeoffs. Repeat this to yourself - "there are always tradeoffs". Make a decision that makes sense to you, and if you buy the place - be sure to enjoy it for "all it's worth".
I knew it would happen.
<< <i>I am not a fan of real estate.
especially for a place which its not your primary home or an income producing property.
Chances are that you wont be using this property as much as you think, sure it would be fun for a while but after going there for a couple of years, your kid might decide he just wants to go to disney instead.
Then you have to pay for property taxes, insurance and repairs.
52,000 is a nice chunck of money ...how much would it be to just rent a place like that for a month in the summer? 2k maybe 3k? >>
Agree. Property taxes, maintenance fees, utilities fees, and homeowner association fees will always be there. Also, realestate is not liquid like PM's should you decide to sell.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
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As you can see you get varied opinions here on the board. Do as you and your wife decide and do not look back. Everybody here has and some did well, others did not, but it was their own decision to make.
Back in 1957 my parents and my grandparents did the same thing, they bought a place that was just a bit over an hour outside of Chicago, in Michigan on a private lake. It started out as a 3 car garage and within one summer was turned into a 2 bedroom summer cottage- made of CMU walled exterior and paneling inside (it was the country). The lake was huge, had speed boats so water ski and of course plenty of small boats to fish with. We had the speed boat, a pontoon and the 14 foot with a 5hp motor to get out to the crappie pools.
As I grew older I would spend countless weeks up there - summer and winter. This place saw the birth of my brother, the passing's of my grandparents and my mom. so it stayed in the family for several decades actually. It was passed down from my grandmother/mom to me and my brother- we decided to sell the place so my dad could be looked after back where he wanted to go home to- Chicago.
Now back in 57 that piece of property cost a whole $3,000.00 and in 1999 we sold it for just under 95,000. A good ROI and many years of memories.
Do it- you only get to see your kid grow up one time in life- just be sure that you spend the time with him and teach him the good values of life. Its not the owning of a vette nor how much money you have in PM's or whatever collectible you desire- take a step out of the normal rat race that Chicago definitely is.
Been there done that.
<< <i>
<< <i>Phil, you are a rock head and no one is going to change your mind. Trade your Vette in for a pontoon or bass boat. Na, you won't do that. Hey, if you end up pulling either of the boats with your vette please be kind enough to take pictures...............MJ >>
<Not looking for anyone to change my mind. Was just interested in other's thoughts. I guess if what I "value" differs from what you "value", then yeah, im a rock head. You can plainly see from my very 1st post that I have decided to do this. >
Not at all. You being a rockhead has nothing to do with different values. You being a rockhead is what it is. I knew there ws no changing your mind from your OP. I believe I was the first to respond to your post.
<Congrat's and enjoy! It doesn't matter what we think. MJ >
Again, congrat's and enjoy! MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>
...... but financing $17,000 is basically about $100/month on a mortgage.....an amount that wont be felt at all...... >>
My personal opinion is that money, wealth, PM's, assests of any sort are good for one thing and that one thing is to purchase the quality of life that one's loved ones deserve. This sure sounds like it fits that descripion to me. The memories of frolicing at the cabin on the lake will be worth vastly more to you one day than the mere dollar value of the gold you sold to buy it.
----
Years ago we had a krazy real estate run-up around my area and I had become accustomed to and possessive of my elbow room as one might say. So, fearing the onslaught of McMansions in our humble rural area, I sold my gold (mostly proof AGEs from the mint) and bought myself some additional acreage. The gold went at what today is a very low price. So really I 'overpaid' in one sense. BUT, the land is still vacant. I still have my privacy and quality of life. Other land was sold and built upon. These places now sit empty and for sale. The winters are too hard and too long (9100 feet elevation), the roads are not paved, there is 'nothing to do' at night (city folks don't know what a star is, nor an owl). Nobody today wants these $400K monstrosities in a community of much more modest homes.
Point being that I am glad I did it. Sitting upon a big sack of money in even yet another suburb would no way work for me.
Go with your guts, do it.
--------
Which brings me to my problem... the figure you quote, by my calculation, means that in order to amortise $17K at ( I assumed 5%) by paying only $100 a month, it will take you 296.33 months and you will pay nearly $30K and it will take nearly 25 years. I think you might want to pay a tad more for a shorter period of time.
