A 2nd house has some issues. DW would like one, but if its a true 2nd house that means it is vacant half of the time unless you plant family in it alot. Vacant houses can have water leaks (plumbing or roof), vandals, squatters, trees fall, etc that you may not discover for a while. Knowing your neighbors can help a lot, but doesn't work if the house is remote. If you have a house by the ocean, maintenance will be more costly than a house not near salt water.
Price appreciation can vary. The Seattle area seems to be on a non stop tear, and that may be true for the whole west coast. That is, until fire danger hits or hurricanes keep coming and then insurance gets more expensive or becomes unobtainable. Property taxes could get bad. Where I grew up in the mid west, appreciation is much slower, prices are lower, but taxes aren't much better. I remember people thinking they did OK if they netted what they paid for the house when they sold (after taxes, fees, and realtor costs). A bad turn of a neighborhood, schools, or even under funded city services can lower your buyer pool or selling price if you're unlucky.
So in a way I agree that houses are like picking individual stocks. Some are great, many are OK, and some are terrible.
Price appreciation can vary. The Seattle area seems to be on a non stop tear, and that may be true for the whole west coast. That is, until fire danger hits or hurricanes keep coming and then insurance gets more expensive or becomes unobtainable. Property taxes could get bad. Where I grew up in the mid west, appreciation is much slower, prices are lower, but taxes aren't much better. I remember people thinking they did OK if they netted what they paid for the house when they sold (after taxes, fees, and realtor costs). A bad turn of a neighborhood, schools, or even under funded city services can lower your buyer pool or selling price if you're unlucky.
So in a way I agree that houses are like picking individual stocks. Some are great, many are OK, and some are terrible.
Statistics: Posted by suemarkp — Tue Feb 04, 2025 10:44 pm — Replies 8 — Views 572