----------------
Buying this land has nothing to do with your relationship with your child. Having raised 3 kids by myself starting at 9,10, and 12, going though a divorcee, and fighting for them for two years living on almost nothing. I can tell you taking them camping, to a park around your area to swim and picnic and bonding with them is all your need. In other words engage a relationship with your child. Land or money won't make a difference from what I've went though in my life. My kids remember the wierdist things and most of them was when I didn't have a dime in the worst time of my life.
I say keep the PM's and hold off on the land. It's not quite time yet and even when it bottoms it's going no where fast for a good decade IMO. It doesn't cost much to do things in your area with your child he'll remember as much,at a cheaper price, and more often than spending a bunch of money. Take them to the national parks on vacations they'll like the various places you take them to and will be much more exciting than going to the same place no matter how much fun it is. With all your fees, taxes, income taxes on any rental, and the liability of renting it out; I say if you want it buy it but don't fool yourself this is your wants that will indeed benefit your family.
Treat your child well and it's in the bag, money or things really have no bearing on real relationships. Stay out of debt and keep your power dry, your family will appreciate it...............JMO.
I agree. Also, the time you don't spend looking after and maintaining the property is more time you can spend with your kids.
My Adolph A. Weinman signature
<< <i><< Take them to the national parks on vacations they'll like the various places you take them to and will be much more exciting than going to the same place no matter how much fun it is. >>
I agree. Also, the time you don't spend looking after and maintaining the property is more time you can spend with your kids. >>
I also agree with this, but kids love repetition. I did a little of both. We had a 5-plex up in Leadville, Colorado. We had one place empty for ourselves. The kids loved it and still talk about going back. But there were times where I was pulling a toilet while I wanted to be doing smoething else. (We still have one undeveloped property in town.) I also bought a couple of Hilton timeshares, one in Hawaii and one in Colorado. Many don't like timeshare but we love 'em and make them work. I'm in the travel industry so I have a leg up on travel benies. I've taken my family to a German Chalet, Costa Rican beaches, Northern Ireland, Vegas to watch a NASCAR race etc. You just have to figure out what works best. The only constant with a family is the change. And the travel part is one of the best educations kids can get.
triple in price and now fall back about 30-35%. It's a great area and we get demand 150 miles away for people looking for a 2nd summer property. But I've seen a
number of these goon the market the past 2 years and they've been very slow sellers. I have all the same rights as these with waterfront property just not the dock and views.
I'd bet 30-50% of these summer owners would sell their properties if they could get something closer to "yesterday's" price (ain't gonna happen). My brother is a private RE agent
and he succumbed to buying an investment property in Daytona Beach. He's regretting that these days. The less extra homes you have, the more mobile/flexible one is.
When my son was from 6-10 yrs old we spent a ton of time at the park on the jungle jim and swings, playing baseball, and best yet, playing in the pond 1/4 mile
behind our house. We collected pollywogs, frogs, fish, turtles, etc. Those were the good times and it didn't require a 2nd property to enjoy it. Is Chicago area property a new
hotbed of activity? I would have thought Illinois was one of the top ten ground zero states when it comes to future financial issues.
I also went through that "fast" car phase when I was 37 until I was 49. Didn't have a Corvette but I went through a slew of muscle mopars from the 60's and early 70's
including a coulple of roadrunners.
other things that were far more important financially, economically, and professionally. There was no real payout for that period other than "fun", as it was just burning money.
Those cars are all long gone as it was time to lighten up and batten down for today's times. I also discovered that the cars weren't all that important to me in the end. A lot of
it was impressing others, even if on a subconscious level. I'd also concur with dumping the Vette as collector car prices are still floundering and will be for some time. Modern
muscle just depreciates until things fall down to the mid or low $20K's. And if you run the miles up too far on those cars, a good resale value is much more limited. The day
will come when you will probably say, yeah...should have gotten rid of it a while ago.
Waiting 3-4 yrs for real estate to get a little more attractive is not that big a deal imo. Your son will 7-8 yrs old, an age where things will be more remembered than what happened
at ages 4-5. I used to go on week long beach outings with my family every summer from ages 4-14. I don't recall hardly a thing about those trips before age 7 other than our
dog Sandy chasing the old '59 Mercury wagon down the street as the family "abandoned" her to a housesitter for a week. The ages of 7-12 still give a lot of time to play on a
lake and your son will be able to keep up with the old man on the more demanding activities. Good luck in whatever course you choose.
Fred, Las Vegas, NV